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21.450 Question Asomowee Enterprise is run by a sole trader. The following Trial Balance was prepared from the business accounts on 30 September 2019 DR GHS GHS Capital 185,280 Inventory 24.200 Sales Purchases 267,350 Purchases returns 6.040 Electricity 2.230 Discount allowed 2.400 Discount received 4220 Motor expenses 1.580 Drawing 32.000 Bank 24511 Salaries 10.000 Insurance 15.400 Receivables 110.140 irrecoverable debts Allowance for doubtful debts 3.153 Payables 78.238 General Expenses 6.780 9% loan (2016-2023) 150.000 Loan interest 12.000 Land and Buildings 340.000 Accumulated Depreciation for buildings 26,000 Equipment 22.000 Accumulated depreciation for equipment 10.300 Motor Vehicles 26.000 Accumulated depreciation for Motor Vehicles 13.250 3.031 The following additional information is also available: Only 10 months salaries are shown in the trial balance. An equal amount is paid for salaries for each month of the year As at 30-September 2013, GH53,200 had been prepaid for insurance whilst GHS410 was owing for general expenses GHS 4.600 had been charged to general expenses for the owner's private holiday iv. As at 30 September 2019, inventory was valued at GH522.500 A customer, owing GH5,040 had been declared bankrupt. This amounts to be written offin full VI An allowance for receivables is to be maintained at 3% of the remaining receivables Vil As at 30 September 2019, the business's land was valued at GRS100.000. Land is not depreciated Depreciation is to be provided as follows: Building 4% per annum using the straight line method Equipment-25% per annum using the straight line method Motor Vehicles-40% per annum using the reducing balance method There were no additions or disposals of non current assets during the financial year Required: a. Prepare the statement of profit or loss for the year ended 30 September 2019 b. Prepare the statement of financial position as at 30-September 2019

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