Please answer all questions a to d.Show all working also The following Trial Balance was extracted from the books of Johnson GhanaLtd as at 31* December 2019.DrCrGHCGHCIssued and fully paid 20,000 ordinary sharesof Ghc1.00 each20,00010,0008,0003,000Share PremiumGeneral ReservesIncome statementSalaries5,000Discounts200400Carriage Inwards160Purchases and Sales45,00091,740Opening InventoryCarriage Outwards8,000560Loan24,000Interest on loan1,000Allowance for receivables2,000Preliminary ExpensesMotor Vehicle expenses12,0001,8006,000Directors SalariesRepairs to PremisesRates2501,60020,00023,000Premises at CostMotor Vehicles at costPlant and Machinery at costProvision for depreciation- Plant and Machinery25,0002,500Debtors and Creditors12,3908,000Sundry ExpensesCash in Hand3,5003004,000240170,000Cash at HandReturns360170,000Additional Information:a) Inventory at close Ghc12,500 b) Expenses Unpaid:- Motor Expenses- Insurance- Sundry ExpensesGhc200Ghc450Ghc400(c) Prepaid Expenses:- RatesGhc320- Sundry ExpensesGhc250(d) Allowance for receivables to be increased to Ghc2,800(e) Part of the Premises is sublet at Ghc2,400 per annum(f) Monthly salaries and wages bill Ghc400(g) Bad debt at 31 December 2019 Ghc600(h) Loan interest is 5% per annum(i) Provide for depreciation on a straight line method:- Premises 2%; Plant and Machinery 25%- Motor Vehicle 10%(G) Write off Preliminary expenses(k) Transfer to general reserves Ghc5,0000 and Ghc5,000 to revenuereservesYou are required to:a)Prepare the Income Statement for the yearb)Prepare the appropriation Accountc)Would you invest in this company base on your answer in (a) ? Give reasonsand indicate two benefits that you will gain from such investment(d)Looking at the debtors figure and cash in hand would you say the companyis overtrading? Give reasons

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b) Expenses Unpaid: - Motor Expenses Ghc200 Insurance Ghc450 - Sundry Expenses Ghc400 (c) Prepaid Expenses: - Rates Ghc320 - Sundry Expenses Ghc250 (d) Allowance for receivables to be increased to Ghc2,800 (e) Part of the Premises is sublet at Ghc2,400 per annum (f) Monthly salaries and wages bill Ghc400 (g) Bad debt at 31 December 2019 Ghc600 (h) Loan interest is 5% per annum (i) Provide for depreciation on a straight line method: - Premises 2%; Plant and Machinery 25% - Motor Vehicle 10% G) Write off Preliminary expenses (k) Transfer to general reserves Ghc5,0000 and Ghc5,000 to revenue reserves You are required to: a)Prepare the Income Statement for the year b)Prepare the appropriation Account c)Would you invest in this company base on your answer in (a) ? Give reasons and indicate two benefits that you will gain from such investment (d)Looking at the debtors figure and cash in hand would you say the company is overtrading? Give reasons