Question 1 The following were extracted from the books of Kwaku Mintah, a sole proprietor, on 31st March, 2018. DR. GH'000 CR. GH'000 Sales and Purchases 12,000 26,950 Carriage on Purchases 900 Land and Building (cost) 20,000 Furniture and Fittings (cost) 10,000 Motor vehicle (cost) 20,000 Provision for depreciation - 1/4/17 Furniture and Fittings Motor vehicles Discount received Discount Allowed 3,000 6,000 1,170 1,250 Inventory 1/4/17 Returns 3,500 1,800 1,000 Carriage outwards 950 Rent and Rates 1,100 Wages and Salaries 2,540 Advertising 580 Insurance 600 Light and Heat 880 Office expenses 1500 General expenses 450 Bad debts 660 Provision for bad debts 300 Electricity 400 Trade receivables and payables 3,900 2,850 Cash in hand 1,360 Cash at Bank 5,000 Drawings 1,800 Capital Bank loan Investment 44,900 10,000 5000 96,170 96,170 Additional Information: a. Inventory as at 31/3/18 GH2,400,000 b. Rent and Rate, and insurance prepaid are GH100,000 and GH200,000 respectively c. Light and heat, and electricity bills outstanding are GH120,000 and GH250,000 respectively d. Provision for bad debts should be adjusted to 10% of trade receivables. e. Goods valued at a cost price of GH150,000 were withdraw by the proprietor for his personal use. This has not been recorded in the books. f. Included in the wages and salaries is an amount of GH240,000 given to the proprietor's sister who is not an employee of the firm. g. Interest on bank loan GH500,000 had also not been paid h. The policy of Kwaku Mintah is to depreciate it's non-current assets at a rate for motor vehicles 5% on cost and furniture and fittings at a rate 5% on reducing balance method i. Income on investment GH500,000 has not been received. You are required to prepare; a. Income statement for the year ended 31/3/18 and b. Statement of financial position as at that date.