Mr. Awudu has been trading for some years as a wine merchant. The following balance has been extracted from his ledger as at 30th April 2004 the end of his most recent financial year. GH¢ Capital 83,887 Sales 259,870 Trade creditors 19,840 Return outward 13,407 Provision for bad debt 512 Discount allowed 2,306 Discount received 1,750 Purchases 135,680 Return inwards 5,624 Carriage outwards 4,562 Drawings 18,440 Carriage inwards 11,830 Rent, rate and insurance 25,973 Heating and lighting 11,010 Postage, stationery & telephone 2,410 Advertising 5,980 Salaries and wages 38,521 Bad debts 2,008 Cash in hand 534 Cash at bank 4,440 Stock as at 1st May 2003 15,654 Trade debtors 24,500 Fixtures and fittings – cost 120,740 Provision for dep. on fixtures and fittings as at 30th April 2004 63,020 Depreciation 12,074 The following additional information as at 30th April 2004 is available: Stock at the close of business was valued at ¢17,750 Insurance have been prepared by ¢1,120 Heating and lighting is accrued by ¢1,360 Rates have been prepared by ¢5,435 Provision for bad debts is to be adjusted so that it is 3% of debts Required: Prepare Mr. Awudu trading profit and loss account for the year ended 30th April 2004 balance sheet as at 30th April 2004

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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Mr. Awudu has been trading for some years as a wine merchant. The following balance has been extracted from his ledger as at 30^th April 2004 the end of his most recent financial year.

	GH¢
Capital	83,887
Sales	259,870
Trade creditors	19,840
Return outward	13,407
Provision for bad debt	512
Discount allowed	2,306
Discount received	1,750
Purchases	135,680
Return inwards	5,624
Carriage outwards	4,562
Drawings	18,440
Carriage inwards	11,830
Rent, rate and insurance	25,973
Heating and lighting	11,010
Postage, stationery & telephone	2,410
Advertising	5,980
Salaries and wages	38,521
Bad debts	2,008
Cash in hand	534
Cash at bank	4,440
Stock as at 1^st May 2003	15,654
Trade debtors	24,500
Fixtures and fittings – cost	120,740
Provision for dep. on fixtures and fittings as at 30^th April 2004	63,020
Depreciation	12,074

The following additional information as at 30^th April 2004 is available:

Stock at the close of business was valued at ¢17,750
Insurance have been prepared by ¢1,120
Heating and lighting is accrued by ¢1,360
Rates have been prepared by ¢5,435
Provision for bad debts is to be adjusted so that it is 3% of debts

Required:

Prepare Mr. Awudu

trading profit and loss account for the year ended 30^th April 2004
balance sheet as at 30^th April 2004

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