Question 1 Peace Enterprise is run by a sole trader. The following Trial Balance was prepared from the business accounts on 30th September 2020. Cr Dr GH GH 270,000 36,300 632,175 251,025 7,920 9,060 6,405 Capital Inventory Sales Purchases Rent received Returns Electricity Discounts Carriage inwards Motor expenses Drawings Bank Salaries Carriage outwards Insurance Trade Receivables Irrecoverable debts Allowance for receivables Trade Payables General expenses 15% Loan (2019-2025) Loan interest Land and buildings Accumulated depreciation for buildings Equipment Accumulated depreciation for equipment Motor vehicles Accumulated depreciation for motor vehicles 6,000 3,345 3,630 5,210 2,370 42,000 36,766 162,000 4,100 19,000 160,000 2,130 4,729 114,432 10,170 225,000 18,000 510,000 39,000 33,000 15,450 39,000 19.875 1.344.046 1.344,046 The following information is also available. 1) Only 10 months' salaries are shown in the Trial Balance. An equal amount is paid for salaries for each month of the year. ii) As at 30th September 2020, GH4,800 had been prepaid for insurance, whilst GH615 was owing for general expenses. was valued at GH33,750. iii) GH6,900 had been charged to general expenses for the owner's private use. iv) As at 30th September 2010, inventory v) A customer, owing GH7,560 has been declared bankrupt. This amount is to be written off in full vi) An allowance for receivables is to be maintained at 4% of the remaining receivables. vii) As at 30th September 2020, the business's land (freehold) was valued at GH150,000 viii) Depreciation is to be provided as follows: Buildings: Equipment: Motor Vehicles: 5% per annum using the straight-line method. 20% per annum using the straight-line method. 20% per annum using the reducing balance method. Required: a) Prepare the Income Statement for the year ended 30th September 2020. (10 marks) b) Prepare the Statement of Financial Position as at 30th September 2020. (10 marks) (Total: 20 marks)