Find Related Questions by Tags, levels, etc.
Find Related Questions by Tags, levels, etc.
Using the following financial figures, calculate the capital:
Motor Van – N50,000
Furniture – N25,000
Cash – N12,500
Payables – N35,000
Loan is 30% of Payables
What is the Capital?
A. N34,500
B. N42,000
C. N52,500
D. N75,000
E. N95,000
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Kontiba Enterprise
Statement of Profit or Loss for the year ended 30 September 2023
The following information is also available:
1) Only 10 months’ salaries are shown in the Trial Balance. An equal amount is paid for
salaries for each month of the year.
2) As at 30 September 2023, GH¢2,560 had been prepaid for insurance, whilst GH¢328 was
owing for general expenses.
3) GH¢3,680 had been charged to general expenses for the owner’s private holiday.
4) As at 30 September 2023, inventory was valued at GH¢18,000.
5) A customer, owing GH¢4,032 has been declared bankrupt. This amount is to be written
off in full.
6) An allowance for receivables is to be maintained at 3% of the receivables balance.
7) As at 30 September 2023, the business’s land was valued at GH¢80,000. Land is not
depreciated.
8) Depreciation is to be provided as follows:
Buildings: 4% per annum using the straight line method.
Equipment: 25% per annum using the straight line method.
Page 7 of 20
Motor vehicles: 40% per annum using the reducing balance method.
9) There were no additions or disposals of non-current assets during the financial year.
Required:
i) Prepare the statement of profit or loss for the year ended 30 September 2023. (10 marks)
ii) Prepare the statement of financial position as at 30 September 2023. (10 marks)
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Asomdwee Enterprise is run by a sole trader. The following Trial Balance was prepared from the business accounts on 30th September 2015:
| Account | Dr (GH¢) | Cr (GH¢) |
|---|---|---|
| Capital | 185,280 | |
| Inventory | 24,200 | |
| Sales | 421,450 | |
| Purchases | 167,350 | |
| Purchase returns | 6,040 | |
| Electricity | 2,230 | |
| Discounts allowed | 2,420 | |
| Discounts received | 4,270 | |
| Motor expenses | 1,580 | |
| Drawings | 32,000 | |
| Bank | 24,511 | |
| Salaries | 108,000 | |
| Insurance | 15,400 | |
| Receivables | 110,140 | |
| Irrecoverable debts | 1,420 | |
| Allowance for receivables | 3,153 | |
| Payables | 76,288 | |
| General expenses | 6,780 | |
| 9% Loan (2012-2019) | 150,000 | |
| Loan interest | 12,000 | |
| Land and buildings | 340,000 | |
| Accumulated depreciation – buildings | 26,000 | |
| Equipment | 22,000 | |
| Accumulated depreciation – equipment | 10,300 | |
| Motor vehicles | 26,000 | |
| Accumulated depreciation – motor vehicles | 13,250 | |
| Total | 896,031 | 896,031 |
The following information is also available:
i) Only 10 months’ salaries are shown in the Trial Balance. An equal amount is paid for salaries for each month of the year.
ii) As at 30th September 2015, GH¢3,200 had been prepaid for insurance, whilst GH¢410 was owing for general expenses.
iii) GH¢4,600 had been charged to general expenses for the owner’s private holiday.
iv) As at 30th September 2015, inventory was valued at GH¢22,500.
v) A customer, owing GH¢5,040, has been declared bankrupt. This amount is to be written off in full.
vi) An allowance for receivables is to be maintained at 3% of the remaining receivables.
vii) As at 30th September 2015, the business’s land was valued at GH¢100,000. Land is not depreciated.
