Bobby Limited has the following trial balance as at 31 May 2019

GH000

GH000

Land at cost (note vii)

1,460

Plant at cost

1,362

Plant accumulated depreciation 1 June 2018 (note v)

682

Buildings at cost

4,600 b

Buildings accumulated depreciation 1 June 2018 (note vi)

372

Intangible assets (note viii)

384

Bank balance

232

Stock at 1 June 2018 (note i)

990

Retained earnings at 1 June 2018

800

10% Loan notes

300

Loan interest paid

30

GH1Ordinary shares

4,400

Share premium account

486

Dividend paid

155

Revenue

11,700

Returns inwards

217

Purchases

6,850

Wages and salaries

1,120

Insurance (note iii)

108

Electricity expenses (note ii)

542

Administrative expenses

500

Allowance for receivables 1 June 2018 (note iv)

62

Discounts received

590

Trade payables

1,488

Trade receivables

1,900

Directors remuneration

430

20,880

20,880

Additional information as at 31 May 2019

(i)

Closing stock was valued at GH465,000.

(ii)

There are electricity expenses of GH88,000 outstanding.

(iii)

Insurance expenses include GH14,000 for June and July 2019.

(iv)

The allowance for receivables is to be increased to 5% of trade receivables.

(v)

Plant is depreciated at 20% per annum using the reducing balance method. Plant depreciation should

be apportioned in accordance with note (x).

(vi)

Buildings are depreciated at 5% per annum on their original cost. Building depreciation should be

apportioned in accordance with note (x).

(vii)

Land is to be valued at GH1,550,000 as from 31 May 2019.