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 June, 2017 31 May, 2018 GHE GHC Inventory 1,019 2.998 Trade Receivables 3.605 Trade payables 1.740 970 Telephone prepaid 200 265 Cash at bank 2,070 The bank statements for the year to 31" May, 2018 are summarized as follows: GHC Payments to suppliers Receipt from Customers 6,690 Cash takings 5.900 Drawing 3.120 Rent 2,700 Telephone 1.150 Page 3 of 4 i. Other balances as ati" June, 2017 are as follows: GHC Motor vehicle (cost GH 6,000) 4,750 Rent; Outstanding 165 Prepaid 100 You are given the following additional information: Depreciation is to be charged at 20% on straight line method. Mr. Otabil took goods for his ii. A telephone bill was received on 7* July, 2018 for GH€375, this related to the quarter ended 30 June, 2018 Rent includes GH¢960 paid on 1 January, 2018 for the year to 31" December, 2018 Motor vehicle was sold for GH€ 4,411 on 1 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 31 May, 2018. 15 marks . iv. b. The information below relates to "NOT partnership business for the year ended 31 December, 2019 Nyamekye Oliver Twist GH&'000 GH&'000 GHE"000 Capital Introduced 20,000 30,000 40,000 Drawings 10,000 15,000 20,000 Nyamekye is entitled to a salaries amounted to GH€ 9,350,000 per annum, sharing Profit or loss on the basis of capital contributed ii. Net profit for the period ended 31" December, 2019 was GH¢ 38,500,000. Interest on drawings and Capital are 5% and 10% per annum respectively. All expenses and incomes accrue evenly iii Oliver advanced a loan amounted to GH 300,000,000 to "NOT Partnership Business on 1" September, 2019 but charged an interest of 12.5% per annum on the loan. iv. Twist Retired on 31 December, 2019 but granted his net worth in the partnership business as a loan to the business charging Interest of 9% per annum on the loan. Required a. Prepare Profit or Loss Appropriation for the year ended 31/12/2019. 9 marks) b. Partners' Capital Account for the year ended 31/12/2019 in the absence of current account (6 marks) (Total: 30 marks)

Answer 1

Statement of Profit and loss for Mr otabil for the year ended 31st may 2018
				Amount in GHS
Particulars	Dr			Particulars Cr
Opening stock	1019			sales	5155
purchases	9230			Closing stock	2998
				gross loss	2096
gross loss	2096
supplier payments	8460			Receipt from customers	6690
rent	2700			motor vehicle sale	4411
telephone	1150
depreciation	1200
				Net loss	4505
	15606				15606

	Receivables A/c
opening receivables	3605	cash receipts	6690
sales( Balancing fig)	5155	closing receivbls	2070
	8760		8760
	Payables A/c
purchases( Bal fig)	9230	opening payables	1740
closing payables	970	payment to supp	8460
	10200		10200
	Depreciation
motor vehicleWDV	4750
Dep @20% on 6000	1200
	3550