Mr.Oforiaretailtraderhadnopropermethodsaccountingbutthefolowing butthefolowinginformationismadeavailabletoyou...

Particulars

Amount($ 01.04.2006

Amount($ 31.03.2007

SundryDebtors

22,500

25,000

SundryCreditors

30,000

35,000

Bankoverdraft

40,000

20,000

Stock

32,500

40,000

CashinHand

1,000

4,000

BilReceivable

30,000

40,000

Furniture

5,000

5,000

MotorVan

40,000

40,000

Computer

30,000

60,000

(a)

(b) (c) (d)

st

On1 October,2016Mr.Oforihadwithdrawn$25,000forpersonaluse

outofwhichheinvested$5,000atparonthesamedayin10%Municipal Bondswhichistreatedasbusinessassets.

Hehadalsowithdrawn$15,000forhisdaughtersmariage. DepreciateFurnitureby10%p.a.andwriteof$1,000from motorvan. Asregardsdebtors$1,000isirecoverableandfurtherreserveof5%is

Adjustments:-

tobemadeondebtors. AlowinterestonCapitalat10%p.a.

(e)

(f) ChargeinterestonDrawing$1,000.

1. Mr. Ofori a retail trader had no proper methods accounting but the following but the following information is made available to you... Particulars Amount ($) Amount ($) 01.04.2006 31.03.2007 Sundry Debtors 22.500 25000 Sundry Creditors 30,000 35,000 Bank overdraft 40,000 20,000 Stock 32,500 40,000 Cash in Hand 1,000 4,000 Bill Receivable 30,000 40,000 Furniture 5000 5000 Motor Van 40,000 40,000 Computer 30,000 60,000 Adjustments: (a) On 1 October, 2016 Mr. Ofori had withdrawn $25,000 for personal use out of which he invested $5,000 at par on the same day in 10% Municipal Bonds which is treated as business assets. (b) He had also withdrawn $15,000 for his daughter's marriage. (c) Depreciate Furniture by 10% p.a. and write off $1,000 from motor van (d) As regards debtors $1,000 is irrecoverable and further reserve of 5% is to be made on debtors. (e) Allow interest on Capital at 10% p.a. ( Charge interest on Drawing $1,000. You are required to prepare opening and closing statement of Affairs and Statement showing Profit or Loss for the year ended 31" March, 2017 after taking into consideration the adjustments. Bank Reconciliation 1. What is the amount of adjusted cash balance in the following case? Cash balance per bank statement $30,600 Cash balance per company books 35,200 Bank service charges 1,200 Collections not recorded 5,900 Uncredited cheques 8,600 Dishonoured Cheques 8,100 Unpresented cheques 7,400 Credit sales 132,845 Discount allowed 3.699 2,850 Transfer of debit balance in Sales Ledger to Purchases Ledger Credit purchases 70,394 144,820 Cheques received from debtors 144,820 563 Debit balances in Purchases Ledger at 30 September 2005 2154 Credit balances in Sales Ledger at 30 September 2005 Provision for Doubtful debts 4,500 Balances in the books of Mr William at 1 October 2004: Sales Ledger Debit : $43,628 Credit: $1,240 Purchases Ledger: Debit: $324 Credit :$24,695 Required: (a) Prepare the Purchases Ledger Control Account and Sales Ledger Control Accounts as they would appear in the General Ledger of Mr William for the year ended 30 September 2005 (b) Prepare a Balance Sheet extract showing Trade Debtors and Trade Creditors at 30 September 2005 Unpresented cheques 7,400 2. What is the amount of adjusted cash balance in the following case? Uncredited cheques $24,800 Collections not recorded 17.300 Dishonoured Cheques 21,600 Bank service charges 1,500 Unpresented cheques 27 400 Cash balance per company books 182,500 Cash balance per bank statement 179,300 Errors When the trial balance of XYZ Ltd as at 30/9/08 was prepared, a difference was found. A Suspense Account was created in order to achieve the balance: Examination of the books showed the following: I. Discount allowed of $76 had been credited to the Discount Received Account ii. A sale of $151 to Mr. A had been posted correctly to the personal account but entered in the Sales Day Book as $115 iii. A cheque received from Mr. B entered correctly in the Cash Book as $766 had been posted to the company's account as $760 iv. The purchase of new machinery for $1,200 had been posted to the Stock Account. Depreciation is ignored for the year in which the machinery is purchased V. A sale of $265 to Mr. C had not been posted to his account vi. A petty cash balance of $100 was omitted from Trial Balance vii Bank interest charges of $720 were correctly entered in the Cash Book but the other side of the double entry had been omitted. Cash balance per bank statement 179,300 iv. Errors When the trial balance of XYZ Ltd as at 30/9/08 was prepared, a difference was found. A Suspense Account was created in order to achieve the balance: Examination of the books showed the following: 1. Discount allowed of $76 had been credited to the Discount Received Account it. A sale of $151 to Mr. A had been posted correctly to the personal account but entered in the Sales Day Book as $115 A cheque received from Mr. B entered correctly in the Cash Book as $766 had been posted to the company's account as $760 The purchase of new machinery for $1,200 had been posted to the Stock Account. Depreciation is ignored for the year in which the machinery is purchased V. A sale of $265 to Mr. C had not been posted to his account vi. A petty cash balance of $100 was omitted from Trial Balance vii. Bank interest charges of $720 were correctly entered in the Cash Book but the other side of the double entry had been omitted Required: (a) Prepare Journal entries to correct the above errors, without narrations (b) Prepare a Suspense Account (c) Final accounts, prepared from the original trial balance, show the working capital to be $16,217. Prepare a statement showing the effect of the above correction