QUESTION 1 All Shall Come to Pass Company was incorporated with an authorized capital of 40,000,000 equity shares of no par value. The Trial Balance extracted from the ledgers of the company as at 31" December, 2019 is as shown below: GH000 GH000 Sales 90,675 Purchase of Raw materials 55,800 Selling and Distribution expenses 2.080 Wages and salaries of production staff 4,000 Salaries of Administrative staff 2,800 Inventory on hand 1/1/2019: Raw materials 1,000 Work-in-Progress 400 Finished Goods 3,000 Investment Property 8,000 Buildings 10,000 2.000 Plant and Machinery 35,800 10,000 Fixtures and Equipment (office related) 8,000 3,000 Motor vehicles 2.600 1.200 Investment in shares 5,000 12% Loan note (2019-2021) 6,000 Trade Payables 1,360 Interim Equity dividends paid 900 Bank overdrafts 1,390 Overdraft interest and Bank charges 800 Corporate tax 1,200 Cash in hand 1,100 Stated Capital-Equity shares (issued at GH1) 30,000 Capital Surplus 1/1/2019 3,000 Income surplus 1/1/2019 3,040 Investment income 1,500 Rental Income 50 Administrative expenses 2,040 Production overheads excluding depreciation 2,000 Loan interest paid 600 VAT service 3,535 Trade Receivables 2,960 153,615 153,615 The following additional information is available: i. VAT has been incorrectly recorded in the books. The sales and the purchases figure in the Trial Balance include Output and Input Vat respectively. Vat Rate is 12.5%. The figure of GH3,535,000 in the trial balance represents net VAT paid to VAT service for January-November transactions. VAT returns for December 2019 transactions were made on 25th January 2020. ii. Inventory on hand on 31" December 2019 were as follows: Cost NRV GH000 GH000 Raw Materials 1,240 1.200 WIP 600 N/A Finished goods 2.000 2,600 iii. Provision is to be made for: Directors' Emoluments of GH20,000 iv. Auditors Remuneration of GH25,000 Royalty of 1% of sales During the year the company paid the tax liability outstanding at 1/12/2018 of GH800,000. Tax credit certificates amounting to GH160,000 were obtained by the company in the year as result of withholding tax deducted at source by customers. An amount of GH140,000 was also paid on account of 2019 provisional tax assessment. Corporate tax rate applicable to All Shall Come to Pass Company Ltd is 30% of Net profit. The Investment Property had a fair value of GH8,400,000 as at 31 December 2019 according to a chartered surveyor. The policy of the company is to depreciate Property, Plant and Equipment as follows: Buildings 2% p.a. on cost Motor Vehicles 20% p.a. on cost Fixtures or Equipment (office related) 10% p.a. on cost Plant and Machinery 10% p.a. on cost Full year depreciation on year of acquisition and non in year of disposal V. vi. vii. The building was revalued by the chartered surveyor at GH12,000 as at 31* December 2019 in the accounts. The building is occupied between the factory and office in the ratio of 60% and 40% respectively. viii. During the year, the following additions to PPE were made. GH000 Motor vehicles 500 Fixtures and fitting and Equipment 1,000 These have been recorded in the books Required: Prepare the final accounts for internal use and in conformity with relevant International Financial Reporting Standards. a. Statement of Profit or Loss and Other Comprehensive Income for the year ended 31" December, 2019. b. Statement of Changes in Equity for the year ended 31" December, 2019. c. Statement of Financial Position as at 31" December, 2019. NOTE: All workings must be shown QUESTION 1 All Shall Come to Pass Company was incorporated with an authorized capital of 40,000,000 equity shares of no par value. The Trial Balance extracted from the ledgers of the company as at 31" December, 2019 is as shown below: GH000 GH000 Sales 90,675 Purchase of Raw materials 55,800 Selling and Distribution expenses 2.080 Wages and salaries of production staff 4,000 Salaries of Administrative staff 2,800 Inventory on hand 1/1/2019: Raw materials 1,000 Work-in-Progress 400 Finished Goods 3,000 Investment Property 8,000 Buildings 10,000 2.000 Plant and Machinery 35,800 10,000 Fixtures and Equipment (office related) 8,000 3,000 Motor vehicles 2.600 1.200 Investment in shares 5,000 12% Loan note (2019-2021) 6,000 Trade Payables 1,360 Interim Equity dividends paid 900 Bank overdrafts 1,390 Overdraft interest and Bank charges 800 Corporate tax 1,200 Cash in hand 1,100 Stated Capital-Equity shares (issued at GH1) 30,000 Capital Surplus 1/1/2019 3,000 Income surplus 1/1/2019 3,040 Investment income 1,500 Rental Income 50 Administrative expenses 2,040 Production overheads excluding depreciation 2,000 Loan interest paid 600 VAT service 3,535 Trade Receivables 2,960 153,615 153,615 The following additional information is available: i. VAT has been incorrectly recorded in the books. The sales and the purchases figure in the Trial Balance include Output and Input Vat respectively. Vat Rate is 12.5%. The figure of GH3,535,000 in the trial balance represents net VAT paid to VAT service for January-November transactions. VAT returns for December 2019 transactions were made on 25th January 2020. ii. Inventory on hand on 31" December 2019 were as follows: Cost NRV GH000 GH000 Raw Materials 1,240 1.200 WIP 600 N/A Finished goods 2.000 2,600 iii. Provision is to be made for: Directors' Emoluments of GH20,000 iv. Auditors Remuneration of GH25,000 Royalty of 1% of sales During the year the company paid the tax liability outstanding at 1/12/2018 of GH800,000. Tax credit certificates amounting to GH160,000 were obtained by the company in the year as result of withholding tax deducted at source by customers. An amount of GH140,000 was also paid on account of 2019 provisional tax assessment. Corporate tax rate applicable to All Shall Come to Pass Company Ltd is 30% of Net profit. The Investment Property had a fair value of GH8,400,000 as at 31 December 2019 according to a chartered surveyor. The policy of the company is to depreciate Property, Plant and Equipment as follows: Buildings 2% p.a. on cost Motor Vehicles 20% p.a. on cost Fixtures or Equipment (office related) 10% p.a. on cost Plant and Machinery 10% p.a. on cost Full year depreciation on year of acquisition and non in year of disposal V. vi. vii. The building was revalued by the chartered surveyor at GH12,000 as at 31* December 2019 in the accounts. The building is occupied between the factory and office in the ratio of 60% and 40% respectively. viii. During the year, the following additions to PPE were made. GH000 Motor vehicles 500 Fixtures and fitting and Equipment 1,000 These have been recorded in the books Required: Prepare the final accounts for internal use and in conformity with relevant International Financial Reporting Standards. a. Statement of Profit or Loss and Other Comprehensive Income for the year ended 31" December, 2019. b. Statement of Changes in Equity for the year ended 31" December, 2019. c. Statement of Financial Position as at 31" December, 2019. NOTE: All workings must be shown