GHC Question 5 The following is the summary of cash book of kebyte Ent. For the year ended 31 Marcg 2017 Cul Bou GHC Balb 23.430 Cash paid to creditors 110560 Cash fan deb 182 10 Salaries 10500 Akitional capital 60,1 Postages 2.400 General expenses 12.340 Drawings 25.000 RA 5.70 Hald 98.000 205. Additional Information Inventory Receivables Payables Accrued salaries Prepaid rent 1/4/16 GHC 5,600 12.020 9,800 4.200 440 31/03/17 GHC 3.400 9.850 10.510 750 670 a) You are required to prepare Statement of affairs as at 1 April 2016 (AP-4) (AP 4) by You are required to prepare receivable and payable control accounts c)Prepare Income Statement for the year end 31 March 2017 Prepare Balance Sheets at 315 March 2017 (AN9) (ANS) Question 2 The following balances have been extracted from the books of Tanyelid GHC 12.0XXO 20.00 200,00 500,000 290,000 January 2017 Sales ledger balance January 2017 Purchases ledger balances Totals for the year 2017: Purchases Journal Sales Journal Cheques and cash from customers Cheques paid to Suppliers Return Outwards Journal Return Inwards Journal Discount Allowed Discount Received Bad debe written ole Customer's choque dishonored 150,000 3.000 5.080 5,500 200 150 60 2.0) Petty cash to suppliers Bill receivable 160 3 315 30 Bills payable Discount Allowed now disallowed Services charges added to unpaid accounts Credit notes issued to customers Balance at close 104 4.930 Dr Cr 66,485 Purchases ledger Sales ledger 3,000 255,454 50.000 a) You are required to prepare the sales lediger control account (AP:8) b) You are required to prepare the Purchases ledger control Account (AP-8) c) Explain why you will prefer to use a memorandum account for the purpose of locating errors in accounts (UND:4) d) Discuss the importance of a control account reconciliation (UND:5) Question 4 On 30th November 2018 Kumi and Sons' cash book showed a debit balance of Ghc3,500 whereas the bank statement showed a balance of Ghc2,325. On investigations the following items were discovered to have coursed the discrepancy a. The bank had made charges of Ghc310 which had not been entered in the cash book b. A cheque received for Ghc2,0x10 entered in the cash book had nest been entered by the c. A standing order for subscription of Ghe 150 had been entered in the bank statement as paid but not in the cash book d. The following cheques were drawn but bot yet presented for payment in the bank: cheque forGbc 300. Ghc600 and Ghc250 e. A cheque drawn for Ghc50 has been entered as Ghc60) f. A cheque for Ghc35 previously received and paid into the bank had been retumed by the bank g. A customer paid Ghe 160 directly into their account in the bank. It had not been entered in the cash book. (AP:6) ayYou are required to adjust the cash book b) You are required to prepare the bank reconciliation statement (AP:6) 5 c)Illustrate using four practical examples why the cash book will disagree with the bank statement and for each state how it could be corrected (UND:8) (d) In the event that the cash book shows a credit balance, explain using practical example, how this will affect the adjustment of the cash book and the bank reconciliation statement preparation (AN:5) 2 3 Question 1 The following was extracted from the books of Solomon Enterprise in 2019 January 1 Started business with capital in cash GHC3,000 Paid rent by cash GHC70 Received loan from Pablo GHC500 by cheque S We paid Oluwale by cheque GHCI65 We paid general expenses in cash GHC300 9 Withdrew GHCI.000 cash till and paid it into the bank account 10 Cash sales paid directly into the tank GHC3,000 12 Banked cash GHC900 14 Cash Purchases GHC500 16 Bought goods by cheque GHC130 19 Commission received by cheque GHCSOL 21 Bought Motor Van by cheque GHC60 22 Cash drawings by the proprietor GHC21 24 We paid Biodun for goods bought GHCISO in cash and GHC100 by cheque 26 Wages paid in cash GHC35 27 Bought Stationery paying by cash GHC75 28 Withdrew GHCIOS from bank for private use 30 Rent received by cheque GHC45 31 Cash sales GHC1000 al Write up a two column cash book for the above details and balance off at the end of the month IEV:91 The following Information was extracted from the books for the month of January 2017 CHIC Petrol 40 Postage Samps IS 4 One ream of typing paper 30 6 Segun-temul of account 150 Office cleaning materials R Traveling 40 10 Refund or a cak's busine 20 Car Polish 30 Petrol and 70 18 Registered Mail 20 2 Office Carpet Shampoo 10 21 Petrol 70 Petrol 70 Brown-Settlement of Account Smith - Select of Account 29 Calon Paper 40 Requred: (b) Enter the above transactions into a Petty Cash book using analysis method (AN:6) (c) Explain why will companies use a petty cash book when the main cash book (UND:4) (d)Explain why you will prefer to use a three column cash book, when given the opportunity, instead of a two column cash book (UND:6) Question 3 The following is a trial balance of Agyei Ent, for the year ended 31 December 2018 CE GHC GHC Capital 22636 Inventory 2,368 Carriage Outwards 200 Carriage Inwards 310 Return Inwards 205 Sales 18600 Purchases 11,847 Return Oulwards 322 Salaries and Wages 3,862 304 Insurance 78 Sundry expenses 064 Advertising 216 General Expenses 480 Land and Building 5,000 Furniture and Fitting 1.800 Motor Car 350 Rent 4 3,896 10,482 Debiors Bank Creditors Drawings 1,731 1.200 43.289 (a) Prepare the income statement for the year end 31/12/201(AP:9) (b)Prepare the statement of financial position as at 31/12/2018 (AP:9 (c)Using three items in the trial balance as example explain whether Agyel Enterprise is Overtrading or not (UND:7) GHC