SECTION A SECTION A- ANSWER ANY TWO QUESTIONS IN THIS SECTION QUESTION 1 The following trial balance has been extracted from the records of Rambo Ltd as at 31* December, 2019 GHC GHC Income Surplus as at 31 Dec. 2018 42,000.00 Sales 450,000.00 Cost of Goods Sold 291,000.00 Wages and Salaries 37,000.00 Trade Expenses 23,000.00 Debenture Interest (Net) 4,900.00 10% Debentures 70,000.00 Equity Shares 100,000.00 7% Preference Shares 40,000.00 Share Deals Account 30,000.00 Buildings at cost 100,000.00 Plant and Machinery at cost 120,000.00 Motor Vehicles at cost 60,000.00 Provision for Deprecat 31 Dec. 2018 Plant & Machinery 28,000.00 Motor Vehicles 11,000.00 Stock in Trade 53,500.00 Debtors and Creditors 79,800.00 42,000.00 Directors Remuneration 36,000.00 Bank Balance 7,000.00 Cash on Hand 800.00 813,000.00 813,000.00 The following information is also available: 1. Provisions for depreciation are made as - Motor Vehicles 20%, Plant & Machinery 15%, both at cost. 2. Assume that the standard rate of income tax is 30% 3. Accrued audit fees of GHc13,000.00 4. The building has been revalued by the directors at a figure of GHc170,000.00 on 31" December, 2019. The increase in value is to be credited to a capital account. 5. The preference dividend for the year ended 31 December, 2019 was paid on 15 April, 2020 6. Corporate tax based on the year's profits is estimated at GHC2,000.00 7. The directors proposed that a dividend of dividend of 14% on the equity shares to be paid. 8. The equity and preference shares are of 10p cach. Required: Required: Prepare in accordance with the Companies Act 2019, Act 992 and International Financial Reporting Standards (IFRS) (a) Statement of Profit or Loss for the year ended 31 December, 2019 net profit before tax and net profit after tax (10 marks) (b) Statement of Changes in Owners' Equity as at 31 December 2019 ( 5 marks) (c) Statement of Financial Position as at 31 December, 2019 (6 marks) (d) of what relevance are financial statements in making financial decisions? (4 marks) Total - 25 marks