The two queens of Lockdown Kingdom, Queen Corona and Queen Cevid, came together to form a business, The Lockdown Enterprise, to better the economic stance of the kingdom. In this business, they agreed to share profits and losses in the ratio of their opening capitals. Trial Balance as at 31 March, 2020 Debit (GHC ) 2,000,000 120,000 80,000 4,000 46,000 64,000 5,200 12,400 24,900 905,200 11,200 15,600 108,000 136,000 12,000 Particulars Land & Premises Furniture Inventory (1/04/19) Import duty on goods Wages of contract workers Salaries & wages of staff Credit (GHC ) Carriage for goods purchased Carriage for goods sold Discounts Purchases & Sales Rent Commission Bills receivable 12% Investment (1/10/19) Donation to National Pandemic Fund 10% Bank Loan Factory rent Receivables and Payables Bank Bad debts Provision for doubtful debt Rates and Taxes Brokerage Capital Accounts Queen Corona Queen Covid Current Accounts 25,080 2,375,220 13,000 17,400 112,000 64,000 920,000 240,000 728,000 ఈ6000 20,000 31,200 13,000 500,000 500,000 Queen Corona Queen Covid 20,000 128,000 4.658,700 4,658,700 Additional Information: Due to the economic recession at the moment, the partners estimated that more of their receivables may not be able to settle their debts. Hence, they wrote off additional debts of GHC 15,000 and agreed to maintain provisions for doubtful debts at 5%. ii. They agreed to provide for discount on receivables at 5% All property, plant and equipment are to be depreciated at 10% The business claimed insurance of GHC 21,000 for goods that were lost due to fire. The insurance claim, though admitted, had not been puid as at the year end. Queen Corona took goods amounting to GHC 17,400 for personal use. i. ii. iv. V. vi. Goods worth GHC 24,000 bought on 24/04/19 on credit were not rvcorded in the books. Outstanding salaries were GIIC 2,000 whereas wages of GHC 24,600 were paid in advance. The partners agreed to charge interest on capital at 6% and on drawings at 7% ix. Bills receivable of GHC 12,600 was dishonored. x. The inventory count at the year-end revealed goods worth GHC 300,000 vii. vii. Calculate the net profitvloss for Lockdown Enterprise

The two queens of Lockdown Kingdom, Queen Corona and Queen Cevid, came together to form a business, The Lockdown Enterprise, to better the economic stance of the kingdom. In this business, they agreed to share profits and losses in the ratio of their opening capitals. Trial Balance as at 31 March, 2020 Debit (GHC ) 2,000,000 120,000 80,000 4,000 46,000 64,000 5,200 12,400 24,900 905,200 11,200 15,600 108,000 136,000 12,000 Particulars Land & Premises Furniture Inventory (1/04/19) Import duty on goods Wages of contract workers Salaries & wages of staff Credit (GHC ) Carriage for goods purchased Carriage for goods sold Discounts Purchases & Sales Rent Commission Bills receivable 12% Investment (1/10/19) Donation to National Pandemic Fund 10% Bank Loan Factory rent Receivables and Payables Bank Bad debts Provision for doubtful debt Rates and Taxes Brokerage Capital Accounts Queen Corona Queen Covid Current Accounts 25,080 2,375,220 13,000 17,400 112,000 64,000 920,000 240,000 728,000 ఈ6000 20,000 31,200 13,000 500,000 500,000 Queen Corona Queen Covid 20,000 128,000 4.658,700 4,658,700 Additional Information: Due to the economic recession at the moment, the partners estimated that more of their receivables may not be able to settle their debts. Hence, they wrote off additional debts of GHC 15,000 and agreed to maintain provisions for doubtful debts at 5%. ii. They agreed to provide for discount on receivables at 5% All property, plant and equipment are to be depreciated at 10% The business claimed insurance of GHC 21,000 for goods that were lost due to fire. The insurance claim, though admitted, had not been puid as at the year end. Queen Corona took goods amounting to GHC 17,400 for personal use. i. ii. iv. V. vi. Goods worth GHC 24,000 bought on 24/04/19 on credit were not rvcorded in the books. Outstanding salaries were GIIC 2,000 whereas wages of GHC 24,600 were paid in advance. The partners agreed to charge interest on capital at 6% and on drawings at 7% ix. Bills receivable of GHC 12,600 was dishonored. x. The inventory count at the year-end revealed goods worth GHC 300,000 vii. vii. Calculate the net profitvloss for Lockdown Enterprise

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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The two queens of Lockdown Kingdom, Queen Corona and Queen Cevid, came together to form
a business, The Lockdown Enterprise, to better the economic stance of the kingdom. In this
business, they agreed to share profits and losses in the ratio of their opening capitals.
Trial Balance as at 31 March, 2020
Debit (GHC )
2,000,000
120,000
80,000
4,000
46,000
64,000
5,200
12,400
24,900
905,200
11,200
15,600
108,000
136,000
12,000
Particulars
Land & Premises
Furniture
Inventory (1/04/19)
Import duty on goods
Wages of contract workers
Salaries & wages of staff
Credit (GHC )
Carriage for goods purchased
Carriage for goods sold
Discounts
Purchases & Sales
Rent
Commission
Bills receivable
12% Investment (1/10/19)
Donation to National Pandemic Fund
10% Bank Loan
Factory rent
Receivables and Payables
Bank
Bad debts
Provision for doubtful debt
Rates and Taxes
Brokerage
Capital Accounts
Queen Corona
Queen Covid
Current Accounts
25,080
2,375,220
13,000
17,400
112,000
64,000
920,000
240,000
728,000
ఈ6000
20,000
31,200
13,000
500,000
500,000
Queen Corona
Queen Covid
20,000
128,000
4.658,700
4,658,700
Additional Information:
Due to the economic recession at the moment, the partners estimated that more of their
receivables may not be able to settle their debts. Hence, they wrote off additional debts of
GHC 15,000 and agreed to maintain provisions for doubtful debts at 5%.
ii. They agreed to provide for discount on receivables at 5%
All property, plant and equipment are to be depreciated at 10%
The business claimed insurance of GHC 21,000 for goods that were lost due to fire. The
insurance claim, though admitted, had not been puid as at the year end.
Queen Corona took goods amounting to GHC 17,400 for personal use.
i.
ii.
iv.
V.
vi.
Goods worth GHC 24,000 bought on 24/04/19 on credit were not rvcorded in the books.
Outstanding salaries were GIIC 2,000 whereas wages of GHC 24,600 were paid in
advance.
The partners agreed to charge interest on capital at 6% and on drawings at 7%
ix. Bills receivable of GHC 12,600 was dishonored.
x. The inventory count at the year-end revealed goods worth GHC 300,000
vii.
vii.
Calculate the net profitvloss for Lockdown Enterprise

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