0 at GHC12.50 each] 500,000 Preference shares [20,000 at GHC8.00 each] 160,000 660,000 Long term capital 140,000 800,000 NON-CURRENT ASSETS
The financial position as at 31st December, 2019 was as follows:
EQUITY AND LIABILITIES GH¢ GH¢
Stated capital:
Ordinary share [40,000 at GHC12.50 each] 500,000
660,000
Long term capital 140,000
800,000
NON-CURRENT ASSETS
Building and Land 400,000
Equipment 182,000
Motor Vehicles 48,000
630,000
CURRENT ASSETS
Inventory 40,000
Accounts Receivables 20,000
Cash at bank 124,000
184,000
CURRENT LIABILITIES
Accounts payable (14,000) 170,000
TOTAL ASSETS 800,000
The Company has produced the following estimates:
1) The accounts payable figure of GH¢14,000 stated in the financial statement would be
paid in January, 2020.
The following credit purchases are settled a month after the month of purchase, after
deducting two percent (2%) discount.
GH¢
January 28,000
February 42,000
March 36,000
April 45,000
May 41,000
June 37,000
2) Sales for January will be GH¢51,300 and will increase at the rate of 20% per month until March. In April, sales will rise to GH¢80,000 and this will rise by10% per month thereafter.
Sales will be divided equally between cash and credit sales. Credit customers are expected to pay two months after the sales.70% of sales will be generated by sales agents who will receive 10% commission on sales. The commission is payable one month after the sales.
3) The company intends to purchase further equipment in August for GH¢45,000. However, a deposit of 20% is supposed to be made in June.
4)
5) Other
6)
Required:
Prepare a monthly
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