BK owns a small business in a small-town call Twapiasea in the Dormaa District call the PiGMen Enterprise. BK does not keep full set of accounts. The following records has been obtained in respected of the year ended 31st December 2019 Summary of Bank Accounts GHS GHS Bal b/d 4,820.00 Sundry Expenses 1,560.00 Receipt from Trade Receivables 94,608.00 Payment to Trade Payables 76,040.00 Insurance 2,640.00 Rent 5,200.00 Equipment 4,000.00 Drawings 7,200.00 Bal c/d 2,788.00 99,428.00 99,428.00 BK made cash sales of GHS 13,336.00 and use this to pay the following; GHS Wages and Salary 12,427.00 Sundry Expenses 106.00 Cash Purchase 803.00 He took for his use GHS 260.00 worth of good. A discount of GHS 87.00 had been allowed to BK for prompt payment of trade payable. The following information was also available: 1 st January 2019 31st December 2019 GHS GHS Equipment 8, 400.00 9,920.00 Rent Accrued 400.00 ---------- Trade Receivable 7,360.00 9,900.00 Trade Payable 5,928.00 6,836.00 Insurance Prepaid 420.00 480.00 Inventory 8,428.00 11,280.00 BK has indicated that GHS 120.00 included in the insurance payment during the year is for his personal insurance. Required: 1. Determine the opening capital for BK 2.Determine the total sales and Total Purchases 3.Prepare statement of Income for the year ended 31st December 2019
BK owns a small business in a small-town call Twapiasea in the Dormaa District call the PiGMen
Enterprise. BK does not keep full set of accounts. The following records has been obtained in respected of
the year ended 31st December 2019
Summary of Bank Accounts
GHS GHS
Bal b/d 4,820.00 Sundry Expenses 1,560.00
Receipt from Trade
Receivables 94,608.00
Payment to Trade
Payables 76,040.00
Insurance 2,640.00
Rent 5,200.00
Equipment 4,000.00
Drawings 7,200.00
Bal c/d 2,788.00
99,428.00 99,428.00
BK made cash sales of GHS 13,336.00 and use this to pay the following;
GHS
Wages and Salary 12,427.00
Sundry Expenses 106.00
Cash Purchase 803.00
He took for his use GHS 260.00 worth of good. A discount of GHS 87.00 had been allowed to BK for
prompt payment of trade payable.
The following information was also available:
1
st January 2019 31st December 2019
GHS GHS
Equipment 8, 400.00 9,920.00
Rent Accrued 400.00 ----------
Trade Receivable 7,360.00 9,900.00
Trade Payable 5,928.00 6,836.00
Insurance Prepaid 420.00 480.00
Inventory 8,428.00 11,280.00
BK has indicated that GHS 120.00 included in the insurance payment during the year is for his personal
insurance.
Required:
1. Determine the opening capital for BK
2.Determine the total sales and Total Purchases
3.Prepare statement of Income for the year ended 31st December 2019
4. Prepare
Step by step
Solved in 3 steps with 1 images
