QUESTION 1 From the table below which gives the effects of individual transactions, you are required to state as fully as possible what transaction has taken place in each case. Assets GHC A B E D *** 000 GHC '000 GHC '000 GHC '000 GHC '000 GHC '000 900 900 900 900 1150 1150 Furniture and fittings Motor van 190 200 200 200 200 200 96 96 96 96 96 96 Office equipment Inventory 220 220 220 220 220 220 Debtors 376 376 376 376 376 216 Bank 54 44 44 344 94 254 Cash 130 30 22 22 22 22 1,866 1,866 1,858 2,158 2,158 2,158 Capital and Liabilities 1242 Capital 1242 1242 1242 1242 1242 400 500 400 700 700 700 Loan 216 216 216 216 Creditors 224 224 2,158 2,158 2,158 1,866 1,866 1,858 20 marks QUESTION 4 Below is the trial balance of Prophecy Enterprise as at 31 December 2018 DR CR (GH) (GH) Capital 100,000 Inventory (1/1/18) 80,000 Buildings 110,000 Fixtures & Fittings 10,000 Motor Vehicles 24,000 Trade Debtors & Creditors ir 15,000 -70,500 Advertising 1,000 Insurance 1,000 Salaries 65,000 1,000 Rates Discounts Returns Sales & Purchases Electricity 2,000 1,000 250 200 8 56,000 $130,050 2,000 EXAMINER: JUSTICE ASANTE Bank 8,500 Bank loan General expenses 76,000 2,000 377,750 377,750 Additional Information: i) Inventory balance at the end of the year was GH70,000. ii) Motor vehicles and building are to be depreciated at a straight-line method of 10%. iii) Furniture and fittings are to be depreciated at a straight-line method of 5%. iv) Insurance prepaid at the end of the year was GH200. v) Salaries Owings at the end of the year was GH500. You are required to prepare the income statement for the business for the year ended 31 December 2018 and the statement of financial position as at that date. (30 MARKS)