Homework Help is Here – Start Your Trial Now!
Business
Accounting
Question 1 Alhaji Damba is a building contractor, doing repair work for local householders. Hiswife keeps some accounting records but not on a double-entry basis. The assets and liabilities of the business at 30 June 2017 were as follows: GHc Assets Plant & equipment: depreciation to date Motor Van: cost depreciation to date Stock of materials Debtors Rent of premises paid in advance to 30 September 2017 | Insurance paid in advance to 31 December 2017 Bank balance Cash in hand Liabilities Creditors for supplies Telephone bill owing Electricity owing 12,600 5,800 9,000 6,500 14,160 9,490 750 700 1,860 230 3,460 210 180 His cash and bank transactions for the year from 1 July 2017 to 30 June 2018 are as follows: Cash and Bank summary Receipts Cash Bank Payments Bank Cash GH¢ GH¢ GH¢ GH¢ Opening balance Receipts from customers 230 1,860 Suppliers 83,990 3,600 1,600 52,640 150,880 Rent of premises Loan received 10,000 Insurance Purchase of plant & 3,000 equipment 24,040 Purchase of new vehicle Telephone 2,100 Electricity Wages of repair staff Miscellaneous expenses Proceeds of sale vehicle 8,400 12,800 860 890 held at beginning of year Cash paid into bank Cash withdrawn from bank 48,260 Closing balance 68,200 1,280 29,800| 400 Drawings by Alhaji Damba 8,000 Refund to customers 24,040 Cash paid into bank Cash withdrawn from bank Closing balance 48,260 890 101,130 191,880 101,130 191,880 The following further information is available 1) Plant & equipment is to be depreciated at 25% per annum on the reducingbalance with a full year's charge in the year of purchase.

