Hannis Investment Limited had the following balances as at the end of September, 2022 Balances Debit (Dr) “000” Credit (Cr) Plant and Machinery 160,000 Land 674,000 Depreciation on Plant and Machinery 16,000 Purchases(Adjusted) 400,000 Closing stock 150,000 Wages 120,000 Sales (Net) 1,000,000 Salaries 80,000 Bank overdraft 200,000 10% debentures (issued on 1st April, 2016) 100,000 Equity share capital 200,000 Preference share capital@6% 1000 100,000 1,600,000 1,600,000 Required: With reference to the above table , explain the type of Financial reports you would produce at the end of the year stating the rationale for each.however As a Chief Executive Officer of your organization, if you issued a cheque to the customer who supplied you goods for sale and the bank manager declines to cash it, what justification would you accept for his decision? Show how you would ensure the principle of ‘consistency’’ is complied with during and after the preparation of Financial statements and why would an accountant be interested in adjusting some transactions before Final Accounts are prepared?
Hannis Investment Limited had the following balances as at the end of September, 2022
|
Balances |
Debit (Dr) “000” |
Credit (Cr) |
|
Plant and Machinery |
160,000 |
|
|
Land |
674,000 |
|
|
|
16,000 |
|
|
Purchases(Adjusted) |
400,000 |
|
|
Closing stock |
150,000 |
|
|
Wages |
120,000 |
|
|
Sales (Net) |
|
1,000,000 |
|
Salaries |
80,000 |
|
|
Bank overdraft |
|
200,000 |
|
10% debentures (issued on 1st April, 2016) |
|
100,000 |
|
Equity share capital |
|
200,000 |
|
|
|
100,000 |
|
|
1,600,000 |
1,600,000 |
Required:
With reference to the above table , explain the type of Financial reports you would produce at the end of the year stating the rationale for each.however As a Chief Executive Officer of your organization, if you issued a cheque to the customer who supplied you goods for sale and the bank manager declines to cash it, what justification would you accept for his decision?
Show how you would ensure the principle of ‘consistency’’ is complied with during and after the preparation of Financial statements and why would an accountant be interested in adjusting some transactions before
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