Below is the Trial Balance for TK & Company Limited as at 31 December 2020. 

TK & Company Limited Trial Balance as at 31 December 2003 

Cash at hand 2,000

 Cash at bank 4,000 Land, cost 100,000 Motor vehicle at cost 10,000 

Accumulated depreciation 

– Motor vehicle 2,000 Equipment at cost 20,000 

Accumulated depreciation – (equipment) 4,000 

Stock 1st January (opening stock) 1,000

 Trade debtors 5,000 

Provision for bad debts 2,000 

Trade creditors 3,000 

Sales 200,000 

Purchases 110,000 

Discount allowed 2,000 

Discount received 1,000 

Purchases returns (return outwards) 5,000 

Sales returns (returns inwards) 10,000 

Carriage inwards 6,000 Salaries 8,000 

Salaries payable (accrued salaries) 15,000 

Rent 1,800 Electricity 7,000 Bad debts 1,200 

Capital 26,000

 Long term bank loan 30,000 

288,000 288,000 

Additional Information: 

• Closing stock at the end of the financial year was valued at GH₵20,000,000 

• Salaries of GH₵15,000,000 accrued or remained outstanding at the end of the year and were not recorded in the trial balance. • Half of the rent paid is for the following financial year ending December 31, 2021. 

• Depreciation is to be accounted for on the following basis: o Land & Building 5% Straight-line method o Motor vehicles 20% Straight-line method o Equipment and furniture 10% Straight-line method 

• Depreciate fixed assets by 20% on the cost at the end of the year 

• 20% of trade debtors are expected to default a provision against bad debts should be made. 

• Corporate tax rate is 25% 

Required: 

Prepare the following financial statements of TK Limited by relevant legislation and international reporting standards (IFRS): 

(a) The Statement of Comprehensive Income for the year ended December 31, 2020. 

(b) The Statement of Changes in Equity for the ended December 31, 2020. 

(c) The Statement of Financial Position as at December 31, 2020.