Below is the Trial Balance of an Elections Company Limited, as at 31st December, 2016 Cr GHS 300 Dr. Opening Inventories 01/01/2016 GH Purchases 4,030 Discount allowed 19,700 Wages and Salaries 300 Sales 3,000 Travelling expenses 37,700 400 Advertising Expenses 800 Carriage Outwards 740 Long Term Loan 1,000 Rent Income 2,350 Bad Debts 400 Utility bills 300 Interest Expenses Building 5,600 Motor Vehicle 2,800 Accounts Receivables 3,800 Accounts Payables 4,820 Capital 3,700 Cash and Bank 7,200 49,370 49,370 Additional information a) Inventories on 31st December, 2016 was GH 2,800. b) It is the policy of the business to charge depreciation on Building at 10% and Car at 5% all on straight line method. c) Accrued expenses at the end of the period are as follows, Interest GH 50 and Utility Bills GH40 d) Advertising expenses has been prepaid by GH400 You are required to prepare; i. the income statement for the company for the year ended 2016, and ii. the statement of financial position for the company as at 31st December, 2016. Total: 40 Marks Below is the Trial Balance of an Elections Company Limited, as at 31st December, 2016 Cr GHS 300 Dr. Opening Inventories 01/01/2016 GH Purchases 4,030 Discount allowed 19,700 Wages and Salaries 300 Sales 3,000 Travelling expenses 37,700 400 Advertising Expenses 800 Carriage Outwards 740 Long Term Loan 1,000 Rent Income 2,350 Bad Debts 400 Utility bills 300 Interest Expenses Building 5,600 Motor Vehicle 2,800 Accounts Receivables 3,800 Accounts Payables 4,820 Capital 3,700 Cash and Bank 7,200 49,370 49,370 Additional information a) Inventories on 31st December, 2016 was GH 2,800. b) It is the policy of the business to charge depreciation on Building at 10% and Car at 5% all on straight line method. c) Accrued expenses at the end of the period are as follows, Interest GH 50 and Utility Bills GH40 d) Advertising expenses has been prepaid by GH400 You are required to prepare; i. the income statement for the company for the year ended 2016, and ii. the statement of financial position for the company as at 31st December, 2016. Total: 40 Marks