viii) Depreciation is to be provided as follows:
Required:
a) Prepare the Income Statement for the year ended 30th September 2015. (8 marks)
b) Prepare the Statement of Financial Position as at 30th September 2015. (6 marks)
c) i) Identify the accounting concept involved in each of the footnotes/items (i), (iii), and (v). (3 marks)
ii) Explain the correct accounting treatment in each case. (3 marks)
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a) Distinguish between Capital Expenditure and Revenue Expenditure. (5 marks)
(b) The following Trial Balance was extracted from the books of Danfo Enterprise, a second-hand bags dealer, as at 31st December 2014:
| Description | DR (GH¢) | CR (GH¢) |
|---|---|---|
| Stock in Trade | 120,000 | |
| Vehicle (Cost) | 150,000 | |
| Trade Receivables | 80,000 | |
| Accumulated Depreciation: Vehicle | 30,000 | |
| Accumulated Depreciation: Furniture & Fittings | 10,120 | |
| Trade Payables | 100,000 | |
| Drawings | 120,000 | |
| General Expenses | 65,000 | |
| Provision for Doubtful Debts | 2,500 | |
| Rate & Rent | 14,000 | |
| Insurance | 5,000 | |
| Bad Debt | 7,000 | |
| Discount Received | 25,150 | |
| Discount Allowed | 15,160 | |
| Bank Balance | 165,240 | |
| Wages & Salaries | 250,000 | |
| Sundry Expenses | 6,150 | |
| Vehicle Running Expenses | 15,650 | |
| Furniture & Fittings | 50,600 | |
| Repairs to the Shop | 6,500 | |
| Purchases | 650,120 | |
| Sales | 1,079,130 | |
| Capital | 473,520 | |
| Total | 1,720,420 | 1,720,420 |
Additional Information:
i. Provision for doubtful debts is to be reduced by 10%.
ii. Rate and Rent has been paid in advance by two (2) months. Note that Danfo Enterprise pays GH¢1,000 each month.
iii. Stock in trade as at 31st December, 2014 GH¢80,150.
iv. A bill of GH¢6,150 for vehicle running was outstanding as at 31st December, 2014.
v. The Enterprise provides depreciation as follows:
You are required to:
i. Prepare Income statement for the year ending 31st December 2014. (8 marks)
ii. Prepare Statement of Financial Position as at 31st December 2014. (7 marks)
Find Related Questions by Tags, levels, etc.
Find Related Questions by Tags, levels, etc.
Find Related Questions by Tags, levels, etc.
Using the following financial figures, calculate the capital:
Motor Van – N50,000
Furniture – N25,000
Cash – N12,500
Payables – N35,000
Loan is 30% of Payables
What is the Capital?
A. N34,500
B. N42,000
C. N52,500
D. N75,000
E. N95,000
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Kontiba Enterprise
Statement of Profit or Loss for the year ended 30 September 2023
The following information is also available:
1) Only 10 months’ salaries are shown in the Trial Balance. An equal amount is paid for
salaries for each month of the year.
2) As at 30 September 2023, GH¢2,560 had been prepaid for insurance, whilst GH¢328 was
owing for general expenses.
3) GH¢3,680 had been charged to general expenses for the owner’s private holiday.
4) As at 30 September 2023, inventory was valued at GH¢18,000.
5) A customer, owing GH¢4,032 has been declared bankrupt. This amount is to be written
off in full.
6) An allowance for receivables is to be maintained at 3% of the receivables balance.
7) As at 30 September 2023, the business’s land was valued at GH¢80,000. Land is not
depreciated.
8) Depreciation is to be provided as follows:
Buildings: 4% per annum using the straight line method.
Equipment: 25% per annum using the straight line method.
Page 7 of 20
Motor vehicles: 40% per annum using the reducing balance method.
9) There were no additions or disposals of non-current assets during the financial year.
