. K.K. Menasha is in business as a trader. A trial balance taken out as on 31st January, 2006, was as follows: GH¢ GH¢ Purchases 84,000 Sales 100,480 Return inwards& outwards 272 696 Salaries & wages 8,200 Rent & rates 1,720 Sundry Expenses 1,500 Bad Debts 268 Provision for bad debts-1st Feb. 2005 560 Stock on hand-1st Feb. 2005 27,260 Fixtures & Fittings: -1st February, 2005 2,800 -Additions on 30th September, 2005 480 Motor Vehicle: -1st February, 2005 1,840 -Sales of vehicle (NBV 1/2/05, ¢160) 240 Sundry Debtors & Creditors 9,220 7,704 Cash at Bank & in hand 7,640 Capital Account 41,520 Drawings Account 5,200 _______ 151,200 151,200 You are required to prepare Statement of Profit or Loss for the year ended 31st January 2006, and draw up a Statement of Position as at that date. The following information is to be taken into account. Outstanding amounts not entered in the books were: Rent ¢72, sundry expenses ¢180. Prepayments were: Rates ¢120, Insurance ¢20 Stock on hand on 31st January 2006 was valued at ¢30,900. Provision for doubtful debts is to be ¢680 Depreciation is to be charged as follows: Fixtures and Fittings, 10% p.a; Motor Vehicles 25% p.a.

. K.K. Menasha is in business as a trader. A trial balance taken out as on 31st January, 2006, was as follows: GH¢ GH¢ Purchases 84,000 Sales 100,480 Return inwards& outwards 272 696 Salaries & wages 8,200 Rent & rates 1,720 Sundry Expenses 1,500 Bad Debts 268 Provision for bad debts-1st Feb. 2005 560 Stock on hand-1st Feb. 2005 27,260 Fixtures & Fittings: -1st February, 2005 2,800 -Additions on 30th September, 2005 480 Motor Vehicle: -1st February, 2005 1,840 -Sales of vehicle (NBV 1/2/05, ¢160) 240 Sundry Debtors & Creditors 9,220 7,704 Cash at Bank & in hand 7,640 Capital Account 41,520 Drawings Account 5,200 _______ 151,200 151,200 You are required to prepare Statement of Profit or Loss for the year ended 31st January 2006, and draw up a Statement of Position as at that date. The following information is to be taken into account. Outstanding amounts not entered in the books were: Rent ¢72, sundry expenses ¢180. Prepayments were: Rates ¢120, Insurance ¢20 Stock on hand on 31st January 2006 was valued at ¢30,900. Provision for doubtful debts is to be ¢680 Depreciation is to be charged as follows: Fixtures and Fittings, 10% p.a; Motor Vehicles 25% p.a.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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. K.K. Menasha is in business as a trader. A trial balance taken out as on 31^st January, 2006, was as follows:

GH¢ GH¢

Purchases 84,000

Sales 100,480

Return inwards& outwards 272 696

Salaries & wages 8,200

Rent & rates 1,720

Sundry Expenses 1,500

Bad Debts 268

Provision for bad debts-1^st Feb. 2005 560

Stock on hand-1^st Feb. 2005 27,260

Fixtures & Fittings:

-1^st February, 2005 2,800

-Additions on 30^th September, 2005 480

Motor Vehicle:

-1^st February, 2005 1,840

-Sales of vehicle (NBV 1/2/05, ¢160) 240

Sundry Debtors & Creditors 9,220 7,704

Cash at Bank & in hand 7,640

Capital Account 41,520

Drawings Account 5,200 _______

151,200 151,200

You are required to prepare Statement of Profit or Loss for the year ended 31^st January 2006, and draw up a Statement of Position as at that date.

The following information is to be taken into account.

Outstanding amounts not entered in the books were: Rent ¢72, sundry expenses ¢180.
Prepayments were: Rates ¢120, Insurance ¢20
Stock on hand on 31^st January 2006 was valued at ¢30,900.
Provision for doubtful debts is to be ¢680
Depreciation is to be charged as follows: Fixtures and Fittings, 10% p.a; Motor Vehicles 25% p.a.

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