Question

QUESTION THREE a. 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. 1 st 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 Page 4 of 4 Other balances as at 1st June, 2017 are as follows: GH¢ Motor vehicle (cost GH¢ 6,000) 4,750 Rent; Outstanding 165 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. 15 marks

QUESTION THREE Mt. Evans Oubil has been in business for a number of years. In the past year, he has been busy I.coming for the ICAG exams and has not kept proper records for his business. He has given you some information 1 June, 2017 31 May, 2018 GHE GHE Inventy 1.019 2.99 Trade Receivables 3.605 2.070 Trade payables 1.740 970 Telephone paid 200 Cash at bak 1.6% The lank statements for the year e 31 May, 2018 are summarised as follows: GHE Payments to suppliers R.460 Recept from Customers 190 Cashtaking 5.900 Drawing 3,120 Ron 2.700 Telephone 1.150 Page 14 165 Cher balances as w " June, 2017 are as follows: Ghe Motorvericles GHE 6.000 Rent: Outstanding Prepaid 100 You are given the following additional information: Depreciation is to be charged at 20% a straight line method Mr. Otabil tok goods for his A telephone ball was received ce 7 July, 2018 for GH€375, this related to the quartet ended 30 June 2016 L. Rent includes GH2960 paid on 19 January, 2018 for the year to 31 December, 2018 Motor vehicle was sold for GHE 4,411.ca 1 February, 2018 All expenses and incomes are sumed to accrue equally Required Prepare statement of peolit or los for Mr. Otabel for the year ended 31 May, 2018. 15 marks

Answer 1

Account of Mv.evens olabil for the year Trading ended 31/5118 po op Amount o ar you portwlan to openingsted To purchases Altya 97 +846) Amount 2008 1019 9230 particulars By glates credit -coon 16690 2998 e-shek By 974 to Grossprog 11223 11223 3,15 1,8 ended profit & Loss Al for the year Anoud Amount particular 974 Pod 1085 of 1060 particulars po Pelephore expenses to Rent 2800 x to Telephone exprols) By Gronprozy By profiton sele of mach 811 By 1810 Netlon 200 375x2/3 1200 of Depreeshon poton on schegmachin 339 BSV 3595