Question $20$

Kwaku Limited has the following trial balance at $31$st December $2022$

Debit Credit

GH$$ GH$$

Cash at bank $10,000$

Inventory at $1$st January $2022240,000$

Administrative expenses $220,600$

Distributive costs $65,000$

Non$-$current assets at cost

Buildings $1,000,000$

Plant and equipment $140,000$

Motor vehicles $32,000$

Suspense $150,000$

Accumulated depreciation

Buildings $400,000$

Plant and equipment $48,000$

Motor vehicles $12,000$

Income surplus $56,000$

Trade receivables $87,600$

Purchases $420,000$

Dividend paid $20,000$

Revenue $1,175,200$

Tax payable $139,000$

Trade payable $105,000$

Stated capital $150,000$

$2,235,2002,235,200$

The following additional information is relevant.

$(1)$ Inventory at $31$st December $2022$ was valued at GH$160,000.$ While doing the inventory count, errors in the previous year$$s inventory were discovered. The inventory brought forward at the beginning of the year should have been GH$220,000,$ not GH$240,000$ as stated above.

$(2)$ Depreciation is to be charged as follows:

$$ Buildings at $5\%$ straight line

$$ Plant and equipment at $20\%$ on the reducing balance basis

$$ Motor vehicle at $25\%$ on the reducing balance basis

$(3)$ No final dividend is being proposed

$(4)$ A customer has gone bankrupt owing GH$7,600.$ This debt is not expected to be recovered and an adjustment should be made. An allowance for receivable of $5\%$ is to be set up$.$

$(5)100,000$ new shares were issued worth GH$1\mathrm{.}50$ on $1$st December, $2022.$The proceeds have been left in a suspense account.

$(6)$ Ignore taxation

You are required prepare the following:

$($a$)$ Statement of comprehensive income for the year ended $31$ December $2022(3$ marks$)$

$($b$)$ Statement of changes in equity for the year ended $31$st December $2022(4$ marks$)$

$($c$)$ Statement of financial position as at $31$ December $2022(8$ marks$)$