FIND & FOUND LTD, currently trades in Products CCT. The company is currently enjoying a tax holiday. Below is the company’s trial balance. Trial Balance of FIND & FOUND LTD as at year ending 31/12/2016 DR CR GH¢ GH¢ 10% Debentures (2030 – 2035) - 8,600 Bad debts 720 - Bank 9,000 - Building repairs and maintenance 1,440 Carriage inward 1,080 Carriage outwards 1,620 Sale / Purchases 84,000 144,000 Donations received - 864 Trade Debtors/ Creditors 21,600 9,720 Discount 720 936 Electricity company of Ghana (ECG) - 1,080 Electricity Expense 1,440 - Income Surplus 1/1 - 64,440 Investment income - 1,080 Long term Investment-cost 90,000 - Motor Vehicle (Accumulated Depreciation) - 4,320 Motor Vehicle (Cost) 18,000 - Office Equipment (Accumulated Depreciation) - 2,160 Opening Stock 4,320 Office Equipment (Cost) 3,600 Plant (Accumulated Depreciation) 8,640 Plant (Cost) 14,400 - Rent Expense 1,800 - Provision for bad debt 1/1 - 1,512 Rent Income- sublets - 648 Returns 540 1,296 Salaries 1,620 - Sales men commission owing - 816 Salesmen commission 1,080 Sanitation 1,344 Short term Investment 3,240 Staff Debtors 360 SSNIT - 960 Stated Capital - 12,960 Telecommunication expenses 756 - Travelling and Transport 360 - PAYE - 720 KTM TELECOM LTD 564 Water Expenses 1,188 - TOTAL 264,792 264,792 Additional Information Depreciation is to be provided based on this policy Plant 20% on Cost Proportionate Motor vehicle 10% on Cost Proportionate Office equipment 10% on cost Proportionate All assets have more than 3 yrs. before being fully depreciated. No asset was acquired during the year Interest on debenture is yet to be provided. Debenture was secured on the following date with details as follows. 10% Debenture (2030-2035) 8,640 1/1/2008 Additional Bad debt of GH¢ 3,000 is to be written off A specific provision of GH¢ 2,000 is to be made A 15% general provision was to be made on outstanding debts Electricity owing of GH¢ 600 due ECG has not been accounted for. Telecom expense of GH¢ 100 due KTM TELECOM LTD has not been accounted for Closing stock is GH¢15,000 Required 1. Prepare a Trading Profit and loss account for the year ended 31/12/2016 2. Prepare a Statement of Financial Position as at 31/12/2016
FIND & FOUND LTD, currently trades in Products CCT. The company is currently enjoying a tax holiday.
Below is the company’s
Trial Balance of FIND & FOUND LTD as at year ending 31/12/2016
|
|
DR |
CR |
|
|
GH¢ |
GH¢ |
|
10% Debentures (2030 – 2035) |
- |
8,600 |
|
|
720 |
- |
|
Bank |
9,000 |
- |
|
Building repairs and maintenance |
1,440 |
|
|
Carriage inward |
1,080 |
|
|
Carriage outwards |
1,620 |
|
|
Sale / Purchases |
84,000 |
144,000 |
|
Donations received |
- |
864 |
|
Trade Debtors/ Creditors |
21,600 |
9,720 |
|
Discount |
720 |
936 |
|
Electricity company of Ghana (ECG) |
- |
1,080 |
|
Electricity Expense |
1,440 |
- |
|
Income Surplus 1/1 |
- |
64,440 |
|
Investment income |
- |
1,080 |
|
Long term Investment-cost |
90,000 |
- |
|
Motor Vehicle ( |
- |
4,320 |
|
Motor Vehicle (Cost) |
18,000 |
- |
|
Office Equipment (Accumulated Depreciation) |
- |
2,160 |
|
Opening Stock |
4,320 |
|
|
Office Equipment (Cost) |
3,600 |
|
|
Plant (Accumulated Depreciation) |
|
8,640 |
|
Plant (Cost) |
14,400 |
- |
|
Rent Expense |
1,800 |
- |
|
Provision for bad debt 1/1 |
- |
1,512 |
|
Rent Income- sublets |
- |
648 |
|
Returns |
540 |
1,296 |
|
Salaries |
1,620 |
- |
|
Sales men commission owing |
- |
816 |
|
Salesmen commission |
1,080 |
|
|
Sanitation |
1,344 |
|
|
Short term Investment |
3,240 |
|
|
Staff Debtors |
360 |
|
|
SSNIT |
- |
960 |
|
Stated Capital |
- |
12,960 |
|
Telecommunication expenses |
756 |
- |
|
Travelling and Transport |
360 |
- |
|
PAYE |
- |
720 |
|
KTM TELECOM LTD |
564 |
|
|
Water Expenses |
1,188 |
- |
|
TOTAL |
264,792 |
264,792 |
Additional Information
- Depreciation is to be provided based on this policy
Plant 20% on Cost Proportionate
Motor vehicle 10% on Cost Proportionate
Office equipment 10% on cost Proportionate
All assets have more than 3 yrs. before being fully depreciated.
No asset was acquired during the year
- Interest on debenture is yet to be provided. Debenture was secured on the following date with details as follows.
10% Debenture (2030-2035) 8,640 1/1/2008
- Additional Bad debt of GH¢ 3,000 is to be written off
- A specific provision of GH¢ 2,000 is to be made
A 15% general provision was to be made on outstanding debts
- Electricity owing of GH¢ 600 due ECG has not been accounted for.
Telecom expense of GH¢ 100 due KTM TELECOM LTD has not been accounted for
- Closing stock is GH¢15,000
Required
1. Prepare a Trading
2. Prepare a
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