QUESTION 4 The following Trial Balance related to UP Ltd as at 31/12/2018: Debit GH Credit GH 100,000 20,000 -30,000 10,000 12,476 210,000 -19,000 14,167 11,000 8,012 324 100,000 Ordinary shares of GH1 cach, fully paid. 20,000 5% Preference shares of GHl each, fully paid 8% Debentures Capital reserve Retained earnings PPE: Motor vehicles at revaluation Accumulated Depreciation on vehicles- Inventory Trade receivables / Trade payables Provision for doubtful debts- Bank balance Purchases/Sales Wages and salaries General administration expenses Directors' remuneration Reorganisation expenses. Debenture interest paid Ordinary dividend (interim). 9,731 186,000 -271,700 16,362 3,912 15,500 1,640 1,200 2.000 471.512 471,512 Additional Information: 1. Inventory at 31/12/2018 is valued at GH23,487. 2. Depreciation of motor vehicles is to be provided at the rate of 10% per annum using the fixed instalment method. Depreciation on motor vehicles is treated as Distribution Cost. 3. The provision for doubtful debts is to be made equal to 5% of Trade Receivables as at 31/12/2018. Any increments in provisions for doubtful debts are treated as Distribution Cost (9504524 074 4. Debenture interest of GH1,200 and preference share dividends of GH 1,000 are outstanding at 31/12/2018.. 5. Provision is to be made for taxation on the year's profit amounting to GH 9,700. 6. A final ordinary dividend of 5 pesewas (i.e. GH 0.05) per share is to be provided for in addition to the interim ordinary dividend paid. Required: Prepare UP Limited's: a) Income Statement for the year ended 31/12/2018: b) Retained Earnings Account for the year ended 31/12/2018; and c) Statement of Financial Position as at 31/12/2018. 1975 19000 21, 104