@ 98% ..ll Airtel Tigo 3G 10:08 AM Done ACCT502 APR2021 (1 of 134) Question 4 Mangani Ltd issued a Prospective on 21 January for 10,000 ordinary share of no par value at Ghc750 each. The shares are payable as follows: 2 February Ghc200 is payable on Application 4 February Ghc300 is payable on Allotment 10 February Ghc150 is payable on 1 Call 28 February Ghc100 is payable on 2 final Call The issue was fully subscribed and all monies were duly received as they become due. Required: a) Show the ledger Entries (EV:7) b)Discuss how amount to be refunded would treated by the company if oversubscription had occurred (AN:7) C)Using practical example with figures, explain how Detenture issued at a discount would be treated in the financial statement (EV:6) QUESTION FIVE (a)Using your own figures determine cash received from operations using the indirect method (EV:7) (b)Using your own figures demestrate how cash and cash equivalent could determine a businesses financial health (AN:7) (e)Discuss how the balance sheet of previous year and current year affects the preparation of cash flow statement CAN:6) 98% . Airtel Tigo 3G 10:08 AM Done ACCT502 APR2021 (1 of 134) (ANT) Question 1 (a\Practically demonstrate along side with figures, how Exraordinary tems will affect the Income Statement Preparation thyPractically demonstrate how a parner wih a debit balance on a partnership Capital account could affect the share of profit (AN:7) (c)Using a practical example with figures explain the concept and treatment of Goodwill written off in the financial statement (AN:6) Question 2 (a)Using a practical example with figures, explain how Non-current asset held for sale could be measured (b) Using a practical example with figures, explain how a fim will report on a discontinued operations (EV:7) 1) Using a practical example with your own figures, explain how realization account affect report on dissolution of a partnership (EV:6) Question 3 The following Trial Balance was extracted from the books of Johnson Ghana Ltd as at 31 December 2019, Dr Cr GHC GHC Issued and fully paid 20,000 ordinary shares of she 10 cach 20.000 Share Premium General Reserves 10.000 8.000 Income statement 3,000 Salaries 5.000 Discounts 200 400 Carriage Inwards 160 Purchases and Sales 45.000 91.740 Opening Inventory 8.000 Carriage Outwards 500 Loan 24 000 Interest on loan Allowance for receivables 2.000 Preliminary Expenses 12.000 Motor Vehicle expenses 1.800 Directors Salaries 6.000 Repairs to Premises 250 Rates @ 98% ... Airtel Tigo 3G 10:08 AM Done ACCT502 APR2021 (1 of 134) Question 3 The following Trial Balance was extracted from the books of Johnson Ghana Ltd as at 31" December 2019, De CE GHC GHC Issued and fully paid 20.000 ordinary shares Ghz |_ gai 20,000 Shure Premium 10,000 General Reserves 8.000 Income statement Salaries 5.000 Discounts 200 400 Carriage Inwards 160 Purchases and Sales 45,000 91.740 Opening Inventory 8.000 Carriage Outwards 560 Loan 24.000 Interest on loan 1,000 Allowance for receivables 2.000 Preliminary Expenses 12.000 Motor Vehicle expenses Directors Salaries 6.000 Repairs to Premises Rates 1.500 2.500 8.000 100 Premises at Cast 20.000 Motor Vehicles at cost 23.000 Plan and Machinery cost 25.000 Provision for depreciation Plant and Machinery Debtors and Creditors 12,390 Sundry Expenses 3.500 Cash in Hand Cash at Hand 4.000 Returns 240 170.00 Additional leformation: a) Inventory at close Ghc12.500 b) Expenses Unpaid: Motor Expenses Ghc300 Insurance Gho450 Sundry Expenses Gho100 (c) Prepaid Experte - Rates Ghc330 - Sundry Expenses Ghc250 (d) Allowance for receivables to be increased to Ghc2.800 (e) Part of the Premises is subleta Ghc2.400 per annum @ 98% ..ll Airtel Tigo 3G 10:08 AM Done ACCT502 APR2021 (1 of 134) Premises at Cost 20.000 Motor Vehicles al cost 23.000 Plant and Machinery at cost 25,000 Provision for depreciation Pant and Machinery 2.500 Debtors and Creditors X.000 Sundry Expenses 1.500 Cash in Hand 300 Casb at Hand 4.000 Returns 240 170.000 120.000 Additional Information: a) Inventory at close Ghc12.500 b) Expenses Linpaid - Motor Expenses Ghc200 Insurance Gho450 Sundry Expenses Gh0400 (c) Prepaid Expenses - Rates Ghc320 Sundry Expenses Ghc250 (d) Allowance for receivables to be increased to Ghe2.800 (e) Part of the Premises is subleta Ghc2.400 per annum (Monthly salaries and wapes bill Gh00 (o) Bad debt at 31 December 2019 Gh600 (h) Loan interest is 5% per annum (Provide for depreciation on a straight line method: Premises 2% Plant and Machinery 23% - Motor Vehicle 10% Write of Preliminary expenses Transfer to general reserves Gh5.0000 and Ghe5,000 to revenue reserves You are required to a)Prepare the Income Statement for the year b Prepare the appropriation Account (AN:6) c)Would you invest in this company base on your answer in (a)? Give reasons and indicate two benefits that you will gain from such investment @ 98% ..ll Airtel Tigo 3G 10:08 AM Done ACCT502 APR2021 (1 of 134) Question 4 Mangani Ltd issued a Prospective on 21 January for 10,000 ordinary share of no par value at Ghc750 each. The shares are payable as follows: 2 February Ghc200 is payable on Application 4 February Ghc300 is payable on Allotment 10 February Ghc150 is payable on 1 Call 28 February Ghc100 is payable on 2 final Call The issue was fully subscribed and all monies were duly received as they become due. Required: a) Show the ledger Entries (EV:7) b)Discuss how amount to be refunded would treated by the company if oversubscription had occurred (AN:7) C)Using practical example with figures, explain how Detenture issued at a discount would be treated in the financial statement (EV:6) QUESTION FIVE (a)Using your own figures determine cash received from operations using the indirect method (EV:7) (b)Using your own figures demestrate how cash and cash equivalent could determine a businesses financial health (AN:7) (e)Discuss how the balance sheet of previous year and current year affects the preparation of cash flow statement CAN:6) 98% . Airtel Tigo 3G 10:08 AM Done ACCT502 APR2021 (1 of 134) (ANT) Question 1 (a\Practically demonstrate along side with figures, how Exraordinary tems will affect the Income Statement Preparation thyPractically demonstrate how a parner wih a debit balance on a partnership Capital account could affect the share of profit (AN:7) (c)Using a practical example with figures explain the concept and treatment of Goodwill written off in the financial statement (AN:6) Question 2 (a)Using a practical example with figures, explain how Non-current asset held for sale could be measured (b) Using a practical example with figures, explain how a fim will report on a discontinued operations (EV:7) 1) Using a practical example with your own figures, explain how realization account affect report on dissolution of a partnership (EV:6) Question 3 The following Trial Balance was extracted from the books of Johnson Ghana Ltd as at 31 December 2019, Dr Cr GHC GHC Issued and fully paid 20,000 ordinary shares of she 10 cach 20.000 Share Premium General Reserves 10.000 8.000 Income statement 3,000 Salaries 5.000 Discounts 200 400 Carriage Inwards 160 Purchases and Sales 45.000 91.740 Opening Inventory 8.000 Carriage Outwards 500 Loan 24 000 Interest on loan Allowance for receivables 2.000 Preliminary Expenses 12.000 Motor Vehicle expenses 1.800 Directors Salaries 6.000 Repairs to Premises 250 Rates @ 98% ... Airtel Tigo 3G 10:08 AM Done ACCT502 APR2021 (1 of 134) Question 3 The following Trial Balance was extracted from the books of Johnson Ghana Ltd as at 31" December 2019, De CE GHC GHC Issued and fully paid 20.000 ordinary shares Ghz |_ gai 20,000 Shure Premium 10,000 General Reserves 8.000 Income statement Salaries 5.000 Discounts 200 400 Carriage Inwards 160 Purchases and Sales 45,000 91.740 Opening Inventory 8.000 Carriage Outwards 560 Loan 24.000 Interest on loan 1,000 Allowance for receivables 2.000 Preliminary Expenses 12.000 Motor Vehicle expenses Directors Salaries 6.000 Repairs to Premises Rates 1.500 2.500 8.000 100 Premises at Cast 20.000 Motor Vehicles at cost 23.000 Plan and Machinery cost 25.000 Provision for depreciation Plant and Machinery Debtors and Creditors 12,390 Sundry Expenses 3.500 Cash in Hand Cash at Hand 4.000 Returns 240 170.00 Additional leformation: a) Inventory at close Ghc12.500 b) Expenses Unpaid: Motor Expenses Ghc300 Insurance Gho450 Sundry Expenses Gho100 (c) Prepaid Experte - Rates Ghc330 - Sundry Expenses Ghc250 (d) Allowance for receivables to be increased to Ghc2.800 (e) Part of the Premises is subleta Ghc2.400 per annum @ 98% ..ll Airtel Tigo 3G 10:08 AM Done ACCT502 APR2021 (1 of 134) Premises at Cost 20.000 Motor Vehicles al cost 23.000 Plant and Machinery at cost 25,000 Provision for depreciation Pant and Machinery 2.500 Debtors and Creditors X.000 Sundry Expenses 1.500 Cash in Hand 300 Casb at Hand 4.000 Returns 240 170.000 120.000 Additional Information: a) Inventory at close Ghc12.500 b) Expenses Linpaid - Motor Expenses Ghc200 Insurance Gho450 Sundry Expenses Gh0400 (c) Prepaid Expenses - Rates Ghc320 Sundry Expenses Ghc250 (d) Allowance for receivables to be increased to Ghe2.800 (e) Part of the Premises is subleta Ghc2.400 per annum (Monthly salaries and wapes bill Gh00 (o) Bad debt at 31 December 2019 Gh600 (h) Loan interest is 5% per annum (Provide for depreciation on a straight line method: Premises 2% Plant and Machinery 23% - Motor Vehicle 10% Write of Preliminary expenses Transfer to general reserves Gh5.0000 and Ghe5,000 to revenue reserves You are required to a)Prepare the Income Statement for the year b Prepare the appropriation Account (AN:6) c)Would you invest in this company base on your answer in (a)? Give reasons and indicate two benefits that you will gain from such investment