Try questions - single entry and incomplete records 1. Fremah Enterprise does not keep a complete set of accounting records. For the year ended 31st December, 2013 the following information was extracted from the records kept by the enterprise: Fixtures and fittings Building Inventory Accounts Receivable Cash at Bank 1" January, 201331" December, 2013 GH¢ 16,000 17,000 8,000 5,000 8,000 12,000 4,000 GH¢ 12,000 16,000 10,000 6,000 12,000 16,000 3,000 Loan Accounts Payable Additional Information: a) Rent prepaid on 31$t' December, 2013 was GH¢ 1,000. b) Insurance owing on 31st December, 2013 was GH¢ 3,000. c) During the year drawings made by Fremah, the proprietor were GH¢200 per week in cash and GH¢40 per mouth from inventory. d) Provision for doubtful debt of GH¢ 1,000 is to be made.
Try questions - single entry and incomplete records 1. Fremah Enterprise does not keep a complete set of accounting records. For the year ended 31st December, 2013 the following information was extracted from the records kept by the enterprise: Fixtures and fittings Building Inventory Accounts Receivable Cash at Bank 1" January, 201331" December, 2013 GH¢ 16,000 17,000 8,000 5,000 8,000 12,000 4,000 GH¢ 12,000 16,000 10,000 6,000 12,000 16,000 3,000 Loan Accounts Payable Additional Information: a) Rent prepaid on 31$t' December, 2013 was GH¢ 1,000. b) Insurance owing on 31st December, 2013 was GH¢ 3,000. c) During the year drawings made by Fremah, the proprietor were GH¢200 per week in cash and GH¢40 per mouth from inventory. d) Provision for doubtful debt of GH¢ 1,000 is to be made.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
Transcribed Image Text:Try questions - single entry and incomplete records
1. Fremah Enterprise does not keep a complete set of
accounting records. For the year ended 31st December,
2013 the following information was extracted from the
records kept by the enterprise:
Fixtures and fittings
Building
Inventory
Accounts Receivable
Cash at Bank
1s January, 201331ª December, 2013
GH¢
16,000
17,000
8,000
5,000
8,000
12,000
4,000
GH¢
12,000
16,000
10,000
6,000
12,000
16,000
3,000
Loan
Accounts Payable
Additional Information:
a) Rent prepaid on 31st December, 2013 was GH¢ 1,000.
b) Insurance owing on 31st December, 2013 was GH¢ 3,000.
c) During the year drawings made by Fremah, the proprietor
were GH¢200 per week in cash and GH¢40 per mouth from
inventory.
d) Provision for doubtful debt of GH¢ 1,000 is to be made.
Transcribed Image Text:2. Fire occurred in the premises of Cade Enterprise on 30th
June, 2013 and destroyed a greater part of stock which was
uninsured. The following information was obtained from
the book which was taken home by the manager in the
previous day.
GH¢
GH¢
Net Sales for 30/06/2013
184,500
Net Purchases for 30/06/2013
72,360
The inventory figure in the financial position proceeding
the period was GH¢ 171,000. On the 30th June, 2013, the
value of inventory salvage from the fire amounted to GH¢
23,100. Rigid enterprise maintains gross profit ratio of 25%
on sales. Determine the amount of inventory destroyed.
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