The following Trial Balance was extracted from the books of Ohia ye ya on 31/12/05 Dr Cr GH ¢ GH ¢ Capital 355,000 Drawings 120,000 Purchases 4,800,000 Sales 7,650,000 Discount 50,000 80,000 Stock at 1 Jan. 2005 480,000 Salaries and Wages 650,000 Rent 90,000 Advertising 150,000 Cash 40,000 Bank 50,000 20% Short term Bank loan 200,000 Carriage inwards 110,000 Bank loan interest 40,000 Carriage outwards 130,000 Fixtures at cost 1,500,000 Computing Expenses 200,000 Debtors/Creditors 600,000 400,000 Provision for Depreciation – -Fixtures 1 Jan. 2005 300,000 Prov. for Bad Debts – 1 Jan. 2005 20,000 Commission received 40,000 Rent Received 25,000 Electricity 60,000 _________ 9,070,000 9,070,000 The following additional information has been provided by the book-keeper to the Accountant: The stock at 31 December 2005 has been valued as follows: Historical cost 500,000; Net realizable value ¢200,000 Rent has been paid to cover 15 months period to 31 Mar 2006. Depreciation on Fixtures is to be provided at the rate of 20% per annum using the reducing balance method. Madam Yaa Babone, a debtor was declared bankrupt and the debt is to be written off as bad. The balance in the ledger stood at ¢20,000. Provision for Bad Debt is to be adjusted to 5% of Debtors balance at 31 December 2005. Required: a) Prepare Trading, Profit and Loss Accounts for the year ended 31st b) December 2005 and a Balance Sheet as at that date.
The following
Dr Cr
GH ¢ GH ¢
Capital 355,000
Drawings 120,000
Purchases 4,800,000
Sales 7,650,000
Discount 50,000 80,000
Stock at 1 Jan. 2005 480,000
Salaries and Wages 650,000
Rent 90,000
Advertising 150,000
Cash 40,000
Bank 50,000
20% Short term Bank loan 200,000
Carriage inwards 110,000
Bank loan interest 40,000
Carriage outwards 130,000
Fixtures at cost 1,500,000
Computing Expenses 200,000
Debtors/Creditors 600,000 400,000
Provision for
-Fixtures 1 Jan. 2005 300,000
Prov. for
Commission received 40,000
Rent Received 25,000
Electricity 60,000 _________
9,070,000 9,070,000
The following additional information has been provided by the book-keeper to the Accountant:
- The stock at 31 December 2005 has been valued as follows: Historical cost 500,000; Net realizable value ¢200,000
- Rent has been paid to cover 15 months period to 31 Mar 2006.
- Depreciation on Fixtures is to be provided at the rate of 20% per annum using the
reducing balance method . - Madam Yaa Babone, a debtor was declared bankrupt and the debt is to be written off as bad. The balance in the ledger stood at ¢20,000.
- Provision for Bad Debt is to be adjusted to 5% of Debtors balance at 31 December 2005.
Required:
a) Prepare Trading,
b) December 2005 and a
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