The balances below were taken from the books of Level 100 – First Semester Enterprise as at 31/03/20 GH¢ GH¢ Plant & Machinery at cost 200,000 Depreciation on P/M 40,000 Motor Vehicles 40,

The balances below were taken from the books of Level 100 – First Semester Enterprise as at 31/03/20

GH¢

GH¢

Plant & Machinery at cost

200,000

Depreciation on P/M

40,000

Motor Vehicles

40,000

Depreciation on Vehicles

16.000

Trade Receivables / Payables

90,000

12,000

Opening Inventory

60,000

Bank 

72,000

Capital

280,000

Purchases and Sales

220,000

400,000

Salaries

29,000

Motor Expenses

12,000

Rates & Insurance

3,000

Loan Interest

6,000

General Expenses

16,000

748,000

748,000

You are given the following information:

1. Closing stock has been valued at GH¢50,0002. There is a salary of GH¢ 2,000 due to the staff. 3. Motor Expenses a prepayment GH¢200. 4. Depreciate Plant and Machinery is 10% on cost and 25% on reducing Balance for Motor Vehicles.5. Bad debts of GH¢500 is to be written off. Provision for doubtful debts is 2% of receivables.6. Goods taken for personal use amounts to GH¢2,000 whiles a cheque of GH¢20,000 was signed to pay his wife’s trip abroad. 

Required: 

Prepare the Income Statement and Statement of Financial Position for the year 31 March, 2020.