Illustration1.2 Boakye, a sole proprietor, trading as KKB Enterprise requested Oko & Associates, a firm Chartered Accountants, where you are employed as a trainee Accountant, to prepare the accounts of his business for the year ended 31 December, 2016. Your audit Manager assigned this work to you. Your interview with Boakye revealed the following: (i) He did not maintain double entry book-keeping system. (ii) All sales were on credit basis. During the year Boakye received 9,025,000, $475,000 in cheques and cash respectively from his customers (iii) Suppliers of goods during the year paid $6,840,000 by cheque (iv) Boakye rented 2 premises at Danso man and High Street for residential and business purposes respectively. In July 2015, he paid 480,000 as one year rent in advance for his residence. In July 2016, he again paid a cheque of $600,000 to cover year advance for his residence. The rent for the premises at High Street was $60,000 per month in 2016. Boakye always paid all his rent by cheque General business expenses paid by cheque amounted to 106,200 (v) (vi) He took cash of 38,000everymonth for his private use. Boakye provided you with the following additional information. 31/12/16 31/12/15 Trade Receivables 1,254,000 1,045,000 Trade Payables 617,000 380,000 Rent Owing 60,000 120,000 Bank Balance 3,000,000 1,073,500 Cash in Hand 60,000 76,000 Inventories 1,700,500 1,510,500 920,000 Furniture &Fittings (vii) Depreciation is provided annually at the rate of 20% on Furniture and Fittings. (viii) Boakye agreed to pay $100,000 as Accountancy fees. (ix) Differences in cash and bank balances at the end of 2016 represents additional drawings/ capital respectively. Required: Compute the profit of Boakye. (a) (b) Prepare cash and bank Summary for year2016