QUESTION THREE USB, a limited liability company, has the following trial balance at 31 December 2009. Debit Credit GH000 GH'000 Cash at bank 100 Inventory at 1 January 2009 2,400 Administrative expenses 2.206 Distribution costs 650 Non-current assets at cost: Buildings 10,000 Plant and equipment 1,400 Motor vehicles 320 Suspense 1,500 Accumulated depreciation Buildings Plant and equipment 480 Motor vehicles 120 Retained earnings 560 Trade receivables 876 Purchases 4,200 Dividend paid 200 Sales revenue 11,752 Sales tax payable 1.390 Trade payables 1.050 Share premium 500 Ordinary shares @ GH1 1,000 22,352 22,352 4,000 The following additional information is relevant. (a) Inventory at 31 December 2009 was valued at GH1,600,000. While doing the inventory count, errors in the previous year's inventory count were discovered. The inventory brought forward at the beginning of the year should have been GH2.2m, not GH2.4m as above. (b) Depreciation is to be provided as follows: Buildings at 5% straight line, charged to administrative expenses. Plant and equipment at 20% on the reducing balance basis, charged to cost of sales. (iii) Motor vehicles at 25% on the reducing balance basis, charged to distribution costs No final dividend is being proposed