The balance on Queen Covids current account is determined as
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
The two queens of lockdown kingdom ,Queen Corona and Queen Covid came together to form a business .The lockdown Enterprise ,to better the economic stance of the kingdom . In this busines ,they agreed to share
Particulars Debit(Gh). Credit
Land and premises 2000,000
Furniture 120,000
Inventory (1/04/19) 80,000
Import duty on goods 4,000
Wages of contract workers.46,000
Salaries and wages of staff 4,000
Carriage for goods purchased 5,200
Carriage for goods sold 12,400
Discount 24,900. 25,080
Purchased and sales 905,200. 2,375,220
Rent 15,600 13,000
Commission 15,600. 17,400
Bills receivable 108,000
12% investment (1/10/18)
Donation to national pandemic fund
10% Bank loan 112,000
Factory rent 64,000
Receivables and payables. 920,000. 240,000
Bank 728,000
Provision for doubtful debt
20,000
Rates and Taxes 31,200
Brokerage 13,000
Capital Account.
Queen Corona 500,000
Queen Covid 500,000
Current Accounts
Queen Corona 20,000
Queen Covid 128,000
Additional information:
a. Due to the economic recession at the moment ,the partners estimated that more of their receivable may not be able to settle their debts . Hence they wrote of additional debts of Gh 15,000 and agreed to maintain provision for the doubtful at 5%.
b. They agreed to provide for discount on receivables at 5%
c. All property ,plant and equipment are to be depreciated at 10% .
d. The business claimed insurance of the Gh 21,000 for goods that were lost due to fire . The insurance claim ,through admitted ,had not been paid as at the year end.
e. Queen Corona bought goods amounting to Gh 17,400 for personal use.
f. Goods worth Gh 24,000 bought on 24/04/19 on credit were not recorded I the books .
g. Outstanding salaries were GH 32,000 whereas wages of Gh 24,600 were paid in advance.
I. The partners agreed to charge interest on capital at 6% and on drawings at 7%.
j. Bills receivable of Gh 12,600 was dishonoured.
k. The inventory count at the year -end -revealed goods worth Gh 300,000.
The balance on Queen Covids current account is determined as?
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