Exercise 3 Diapo Lnd is a mantactingcompany an authorised captal of100,000 shares of no par value. The trial balance of this company as on December 31, 2016 is as follows GHC000 Sated capital (60,000 ordinary shares Captal srplus Income .plus 2016 10% Debentures repayable in 15 years, arme. secured on land and building Land and building (cost GHC40m) Plant and machinery (cost GH060m) Stocks at 1/1 2016 1,000 26,000 12,000 8.000 47,000 27.400 Raw materials Work in progess Finished goods Deblors and aredtors Provision for doubtful debts Cash in hand and bank overdraft Purchases of materials Purchases and sales of finished products Manufacturing wages Manufacturing expenses 11,000 1,400 1,500 100 100,000 22.500 37,000 Seling and distnibution expenses Debenture interest The following information is available 1 Stocks at December 31. 2016 were 13,000 9,000 51,000 Finished products 2. Depreciation for 2008 (not included in the tial balancej was GHC1,000.000 for land and building and GHC6,000,000 for plant and machinery 3 Depreciation on land and buildings is to be apportioned between manufacturing administration and s Air gand dstrtus ninthe ratios of 60% .30% and 10% respectvely Accrued and prepaid expenses at December 31. 2016 were GHC000 Manufacturing expenses Administative expenses Seling and Distribution expenses 900 1.400 100 1,300 200 A bad debt of GHC 400,000 is to be written off and the provision for doubtful debts is to be made equal to GHe1,700,000 These adjustments are to be regarded as seling and distibution 6. Povision is to be made for a proposed ordinary dividend of GH6,000,000 Provide for a corporation tax liability of GH8,000,000 on the years proft of GHE1,000.000 to stated capital is to be made