Question The following Trial Balance has been extracted from the ledger of Mr. Yousef, a sole trader. Dr. Cr. GH¢ GH¢ Sales 138,078 Purchases 82,350 Carriages 5,144 Drawings 7,800 Rent, rates and insurance 6,622 Postage and Stationery 3,001 Advertising 1,330 Wages and Salaries 26,420 Bad Debts 877 Provision for Bad Debts 130 Debtors 12,120 Creditors 6,471 Cash in hand 177 Cash at Bank 1,002 Stock as at 1st June, 1995 11,927 Equipment: at Cost 58,000 Accumulated depreciation 19,000 Capital 53,091 216,770 216,770 The following additional information as at 31st May, 2006 is available. Rent is accrued by GH¢210. Rates have been prepaid by GH¢880. GH¢2,211 of carriage represents carriage purchases. Equipment is to be depreciated at 15% per annum, using reducing balance method. The provision for Bad debts to be reduced by GH¢40. Stock at the close of business has been valued at GH¢13,551. Required: Prepare trading and profit and loss accounts for the year ended 31st May, 2006 and a balance sheet as that date
Question
The following
Dr. Cr.
GH¢ GH¢
Sales 138,078
Purchases 82,350
Carriages 5,144
Drawings 7,800
Rent, rates and insurance 6,622
Postage and Stationery 3,001
Advertising 1,330
Wages and Salaries 26,420
Provision for Bad Debts 130
Debtors 12,120
Creditors 6,471
Cash in hand 177
Cash at Bank 1,002
Stock as at 1st June, 1995 11,927
Equipment: at Cost 58,000
Accumulated
Capital 53,091
216,770 216,770
The following additional information as at 31st May, 2006 is available.
- Rent is accrued by GH¢210.
- Rates have been prepaid by GH¢880.
- GH¢2,211 of carriage represents carriage purchases.
- Equipment is to be depreciated at 15% per annum, using
reducing balance method . - The provision for Bad debts to be reduced by GH¢40.
- Stock at the close of business has been valued at GH¢13,551.
Required:
Prepare trading and
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