1. FA Manyame has been meaning to start a business for some time, but never seems to have theenergy to make any direct purchases or sales. He has some business premises but simply rents themout to a friend, Nyamenaye. Recently, he gathered the courage and the following information isavailable in respect of FA Manyames sundry expenditure and income for the year ended 31 December 2004.

(a) FA Manyame paid rent of GH1,500 during the year for the fifteen month period ending on31 March 2005.

(b) FA Manyame had paid for electricity up to date at 1 January 2004. During the year he paidGH420 to cover charges from 1 January 2004 to 31 July 2004. He received further bills butnever got round to paying them. Assume that charges accrue evenly over the year.

(c) In December 2004 FA Manyame had a rush of blood to the head and paid GH500 to theGas Board. Gas consumed during 2004 amounted to only GH275.

(d) Bank interest has been charged to the bank account as follows.Up to 31 May 2004 (no overdraft) GHNil1 June to 31 August 2004 GH141 September to 30 November 2004 GH35The bank statements shows that GH51 was charged to the account on 28 February 2005 inrespect of the three months ended on that date.

(e) Business ratesIn December 2003 FA Manyame paid GH2,400 for the six months ended 31 March 2004.During June 2004 He paid GH2,800 to cover the six months ended 30 September 2004.In February 2005 he paid GH3,300 in respect of the six months ended 31 March 2005.

(f) In March 2004 FA Manyame received GH2,500 from Nyamenaye for rent of the premisesin respect of the six months ended 31 March 2004.As from 1 April 2004 FA Manyame increased the rent to GH6,000 per annum; during2004 Nyamenaye paid the full amount for the year ended 31 March 2005.

Requirement Write up the ledger accounts for each of the above items, showing all relevant balances andtransactions.

2.

Geeproperties owns a block of flats, and earns a living by rental income and general dealing. On 1January 2006 his ledger included the following balances. Debtors account GH75,000Provision for doubtful debts account GH2,235The balance on the provision account consisted of the following.GHSpecific provision of 100% against the debt of Charles Sulemana, a tenant 1,500General provision of 1% against remaining debts 7352,235During the year ended 31 December 2006 the following occurred.

(a) Charles Sulemana paid Geeproperties GH150 and then vanished without trace to a newworld, leaving no assets.

(b) Another tenant, Antonio Banderas, who owed GH900, fell into a river and was also foundto have died penniless.

(c) Azuma Nickson returned from total obscurity and an amount of GH450 whichGeeproperties had written off in 2003.

(d) Credit sales for the year amounted to GH167,400 and cash received from debtors (otherthan Sulemana and Azuma) totaled GH150,000

(e) At 31 December 2006 Geeproperties decided to provide in full against a disputed debt of GH1,200 owed by Kwesi Otoo Pratt, and to maintain the 1% general provision on otherdebtor.

Requirement Write up Geepropertiess debtors account, provision for doubtful debts account and bad debts expense account for the year ended 31 December 2006.