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^st December, 2019 is as shown below:

	GH000	GH000
Sales		90,675
Purchase of Raw materials Selling and Distribution expenses Wages and salaries of production staff Salaries of Administrative staff Inventory on hand 1/1/2019: Raw materials Work-in-Progress Finished Goods Investment Property Buildings Plant and Machinery Fixtures and Equipment (office related) Motor vehicles Investment in shares 12% Loan note (2019-2021)	55,800 2,080 4,000 2,800 1,000 400 3,000 8,000 10,000 35,800 8,000 2,600 5,000	2,000 10,000 3,000 1,200 6,000
Trade Payables Interim Equity dividends paid Bank overdrafts Overdraft interest and Bank charges Corporate tax Cash in hand Stated Capital-Equity shares (issued at GH1) Capital Surplus 1/1/2019 Income surplus 1/1/2019 Investment income Rental Income Administrative expenses Production overheads excluding depreciation Loan interest paid VAT service Trade Receivables	900 800 1,200 1,100 2,040 2,000 600 3,535 2,960 153,615	1,360 1,390 30,000 3,000 3,040 1,500 50 153,615

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 25^th January 2020.

ii. Inventory on hand on 31^st 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
• Auditors Remuneration of GH25,000
• Royalty of 1% of sales iv. 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.

5. The Investment Property had a fair value of GH8,400,000 as at 31^st December 2019 according to a chartered surveyor.
6. 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

7. The building was revalued by the chartered surveyor at GH12,000 as at 31^st December 2019 in the accounts. The building is occupied between the factory and office in the ratio of 60% and 40% respectively.
8. 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.

1. Statement of Profit or Loss and Other Comprehensive Income for the year ended 31^st December, 2019.
2. Statement of Changes in Equity for the year ended 31^st December, 2019.
3. Statement of Financial Position as at 31^st December, 2019.

NOTE: All workings must be shown