Question 2 The following trial balance relates to Moby as at 30 September 2018: Revenue GHS'000 GHS'000 Cost of sales 227,800 Construction contract (note (i)) 164,500 Distribution costs 4,000 Administrative expenses (note (iii) 13,500 Bank interest 16,500 Lease rental paid on 30 September 2018 (note (ii)) 900 Accumulated depreciation at 1 October 2017: Owned plant and equipment at cost (note (ii)) Land (GHS12 million) and building (GHS48 million) at cost (note (ii)) 60,000 9,200 65,700 building 10,000 owned plant and equipment 17,700 Inventory at 30 September 2018 26,600 Trade receivables 38,500 Bank 8,600 Insurance provision (note (iii)) 150 Deferred tax (note (iv)) 8,000 Trade payables 21,300 Current tax (note (iv)) 1,050 Equity shares of 20 pesewas [GHS0.20 each] 45,000 Loan note (note (v)) 40,000 19,800 Retained earnings at 1 October 2017 399,400 399,400 The following notes are relevant: (i) The balance on the construction contract is made up of the following items: Cost incurred to date Value of contract billed (work certified) GHS14 million GHS10 million The contract commenced on 1 October 2017 and is for a fixed price of GHS25 million. The costs to complete the contract at 30 September 2018 are estimated at GHS6 million. Moby's policy is to accrue profits on construction contracts based on a stage of completion given by the work certified as a percentage of the contract price. (ii) Non-current assets: Moby decided to revalue its land and building, for the first time, on 1 October 2017. A qualified valuer determined the relevant revalued amounts to be GHS16 million for the land and GHS38-4 million for the building. The building's remaining life at the date of the revaluation was 16 years. This revaluation has not yet been reflected in the trial balance figures. Moby does not make a transfer from the revaluation (iii) On 1 October 2017. Moby received a renewal quote of GHS400,000 from the company's property insurer. The directors were surprised at how much it had increased and believed it would be less expensive for the company to self-insure. Accordingly, they charged GHS400,000 to administrative expenses and credited the same amount to the insurance provision. During the year, the company incurred GHS250,000 of expenses relating to previously insured property damage which it has debited to the provision. (iv) A provision for income tax for the year ended 30 September 2018 of GHS3-4 million is required. The balance on current tax represents the under/over provision of the tax liability for the year ended 30 September 2017. At 30 September 2018, the tax base of Moby's net assets was GHS24 million less than their carrying amounts. This does not include the effect of the revaluation in note (ii) above. The income tax rate of Moby is 25%. (v) The GHS40 million loan note was issued at par on 1 October 2017. No interest will be paid on the loan: however, it will be redeemed on 30 September 2020 for GHS53,240,000 which gives an effective finance cost of 10% per annum. Required: (a) Prepare the statement of profit or loss and other comprehensive income for Moby for the year ended 30 September 2018. [10 Marks] (b) Prepare me tatement Pf Jinancial position the of