QUESTION 2 Draft Statement of Financial Position of Who-knows-Tomorrow Ltd as at 15 August, 2017 Non-Current Asset GHe 60,000 Patents 80.000 140,000 Current assets Inventory 40,000 Receivables 28,000 68,000 Total assets 208.000 GHel Equity shares Retained earnings 60,000 (30,000) 30,000 Long term liabilities 4% fixed charge debentures 5% floating charge debentures 50,000 6% preference shares 70,000 20,000 140,000 170,000 Current liabilities Trade Payables 30,000 Overdraft 8,000 38,000 208,000 You are given the following additional information: The 4% debentures are secured by a fixed charge on the building included within non- current asset at a carrying value of GH50,000. The debenture is due for repayment in 18 months' time The 5% debentures were issued 3 years before the 4% fixed charge was created and are secured by a floating charge over the inventory and receivables. The debt is repayable in 5 years' time Included within payables are GH8,000 arrears of wages to be paid in the scheme and GH2,400 other preferential creditors but not yet paid. The scheme devised by the directors is as follows:- a. The building is to be transferred to the fixed charge debenture holder in full settlement and is then to be leased back under a finance lease at the fair value of GH70,000; the lease