Required: Prepare in a suitable form for publication, a. Income statement for the year ended 31st December, 2021. b. Statement of financial Position as at 31st December, 2021.
Assignment 1
The following is the
December, 2021.
GHS GHS
Capital 240,000
Receivables and Payables 159,000 51,000
Inventory 99,000
Motor vehicles: (cost) 72,500
Office equipment: (cost) 90,000
Accumulated depreciation (31 December 2020) 30,000
Administrative expenses 26,000
Purchases and sales 243,750 490,000
Employee benefits 33,000
Selling expenses 20,000
Plant: (cost) 125,000
Accumulated depreciation (31 December 2020) 37,500
Discounts 7,500 12,500
Accruals 79,000
Investment income 27,500
Returns 12,000 17,500
Cash and cash equivalents 126,750
Allowance for doubtful debts 31 December 2020 14,000
1,032,000 1,032,000
Additional information available is given below:
i. The inventory sheets as at 31/12/2021 put the value of inventory at GHS129,500.
ii. Allowance for doubtful debt is to be increased to GHS19,080 as at 31 December 2021.
iii. An amount of GHS6,000 in respect of rent and rates is included in administrative expenses.
This amount relates to 2022 financial year.
iv. All items of property, plant and equipment are
on the straight line basis.
v. An amount of GHS10,000 incurred in the repair of plant had been debited to the plant
account.
vi. Personal withdrawal of cash amounting to GHS25,000 was made by Miss Sonia, the
proprietress. This has not been recorded in the financial records.
Required: Prepare in a suitable form for publication,
a. Income statement for the year ended 31st December, 2021.
b.
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