Question The following trial balance relates to Kofi Karikari Led as at 30th September 2020 He million G|CH | tem 760.00 Revenue Cost of sales 493.60 Distribution costs 34.80 Administrative expenses TO1.00 Loan interest paid 2.00 7.00 Investment income Bank 16.00 Freehold property - at cost 1st October 2011 126.00 Plant and equipment - at cost 84.40 Brand-at cost Ist October 2016 60.00 Accumulated depreciation - at 1" October 2019: Buildings 16.00 Plant and equipment 39.40 Current tax 4.20 Accumulated amortization - brand IstOctober 2019 18.00 Trade payables 81.80 Investment property 53.00 Inventory at 30th September 2020 76.00 Trade receivables 89.00 Equity shares GHc1:30th September 2020 104.00 Equity option 3.98 Share premium 30th September 2020 10.00 5% convertible loan 36.90 Retained earnings Ist October 2019 52.12 Deferred tax 10.80 1.140.00 1.140.00 The following additional information is relevant: (6) The non-current assets have not been depreciated for the year ended 30thSeptember 2020, Kofi Karikari has a policy of revaluing its freehold property at the end of each accounting year. A qualified surveyor has valued the property at 30th September 2020 at GH114 million. (See note (vi)). The freehold property has a land element of GH26 million. The buildings element is being depreciated on straight line basis at a rate of 8% per annum. While plant and equipment is depreciated at 40% per annum using the reducing balance method. (1) Kofi Karikari's brand in the trial balance relates to a product line that received bad publicity during the year which led to filling sales revenue. An impaiment review was conducted on 1st April 2020 which reviewed that, the brand is now expected to generate net cash flows of GH49313 million per annum for Question The following trial balance relates to Kofi Karikari Led as at 30th September 2020 He million G|CH | tem 760.00 Revenue Cost of sales 493.60 Distribution costs 34.80 Administrative expenses TO1.00 Loan interest paid 2.00 7.00 Investment income Bank 16.00 Freehold property - at cost 1st October 2011 126.00 Plant and equipment - at cost 84.40 Brand-at cost Ist October 2016 60.00 Accumulated depreciation - at 1" October 2019: Buildings 16.00 Plant and equipment 39.40 Current tax 4.20 Accumulated amortization - brand IstOctober 2019 18.00 Trade payables 81.80 Investment property 53.00 Inventory at 30th September 2020 76.00 Trade receivables 89.00 Equity shares GHc1:30th September 2020 104.00 Equity option 3.98 Share premium 30th September 2020 10.00 5% convertible loan 36.90 Retained earnings Ist October 2019 52.12 Deferred tax 10.80 1.140.00 1.140.00 The following additional information is relevant: (6) The non-current assets have not been depreciated for the year ended 30thSeptember 2020, Kofi Karikari has a policy of revaluing its freehold property at the end of each accounting year. A qualified surveyor has valued the property at 30th September 2020 at GH114 million. (See note (vi)). The freehold property has a land element of GH26 million. The buildings element is being depreciated on straight line basis at a rate of 8% per annum. While plant and equipment is depreciated at 40% per annum using the reducing balance method. (1) Kofi Karikari's brand in the trial balance relates to a product line that received bad publicity during the year which led to filling sales revenue. An impaiment review was conducted on 1st April 2020 which reviewed that, the brand is now expected to generate net cash flows of GH49313 million per annum for
