The following trial balance relates to Kill It LTD at 31 March 2018:

Equity shares of 50 pesewas each (note (i)) Share premium (note (i)) Retained earnings at 1 April 2017 Leased property (12 years) at cost (note (ii)) Plant and equipment at cost (note (ii)) Accumulated amortisation of leased property at 1 April 2017 Accumulated depreciation of plant and equipment at 1 April 2017				GH000		GH000 45,000 5,000 5,100 16,000 33,500 1,400 3,200 27,300 350,000 13,500 500,000
				48,000 47,500 25,200 28,500 298,700 8,000 16,100 26,900 300 800
Inventory at 31 March 2018 Trade receivables (note (iii)) Bank Deferred tax (note (iv)) Trade payables Revenue Cost of sales Lease payments (note (ii)) Distribution costs Administrative expenses Bank interest Current tax (note (iv)) Suspense account (note (i))
		-- 500,000

The following notes are relevant:

i. The suspense account represents the corresponding credit for cash received for a fully subscribed rights issue of equity shares made on 1 January 2018. The terms of the share issue were one new share for every five held at a price of 75 pesewas each. The price of the companys equity shares immediately before the issue was GH1.20 each. ii. Non-current assets:

To reflect a marked increase in property prices, Kill It LTD decided to revalue its leased property on 1 April 2017. The Directors accepted the report of an independent surveyor who valued the leased property at GH36 million on that date. Kill It LTD has not yet recorded the revaluation. The remaining life of the leased property is eight years at the date of the revaluation. Kill It LTD makes an annual transfer to retained profits to reflect the realisation of the revaluation reserve. In Kill It LTDs tax jurisdiction the revaluation does not give rise to a deferred tax liability.

On 1 April 2017, Kill It LTD acquired an item of plant under a finance lease agreement that had an implicit finance cost of 10% per annum. The lease payments in the trial balance represent an initial deposit of GH2 million paid on 1 April 2017 and the first annual rental of GH6 million paid on 31 March 2018. The lease agreement requires further annual payments of GH6 million on 31 March each year for the next four years. Had the plant not been leased it would have cost GH25 million to purchase for cash.

Plant and equipment (other than the leased plant) is depreciated at 20% per annum using the reducing balance method.

No depreciation/amortisation has yet been charged on any non-current asset for the year ended 31 March 2018. Depreciation and amortisation are charged to cost of sales.

3. In March 2018, Kill It LTDs internal audit department discovered a fraud committed by the companys credit controller who did not return from a foreign business trip. The outcome of the fraud is that GH4 million of the companys trade receivables have been stolen by the credit controller and are not recoverable. Of this amount, GH1 million relates to the year ended 31 March 2017and the remainder to the current year. Kill It LTD is not insured against this fraud.

4. Kill It LTDs income tax calculation for the year ended 31 March 2018 shows a tax refund of GH2.4 million. The balance on current tax in the trial balance represents the under/over provision of the tax liability for the year ended 31 March 2017. At 31 March 2018, Kill It LTD had taxable temporary differences of GH12 million (requiring a deferred tax liability). The income tax rate of Kill It LTD is 25%.

Required:

1. Prepare the statement of comprehensive income for Kill It LTD for the year ended 31^st March

2018. (10 marks)

2. Prepare the statement of changes in equity for Kill It LTD for the year ended 31^st March 2018.

(2 marks) c. Prepare the statement of financial position of Kill It LTD as at 31^st March 2018. (8 marks)

(Total: 20 marks)