You are required to prepare;
a) income statement for the year ended 31st December 2019.
b)statement of financial position as at 31st December 2019.

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Mariana prepares her financial statements to 31" December every year. At 31 December, 2019, trial balance was as follows: Capital Sales Purchases Inventory 1/1/2019 Returns Printing and Stationery Rent Discounts Transport and travelling Repairs and maintenance Allowance for receivables Land at cost Building at cost Accumulated depreciation on building Motor Vehicle at cost Accumulated depreciation on motor vehicles Equipment and Furniture Accumulated depreciation on equipment & furniture Trade receivables Cash at hand Cash at bank Drawings Interest on loan Trade payables 20% Loan The following additional information is relevant: i) Depreciation is to be provided as follows: DR GHS000 50,356 7,900 545 1,692 2,400 1,800 1,760 1,523 13,500 45,000 24,500 12,450 9,450 9,524 4,520 2,200 189,120 Building - 5% per year on cost Motor Vehicle -15% per year on reducing balance basis. Equipment & Furniture - 10% per year on reducing balance basis. CR GHS'000 55,720 65,880 1,720 3,520 650 6,100 9,600 4,980 5,950 13,000 22,000 189,120 ii) Inventory value at 31 December 2019 amounted to GHS 5,840,000 iii) Rent recorded in the trial balance represents 16 months' rent paid to 30¹, April 2020 iv) A provision of 6% of trade receivable is to be made v) Rate paid during the year of GHe 750,000 was omitted from the books. vi) Adverting cost of GHe 1,250,000 received in November 2019 remained outstanding at the end of the year. vii) The loan was contracted on 30th June 2019 to expand the operations of the business entity. Mariana prepares her financial statements to 31" December every year. At 31 December, 2019, trial balance was as follows: Capital Sales Purchases Inventory 1/1/2019 Returns Printing and Stationery Rent Discounts Transport and travelling Repairs and maintenance Allowance for receivables Land at cost Building at cost Accumulated depreciation on building Motor Vehicle at cost Accumulated depreciation on motor vehicles Equipment and Furniture Accumulated depreciation on equipment & furniture Trade receivables Cash at hand Cash at bank Drawings Interest on loan Trade payables 20% Loan The following additional information is relevant: i) Depreciation is to be provided as follows: DR GHS000 50,356 7,900 545 1,692 2,400 1,800 1,760 1,523 13,500 45,000 24,500 12,450 9,450 9,524 4,520 2,200 189,120 Building - 5% per year on cost Motor Vehicle -15% per year on reducing balance basis. Equipment & Furniture - 10% per year on reducing balance basis. CR GHS'000 55,720 65,880 1,720 3,520 650 6,100 9,600 4,980 5,950 13,000 22,000 189,120 ii) Inventory value at 31 December 2019 amounted to GHS 5,840,000 iii) Rent recorded in the trial balance represents 16 months' rent paid to 30¹, April 2020 iv) A provision of 6% of trade receivable is to be made v) Rate paid during the year of GHe 750,000 was omitted from the books. vi) Adverting cost of GHe 1,250,000 received in November 2019 remained outstanding at the end of the year. vii) The loan was contracted on 30th June 2019 to expand the operations of the business entity.

Answer rating: 100% (QA)

a MARIANA INCOME STATEMENT FOR THE PERIOD ENDED 31ST DECEMBER 2019 GHS 000 GHS 000 Sales 65880 Less Returns 545 Net sales 65335 Cost of sales Opening ... View the full answer