Required:
i) Prepare the statement of profit or loss for the year ended 30 September 2023. (10 marks)
ii) Prepare the statement of financial position as at 30 September 2023. (10 marks)
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Asomdwee Enterprise is run by a sole trader. The following Trial Balance was prepared from the business accounts on 30th September 2015:
| Account | Dr (GH¢) | Cr (GH¢) |
|---|---|---|
| Capital | 185,280 | |
| Inventory | 24,200 | |
| Sales | 421,450 | |
| Purchases | 167,350 | |
| Purchase returns | 6,040 | |
| Electricity | 2,230 | |
| Discounts allowed | 2,420 | |
| Discounts received | 4,270 | |
| Motor expenses | 1,580 | |
| Drawings | 32,000 | |
| Bank | 24,511 | |
| Salaries | 108,000 | |
| Insurance | 15,400 | |
| Receivables | 110,140 | |
| Irrecoverable debts | 1,420 | |
| Allowance for receivables | 3,153 | |
| Payables | 76,288 | |
| General expenses | 6,780 | |
| 9% Loan (2012-2019) | 150,000 | |
| Loan interest | 12,000 | |
| Land and buildings | 340,000 | |
| Accumulated depreciation – buildings | 26,000 | |
| Equipment | 22,000 | |
| Accumulated depreciation – equipment | 10,300 | |
| Motor vehicles | 26,000 | |
| Accumulated depreciation – motor vehicles | 13,250 | |
| Total | 896,031 | 896,031 |
The following information is also available:
i) Only 10 months’ salaries are shown in the Trial Balance. An equal amount is paid for salaries for each month of the year.
ii) As at 30th September 2015, GH¢3,200 had been prepaid for insurance, whilst GH¢410 was owing for general expenses.
iii) GH¢4,600 had been charged to general expenses for the owner’s private holiday.
iv) As at 30th September 2015, inventory was valued at GH¢22,500.
v) A customer, owing GH¢5,040, has been declared bankrupt. This amount is to be written off in full.
vi) An allowance for receivables is to be maintained at 3% of the remaining receivables.
vii) As at 30th September 2015, the business’s land was valued at GH¢100,000. Land is not depreciated.
viii) Depreciation is to be provided as follows:
Required:
a) Prepare the Income Statement for the year ended 30th September 2015. (8 marks)
b) Prepare the Statement of Financial Position as at 30th September 2015. (6 marks)
c) i) Identify the accounting concept involved in each of the footnotes/items (i), (iii), and (v). (3 marks)
ii) Explain the correct accounting treatment in each case. (3 marks)
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a) Distinguish between Capital Expenditure and Revenue Expenditure. (5 marks)
(b) The following Trial Balance was extracted from the books of Danfo Enterprise, a second-hand bags dealer, as at 31st December 2014:
| Description | DR (GH¢) | CR (GH¢) |
|---|---|---|
| Stock in Trade | 120,000 | |
| Vehicle (Cost) | 150,000 | |
| Trade Receivables | 80,000 | |
| Accumulated Depreciation: Vehicle | 30,000 | |
| Accumulated Depreciation: Furniture & Fittings | 10,120 | |
| Trade Payables | 100,000 | |
| Drawings | 120,000 | |
| General Expenses | 65,000 | |
| Provision for Doubtful Debts | 2,500 | |
| Rate & Rent | 14,000 | |
| Insurance | 5,000 | |
| Bad Debt | 7,000 | |
| Discount Received | 25,150 | |
| Discount Allowed | 15,160 | |
| Bank Balance | 165,240 | |
| Wages & Salaries | 250,000 | |
| Sundry Expenses | 6,150 | |
| Vehicle Running Expenses | 15,650 | |
| Furniture & Fittings | 50,600 | |
| Repairs to the Shop | 6,500 | |
| Purchases | 650,120 | |
| Sales | 1,079,130 | |
| Capital | 473,520 | |
| Total | 1,720,420 | 1,720,420 |
Additional Information:
i. Provision for doubtful debts is to be reduced by 10%.
ii. Rate and Rent has been paid in advance by two (2) months. Note that Danfo Enterprise pays GH¢1,000 each month.
iii. Stock in trade as at 31st December, 2014 GH¢80,150.
iv. A bill of GH¢6,150 for vehicle running was outstanding as at 31st December, 2014.
v. The Enterprise provides depreciation as follows:
You are required to:
i. Prepare Income statement for the year ending 31st December 2014. (8 marks)
ii. Prepare Statement of Financial Position as at 31st December 2014. (7 marks)
Find Related Questions by Tags, levels, etc.
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