QUESTION 3 The following is the trial balance of Asempa Company Limited, a trading company, as at 31st December, 2020: Ordinary shares (GHe 1.00 per share) GHe GHe 221,000 Retained profits Revaluation surplus 50,000 20,000 Revenue Purchases Trade Receivables Trade Payables 15% Loan Note 510,000 243,000 150,000 31,000 20,000 Inventory (1/1/2020) 119,000 Land and building (cost) 125,000 Delivery Vans: (cost) 105,500 Delivery Vans accumulated depreciation (1/1/2020) 32,000 Plant and Equipment: (cost) 90,000 Plant and Equipment accumulated depreciation (1/1/2020) 38,000 Administrative expenses 41,500 Selling and Distribution expenses 27,250 Investment property 100,000 Investment income 35,000 Bank 36,000 Dividend paid 1,750 Provision for doubtful debts 14,000 Loan interest 2,000 Suspense 70,000 1,041,000 1,041,000 Additional information available is given below: 1) The inventory at cost on 31 December, 2020 was valued at GH165,000 and the net realizable value was GH160,000. 2) The directors have decided to make an allowance for doubtful debts of 10% of trade receivables. 3) An amount of GH5,000 in respect of rent and rates is outstanding/accrued. This amount is to be charged to administrative expenses. 4) The audit fee of GH1,000 is to be accrued. This amount is to be charged to administrative expenses 5) Depreciation for the year ended 31 December 2020 is to be calculated using the following rates: Plant and equipment Administrative expense Delivery Vans Distribution cost. 10% on cost 10% on cost