Question 1 Alhaji Damba is a building contractor, doing repair work for local householders. Hiswife keeps some accounting records but not on a double-entry basis. The assets and liabilities of the business at 30 June 2017 were as follows: GHc Assets Plant & equipment: depreciation to date Motor Van: cost depreciation to date Stock of materials Debtors Rent of premises paid in advance to 30 September 2017 | Insurance paid in advance to 31 December 2017 Bank balance Cash in hand Liabilities Creditors for supplies Telephone bill owing Electricity owing 12,600 5,800 9,000 6,500 14,160 9,490 750 700 1,860 230 3,460 210 180 His cash and bank transactions for the year from 1 July 2017 to 30 June 2018 are as follows: Cash and Bank summary Receipts Cash Bank Payments Bank Cash GH¢ GH¢ GH¢ GH¢ Opening balance Receipts from customers 230 1,860 Suppliers 83,990 3,600 1,600 52,640 150,880 Rent of premises Loan received 10,000 Insurance Purchase of plant & 3,000 equipment 24,040 Purchase of new vehicle Telephone 2,100 Electricity Wages of repair staff Miscellaneous expenses Proceeds of sale vehicle 8,400 12,800 860 890 held at beginning of year Cash paid into bank Cash withdrawn from bank 48,260 Closing balance 68,200 1,280 29,800| 400 Drawings by Alhaji Damba 8,000 Refund to customers 24,040 Cash paid into bank Cash withdrawn from bank Closing balance 48,260 890 101,130 191,880 101,130 191,880 The following further information is available 1) Plant & equipment is to be depreciated at 25% per annum on the reducingbalance with a full year's charge in the year of purchase.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Topic Video
Question
*i 0 7 57% + 10:34 Question 1 - Unsaved Question 1 Alhaji Damba is a building contractor, doing repair work for local householders. Hiswife keeps some accounting records but not on a double-entry basis. The assets and liabilities of the business at 30 June 2017 were as follows: GHc Assets Plant & equipment: depreciation to date Motor Van: cost depreciation to date Stock of materials 12,600 5,800 9,000 6,500 14,160 Debtors Rent of premises paid in advance to 30 September 2017 Insurance paid in advance to 31 December 2017 Bank balance Cash in hand 9,490 750 700 1,860 230 Liabilities Creditors for supplies Telephone bill owing Electricity owing 3,460 210 180 His cash and bank transactions for the year from 1 July 2017 to 30 June 2018 are as follows: Cash and Bank summary Receipts Cash Bank Payments Cash Bank GH¢ GH¢ GH¢ GH¢ Opening balance Receipts from customers 230 1,860 Suppliers 83,990 3,600 1,600 52,640 150,880 Rent of premises Loan received 10,000 Insurance Purchase of plant & 3,000 equipment 24,040 Purchase of new vehicle Proceeds of sale vehicle 8,400 12,800 860 890 held at beginning of year Cash paid into bank Cash withdrawn from bank 48,260 Telephone 2,100 Electricity Wages of repair staff Miscellaneous expenses Closing balance 68,200 Drawings by Alhaji Damba Refund to customers 1,280 29,800 400 8,000 Cash paid into bank 24,040 48,260 890 Cash withdrawn from bank Closing balance 101,130 191,880 101,130 191,880 The following further information is available 1) Plant & equipment is to be depreciated at 25% per annum on the reducingbalance with a full year's charge in the year of purchase.
Transcribed Image Text:*i 0 7 57% + 10:34 Question 1 - Unsaved Question 1 Alhaji Damba is a building contractor, doing repair work for local householders. Hiswife keeps some accounting records but not on a double-entry basis. The assets and liabilities of the business at 30 June 2017 were as follows: GHc Assets Plant & equipment: depreciation to date Motor Van: cost depreciation to date Stock of materials 12,600 5,800 9,000 6,500 14,160 Debtors Rent of premises paid in advance to 30 September 2017 Insurance paid in advance to 31 December 2017 Bank balance Cash in hand 9,490 750 700 1,860 230 Liabilities Creditors for supplies Telephone bill owing Electricity owing 3,460 210 180 His cash and bank transactions for the year from 1 July 2017 to 30 June 2018 are as follows: Cash and Bank summary Receipts Cash Bank Payments Cash Bank GH¢ GH¢ GH¢ GH¢ Opening balance Receipts from customers 230 1,860 Suppliers 83,990 3,600 1,600 52,640 150,880 Rent of premises Loan received 10,000 Insurance Purchase of plant & 3,000 equipment 24,040 Purchase of new vehicle Proceeds of sale vehicle 8,400 12,800 860 890 held at beginning of year Cash paid into bank Cash withdrawn from bank 48,260 Telephone 2,100 Electricity Wages of repair staff Miscellaneous expenses Closing balance 68,200 Drawings by Alhaji Damba Refund to customers 1,280 29,800 400 8,000 Cash paid into bank 24,040 48,260 890 Cash withdrawn from bank Closing balance 101,130 191,880 101,130 191,880 The following further information is available 1) Plant & equipment is to be depreciated at 25% per annum on the reducingbalance with a full year's charge in the year of purchase.
*i 0 7 57% + 10:34 Question 1 - Unsaved 2) At the beginning of the year, a motor vehicle at a cost of GH¢ 4,000 with accumulated depreciation of GH¢ 2,500 was disposed of for GH¢ 3,000. 3) The new motor vehicle was purchased on 1 January 2018. Alhaji Damba's depreciationpolicy is to charge depreciation at 25% per annum on the straight-line basis, with a proportionate charge in the year of purchase, but none in the year of sale. 4) The rent of the premises was increased by 20% from1 October 2017. 5) The loan of GH¢10,000 was obtained from Alhaji Damba's brother on 1 July 2017. It carries interest at 10% per annum, payable March. 30 September and 31 6) At 30 June 2018, Alhaji Damba owed the following amounts: GH¢ 4,090 Suppliers Telephone GH¢ 240 GH¢ 220 Electricity Miscellaneous expenses GH¢ 490 Theodora, Belinda, Priscilla, Graham, & Fred 7) At 30 June 2018, amounts due from customers totalled GH¢10,860. Of this amount, Alhaji Damba considered that debts totalling GH¢1,280 were bad andshould be written off. 8) Stock of materials at 30 June was GH¢12,170. 9) Alhaji Damba agreed to pay his wife GH¢5,000 for her assistance with his officework during the year. This amount was actually paid in August 2018. Required: Prepare Alhaji Damba's income statement for the year ended 30 June 2018 and his statementof financial position as at that date. Question 2 Adiza is sole trader who does not keep a full double entry system of bookkeeping. However, shehas been able to furnish you with the following information on July 31st 2018. 31/07/2018 31/07/2017 GH¢ GH¢ Trade receivables 475,600 286,000 Trade payables Travelling and transport expenses owing 527,400 545,000 213,000 182,000 Inventory Furniture and fittings 116,310 175,000 893,000 528,000 Delivery van Prepaid advertising Rent owing 1,123,000 1,300,000 92,000 87,200 588,000 411,600 Adiza pays all cash received into the bank and all payments are made by cheque. Below is asummary of the business bank transactions:
Transcribed Image Text:*i 0 7 57% + 10:34 Question 1 - Unsaved 2) At the beginning of the year, a motor vehicle at a cost of GH¢ 4,000 with accumulated depreciation of GH¢ 2,500 was disposed of for GH¢ 3,000. 3) The new motor vehicle was purchased on 1 January 2018. Alhaji Damba's depreciationpolicy is to charge depreciation at 25% per annum on the straight-line basis, with a proportionate charge in the year of purchase, but none in the year of sale. 4) The rent of the premises was increased by 20% from1 October 2017. 5) The loan of GH¢10,000 was obtained from Alhaji Damba's brother on 1 July 2017. It carries interest at 10% per annum, payable March. 30 September and 31 6) At 30 June 2018, Alhaji Damba owed the following amounts: GH¢ 4,090 Suppliers Telephone GH¢ 240 GH¢ 220 Electricity Miscellaneous expenses GH¢ 490 Theodora, Belinda, Priscilla, Graham, & Fred 7) At 30 June 2018, amounts due from customers totalled GH¢10,860. Of this amount, Alhaji Damba considered that debts totalling GH¢1,280 were bad andshould be written off. 8) Stock of materials at 30 June was GH¢12,170. 9) Alhaji Damba agreed to pay his wife GH¢5,000 for her assistance with his officework during the year. This amount was actually paid in August 2018. Required: Prepare Alhaji Damba's income statement for the year ended 30 June 2018 and his statementof financial position as at that date. Question 2 Adiza is sole trader who does not keep a full double entry system of bookkeeping. However, shehas been able to furnish you with the following information on July 31st 2018. 31/07/2018 31/07/2017 GH¢ GH¢ Trade receivables 475,600 286,000 Trade payables Travelling and transport expenses owing 527,400 545,000 213,000 182,000 Inventory Furniture and fittings 116,310 175,000 893,000 528,000 Delivery van Prepaid advertising Rent owing 1,123,000 1,300,000 92,000 87,200 588,000 411,600 Adiza pays all cash received into the bank and all payments are made by cheque. Below is asummary of the business bank transactions:
Expert Solution
steps

Step by step

Solved in 2 steps with 3 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting Equation
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
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS