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    "url": "\/study-help\/questions\/grout-industries-company-limited-henry-is-a-new-accounting-recruit-4448244",
    "question_creation_date_js": "2024-06-29T02:26:36-04:00",
    "question_creation_date": "Jun 29, 2024 02:26 AM",
    "meta_title": "[Solved] GROUT INDUSTRIES COMPANY LIMITED Henry is | SolutionInn",
    "meta_description": "Answer of - GROUT INDUSTRIES COMPANY LIMITED Henry is a new accounting recruit at Green Fields & Co Certified Public Accountants. | SolutionInn",
    "meta_keywords": "grout,industries,company,limited,henry,new,accounting,recruit,green,fields,certified,public",
    "question_title_h1": "GROUT INDUSTRIES COMPANY LIMITED Henry is a new accounting recruit at Green Fields & Co Certified Public Accountants. He has been undergoing a rigorous training",
    "question_title": "GROUT INDUSTRIES COMPANY LIMITED Henry is a new accounting recruit at Green",
    "question_title_for_js_snippet": "GROUT INDUSTRIES COMPANY LIMITED Henry is a new accounting recruit at Green Fields   Co Certified Public Accountants  He has been undergoing a rigorous training and orientation exercise at the firm  A client of the firm, Grout Industries Company Limited (GICL) whose Accountant left abruptly for greener pastures, has brought a list of account balances to aid in the preparation of the final accounts of the Company  This assignment has been referred to Henry to test his financial accounting skills  The list of account balances as at 31 st December 2021 is shown below  Particulars Amount in UGX Revenue 31,600,000 Purchases 18,000,000 Opening inventory (1 st January 2021) 4,500,000 Storage costs 850,000 Sales persons Salaries and commissions 200,000 Administrative Salaries 3,000,000 General Administrative expenses 580,000 General distribution expenses 490,000 Loan interest paid 100,000 Dividends  interim dividend paid 40,000 Purchase returns 900,000 Purchases Discount 600,000 Non current assets  cost 18,000,000 Accumulated Depreciation 1 Jan  2021 3,900,000 Trade accounts Receivable 6,900,000 Accounts Payable 3,800,000 Balance at bank 2,080,000 10  loan (repayable 2025) 12,000,000 Retained earnings 15,240,000 The following information is also available (i) Inventory as at 31 st December 2021 amounted to shs 3,000,000  (11) A review of the trade accounts receivable total of shs  6,900,000 shows that debts totaling 400,000   should be written as bad debts  Required  Q 1  Taking the role of Henry and using the data provided, show how you would explain the performance of the company for the year ended 31 st Dec  2021  Discuss the reasons various stakeholders may be interested in the accounts of Grout Industries Company Limited showing, for each of them, theirinformation needs  Explain, how in your view 'you would treat a bad debt that had been written off and the debtor resurfaces and pays towards the end of accounting ",
    "question_description": "<p><strong>GROUT INDUSTRIES COMPANY LIMITED<\/strong><\/p> <p><strong>  <\/strong><\/p> <p>Henry is a new accounting recruit at Green Fields & Co Certified Public Accountants. He has been undergoing a rigorous training and orientation exercise at the firm. A client of the firm, Grout Industries Company Limited (GICL) whose Accountant left abruptly for greener pastures, has brought a list of account balances to aid in the preparation of the final accounts of the Company. This assignment has been referred to Henry to test his financial accounting skills.<\/p> <p>The list of account balances as at 31<sup>st<\/sup> December 2021 is shown below.<\/p> <p><\/p> <p><strong><u>Particulars       Amount in UGX<\/u><\/strong><\/p> <p>Revenue             31,600,000<\/p> <p>Purchases         18,000,000<\/p> <p>Opening inventory (1<sup>st<\/sup> January 2021)    4,500,000<\/p> <p>Storage costs       850,000<\/p> <p>Sales persons Salaries and commissions      200,000<\/p> <p>Administrative Salaries         3,000,000<\/p> <p>General Administrative expenses           580,000<\/p> <p>General distribution expenses     490,000<\/p> <p>Loan interest paid           100,000<\/p> <p>Dividends: interim dividend paid      40,000<\/p> <p>Purchase returns                                      900,000<\/p> <p>Purchases Discount                                   600,000<\/p> <p>Non-current assets: cost         18,000,000<\/p> <p>     Accumulated Depreciation 1 Jan. 2021    3,900,000<\/p> <p>Trade accounts Receivable               6,900,000<\/p> <p>Accounts Payable                                3,800,000<\/p> <p>Balance at bank     2,080,000<\/p> <p>10% loan (repayable 2025)         12,000,000<\/p> <p>Retained earnings                                   15,240,000<\/p> <p><\/p> <p><strong>The following information is also available<\/strong><\/p> <p><\/p> <p>(i)    Inventory as at 31<sup>st<\/sup> December 2021 amounted to shs 3,000,000.<\/p> <p><\/p> <p>(11)  A review of the trade accounts receivable total of shs. 6,900,000 shows that debts totaling 400,000\/= should be written as bad debts.<\/p> <p><\/p> <p><\/p> <p>                         <strong>Required:<\/strong><\/p> <p><\/p> <p><strong>Q.1.<\/strong><\/p> <p><\/p> <ul> <li>Taking the role of Henry and using the data provided, show how you would explain the performance of the company for the year ended 31<sup>st<\/sup> Dec. 2021?<\/li> <li>Discuss the reasons various stakeholders may be interested in the accounts of Grout Industries Company Limited showing, for each of them, theirinformation needs?                             <\/li> <li>Explain, how in your view 'you would treat a bad debt that had been written off and the debtor resurfaces and pays towards the end of accounting?<\/li> <\/ul>",
    "transcribed_text": "",
    "related_book": {
        "title": "Principles Of Finance",
        "isbn": "979-8439388899",
        "edition": "1st Edition",
        "authors": "Julie Dahlquist, Rainford Knight",
        "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/6290aa2348f9a_11251.jpg",
        "uri": "\/textbooks\/principles-of-finance-1st-edition-9798439388899",
        "see_more_uri": ""
    },
    "free_related_book": {
        "isbn": "1499396376",
        "uri": "\/textbooks\/metamorphosis-978-1499396379",
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    "question_posted": "2024-06-29 02:26:36",
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