QUESTION Mariana prepares her financial statements to 31 December every year. At 31 December, 2019, trial balance was as follows: DR CR GHSDOO GHS'000 Capital 55,720 Sales 65 XNO Purchases 50 156 Inventory 1/1/2019 7.900 Returns 545 1.720 Printing and Stationery 1.692 Rent 2.400 Discounts 1,800 3.520 Transport and travelling 1,760 Repairs and maintenance 1.523 Allowance for receivables 650 Land at cost 13.00 Building at cost 45,000 Accumulated depreciation on building 6.100 Motor Vehicle at cost 24.500 Accumulated depreciation on motor vehicles 9.600 Equipment and Furniture 12.450 Accumulated depreciation on equipment & fumare 4.980 Trade receivables 9,450 Cash at hand 9.524 Chathank 5.950 Drawings 4520 Interest on loan 2.200 Trade payables 13.000 20% Loan 22 182.120 189.120 The following additional information is relevant i) Depreciation is to be provided as follows Building - 5% per year cost Motor Vehicle -15% per year on reducing balance basis Equipment & Furniture -10% per year on reducing balance basis in) Inventory value at 31 December 2019 amounted to GHS 5.840,000 ii) Rent recorded in the trial balance represents 16 montrent paid to 30. April 2020 iv) A provision of 6% of trade receivable is to be made ) Rate paid during the year of GH750,000 wasomined from the books vi) Adverting cost of GH1,250,000 received in November 2019 remained outstanding at the end of the year vii) The loan was contracted on 30 June 2019 to expand the operations of the business entity. You are required to prepare: a) Income Statement for the year ended 31 December 2019 b) Statement of financial position as at 31 December 2019 (12 marks) (8 marks) (Total 20 marks)