by During 2018. Ekua Donkor Lid discovered that certain items had been included in inventory...
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Accounting
by During 2018. Ekua Donkor Lid discovered that certain items had been included in inventory at 31 December 2017, valued at GH 4.2m, which had in fact been sold before the year end. The following figures for 2017 (as reported) and 2018 (draft) are available 2017 2018 (draft) GH 000 GH000 Sales 47.400 67.200 Cost of goods sold (34.570) (55.800 Profit before taxation 12.830 11.400 Income taxes (3.8492 (3.420) Net profit 8.981 7.980 Reserves at 1 January 2017 were GHe 13m. The cost of goods sold for 2018 includes the GHE 4.2m emor in opening inventory. The income tax rate was 30% for 2017 and 2018. Required Show the statement of profit or loss and other comprehensive income for 2018, with the 2017 comparative, and retained eamings. [12 marks]
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