BK owns a small business in a small-town call Twapiasea in the Dormaa District call the PiGMen Enterprise. BK does not keep full set of accounts. The following records has been obtained in respected of the year ended 31st December 2019 Summary of Bank Accounts GHS GHS Bal b/d 4,820.00 Sundry Expenses 1,560.00 Receipt from Trade Receivables 94,608.00 Payment to Trade Payables 76,040.00 Insurance 2,640.00 Rent 5,200.00 Equipment 4,000.00 Drawings 7,200.00 Bal c/d 2,788.00 99,428.00 99,428.00 BK made cash sales of GHS 13,336.00 and use this to pay the following; GHS Wages and Salary 12,427.00 Sundry Expenses 106.00 Cash Purchase 803.00 He took for his use GHS 260.00 worth of good. A discount of GHS 87.00 had been allowed to BK for prompt payment of trade payable. The following information was also available: 1 st January 2019 31st December 2019 GHS GHS Equipment 8, 400.00 9,920.00 Rent Accrued 400.00 ---------- Trade Receivable 7,360.00 9,900.00 Trade Payable 5,928.00 6,836.00 Insurance Prepaid 420.00 480.00 Inventory 8,428.00 11,280.00 BK has indicated that GHS 120.00 included in the insurance payment during the year is for his personal insurance. Required: 1. Determine the opening capital for BK   2.Determine the total sales and Total Purchases   3.Prepare statement of Income for the year ended 31st December 2019

Quickbooks Online Accounting
3rd Edition
ISBN:9780357391693
Author:Owen
Publisher:Owen
Chapter4: Operating Activities: Sales And Cash Receipts
Section: Chapter Questions
Problem 1.7C
icon
Related questions
Question

BK owns a small business in a small-town call Twapiasea in the Dormaa District call the PiGMen
Enterprise. BK does not keep full set of accounts. The following records has been obtained in respected of
the year ended 31st December 2019
Summary of Bank Accounts
GHS GHS
Bal b/d 4,820.00 Sundry Expenses 1,560.00
Receipt from Trade
Receivables 94,608.00
Payment to Trade
Payables 76,040.00
Insurance 2,640.00
Rent 5,200.00
Equipment 4,000.00
Drawings 7,200.00
Bal c/d 2,788.00
99,428.00 99,428.00
BK made cash sales of GHS 13,336.00 and use this to pay the following;
GHS
Wages and Salary 12,427.00
Sundry Expenses 106.00
Cash Purchase 803.00
He took for his use GHS 260.00 worth of good. A discount of GHS 87.00 had been allowed to BK for
prompt payment of trade payable.
The following information was also available:
1
st January 2019 31st December 2019
GHS GHS
Equipment 8, 400.00 9,920.00
Rent Accrued 400.00 ----------
Trade Receivable 7,360.00 9,900.00
Trade Payable 5,928.00 6,836.00
Insurance Prepaid 420.00 480.00
Inventory 8,428.00 11,280.00
BK has indicated that GHS 120.00 included in the insurance payment during the year is for his personal
insurance.
Required:
1. Determine the opening capital for BK 
 2.Determine the total sales and Total Purchases 
 3.Prepare statement of Income for the year ended 31st December 2019 
 4. Prepare statement of Financial position as at 31st December 2019 

Expert Solution
steps

Step by step

Solved in 3 steps with 1 images

Blurred answer
Knowledge Booster
Receivables Management
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Quickbooks Online Accounting
Quickbooks Online Accounting
Accounting
ISBN:
9780357391693
Author:
Owen
Publisher:
Cengage