Question $1$

The Trial Balance for Adobea Ltd$.$ as at $31$ December $2021$ is as follows:

Additional information:

i$)$ Inventory at $31$ December $2021$ amounted to $GH74,000.$

ii$)$ Salaries of $GH5,600$ for December $2021$ are due and unpaid.

iii$)$ Insurances include GH $660$ for the $1^{st}$ quarter ended on $31$ March $2022.$

iv$)$ The loan was obtained in August $2018$ and is repayable in full during the financial ye ended $31$ December $2023.$

v$)$ Depreciation is to be provided as follows:

Machinery $-15\%$ per annum using the reducing balance method.

Fixtures and fittings $-20\%$ using the straight$-$line method

Buildings $-$ GH&$3,500$ per year. Land is not depreciated.

vi$)$ Allowance for receivables is to be provided at $4\%$ of receivables.

You are required to prepare:

a$)$ The Statement of Profit and Loss for the year ended $31$ December $2021.$

b$)$ The Statement of Financial Position as at $31$ December $2021.$