Question 1 ABC, a limited liability company, has the following trial balance at 31st December, 2019 Cash DR (GHC) 115,900 16,800 10,500 CR (GHC) Inventory at 1/1/2019 Administrative Expenses Non-Current Asset at Cost: Building 60,000 Plant and Equipment 74,500 Motor Vehicle 155,000 Bank 15,000 Accumulated Depreciation: 7,850 Building Plant and Equipment 9,850 -6,000 Motor Vehicle 67,000 Retained Earning Income Tax Expense 2,500 10% Loan Note 5,500 Purchases 43,800 Dividend Paid -5,500 Suspense 15,000 Trade Receivables 12,800 Loan interest 200 Trade Payables 68,600 Sales Revenue. 182,890 Sales Tax Payable 89,460 GHC 1 Ordinary Shares -70,550 Wages and Salaries 10,200 522,700 522,700 Additional Information is given below: a. The inventory at cost on 31st December, 2019 was valued at GHc 10,000 and the net realizable value was GHc 11,500. b. 10,000 new ordinary shares were at issued at GHc 1.50 on 1/1/2019. The proceeds are left in suspense account. c. An amount of GHc 1,800 for lighting and heating is included in administrative expenses which relates to 2020 financial year d. An allowance of 5% is to be set up for receivables. This is to be charged to admin expenses e. Wages and salaries of GHc 8,000 is to be accrued f. Depreciation is to be provided as follows: i. Buildings at 5% straight line, charged to admin expenses ii. Plant and Equipment at 20% on reducing balance charged to cost of sales iii. Motor Vehicles at 25% reducing charged to admin expenses g. An independent survey was carried out on building and it was valued up by GHc 8,000 1