Although Deborah Adefowope has run a small business for many years, she has never kept adequate accounting records. However, a need to obtain a bank loan for the expansion of the business has necessi tated the preparation of 'final' accounts for the year ended 31 August 2009. As a result, the following information has been obtained after much careful research: 1. Deborah Adefowope's business assets and liabilities are as follows: As at 1/09/08 31/08/09 Stock in trade GHS8,600 GHS16,800 Debtors for sales 3,900 4,300 Creditors for purchases Rent prepaid Electricity accrued due 7,400 8,900 300 420 210 160 Balance at bank 2,300 1,650 Cash in hand 360 330 2. All takings have been banked after deducting the following payments: Cash drawings - Deborah Adefowope has not kept a record of cash drawings, but suggests these will be in the region of GHS8,000 Casual labour 1,200 Purchase of goods for resale 1,800 Note: takings have been the source of all amounts banked. 3. Bank payments during the year ended 31 August 2009 have been summarised as follows: GHS Purchases 101,500 Rent 5,040 Electricity Delivery costs (to customers) Casual labour 1,390 3,000 6,620 4. It has been established that a gross profit of 33/3% on cost has been obtained on all the goods sold 5. Despite her apparent lack of practice accounting records, Deborah is able to confirm that she has taken out of the business during the year under review goods for her own use costing GHS600. Required: a. Prepare a computation of total purchases for the year ended 31 August, 2009 b. Prepare an income statement for the year ended 31 August 2009 and a statement of financial position as at that date Question five The following is the Receipts and Payments of Bachelors and Spinsters Club during the year ended 31" December 2009 RECEIPTS AND PAYMENTS GHS '000 GHS '000 Cash and bank balance (1/1/09) Sale of competition tickets Membership subscription: 2008 2009 300,000 150,000 Honorarium to pastors Publicity of Miss Spinster Donation to charity 12,000 100,000 45,000 13,000 44,000 366,000 Rent