The following is the trial balance of Polo Lid as at 31 December 2020 GH GHE Authorised, issued and called-up capital: 500,000 cquity shares of Glidech 500,000 60.000 7 redeemable preference shares of Sop each 30,000 Equipment cost 350,000 Equipment accurated depreciation 75,000 Motor vehicle cost 160,000 Motor vehicle: accumulated depreciation 25.1.50 Premises 220,000 Inventory as at January 2020 51.980 Bank 10,050 Sales SOR.420 Purchases 225.000 Trade receivables 130,010 Trade payables 10.200 Distribution costs 80,400 Administrative expenses 45,240 Inrecoverable debts 1.250 Allowance for receivables 14,360 Rent received 8. SOO Income from investments 17.040 Interim dividend on equity shares 7420 Retained earnings 51.760 General reserve 40420 1.281.350 Additional information: i) Inventories as at 31 December 2020 are valued in) Insurance include GHc840 for one and half-year end 10 June 2021. Insurance is included in administrative expenses. i) Rent received includes an amount of GHc2,40%) paid in advance as at 31 December 2020 iv) Distribution costs of GH4750 were prepaid and administrative expenses of GHe went owing as at 31 December 2020 v) The total trade receivables balance of Ghe: 30,010 includes a balance of GHe 1.010 which has been outstanding for ten months. Poloo Lead has decided to write of this balance vi) Peloo Lad's policy is to allow for receivables on the basis of the length of time the debt has been outstanding. The aged analysis of trade receivables at 31 December 2020 and the required allowance are shown below ndershare Sement Age of debt Balance Allowance required Ghe 0 - 30 days 80,000 Nal 31-60 days 40.000 20% of balances Over 60 days 10,010 85% of balances 130,010 vi) On 15 January 2020 Polood purchased premises at a cost of GHE 105.000. This cost included GH23,500 relating to legal costs. The legal costs of GH23.500 had been included in administrative expenses and not in the cost of premises. Premises are not depreciated. vin) On 1 April 2020 Polco Lid purchased cquipment which cost GH50,000. This transaction was entered in the accounts on 1 April 2020 ix) Depreciation is to be provided as follows Equipment 20% per annum o cost Motor vehicles 20% per annum reducing balance basis x) Depreciation on equipment is apportioned 2016 to administrative exposes and SO 10 distribution costs Depreciation is charged for each month of use. Depreciation of motor vchicles is treated distribution com Required: Prepare for Polo Led, the following statements in accordance with International Financial Reporting Standards (IFRS) a) Statement of Profit and less for the year ended 31 December 2020. (10 marks) b) Statement of Financial Position as at 31 December 2020. (10 marks) The following is the trial balance of Polo Lid as at 31 December 2020 GH GHE Authorised, issued and called-up capital: 500,000 cquity shares of Glidech 500,000 60.000 7 redeemable preference shares of Sop each 30,000 Equipment cost 350,000 Equipment accurated depreciation 75,000 Motor vehicle cost 160,000 Motor vehicle: accumulated depreciation 25.1.50 Premises 220,000 Inventory as at January 2020 51.980 Bank 10,050 Sales SOR.420 Purchases 225.000 Trade receivables 130,010 Trade payables 10.200 Distribution costs 80,400 Administrative expenses 45,240 Inrecoverable debts 1.250 Allowance for receivables 14,360 Rent received 8. SOO Income from investments 17.040 Interim dividend on equity shares 7420 Retained earnings 51.760 General reserve 40420 1.281.350 Additional information: i) Inventories as at 31 December 2020 are valued in) Insurance include GHc840 for one and half-year end 10 June 2021. Insurance is included in administrative expenses. i) Rent received includes an amount of GHc2,40%) paid in advance as at 31 December 2020 iv) Distribution costs of GH4750 were prepaid and administrative expenses of GHe went owing as at 31 December 2020 v) The total trade receivables balance of Ghe: 30,010 includes a balance of GHe 1.010 which has been outstanding for ten months. Poloo Lead has decided to write of this balance vi) Peloo Lad's policy is to allow for receivables on the basis of the length of time the debt has been outstanding. The aged analysis of trade receivables at 31 December 2020 and the required allowance are shown below ndershare Sement Age of debt Balance Allowance required Ghe 0 - 30 days 80,000 Nal 31-60 days 40.000 20% of balances Over 60 days 10,010 85% of balances 130,010 vi) On 15 January 2020 Polood purchased premises at a cost of GHE 105.000. This cost included GH23,500 relating to legal costs. The legal costs of GH23.500 had been included in administrative expenses and not in the cost of premises. Premises are not depreciated. vin) On 1 April 2020 Polco Lid purchased cquipment which cost GH50,000. This transaction was entered in the accounts on 1 April 2020 ix) Depreciation is to be provided as follows Equipment 20% per annum o cost Motor vehicles 20% per annum reducing balance basis x) Depreciation on equipment is apportioned 2016 to administrative exposes and SO 10 distribution costs Depreciation is charged for each month of use. Depreciation of motor vchicles is treated distribution com Required: Prepare for Polo Led, the following statements in accordance with International Financial Reporting Standards (IFRS) a) Statement of Profit and less for the year ended 31 December 2020. (10 marks) b) Statement of Financial Position as at 31 December 2020. (10 marks)