Question 1 You have extracted the following Trial Balance from the books of Asempa Ye Tia at 31st January 2008. ¢ ¢ Capital 12,000,000 Bank charges 29,650 IRS (Withheld Income Tax) 33,150 Creditors 4,825,250 Debtors 3,795,800 Discounts Allowed 115,000 Discounts Received 199,000 Drawings 200,000 General Expenses 300,000 Insurance 750,000 Loan Account 2,500,000 Motor Vehicle (Cost ¢6,000,000) 4,800,000 Motor Vehicle Running Exp. 370,000 Other Employment Costs 77,500 Purchases 23,010,150 Rent 50,000 Returns Inwards Account 112,200 Returns Outwards Account 59,900 Salaries 620,000 Sales 28,110,000 Shop Furniture, Fixtures and Fittings (Cost ¢1,750,000) 1,500,000 Stock 1Jan 2008 250,000 Cash at Bank 11,630,000 Cash at Hand 117,000 47,727,300 47,727,300 You are to prepare a Trading and Profit and Loss Account for the month of January 2008, and a Balance Sheet as at that date, taking into consideration the following additional information: Somu Yie Enterprises for ¢800,000 worth of goods that had not been received by the Purchases recorded during the month includes an invoice, dated 3rd February from close of business on 31st The proprietress proposes to purchase a Benz C200 Saloon car at the end of December 2008. She has been assured by the prospective seller that the vehicle will be cost her not more than ¢8,700,000 and to meet this cost, she has been paying into the business a weekly sum of ¢217,500 from her private earnings. Five such payments by her during the month have been erroneously treated as cash sales in the books. Insurance paid cover the six months, Jan to June 2008. Repair work done by a local carpenter on shop fittings has not been paid, the bill thereof for ¢45,000 having been submitted to the business. The proprietress had drawn ¢50,000 on an I.O.U on 30th Jan, to meet some domestic expenses; this is included in the balance shown as cash in Hand. Motor Vehicle and shop Furniture, Fixtures, etc. are to be depreciated at 20per cent and 142/7 per cent per annum respectively on cost. Value of stock at 31st Jan. 2008, has been correctly ascertained to be ¢820,050.
Question 1
You have extracted the following
January 2008.
¢ ¢
Capital 12,000,000
Bank charges 29,650
IRS (Withheld Income Tax) 33,150
Creditors 4,825,250
Debtors 3,795,800
Discounts Allowed 115,000
Discounts Received 199,000
Drawings 200,000
General Expenses 300,000
Insurance 750,000
Loan Account 2,500,000
Motor Vehicle (Cost ¢6,000,000) 4,800,000
Motor Vehicle Running Exp. 370,000
Other Employment Costs 77,500
Purchases 23,010,150
Rent 50,000
Returns Inwards Account 112,200
Returns Outwards Account 59,900
Salaries 620,000
Sales 28,110,000
Shop Furniture, Fixtures and Fittings
(Cost ¢1,750,000) 1,500,000
Stock 1Jan 2008 250,000
Cash at Bank 11,630,000
Cash at Hand 117,000
47,727,300 47,727,300
You are to prepare a Trading and
- Somu Yie Enterprises for ¢800,000 worth of goods that had not been received by the Purchases recorded during the month includes an invoice, dated 3rd February from close of business on 31st
- The proprietress proposes to purchase a Benz C200 Saloon car at the end of December 2008. She has been assured by the prospective seller that the vehicle will be cost her not more than ¢8,700,000 and to meet this cost, she has been paying into the business a weekly sum of ¢217,500 from her private earnings. Five such payments by her during the month have been erroneously treated as cash sales in the books.
- Insurance paid cover the six months, Jan to June 2008.
- Repair work done by a local carpenter on shop fittings has not been paid, the bill thereof for ¢45,000 having been submitted to the business.
- The proprietress had drawn ¢50,000 on an I.O.U on 30th Jan, to meet some domestic expenses; this is included in the balance shown as cash in Hand.
- Motor Vehicle and shop Furniture, Fixtures, etc. are to be
depreciated at 20per cent and 142/7 per cent per annum respectively on cost. - Value of stock at 31st Jan. 2008, has been correctly ascertained to be ¢820,050.
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