GT Limited is a firm that operates in the purchases and sales of batik shirts. The financial position of the firm, as revealed by the statement of financial position as at 31 December 2018 using historical cost measurements, was as follows:

GH GH

Share capital 1,800 Non-current Asset 1,200

Inventory 600

1,800 1,800

The non-current asset shown on the statement of financial position was acquired on 31 December 2018 and has an estimated life of 5 years, with no scrap value.

Data recorded in respect of the year ended 31 December 2019 was as follows:

GH

Sales (on cash basis) 2,200

Purchases at historical cost (on cash basis) 700

Closing inventory: at historical cost 220

at replacement cost 270

Cost of goods sold at replacement cost1,200

It was also estimated that the replacement cost of non-current assets had risen to GH1,400 by 31 December 2019.

Required:

Prepare the income statements for the year ended 31 December 2019 and the statements of financial position, using both the historical cost accounting model and the replacement cost accounting model.