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The following is the Trial Balance of Gyawu Enterprises, a dealer in Banking Software, as at 31st December 2021. GHS GHS Capital Receivables and Payables

The following is the Trial Balance of Gyawu Enterprises, a dealer in Banking Software, as at 31st December 2021.
GHS GHS
Capital
Receivables and Payables 159,000 Inventory 99,000 Motor vehicles: (cost) 72,500 Accumulated depreciation (31 December 2020)
Office equipment: (cost) 90,000 Accumulated depreciation (31 December 2020) Administrative expenses 26,000 Purchases and sales 243,750 Employee benefits 33,000 Selling expenses 20,000 Plant: (cost) 125,000 Accumulated depreciation (31 December 2020)
Discounts 7,500 Accruals
Investment income
Returns 12,000 Cash and cash equivalents 126,750 Allowance for doubtful debts 31 December 2020
Bad debts 17,500
Additional information available is given below:
i. The inventory sheets as at 31/12/2021 put the value of inventory at GHS129,500.
ii. Allowance for doubtful debt is to be increased to GHS19,080 as at 31 December 2021.
iii. An amount of GHS6,000 in respect of rent and rates is included in administrative expenses.
This amount relates to 2022 financial year.
iv. All items of property, plant and equipment are depreciated at the rate of 10% per annum
on the straight line basis.
14,000 1,032,000 1,032,000
240,000 51,000
32,500 30,000 490,500
37,500 12,500 79,000 27,500 17,500
Lecturer: Alhassan Trawule, CA
1
v. An amount of GHS10,000 incurred in the repair of a plant had been debited to the plant account.
vi. Personal withdrawal of cash amounting to GHS25,000 was made by Mr. Isaac Gyawu, the proprietor. This has not been recorded in the financial records.
Required: Prepare in a suitable form for publication,
a. Income statement for the year ended 31st December 2021. 10 marks
b. Statement of Financial Position as at 31st December 2021. 10 marks
All statements are to be prepared in accordance with the requirements of International Financial Reporting Standards. Ignore taxation. 20 marks

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