Required:

Prepare the statement of comprehensive income and statement of financial position for the year ended 31 December 2017.

The following information is aiso reievant: (1) Inventory at 31st December 2017 is GHC256 (2) The tax liability for the year is estimated to be 20% of the profit before tax. (3) The original cost of land and buildings is made up of GHC1OO land and GHC450 buildings. Buildings are used in administration and depreciation is charged on a straight line basis over the estimated useful life of 50 years. (4) Plant \& equipment are used in distribution and depreciation is charged at 15% reducing balance basis. (5) Trade receivables include GHC4 owed by a customer who is in liquidation. Due to the economic climate the company wish to make an allowance of 5% of remaining debts. (6) No account has been made for the audit fee of GHC10 (admin expense). (7) Unless otherwise stated, expenditure should be split evenly between administration and distribution costs