The following Trial Balance was extracted from the books of Dana Enterprise, a second-hand bags dealer as at 31st December, 2017.
The following
|
|
DR |
CR |
|
|
GH¢ |
GH¢ |
|
Stock in Trade |
120,000 |
|
|
Vehicle (Cost) |
150,000 |
|
|
Trade Receivables |
80,000 |
|
|
|
|
30,000 |
|
Furniture & Fittings |
|
10,120 |
|
Trade Payables |
|
100,000 |
|
Drawings |
120,000 |
|
|
General Expenses |
65,000 |
|
|
Provision for doubtful debt |
|
2,500 |
|
Rate & Rent |
14,000 |
|
|
Insurance |
5,000 |
|
|
|
7,000 |
|
|
Discount Received |
|
25,150 |
|
Discount Allowed |
15,160 |
|
|
Bank Balance |
165,240 |
|
|
Wages & Salaries |
250,000 |
|
|
Sundry Expenses |
6,150 |
|
|
Vehicle Running Expenses |
15,650 |
|
|
Furniture & Fittings |
50,600 |
|
|
Repairs to the shop |
6,500 |
|
|
Purchases |
650,120 |
|
|
Sales |
|
1,079,130 |
|
Capital |
|
473,520 |
|
|
1,720,420 |
1,720,420 |
The following additional information are provided:
- Provision for doubtful debts is to be reduced by 10%.
- Rate and Rent has been paid in advance by two (2) months. Note that Dana Enterprise pays GH¢1,000 each month.
- Stock in trade as at 31st December, 2017 GH¢80,150.
- A bill of GH¢6,150 for vehicle running was outstanding as at 31st December,
- The Enterprise provide depreciation as
- Vehicle 20% per annum on straight line
- Furniture and Fittings 20% per annum on straight line
You are required to:
1.Prepare a statement of Profit or Loss and other comprehensive Income for the year ending 31st December 2017.
2. Prepare Statement of Financial Position as at 31st December 2017
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