The following Trial Balance was extracted from the books of Aso Ltd for the year ended 30th September 2018 Dr Cr GH¢ GH¢ Stated Capital 185,280 Revaluation surplus @ 1/1/2018 25,000 Income Surplus @ 1/1/2018 32,000 Inventory 24,200 91 days treasury bill 57,000 Sales 421,450 Purchases 167,350 Purchase returns 6,040 Electricity 2,230 Discounts allowed 2,420 Discounts received 4,270 Motor expenses 33,580 Bank 24,511 Salaries 108,000 Insurance 15,400 Receivables 110,140 Irrecoverable debts 1,420 Allowance for receivables 3,153 Trade Payables 76,288 General Admin expenses 6,780 9% Loan note (2016-2021) 150,000 Loan interest 12,000 Land and buildings @ cost 340,000 Accumulated depreciation for buildings 26,000 Equipment @ cost 22,000 Accumulated depreciation for equipment 10,300 Motor vehicles cost 26,000 Accumulated depreciation for motor vehicles 13,250 953,031 953,031 The following information is also available. Only 10 months’ salaries are shown in the Trial An equal amount is paid for salaries for each month of the year. As at 30th September 2018, GH¢3,200 had been prepaid for insurance, whilst GH¢410 was owing for general expenses. Corporate tax provision for the year is estimated @ 25% of Profit before Tax Dividend proposed for the year amounted to GH¢5,200 Additional Shares valued at GH¢50,000 were issued during the year. This has not been recorded in the Equipment costing GH¢4,000 was disposed off during the year for GH¢6,000; accumulated depreciation on this equipment was GH¢1,000. This transaction was also As at 30th September 2018, inventory was valued at GH¢22,500. A customer, owing GH¢5,040 has been declared This amount is to be written off in full. Bad debts are charged to distribution cost An allowance for receivables is to be maintained at 3% of the remaining This is charged to Distribution Cost As at 30th September 2018, the business’s land was revalued at GH¢150,000. The original cost of the Land was GH¢100,000 Depreciation is to be provided as follows: Buildings: 4% per annum using the straight line method. Equipment: 25% per annum using the straight line method. Motor vehicles: 40% per annum using the reducing balance Depreciation is charged to Administrative expenses except 50% of Motor vehicle depreciation

The following Trial Balance was extracted from the books of Aso Ltd for the year ended 30th September 2018 Dr Cr GH¢ GH¢ Stated Capital 185,280 Revaluation surplus @ 1/1/2018 25,000 Income Surplus @ 1/1/2018 32,000 Inventory 24,200 91 days treasury bill 57,000 Sales 421,450 Purchases 167,350 Purchase returns 6,040 Electricity 2,230 Discounts allowed 2,420 Discounts received 4,270 Motor expenses 33,580 Bank 24,511 Salaries 108,000 Insurance 15,400 Receivables 110,140 Irrecoverable debts 1,420 Allowance for receivables 3,153 Trade Payables 76,288 General Admin expenses 6,780 9% Loan note (2016-2021) 150,000 Loan interest 12,000 Land and buildings @ cost 340,000 Accumulated depreciation for buildings 26,000 Equipment @ cost 22,000 Accumulated depreciation for equipment 10,300 Motor vehicles cost 26,000 Accumulated depreciation for motor vehicles 13,250 953,031 953,031 The following information is also available. Only 10 months’ salaries are shown in the Trial An equal amount is paid for salaries for each month of the year. As at 30th September 2018, GH¢3,200 had been prepaid for insurance, whilst GH¢410 was owing for general expenses. Corporate tax provision for the year is estimated @ 25% of Profit before Tax Dividend proposed for the year amounted to GH¢5,200 Additional Shares valued at GH¢50,000 were issued during the year. This has not been recorded in the Equipment costing GH¢4,000 was disposed off during the year for GH¢6,000; accumulated depreciation on this equipment was GH¢1,000. This transaction was also As at 30th September 2018, inventory was valued at GH¢22,500. A customer, owing GH¢5,040 has been declared This amount is to be written off in full. Bad debts are charged to distribution cost An allowance for receivables is to be maintained at 3% of the remaining This is charged to Distribution Cost As at 30th September 2018, the business’s land was revalued at GH¢150,000. The original cost of the Land was GH¢100,000 Depreciation is to be provided as follows: Buildings: 4% per annum using the straight line method. Equipment: 25% per annum using the straight line method. Motor vehicles: 40% per annum using the reducing balance Depreciation is charged to Administrative expenses except 50% of Motor vehicle depreciation

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter21: The Statement Of Cash Flows

Section: Chapter Questions

Problem 13P: Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and...

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The following Trial Balance was extracted from the books of Aso Ltd for the year ended 30th September 2018

	Dr	Cr
	GH¢	GH¢
Stated Capital		185,280
Revaluation surplus @ 1/1/2018		25,000
Income Surplus @ 1/1/2018		32,000
Inventory	24,200
91 days treasury bill	57,000
Sales		421,450
Purchases	167,350
Purchase returns		6,040
Electricity	2,230
Discounts allowed	2,420
Discounts received		4,270
Motor expenses	33,580
Bank	24,511
Salaries	108,000
Insurance	15,400
Receivables	110,140
Irrecoverable debts	1,420
Allowance for receivables		3,153
Trade Payables		76,288
General Admin expenses	6,780
9% Loan note (2016-2021)		150,000
Loan interest	12,000
Land and buildings @ cost	340,000
Accumulated depreciation for buildings		26,000
Equipment @ cost	22,000
Accumulated depreciation for equipment		10,300
Motor vehicles cost	26,000

Accumulated depreciation for motor vehicles		13,250
	953,031	953,031

The following information is also available.

Only 10 months’ salaries are shown in the Trial An equal amount is paid for salaries for each month of the year.
As at 30th September 2018, GH¢3,200 had been prepaid for insurance, whilst GH¢410 was owing for general expenses.
Corporate tax provision for the year is estimated @ 25% of Profit before Tax
Dividend proposed for the year amounted to GH¢5,200
Additional Shares valued at GH¢50,000 were issued during the year. This has not been recorded in the
Equipment costing GH¢4,000 was disposed off during the year for GH¢6,000; accumulated depreciation on this equipment was GH¢1,000. This transaction was also
As at 30th September 2018, inventory was valued at GH¢22,500.
A customer, owing GH¢5,040 has been declared This amount is to be written off in full. Bad debts are charged to distribution cost
An allowance for receivables is to be maintained at 3% of the remaining This is charged to Distribution Cost
As at 30th September 2018, the business’s land was revalued at GH¢150,000. The original cost of the Land was GH¢100,000
Depreciation is to be provided as follows:
1. Buildings: 4% per annum using the straight line method.
2. Equipment: 25% per annum using the straight line method.
3. Motor vehicles: 40% per annum using the reducing balance

Depreciation is charged to Administrative expenses except 50% of Motor vehicle depreciation

Required:

1. Prepare the following statements for the year ended 30th September 2018 in a format suitable for publication

2. Statement of Profit or Loss and other comprehensive Income

3. Statement of Changes is equity

Statement of Financial

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