Qtn 1 The following is the trial balance of MacElorm and Son Limited, dealers in Oracle Software, as at 31" December, 2018. GH GH Purchases and Sales 243,750 490,500 Ordinary shares (GHC1.00 per share) 221.500 Retained earnings 60,000 Revaluation Reserve 10,000 Trade Receivables and Payables 159,000 51.000 Inventory 99.000 Land and building (cost) 125,000 Delivery Vans: (cost) 105,500 Accumulated depreciation (31" December, 2015) 32.500 Plant and Equipment (cost) 90,000 Accumulated depreciation (31" December 2015) 37.500 Administrative expenses 26,000 Selling and Distribution expenses 27.500 Investment property 100,000 Investment income 35.000 Cash and cash equivalents 27,000 Dividend paid 1.750 Provision for doubtful debts 14.000 Bad debts 17.500 Suspense 70,000 .022,000 1,022,000 Additional information available is given below: 1) The inventory at cost on 31" December, 2018 was valued at GH137,500 and the net realizable value was GH 129,500. 2) Allowance for doubtful debt is to be increased to GH19,080 as at 31 December 2018. 3) An amount of GH6,000 in respect of rent and rates is included in administrative expenses. This amount relates to 2018 financial year. 4) Depreciation for the year ended 31" December 2018 is to be calculated using the following rates: Plant and equipment 10% on cost Delivery Vans 15% on cost 5) To reflect a marked increase in property prices, Kwei Limited accepted the report of an independent surveyor who valued the land and building up by GH15,000 on that on 31" December 2018. 1) The audit fee of GH1,000 is to be accrued. 2) The suspense account represents the corresponding credit for cash received for a fully subscribed issue of equity shares made on 30th December 2018. The terms of the share issue was 35,000 new ordinary shares were issued at GH2 each. 3) The directors have estimated the provision for income tax for the year ended 31" December 2018 at GH15,000. Required: In compliance with the Companies' Code provisions and in conformity with relevant International Financial Reporting Standards, prepare; (i) the statement of profit or loss and other comprehensive income for the year ended 31" December, 2018. (ii) the statement of financial position as at 31" December, 2018