Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mr. Sintim runs an angling shop in Kyereboase . He spends most of his time fishing and has consequently kept no accounting records in the

Mr. Sintim runs an angling shop in Kyereboase. He spends most of his time fishing and has consequently kept no accounting records in the year ended 31 December 2018. He knows that he has taken GH6,800 cash out of his business during the year plus bait which cost the business GH250. He can also remember putting his GH20,000 winnings from SuperbetLottery into the business in March.

Mr. Sintim knows that at the previous year end his business had assets valued at GH40,000 and liabilities of GH14,600. He has also calculated that the assets of the business at 31/12/18 are worth GH56,000 and the liabilities, GH18,750.

Required: Determine the profit or loss for Mr. Sintims business for the year under review.

Question 2

Mrs Kentinka runs a metal bending shop at Kasoa. She has no accounting knowledge and keeps no accounting records but was able to provide you with the following information regarding her assets and liabilities at the beginning and end of the period ending 31 December 2020.

01/01/2020

31/12/2020

Premises

12,000

12,000

Fixtures and fittings

2,300

2,500

Tools

500

620

Inventory

1,250

1,080

Debtors

1,420

970

Cash

350

1,200

Creditors

630

1,550

Loan

500

1,000

During the period, Mrs Kentinka received an amount of GHC 2,000 from her trade union susu which she immediately invested into the business. She also depends on the proceeds of the business for her livelihood, and as such she draws about GHC 450 from the business every month for her personal use.

You are required to determine the profit or loss of Mrs Kentinkafor the year ended 31 December 2020

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield

13th Edition

9780470374948, 470423684, 470374942, 978-0470423684

More Books

Students also viewed these Accounting questions