Question
1 From the following are details from Eddie- Phantomas Enterprise for the year 2019. GH GH Sales: Department A: 108,000 Department B: 72,000 Capital 102,000
1 | From the following are details from Eddie-Phantomas Enterprise for the year 2019. GH GH Sales: Department A: 108,000 Department B: 72,000 Capital 102,000 Opening inventory: Department A 4,000 Department B 2,000 Purchases: Department A 60,000 Department B 40,000 Wages: Department A 6,000 Department B 8,000 Carriage outwards 800 Advertising 1,000 Machinery: Department A 50,000 Department B 30,000 Repairs to machinery 4,000 Insurance on machinery 1,200 Printing and postage 200 Office expenses 3,000 Rent and rates 2,800 Carriage inwards: Department A 600 Department B 600 Salaries: Department A 4,000 Department B 2,000 Drawings 6,000 Cash at hand 4,000 Cash at bank 12,600 Sundry payables 8,000 Light and heat 1,400 Furniture and fittings: Department A 1,600 Department B 1,200 Sundry receivables 1,000 Building 42,000 . 290,000 290,000
Additional Information: Inventory as at 31st December 2019: Department A GH4,600, Department B GH3,200 Office expense and printing to be charged equally to both departments Building area occupied by department A and B is in the proportion of 5:2 Depreciation of machinery, furniture and fitting is at 10% and building is 5% Provision for doubtful debt is 5% of account receivables figure
Required: a. Prepare the departmental income statement for the year ended 31stDecember, 2019 b. Prepare statement of financial position as at 31st December, 2019
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