i) The closing inventory as at 30 April 2019 was valued at GH8,010.

ii) As at 30 April 2019 accrued rent income for the year amounted to GH420; heat and

light accrued was GH260; whilst salaries of GH720 was paid in advance.

iii) During the year, Mr. Mensah had withdrawn goods costing GH720 for his personal

use. This had not been recorded in the accounts.

iv) Allowance for doubtful debt is to be maintained at 2% of receivables.

v) Depreciation is to be provided for as follows: (i) Equipment- 20% per annum using

the straight line method. A full years depreciation is provided on all equipment held

at 30 April 2019, regardless of the date of purchase.

(ii) Motor vehicles- 40% per annum using the reducing balance method.

Required: a) Prepare a statement of profit or loss for Mr. mensah for the year ended 30 April

2019.

b) Prepare a statement of financial position for Mr. mensah as at 30 April 2019