Question 5 The following is the summary of cash book of kebyte Ent. For the year ended 31 Marcg 2017 Cul Bou GHC Balb 23.430 Cash paid to creditors 110560 Cash fan deb 182 10 Salaries 10500 Akitional capital 60,1 Postages 2.400 General expenses 12.340 Drawings 25.000 RA 5.70 Hald 98.000 205. Additional Information Inventory Receivables Payables Accrued salaries Prepaid rent 1/4/16 GHC 5,600 12.020 9,800 4.200 440 31/03/17 GHC 3.400 9.850 10.510 750 670 a) You are required to prepare Statement of affairs as at 1 April 2016 (AP-4) (AP 4) by You are required to prepare receivable and payable control accounts c)Prepare Income Statement for the year end 31 March 2017 Prepare Balance Sheets at 315 March 2017 (AN9) (ANS) Question 2 The following balances have been extracted from the books of Tanyelid GHC 12.0XXO 20.00 200,00 500,000 290,000 January 2017 Sales ledger balance January 2017 Purchases ledger balances Totals for the year 2017: Purchases Journal Sales Journal Cheques and cash from customers Cheques paid to Suppliers Return Outwards Journal Return Inwards Journal Discount Allowed Discount Received Bad debe written ole Customer's choque dishonored 150,000 3.000 5.080 5,500 200 150 60 2.0) Petty cash to suppliers Bill receivable 160 3 315 30 Bills payable Discount Allowed now disallowed Services charges added to unpaid accounts Credit notes issued to customers Balance at close 104 4.930 Dr Cr 66,485 Purchases ledger Sales ledger 3,000 255,454 50.000 a) You are required to prepare the sales lediger control account (AP:8) b) You are required to prepare the Purchases ledger control Account (AP-8) c) Explain why you will prefer to use a memorandum account for the purpose of locating errors in accounts (UND:4) d) Discuss the importance of a control account reconciliation (UND:5) Question 4 On 30th November 2018 Kumi and Sons' cash book showed a debit balance of Ghc3,500 whereas the bank statement showed a balance of Ghc2,325. On investigations the following items were discovered to have coursed the discrepancy a. The bank had made charges of Ghc310 which had not been entered in the cash book b. A cheque received for Ghc2,0x10 entered in the cash book had nest been entered by the c. A standing order for subscription of Ghe 150 had been entered in the bank statement as paid but not in the cash book d. The following cheques were drawn but bot yet presented for payment in the bank: cheque forGbc 300. Ghc600 and Ghc250 e. A cheque drawn for Ghc50 has been entered as Ghc60) f. A cheque for Ghc35 previously received and paid into the bank had been retumed by the bank g. A customer paid Ghe 160 directly into their account in the bank. It had not been entered in the cash book. (AP:6) ayYou are required to adjust the cash book b) You are required to prepare the bank reconciliation statement (AP:6) 5 c)Illustrate using four practical examples why the cash book will disagree with the bank statement and for each state how it could be corrected (UND:8) (d) In the event that the cash book shows a credit balance, explain using practical example, how this will affect the adjustment of the cash book and the bank reconciliation statement preparation (AN:5) 2 3 Question 1 The following was extracted from the books of Solomon Enterprise in 2019 January 1 Started business with capital in cash GHC3,000 Paid rent by cash GHC70 Received loan from Pablo GHC500 by cheque S We paid Oluwale by cheque GHCI65 We paid general expenses in cash GHC300 9 Withdrew GHCI.000 cash till and paid it into the bank account 10 Cash sales paid directly into the tank GHC3,000 12 Banked cash GHC900 14 Cash Purchases GHC500 16 Bought goods by cheque GHC130 19 Commission received by cheque GHCSOL 21 Bought Motor Van by cheque GHC60 22 Cash drawings by the proprietor GHC21 24 We paid Biodun for goods bought GHCISO in cash and GHC100 by cheque 26 Wages paid in cash GHC35 27 Bought Stationery paying by cash GHC75 28 Withdrew GHCIOS from bank for private use 30 Rent received by cheque GHC45 31 Cash sales GHC1000 al Write up a two column cash book for the above details and balance off at the end of the month IEV:91 The following Information was extracted from the books for the month of January 2017 CHIC Petrol 40 Postage Samps IS 4 One ream of typing paper 30 6 Segun-temul of account 150 Office cleaning materials R Traveling 40 10 Refund or a cak's busine 20 Car Polish 30 Petrol and 70 18 Registered Mail 20 2 Office Carpet Shampoo 10 21 Petrol 70 Petrol 70 Brown-Settlement of Account Smith - Select of Account 29 Calon Paper 40 Requred: (b) Enter the above transactions into a Petty Cash book using analysis method (AN:6) (c) Explain why will companies use a petty cash book when the main cash book (UND:4) (d)Explain why you will prefer to use a three column cash book, when given the opportunity, instead of a two column cash book (UND:6) Question 3 The following is a trial balance of Agyei Ent, for the year ended 31 December 2018 CE GHC GHC Capital 22636 Inventory 2,368 Carriage Outwards 200 Carriage Inwards 310 Return Inwards 205 Sales 18600 Purchases 11,847 Return Oulwards 322 Salaries and Wages 3,862 304 Insurance 78 Sundry expenses 064 Advertising 216 General Expenses 480 Land and Building 5,000 Furniture and Fitting 1.800 Motor Car 350 Rent 4 3,896 10,482 Debiors Bank Creditors Drawings 1,731 1.200 43.289 (a) Prepare the income statement for the year end 31/12/201(AP:9) (b)Prepare the statement of financial position as at 31/12/2018 (AP:9 (c)Using three items in the trial balance as example explain whether Agyel Enterprise is Overtrading or not (UND:7)