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INTERIM ASSESSMENT 2021 - FINANCIAL REPORTING QUESTION 1 The following trial balance relates to Washawasay Limited, a wholesale company as at 31 December, 2019. Debit Credit GHC GHC 11.018,400 1,104,000 2,480,000 17,600 57,600 1,366,400 -896,000 2,320,000 400,000 480,000 Sale Revenue Inventory-01/01/2019 Purchases Loan Note Interest Paid Investment Income Administration Expenses (Notes(v)) Selling & Distribution Expenses Ordinary Shares (GHC 2.00 per share) 8% Loan Notes (2016-2022) 10% Debenture Revaluation Reserve Contingency Reserve Retained Earnings - 01/01/2019 Trade Receivables Cash and Cash Equivalents Trade Payables Corporation Tax (note(ii)) Leasehold Building at valuation - 01/01/2019 (note(iv) Plant and Equipment-Cost/Depreciation (note(iv)) Computer Equipment-Cost/Depreciation (note(iv)) Motor Vehiclo-Cost/Depreciation Investment Property (Note (iii)) Suspense (note(vi)) - 28,000 -240,000 576,000 -1,485,600 -2,302,400 -1,008,000 248,000 2,240,000 2,200,000 512,000 320,000 1.152,000 -240,000 1,392,000 64,000 100.000 17.124.000 174124.000 The following additional information is relevant: ii. iii. iv. The closing inventories at 31 December 2019 were valued at a cost of GHC750,000, Ducing some slow moving products the company intends to offer a discount of 10% on the cost resulting in a net realizable value of GHC675,000 The balance of the corporation tax account represents an under provision of tax for the previous year. Corporate tax applicable to the firm is 25% The company decided to change its accounting policy with respect to its investment property from cost model "to "fair value model" as per LAS 40 Investment property. On 31" December 2019 a qualified surveyor valued the Investment property up by GHC188,000. This decision is yet to be accounted for in the books of the company Non-current assets: Depreciation of Property. Plant and Equipment is to be provided on the following basis: Plant and equipment 10% on cost-Cost of sales Computer equipment 25% on cost - Administrative expenses Motor vehicle 20% on Cost - Distribution cost No depreciation has yet been charged on any non-current asset for the year ended 31" December Washawasay Limited revalues its buildings at the coad of each accounting year. At 31st December, 2019, the relevant value to be incorporated into the financial statement is GHC2,500,000 The buildings remaining life at the beginning of the current year (1" January 2019) was 50 years. Washawasay limited does not make an annual transfer from the revaluation reserve to retained earnings in respect of the realization of this revaluation surplus. Ignore deferred tax on the revaluation surplus. The company paid ordinary dividend of 20371,200 on 31" December, 2019. The dividend payments are included in the administrative expenses in the trial balance. The balance in the suspense account represents the cash proceeds from the issue of 50,000 ordinary shares at GHC2.00 each. 2019, vi. Required: In compliance with the company's code provisie a and in conformity with relevant International Financial Reporting Standard, prepare for publica jon; Statement of Profit or Loss and other Comp thensive income for the year exed 3I" Decerbar b. Statement of changes in equity for the year ended 31 December 2019; and c. Statement of Financial position as at 31 Deceber 2019, 2019, Shew clearly all relevant workings. (Note: Accounting policy notes are not required) INTERIM ASSESSMENT 2021 - FINANCIAL REPORTING QUESTION 1 The following trial balance relates to Washawasay Limited, a wholesale company as at 31 December, 2019. Debit Credit GHC GHC 11.018,400 1,104,000 2,480,000 17,600 57,600 1,366,400 -896,000 2,320,000 400,000 480,000 Sale Revenue Inventory-01/01/2019 Purchases Loan Note Interest Paid Investment Income Administration Expenses (Notes(v)) Selling & Distribution Expenses Ordinary Shares (GHC 2.00 per share) 8% Loan Notes (2016-2022) 10% Debenture Revaluation Reserve Contingency Reserve Retained Earnings - 01/01/2019 Trade Receivables Cash and Cash Equivalents Trade Payables Corporation Tax (note(ii)) Leasehold Building at valuation - 01/01/2019 (note(iv) Plant and Equipment-Cost/Depreciation (note(iv)) Computer Equipment-Cost/Depreciation (note(iv)) Motor Vehiclo-Cost/Depreciation Investment Property (Note (iii)) Suspense (note(vi)) - 28,000 -240,000 576,000 -1,485,600 -2,302,400 -1,008,000 248,000 2,240,000 2,200,000 512,000 320,000 1.152,000 -240,000 1,392,000 64,000 100.000 17.124.000 174124.000 The following additional information is relevant: ii. iii. iv. The closing inventories at 31 December 2019 were valued at a cost of GHC750,000, Ducing some slow moving products the company intends to offer a discount of 10% on the cost resulting in a net realizable value of GHC675,000 The balance of the corporation tax account represents an under provision of tax for the previous year. Corporate tax applicable to the firm is 25% The company decided to change its accounting policy with respect to its investment property from cost model "to "fair value model" as per LAS 40 Investment property. On 31" December 2019 a qualified surveyor valued the Investment property up by GHC188,000. This decision is yet to be accounted for in the books of the company Non-current assets: Depreciation of Property. Plant and Equipment is to be provided on the following basis: Plant and equipment 10% on cost-Cost of sales Computer equipment 25% on cost - Administrative expenses Motor vehicle 20% on Cost - Distribution cost No depreciation has yet been charged on any non-current asset for the year ended 31" December Washawasay Limited revalues its buildings at the coad of each accounting year. At 31st December, 2019, the relevant value to be incorporated into the financial statement is GHC2,500,000 The buildings remaining life at the beginning of the current year (1" January 2019) was 50 years. Washawasay limited does not make an annual transfer from the revaluation reserve to retained earnings in respect of the realization of this revaluation surplus. Ignore deferred tax on the revaluation surplus. The company paid ordinary dividend of 20371,200 on 31" December, 2019. The dividend payments are included in the administrative expenses in the trial balance. The balance in the suspense account represents the cash proceeds from the issue of 50,000 ordinary shares at GHC2.00 each. 2019, vi. Required: In compliance with the company's code provisie a and in conformity with relevant International Financial Reporting Standard, prepare for publica jon; Statement of Profit or Loss and other Comp thensive income for the year exed 3I" Decerbar b. Statement of changes in equity for the year ended 31 December 2019; and c. Statement of Financial position as at 31 Deceber 2019, 2019, Shew clearly all relevant workings. (Note: Accounting policy notes are not required)