Question 2 The extracts from the trial balance of Kandy as at 31 December 2018 are: |GHC '000 55,000 58,500 GHC '000 Land (GHC 5million) and Buildings - at cost Plant and Equipment - at cost |...

Extracted text: Question 2 The extracts from the trial balance of Kandy as at 31 December 2018 are: |GHC '000 55,000 58,500 GHC '000 Land (GHC 5million) and Buildings - at cost Plant and Equipment - at cost | Accumulated Depreciation at 01 January 2018 : Buildings : Plant and Equipment 20,000 34,500 The following information are also relevant: Non-current assets: The price of property has increased significantly in recent years and on 01 January, 2018, the directors are decided to revalue the land and buildings. The directors accepted the report of an independent surveyor who valued the land at GHC 8 million and the buildings at GHC 39 million on that date. The remaining life of the buildings at 01 January 2018 was 15 years. Kandy does not make an annual transfer to retained profits to reflect the realization of the revaluation gain. Plant and equipment is depreciated at 12%% per annum using the reducing balance method. No depreciation has yet been charged on any non-current asset for the year ended 31 December 2018. Depreciation is charged to cost of sales. You are required to: Prepare extracts from the statement of profit or loss and other comprehensive income for Kandy for the year ended 31 December 2018 and from the statement of financial position as at the same date with regards property, plant and equipment.