The trial balance below was extracted from the ledger of Aseda Ltd as at 31st December, 2020, CR GHE e) Prepare statement of ficil position as at 31" December 2020 b) Statement of Changes in Faty for the year ended 31" December 2020, Cash at bank Inventory at January, 2020 Administrative expenses Distribution costs Non-current assets at cost: DR GHe 10,000 240,000 220,600 65,000 800,000 200,000 40,000 32,000 Buildings Land Plant and equipnment Motor vehicles Returns outwards- Returns inwards Carriage inwards Accumulated depreciation: Buildings Plant and equipment Motor vehicles Income surplus Trade reccivables Purchases Dividend paid Sales revenuo- Provision for doubtful debts (allowance for receivables) Trade payables 10% Loan note Revaluation surplus Stated capital 8,200 -3,800 400,000 48,000 12,000 56,000 87,600 420,000 -20,000 4,175,200 3,000 105,000 130,000 56,000 250,000 2,247,200 2,247,200 The following additional information is relevant. The cost of closing inventories at 31/12/2018 was GHe43,740. However due to market recession the net realisable value of the goods is GHE37,480. Depreciation is to be provided as follows: • Buildings at 5% straight line, charged to administrative expenses • Plant and equipment at 20% on the reducing balance basis, charged to cost of sales 1 y a= 194e • Motor vehicles at 25% on the reducing balance hasis, charged to distribution costs. Land was revalued at GHE260,000 on 28" December, 2020 i) 100000 new ordinary shares were issued at GHel. on 20th December 2020. This transaction was completely omitted from the books (Stated capital account and bank account). iv) v) One year interest is due on the loan notes vi) Provision for doubtful debt is to be adisted so that it is 4% of trade receivables, charged to administrative -2c Corporate tax provision was GHE25,000 for the year 2020. vii) expenses. Required: a) Prepare Statement of proft or loss and other comprehensive income for the year ending 31" December 2020
The trial balance below was extracted from the ledger of Aseda Ltd as at 31st December, 2020, CR GHE e) Prepare statement of ficil position as at 31" December 2020 b) Statement of Changes in Faty for the year ended 31" December 2020, Cash at bank Inventory at January, 2020 Administrative expenses Distribution costs Non-current assets at cost: DR GHe 10,000 240,000 220,600 65,000 800,000 200,000 40,000 32,000 Buildings Land Plant and equipnment Motor vehicles Returns outwards- Returns inwards Carriage inwards Accumulated depreciation: Buildings Plant and equipment Motor vehicles Income surplus Trade reccivables Purchases Dividend paid Sales revenuo- Provision for doubtful debts (allowance for receivables) Trade payables 10% Loan note Revaluation surplus Stated capital 8,200 -3,800 400,000 48,000 12,000 56,000 87,600 420,000 -20,000 4,175,200 3,000 105,000 130,000 56,000 250,000 2,247,200 2,247,200 The following additional information is relevant. The cost of closing inventories at 31/12/2018 was GHe43,740. However due to market recession the net realisable value of the goods is GHE37,480. Depreciation is to be provided as follows: • Buildings at 5% straight line, charged to administrative expenses • Plant and equipment at 20% on the reducing balance basis, charged to cost of sales 1 y a= 194e • Motor vehicles at 25% on the reducing balance hasis, charged to distribution costs. Land was revalued at GHE260,000 on 28" December, 2020 i) 100000 new ordinary shares were issued at GHel. on 20th December 2020. This transaction was completely omitted from the books (Stated capital account and bank account). iv) v) One year interest is due on the loan notes vi) Provision for doubtful debt is to be adisted so that it is 4% of trade receivables, charged to administrative -2c Corporate tax provision was GHE25,000 for the year 2020. vii) expenses. Required: a) Prepare Statement of proft or loss and other comprehensive income for the year ending 31" December 2020
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
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 7E: Multiple-Step and Single-Step Income Statements, and Statement of Comprehensive Income On December...
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Transcribed Image Text:The trial balance below was extracted from the ledger of Aseda Ltd as at 31st December, 2020,
CR GH¢
c) Prepare statement of fnancial position as at 31" December 2020
b) Statement of Changes in Equity for the year ended 31" December 2020,
DR GHe
Cash at bank
Inventory at January, 2020
Administrative expenses
Distribution costs
10,000
240,000
220,600
65,000
800,000
200,000
140,000
32,000
Non-current assets at cost:
Buildings
Land
Plant and equipment
Motor vehicles
Returns outwards
Returns inwards
Саriage inwards
Accumulated depreciation:
Buildings
Plant and equipment
Motor vehicles
Income surplus
Trade receivables
Purchases
Dividend paid
Sales revenuo-
Provision for doubtful debts (allowance for receivables)
Trade payables
10% Loan note
Revaluation surplus
Stated capital
+2,000
-8,200
-3.800
400.000
48,000
12,000
56,000
87,600
-420,000
-20,000
4,175,200
3,000
105,000
130,000
56,000
250,000
2,247,200
2,247,200
The following additional information is relevant.
The cost of closing inventories at 31/12/2018 was GHe43,740. However due to market recession the net
realisable value of the goods is GH¢37,480.
Depreciation is to be provided as follows:
• Buildings at 5% straight line, charged to administrative expenses 40, no
Plant and equipment at 20% on the reducing balance basis, charged to cost of sales 1oUDy 2= L400
• Motor vehicles at 25% on the reducing balance hasis, charged to distribution costs.
Land was revalued at GHE260,000 on 28" December, 2020
100000 new ordinary shares were issued at GHel. on 20th December 2020. This transaction was completely
omitted from the books (Stated capital account and bank account).
One year interest is due on the loan notes.
i)
iii)
iv)
S, 000
v)
vi)
Corporate tax provision was GHE25.000 for the year 2020.
vii)
Provision for doubtful debt is to be adiusted so that it is 4% of trade receivables, charged to administrative - 2cN
expenses.
Required:
a) Prepare Statenment of prot o los and other comprehensive income for the year ending 31" December
2020
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