of this figure Control Accounts The following information related to Mr. William for the year ended 30 September 2005 $ 326 Interest charged to debtors Carriage charged to debtors 3,290 Cash purchases 12,735 Returns inwards 1,938 Bad debts written off 853 Cheque payments to suppliers 64,320 Discount received 1,717 500 Allowance to debtor for damaged goods Cash sales 76,321 Debtor's cheques dishonoured 2,639 Purchases Returns 1,222 1. Mr. Ofori a retail trader had no proper methods accounting but the following but the following information is made available to you... Particulars Amount ($) Amount ($) 01.04.2006 31.03.2007 Sundry Debtors 22.500 25000 Sundry Creditors 30,000 35,000 Bank overdraft 40,000 20,000 Stock 32,500 40,000 Cash in Hand 1,000 4,000 Bill Receivable 30,000 40,000 Furniture 5000 5000 Motor Van 40,000 40,000 Computer 30,000 60,000 Adjustments: (a) On 1 October, 2016 Mr. Ofori had withdrawn $25,000 for personal use out of which he invested $5,000 at par on the same day in 10% Municipal Bonds which is treated as business assets. (b) He had also withdrawn $15,000 for his daughter's marriage. (c) Depreciate Furniture by 10% p.a. and write off $1,000 from motor van (d) As regards debtors $1,000 is irrecoverable and further reserve of 5% is to be made on debtors. (e) Allow interest on Capital at 10% p.a. ( Charge interest on Drawing $1,000. You are required to prepare opening and closing statement of Affairs and Statement showing Profit or Loss for the year ended 31" March, 2017 after taking into consideration the adjustments. Bank Reconciliation 1. What is the amount of adjusted cash balance in the following case? Cash balance per bank statement $30,600 Cash balance per company books 35,200 Bank service charges 1,200 Collections not recorded 5,900 Uncredited cheques 8,600 Dishonoured Cheques 8,100 Unpresented cheques 7,400 Credit sales 132,845 Discount allowed 3.699 2,850 Transfer of debit balance in Sales Ledger to Purchases Ledger Credit purchases 70,394 144,820 Cheques received from debtors 144,820 563 Debit balances in Purchases Ledger at 30 September 2005 2154 Credit balances in Sales Ledger at 30 September 2005 Provision for Doubtful debts 4,500 Balances in the books of Mr William at 1 October 2004: Sales Ledger Debit : $43,628 Credit: $1,240 Purchases Ledger: Debit: $324 Credit :$24,695 Required: (a) Prepare the Purchases Ledger Control Account and Sales Ledger Control Accounts as they would appear in the General Ledger of Mr William for the year ended 30 September 2005 (b) Prepare a Balance Sheet extract showing Trade Debtors and Trade Creditors at 30 September 2005 Unpresented cheques 7,400 2. What is the amount of adjusted cash balance in the following case? Uncredited cheques $24,800 Collections not recorded 17.300 Dishonoured Cheques 21,600 Bank service charges 1,500 Unpresented cheques 27 400 Cash balance per company books 182,500 Cash balance per bank statement 179,300 Errors When the trial balance of XYZ Ltd as at 30/9/08 was prepared, a difference was found. A Suspense Account was created in order to achieve the balance: Examination of the books showed the following: I. Discount allowed of $76 had been credited to the Discount Received Account ii. A sale of $151 to Mr. A had been posted correctly to the personal account but entered in the Sales Day Book as $115 iii. A cheque received from Mr. B entered correctly in the Cash Book as $766 had been posted to the company's account as $760 iv. The purchase of new machinery for $1,200 had been posted to the Stock Account. Depreciation is ignored for the year in which the machinery is purchased V. A sale of $265 to Mr. C had not been posted to his account vi. A petty cash balance of $100 was omitted from Trial Balance vii Bank interest charges of $720 were correctly entered in the Cash Book but the other side of the double entry had been omitted. Cash balance per bank statement 179,300 iv. Errors When the trial balance of XYZ Ltd as at 30/9/08 was prepared, a difference was found. A Suspense Account was created in order to achieve the balance: Examination of the books showed the following: 1. Discount allowed of $76 had been credited to the Discount Received Account it. A sale of $151 to Mr. A had been posted correctly to the personal account but entered in the Sales Day Book as $115 A cheque received from Mr. B entered correctly in the Cash Book as $766 had been posted to the company's account as $760 The purchase of new machinery for $1,200 had been posted to the Stock Account. Depreciation is ignored for the year in which the machinery is purchased V. A sale of $265 to Mr. C had not been posted to his account vi. A petty cash balance of $100 was omitted from Trial Balance vii. Bank interest charges of $720 were correctly entered in the Cash Book but the other side of the double entry had been omitted Required: (a) Prepare Journal entries to correct the above errors, without narrations (b) Prepare a Suspense Account (c) Final accounts, prepared from the original trial balance, show the working capital to be $16,217. Prepare a statement showing the effect of the above correction of this figure Control Accounts The following information related to Mr. William for the year ended 30 September 2005 $ 326 Interest charged to debtors Carriage charged to debtors 3,290 Cash purchases 12,735 Returns inwards 1,938 Bad debts written off 853 Cheque payments to suppliers 64,320 Discount received 1,717 500 Allowance to debtor for damaged goods Cash sales 76,321 Debtor's cheques dishonoured 2,639 Purchases Returns 1,222