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

The following additional information is relevant:

1. 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.
2. 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.
3. No final dividend is being proposed.
4. 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.
5. 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: a) Prepare an Income Statement for Adepa Ltd for the year ended 31 December, 2016. (10 marks)

b) Prepare a Statement of Financial Position as at 31 December, 2016. (10 marks)