Question three The drafted final accounts of Clerit Cleaning Services Ltd for the year ended 31st December, 2020 are as follows: INCOME STATEMENT FOR THE YEAR ENDED 31ST DECEMBER,2020 GHC'M GHC'M Turnover 306,500 Cost of sales 260,000 Gross Profit 46,500 Selling, General and Administration Expenses 14000 Operating Profit 32,500 Investment Income 5,000 Net Profit on Ordinary activities before Interest and Tax 37,500 Interest expense 4,000 Net Profit before Tax 33,500 Taxation 3,000 Net Profit on ordinary activities after Tax 30,500 Extra- Ordinary item(Net Insurance Proceeds from flood disaster settlement) 1800 Net Profit transferred to income Surplus 32,300 INCOME SURPLUS FOR THE YEAR ENDED 31ST DECEMBER, 2020 GHC'M Balance b/d 13,800 Add Profit for the Year 32,300 46,100 Less Dividends 12,000 Balance c/d 34,100 STATEMENT OF FINANCIAL POSITION AS AT 31ST DECEMBER,2020 5 2019 2020 GHC'M GHC'M ASSETS Cash 400 250 Short term investment 3700 1,350 Accounts Receivable 19000 12,000