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Question 4 As a student of accounting, you have been contacted by Ebenezer Opoky, owner of Best Cereals Enterprise, a sole proprietorship dealing in corn, wheat and soya beans at Makola to help prepare his business' final account for the year ending 31/12/2017. Ebenezer Opoku has admitted that he does not keep full set of accounting books. After a thorough check on his books you have obtained the following information about his business: a. No record of sales has been kept (most of which is usually on credit). A payment of GH30,750 (GH24,000 by cheque) has been received from a customer for credit sale earlier. b. A total of GH15,800 was paid to suppliers during the period by cheque. c. Expenses paid during the period (by cheque): rent GH1,900; general expenses GH155; rent (by cash) GH200 d. Ebenezer Opoku took GH125 on a weekly basis as drawings. Additional information on Best Cereals Enterprise' are as follows: 31.12.2016 31.12.2017 GH GH Trade receivables 2,750 3,300 Trade payables 800 1,300 Rent owing 175 Bank 2,825 8,970 Cash 160 210 Inventories 3,180 3,400 Best Cereals Enterprise's only non-current asset was some fixtures valued at 31/12/2016 at GH1,650. This asset is depreciated annually at 10%. You are required to prepare an income statement for the year ending December, 2017 and a statement of financial position as at that date for Best Cereal Enterprise. (25 MARKS)

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