Mr. Evans Otabil has been in business for a number of years. In the past year, he has been busy Learning for the ICAG exams and has not kept proper records for his business. He has given you some information. 1st June, 2017 31st May, 2018 GH¢ GH¢ Inventory 1,019 2,998 Trade Receivables 3,605 2,070 Trade payables 1,740 970 Telephone prepaid 200 265 Cash at bank 1,696 (1,144) The bank statements for the year to 31st May, 2018 are summarized as follows: GH¢ Payments to suppliers 8,460 Receipt from Customers 6,690 Cash takings 5,900 Drawing 3,120 Rent 2,700 Telephone 1,150 Other balances as at 1st June, 2017 are as follows: GH¢ Motor vehicle (cost GH¢ 6,000) 4,750 Rent Outstanding 165 Rent Prepaid 100 You are given the following additional information: i. Depreciation is to be charged at 20% on straight line method. Mr. Otabil took goods for his personal use worth GH¢375. ii. A telephone bill was received on 7th July, 2018 for GH¢375, this related to the quarter ended 30th June, 2018. iii. Rent includes GH¢960 paid on 1st January, 2018 for the year to 31st December, 2018. iv. Motor vehicle was sold for GH¢ 4,411 on 1st February, 2018. v. All expenses and incomes are assumed to accrue equally. Required Prepare statement of profit or loss for Mr. Otabil for the year ended 31st May, 2018.
Mr. Evans Otabil has been in business for a number of years. In the past year, he has been busy Learning for the ICAG exams and has not kept proper records for his business. He has given you some information.
1st June, 2017 31st May, 2018
GH¢ GH¢
Inventory 1,019 2,998
Trade Receivables 3,605 2,070
Trade payables 1,740 970
Telephone prepaid 200 265
Cash at bank 1,696 (1,144)
The bank statements for the year to 31st May, 2018 are summarized as follows:
GH¢
Payments to suppliers 8,460
Receipt from Customers 6,690
Cash takings 5,900
Drawing 3,120
Rent 2,700
Telephone 1,150
Other balances as at 1st June, 2017 are as follows: GH¢
Motor vehicle (cost GH¢ 6,000) 4,750
Rent Outstanding 165
Rent Prepaid 100
You are given the following additional information:
i.
ii. A telephone bill was received on 7th July, 2018 for GH¢375, this related to the quarter ended 30th June, 2018.
iii. Rent includes GH¢960 paid on 1st January, 2018 for the year to 31st December, 2018.
iv. Motor vehicle was sold for GH¢ 4,411 on 1st February, 2018.
v. All expenses and incomes are assumed to accrue equally.
Required
Prepare statement of profit or loss for Mr. Otabil for the year ended 31st May, 2018.
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