QUESTION I The trial balance of Beta Limited as at 31" December, 2019 is as follows: Debit Credit GH GH 50,000 20,000 8,000 Sales and Purchases Inventory Distribution costs 8,000 15,550 Administration expenses Trade Receivables and Payables 12,400 20,000 Cash and bank 8,100 52,000 Ordinary shares (GH0.50) 8,000 Revaluation reserve 9,000 10% Redeemable preference shares (GH1) 8,000 10% Loan Notes 75,000 Property, Plant and Equipment Investment property Rental income from investment property 10,000 1,000 3,000 Retained profits at 1 January, 2019 400 Loan note interest 450 Preference dividend 1,600 Interim ordinary dividend Corporate Tax Suspense 500 8,000 159,500 159,500 The following is to be taken into account: 1. The inventory at cost on 31" December, 2019 was GHC14,500and the net realizable value was GHC12,000. 2. The Property, Plant and Equipment include a building whose net book value is currently GH5,000 is to be revalued to GH9,000. 3. The balance on the corporation tax account represents an overprovision of tax for the previous year, Tax for the current year is estimated at GH3,000. 4. The directors have decided to make an allowance for doubtful debts of 2% of trade receivables. This amount should be charged to administrative expense. 5. Depreciation charges for the year ended 31" December 2019 amounted to GH800. This figure should be included in the administrative expense. 6. The investment property was acquired in January, 2019. The rental income from the investment property GHe 1,000 relates to the two-year period ending 31" December, 2020. The company adopts fair value model in subsequent measurement of the investment property and fair value assessment at 31" December, 2019 puts the valuation at GH15,000. 7. The suspense account represents the corresponding credit for cash received for a fully subscribed issue of ordinary shares made on 30th December, 2019. The terms of the share issue was 4,000 new ordinary shares were issued at GH2.00 cach. 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 31" December, 2019. [7 marks] The statement of changes in equity for the year ended 31* December, 2019. [3 marks] The statement of financial position as at 31 December, 2019. [5 marks] (ii) (ii) QUESTION 2 The following are the Statements of Financial Position of Yomi Limited for the years ended December 31, 2015 and 2016. 2016 2015 Assets GHC GHC GHC GHC Land 560,000 300,000 Building and Equipment 2,000,000 2,560,000 1,900,000 2,200,000 Accumulated Depreciation (800,000) 1,760,000 (770.000) 1,430,000 Long-Term Investments 50,000 25,000 Current Assets Inventory 300,000 320,000 Accounts Receivable 410,000 460,000 Cash 30,000 50,000 Prepaid 20,000 760,000 15.000 845,000 2.570.000 2.300,000 Equities and Liabilities Ordinary shares (GHC2 par value) 200,000 160,000 710,000 550,000 Share premium Retained Earnings 670,000 620,000 500,000 800,000 Bonds Long-Term Note Payable 150,000 Current Liabilities Accountable Payable 300,000 120,000 40,000 2,570.000 50.000 2,300,000 Accrued Liabilities Additional in formation about 2016 transactions and events: i) Net profit for the year was GHC110,000 ii) Depreciation expense on buildings and equipment was GHC60,000 iii) Sold equipment with a cost of GHC50,000 and accumulated depreciation of GHC30,000 for cash of GHC17,000 iv) Declared and paid cash dividends of GHC60,000 v) Issued a GHC150,000 long-term note payable for buildings equipment. vi) Purchased long-term investments for GHC25,000 vii) Paid GHC300,000 on the bonds payable viii) Issued 20,000 shares of GHC2 par value ordinary shares for GHC200,000, ix) Purchased land for GHC260,000. Required: Prepare the company's statement of cash flows for the year ended 31"December 2016, using the indirect method, adopting the format in IAS 7 Statement of cash flows. [15 marks]