Miss Joan aged 29 has been staying in the United Kingdom (UK) for five (5) years. She decided to set up her own agribusiness enterprise engaging in the manufacturing and sale of fruit juice on 2nd January 2020 to support the re-afforestation program in Ghana. From her savings in the UK, she transferred GBP 20,000 at a rate of GHS 7.45 to 1 GBP to open a bank account for the business on 2nd January 2020 and further purchased production machinery for the project for GBP 10,000 at a rate of GHS 7.45 to 1 GBP. In 2010 whilst staying in Ghana, she put up a house at a cost of GHS 150,000 at Daban in Kumasi. She decided to use the garage of the house as the factory building and therefore spent GHS 50,000 to convert the garage to the factory building from her own resources.

She approached you as someone who has a little knowledge of accounting from your studies at KNUST to assist her to know her net worth at 31st December 2020 and the profit or loss from her business. You willingly accepted to assist her and decided to engage her in discussions.

The following facts emerged during the discussions:

i) She transferred a further amount of GBP 10,000 at the rate of GHS 7.155 to GBP 1 on 2nd July 2020 from her UK bank account as working capital.

ii) In February 2020, the business acquired the following assets from the GBP 20,000 transferred to the business account

- 1 Distribution Van GHS70,000

- Office Equipment GHS15,000

- Furniture & Fittings GHS10,000

iii) In the course of the year, she purchased a Kia Trade Truck for GHS 60,000 for the business from the cash flow from the operating activities.

iv) By the end of 2020 some customers owed her GHS 30,000 whereas she owed an amount of GHS 25,000 in respect to goods purchased but unpaid for. She also owed GHS 3,000 in respect of electricity consumed for the business.

v) In November, 2020, she received an amount of GHS 21,000 into the business bank account from a friend to be used for the friends building project and this money remained in the account until 5th January 2021 when it was withdrawn for the intended purpose.

vi) She renovated her house at the cost of GHS 18,000 during the year excluding the garage

Her private living expenses for 2020 include:

Remittances to her mother in Accra GHS24,000

Food GHS16,000

Medical Bills GHS6,000

Support to family members GHS 4,000

School fees of her boyfriend at KNUST GHS 8,000

Required

a) Prepare Joans Statement of Affairs as at 2nd January 2020.

b) Determine Joans Net Profit for the Year

c) Prepare Joans Statement of Financial Position as at 31st December 2020

d) Determine Joans Net Worth as 31st December, 2020