v) Inventory value at 31 December 2017 amounted to GHC1,840,000vi) Rent recorded in the trial balance represents 15months rent paid to 31 March 2018vii A provision of 10% of trade receivable is to be madevii) During the year Motor Vehicle costing GH€1,200,000 was disposed off. The vehicle had beenin existence and depreciated for 3 years. Proceeds from the sale of the vehicle was GHCS00,000.This has not been accounted for in the books of Bob and Sons.ix) All Expenses are to be allocated evenly between Distribution Costs and AdministrativeExpensesRequired:Prepare the following statements in accordance with International Accounting Standards:a)Statement of comprehensive income for Bob and Sons for the year ended 31 December 2017b) Changes in Equity) The Statement of financial position as at 31 December 2017Preview 2 of 2 QUESTION ONEBob and Sons prepares its financial statements to 31 December every year. At 31 December2017, the company's trial balance was as follows:CrGHC'000DrGHC'000Sales50,000Purchases42,156Inventory 1/1/2017Printing and Stationery1,2451,692Rent and Rates480Travelling and TransportRepairs and MaintenanceOther administrative expense7801,523500Land at cost13,500Building at costAcc. Depreciation- Building45,0006,750Motor Vehicle at cost24,500Acc. Depreciation- Motor VehicleEquipment and FurnitureAcc. Depreciation -Equipment & Furniture19,60012,4504,980Trade Receivables9,450Cash and Bank balance9,524Trade PayablesShort term loanShare CapitalRetained Earnings18,45012,50015,00035,520TOTAL162,800162,800The following additional information is relevant:i) Depreciation is to be provided as follows:Building - 3% per year on costMotor Vehicle -20% per year on costEquipment & Furniture - 10% per year on costIt is the policy of the company not to charge depreciation in the year of disposal.iii)The previous year depreciation for motor vehicle was over charged by GHC240.iv) Land was revalued later in the year for GHE15,000,000. No change was required to the valueof the building.Preview 1 of 2

a) Statement of Comprehensive Income For the year ending…

Bob and Sons prepares its financial statements to 31 December every year. At 31 December 2017, the company's trial balance was as follows: Dr GHC'000 GH¢'000 Sales 50,000 42,156 1,245 Purchases Inventory 1/1/2017 Printing and Stationery Rent and Rates 1,692 480 Travelling and Transport Repairs and Maintenance 780 1,523 Other administrative expense 500 Land at cost 13,500 Building at cost 45,000 Acc. Depreciation- Building 6,750 Motor Vehicle at cost 24,500 Acc. Depreciation- Motor Vehicle Equipment and Furniture Acc. Depreciation -Equipment & Furniture 19,600 12,450 4,980 Trade Receivables 9,450 Cash and Bank balance 9,524 Trade Payables 18,450 Short term loan 12,500 Share Capital Retained Earnings TOTAL 15,000 35,520 162,800 162,800 The following additional information is relevant: 1) Depreciation is to be provided as follows: Building - 3% per year on cost Motor Vehicle - 20% per year on cost Equipment & Furniture - 10% per year on cost ii) It is the policy of the company not to charge depreciation in the year of disposal. yThe previous year depreciation for motor vehicle was over charged by GHC240. iv) Land was revalued later in the year for GHE15,000,000. No change was required to the value of the building.

Bob and Sons prepares its financial statements to 31 December every year. At 31 December 2017, the company's trial balance was as follows: Dr GHC'000 GH¢'000 Sales 50,000 42,156 1,245 Purchases Inventory 1/1/2017 Printing and Stationery Rent and Rates 1,692 480 Travelling and Transport Repairs and Maintenance 780 1,523 Other administrative expense 500 Land at cost 13,500 Building at cost 45,000 Acc. Depreciation- Building 6,750 Motor Vehicle at cost 24,500 Acc. Depreciation- Motor Vehicle Equipment and Furniture Acc. Depreciation -Equipment & Furniture 19,600 12,450 4,980 Trade Receivables 9,450 Cash and Bank balance 9,524 Trade Payables 18,450 Short term loan 12,500 Share Capital Retained Earnings TOTAL 15,000 35,520 162,800 162,800 The following additional information is relevant: 1) Depreciation is to be provided as follows: Building - 3% per year on cost Motor Vehicle - 20% per year on cost Equipment & Furniture - 10% per year on cost ii) It is the policy of the company not to charge depreciation in the year of disposal. yThe previous year depreciation for motor vehicle was over charged by GHC240. iv) Land was revalued later in the year for GHE15,000,000. No change was required to the value of the building.

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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