The folicwing additional information is relevant: -i. The closing inventories at 31 December 2019 were valued at a cost of GH6750,000, Due to some slow moving produets the company intends to offer a discount of 10% on the cost resulting in a net realizable value of GHC675,000. (1=675,000 ii. The balanee of the corponation tax account regresents an under provision of tax for the previous year. Corporate tax applicable to the firm is 25%310,000 iii. The company decided to change its accounting policy with respect to its investment property from "cost model "to "fair value model" as per IAS 40 investment property. Ca 31" December 2019 a qualified surveyor valued the Investancit property up by GHC188,000. This decision is. yet to be accounted for in the books of the company. Wiv. Non-current assets: - Depreciation of Property, Plant and Equipnient is to be provided on the following basis: Plant and equipment 10% on cost - Cost of sales Computer equipment 25% on cost - Administrative expenses Motor vehicle 20% on Cost - Distribution cost - No depreciation has yet been charged on any non-current asset for the year ended 31" December 2019. - Whithatwasay Limited revalues its beildings at the end of each accounting year. At 3/st December. 2019. Hie relevant value to be incemorated into the financial statement is GHQ? son0en - The buildings rernaining life at the beginnisg of de current year (f" January 2019) was 50 years. Washawasay limited does not make an unabal irmsfer from the revaluation reserve to rutained carnings in respeet of the realization of the revaluation surplas Ignore deferred tax on the revaluation surplis. v. The company paid ordinary dividend of GHC371,200 on 31" December, 2019. The dividend payments are included in the administrative expenses in the trial balance. vi. The balance in the suspense accouat reprerents the cash proceeds from the issue of 50,000 ordipary shares at H2.00each. Required: In compliance with the company's code provisior and in conformity with relevant International Financial Reporting Standard, prepare for publieation; 2019. b. Statement of changes in equity for the year endia1 3ta December 2019 ; and c. Statement of Financial position as at 311 Decembe 2019 ; Show clearly all relevant workings. (Note: Accounting policy notes are not required) The folicwing additional information is relevant: -i. The closing inventories at 31 December 2019 were valued at a cost of GH6750,000, Due to some slow moving produets the company intends to offer a discount of 10% on the cost resulting in a net realizable value of GHC675,000. (1=675,000 ii. The balanee of the corponation tax account regresents an under provision of tax for the previous year. Corporate tax applicable to the firm is 25%310,000 iii. The company decided to change its accounting policy with respect to its investment property from "cost model "to "fair value model" as per IAS 40 investment property. Ca 31" December 2019 a qualified surveyor valued the Investancit property up by GHC188,000. This decision is. yet to be accounted for in the books of the company. Wiv. Non-current assets: - Depreciation of Property, Plant and Equipnient is to be provided on the following basis: Plant and equipment 10% on cost - Cost of sales Computer equipment 25% on cost - Administrative expenses Motor vehicle 20% on Cost - Distribution cost - No depreciation has yet been charged on any non-current asset for the year ended 31" December 2019. - Whithatwasay Limited revalues its beildings at the end of each accounting year. At 3/st December. 2019. Hie relevant value to be incemorated into the financial statement is GHQ? son0en - The buildings rernaining life at the beginnisg of de current year (f" January 2019) was 50 years. Washawasay limited does not make an unabal irmsfer from the revaluation reserve to rutained carnings in respeet of the realization of the revaluation surplas Ignore deferred tax on the revaluation surplis. v. The company paid ordinary dividend of GHC371,200 on 31" December, 2019. The dividend payments are included in the administrative expenses in the trial balance. vi. The balance in the suspense accouat reprerents the cash proceeds from the issue of 50,000 ordipary shares at H2.00each. Required: In compliance with the company's code provisior and in conformity with relevant International Financial Reporting Standard, prepare for publieation; 2019. b. Statement of changes in equity for the year endia1 3ta December 2019 ; and c. Statement of Financial position as at 311 Decembe 2019 ; Show clearly all relevant workings. (Note: Accounting policy notes are not required)
