Financial reporting

QUESTION 1 The trial balance of GITMO Limited as at 31st December, 2016 is as follows: The following is to be taken into account: 1. The inventory at cost on 31st December, 2016 was GHes8,000 and the net realizable value was GH\&t48,000. 2. The Property, Plant and Equipment include a building whose net book value is currently GH20,000 is to be revalued to GH36,000. 3. Depreciation charges for the year ended 3115t December 2016 amounted to GH3,200. This figure should be included in the administrative expense. 4. The directors have decided to make an allowance for doubtful debts of 4% of trade receivables. This amount should be charged to administrative expense. 5. The balance on the corporation tax account represents an under provision of tax for the previous year. Tax for the current year is estimated at GH/12,000. 6. The investment property was acquired in January, 2016. The rental income from the investment property GH\&4,000 relates to the four-year period ending 31t December, 2019. The company adopts fair value model in subsequent measurement of the investment property and fair value assessment at 31ts December, 2016 puts the valuation at GHe 48,000 . 7. The suspense account represents the corresponding credit for cash received for a fully subscribed issue of ordinary shares made on 30th December, 2016. The terms of the share issue was 8,000 new ordinary shares were issued at GHe4.00 each. Required: In compliance with the Companies' Code provisions and in conformity with relevant International Financial Reporting Standards, prepare for publication; (i) The statement of profit or loss and other comprehensive income for the year ended 31It December, 2016. (ii) The statement of changes in equity for the year ended 31st December, 2016. (iii) The statement of financial position as at 31st December, 2016. (iv) Show clearly all relevant workings. QUESTION 1 The trial balance of GITMO Limited as at 31st December, 2016 is as follows: The following is to be taken into account: 1. The inventory at cost on 31st December, 2016 was GHes8,000 and the net realizable value was GH\&t48,000. 2. The Property, Plant and Equipment include a building whose net book value is currently GH20,000 is to be revalued to GH36,000. 3. Depreciation charges for the year ended 3115t December 2016 amounted to GH3,200. This figure should be included in the administrative expense. 4. The directors have decided to make an allowance for doubtful debts of 4% of trade receivables. This amount should be charged to administrative expense. 5. The balance on the corporation tax account represents an under provision of tax for the previous year. Tax for the current year is estimated at GH/12,000. 6. The investment property was acquired in January, 2016. The rental income from the investment property GH\&4,000 relates to the four-year period ending 31t December, 2019. The company adopts fair value model in subsequent measurement of the investment property and fair value assessment at 31ts December, 2016 puts the valuation at GHe 48,000 . 7. The suspense account represents the corresponding credit for cash received for a fully subscribed issue of ordinary shares made on 30th December, 2016. The terms of the share issue was 8,000 new ordinary shares were issued at GHe4.00 each. Required: In compliance with the Companies' Code provisions and in conformity with relevant International Financial Reporting Standards, prepare for publication; (i) The statement of profit or loss and other comprehensive income for the year ended 31It December, 2016. (ii) The statement of changes in equity for the year ended 31st December, 2016. (iii) The statement of financial position as at 31st December, 2016. (iv) Show clearly all relevant workings