PAST SEMESTER QUESTION - AUGUST 2019 (Question 3) Ganda Bhd (Ltd) has prepares its draft income statement for the year ended 31 December 2019, and after its preparation the following balances are in the accounts: DEBIT CREDIT s Ordinary Share Capital - 800,000 $1.20 each 960,000 9% Preference Share Capital - 200,000 @ 0.50 100,000 Freehold premises -cost 560,000 Office Equipment -cost 330,000 Motor Vehicle-cost 80,000 Investment in Treasury Bonds 32,000 Provision for Depreciation at 31 December 2019 Office Equipment 48.000 Motor Vehicle 18,000 Inventory at 31 December 2019 67,800 Account Receivables and Payables 80,100 11,300 Bank 35,800 12% Debenture (repayable Year 2025) 50.000 Provision for Doubtful Debts at 1 January 2019 800 Undistributed profitat 1 January 2019 15.400 Net income for the year ended 31 December 2019 37.200 Suspense 55.000 1.240,700 1.240,700 Before preparing the statement of financial position for the year ended 31 December 2019, you discovered there were discrepancies in the records and the reason for the suspense account. a) The directors had recommended the payment of a half-year dividend to preference shareholders and an interim dividend of 6 cents per share to the ordinary shareholders. Both of these dividends were paid in August 2019 and this had been recorded in the bank account. However the double entries for both of these transactions had not been made by Ganda Bhd (Lad) b) The remaining amount in the suspense account was a purchase of office equipment, acquired on October 2019. c) On 31 December 2019, a half-year's Debenture Interest remained unpaid. d) The provision for bad debts, estimated at 3% of account receivable, has not been accounted for at 31 December 2019. Tutorial Questions on Company Accounts - (Intemal Use) e) The directors recommended that payment of a final half year dividend to preference shareholders Required: Prepare the adjusted income statement for the year ended 31 December 2019 and statement of financial position as at that date (for internal use) (20 marks)