The following balances were extracted from the books of Tudu Ltd on 31 December 2018.

Additional information:
i) Inventories at 31 December 2018 was valued at GH¢18,226.
ii) Directors’ bonuses for the year ended 31 December 2018 calculated at GH¢1,160 have not been accounted for.
iii) Distribution costs include a payment of GH¢3,750 for rent for the three months to 28 Feb-ruary 2019.
iv) The company’s depreciation policies are as follows:

• Fixtures and Fittings – Straight line over 5 years.
• Motor vehicles – Reducing balance method at 20% per annum.
• All non-current asset residual values are estimated at zero.

v) The company reviewed the trade receivables at 31 December 2018, and the following ad-justments are required:

• Irrecoverable debts of GH¢450 in addition to those already written off.
• Specific allowance for receivables of GH¢650.
• General allowance of 3% against the remaining receivables.

vi) The interest on the loan stock is outstanding at the year end.
Required:
a) Prepare a Statement of Profit or Loss account for Tudu Ltd for the year ended 31 December 2018.                          (10 marks)

b) Prepare a Statement of Financial Position for Tudu Ltd as at 31 December 2018.                                                      (10 marks)

The trial balance below was extracted from the ledger of Nhyiraba Ltd as at 31 December 2018.

The following additional information are provided:

i) Allowance is to be made for depreciation on the non-current assets on straight line method at the following rates:

Building                         3%

Plant & Machinery      20%

Motor vehicle              20%

Furniture & Fittings    10%

ii) The value of land included in Land and Building is GH¢20,000,000.

iii) The following payments were made in advance:

Rent             GH¢4,320,000

Insurance    GH¢1,740,000

iv) One year interest is due on the loan notes.

v) Provision for doubtful debt is to be adjusted so that it is 3% of trade receivables.

vi) Allowance is to be made for audit fees of GH¢3,600,000.

vii) Directors’ fees of GH¢4,500,000 were due at the year end.

viii) The cost of closing inventories at 31/12/2018 was GH¢43,740,000. However due to market recession the net realisable value of the goods is GH¢37,430,000.

ix) The directors have recommended transfer of GH¢20,000,000 to general reserve.

x) The year’s preference dividend is to be provided for.

xi) Current year income tax charged was GH¢9,630,000.

xii) Authorised share capital comprise:

50,000,000 10% preference shares at GH¢1 each GH¢50,000,000.

250,000,000 ordinary shares at GH¢0.5 each GH¢100,000,000.

Required:

Prepare:

a) Nyhiraba Ltd’s Statement of Profit or Loss account for the year end 31 December, 2018

b) Nhyiraba Ltd’s Statement of Financial Position as at 31 December, 2018.

Bob  and  Sons  prepares  its  financial  statements  to  31  December  every  year. At  31st December 2017, the company’s trial balance was as follows:

ii) It is the policy of the company not to charge depreciation in the year of disposal.

iii) Land was revalued later in the year for GH¢15,000,000. No change was required to the value of the building.

iv) Inventory value at 31 December 2017 amounted to GH¢1,840,000

v) Rent recorded in the trial balance represents 15months rent paid to 31 March 2018

vi) A provision of 10% of trade receivable is to be made

vii) During the year Motor Vehicle costing GH¢1,200,000 was disposed off. The vehicle had been in existence for 3 years. Proceeds from the sale of the vehicle was GH¢500,000. This has not been accounted for in the books of Bob and Sons.

Required:

Prepare the Statement of comprehensive income for Bob and Sons for the year ended 31 December 2017 and the Statement of financial position as at 31 December 2017 in compliance with the provisions of International Financial Reporting Standards (IFRS).

Sawaba Limited is a company involved in the construction and fitting of kitchens and wardrobes. The following trial balance was extracted from its books as at 31 October 2017:

The following information, based on your investigations, has also come to your attention:
i) Inventory as at 31 October 2017 was GH¢387,100.
ii) Depreciation is to be charged as follows:

• Buildings 4% Straight Line on Cost
• Plant & Equipment 15% of Reducing Balance
• Land is not being depreciated.

iii) The land and buildings was revalued in total at GH¢1,300,000, of which land amounted to GH¢200,000, as at 31 October 2017. This has not been recorded in the books.
iv) Rent relates to a display unit rented and its rental period is yearly starting on 1 April each year. The yearly amount of GH¢12,000 is paid in full on this date.
v) There are outstanding balances for Marketing Costs, Salaries and Telephone Expenses amounting to GH¢2,420, GH¢3,610 and GH¢280 respectively which have not yet been included in the above trial balance.

vi) A customer owing GH¢6,000 went into liquidation. The liquidator has assured Sawaba Limited that it will receive 10% of the amount. Sawaba Limited has decided that the Allowance for Doubtful Debts should be set at 5%.
vii) Provide for any Loan interest due.
viii) All Expenses are to be allocated evenly between Distribution Costs and Administrative Expenses.
Required:
Prepare a Statement of Profit or Loss Account and Statement of Financial Position for Sawaba Limited for the financial year-ending 31 October 2017.

Adepa, a limited liability Company, has the following Trial balance as at 31 December 2016

The following additional information is relevant.
i) Inventory at 31 December, 2016 was valued at GH¢1,600,000. While doing the inventory count, errors in the previous year’s inventory count were discovered. The inventory brought forward at the beginning of the year should have been GH¢2,200,000 not GH¢2,400,000 as stated above.
ii) Depreciation is to be provided as follows:

• Buildings at 5% straight line, charged to administrative expenses.
• Plant and equipment at 20% on the reducing balance basis, charged to cost of sales.
• Motor vehicles at 25% on the reducing balance basis, charged to distribution costs.

iii) No final dividend is being proposed.
iv) A customer has gone bankrupt owing GH¢76,000. This debt is not expected to be recovered and an adjustment should be made. 5% provision for bad debt is to be made.
v) 1 million new ordinary shares were issued at GH¢1.50 on 1 December 2016. The proceeds have been left in a suspense account.
Required:                                                                                                                (Ignore taxation)
a) Prepare Statement of profit or loss for the year ending 31 December 2016 and Statement of Changes in Equity for the year ended 31 December 2016.                                                                                                                                                (12 marks)

b) Prepare statement of financial position as at 31 December 2016.                                                                                  (8 marks)