The following is the trial balance of Kwei Limited, a dealer December, 2018.

in Oracle Software, as at 31st

GH 490,500 221,500 60,000 10,000 51,000

32,500 37,500

Purchases and Sales

Ordinary shares (GHC1.00 per share)

Retained earnings

Revaluation Reserve

Trade Receivables and Payables

Inventory

Land and building (cost)

Delivery Vans: (cost)

Accumulated depreciation (31st December, 2015) Plant and Equipment: (cost)

Accumulated depreciation (31st December 2015) Administrative expenses

Selling and Distribution expenses

GH 243,750

159,000 99,000 125,000 105,500

90,000

26,000 27,500

Investment property Investment income

Cash and cash equivalents Dividend paid

Provision for doubtful debts Bad debts

Suspense

Additional information available is given below:

100,000

27,000 1,750

17,500 _______

1,022,000

35,000

14,000

70,000 1,022,000

1) The inventory at cost on 31st December, 2018 was valued at GH137,500 and the net realizable value was GH129,500.

2) Allowance for doubtful debt is to be increased to GH19,080 as at 31st December 2018.

3) AnamountofGH6,000inrespectofrentandratesisincludedinadministrativeexpenses.

This amount relates to 2019 financial year.

4) Depreciationfortheyearended31stDecember2018istobecalculatedusingthefollowing rates:

Plant and equipment 10% on cost Administrative expense

Delivery Vans 15% on cost Distribution cost.

5) To reflect a marked increase in property prices, Kwei Limited accepted the report of an

independent surveyor who valued the land and building up by GH15,000 on that on 31st

December 2018.

1) The audit fee of GH1,000 is to be accrued.

2) The suspense account represents the corresponding credit for cash received for a fully

subscribed issue of equity shares made on 30th December 2018. The terms of the share

issue was 35,000 new ordinary shares were issued at GH2 each.

3) Thedirectorshaveestimatedtheprovisionforincometaxfortheyearended31stDecember

2018 at GH15,000.

Required:

In compliance with the Companies Code provisions and in conformity with relevant International Financial Reporting Standards, prepare for publication;

(i) the statement of profit or loss and other comprehensive income for the year ended 31st

December, 2018.

(ii) the statement of changes in equity for the year ended 31st December, 2018.

(iii) the statement of financial position as at 31st December, 2018.