QUESTION 1 (Double Entry & Trial Balance) Roselyn Hill has operated his mobile phone shop for six months now. For the month of May, 2022, the following were recorded in his books: May, 1st: Sold goods on Credit to Dennis GH1100, A. Humador GH6900 and Sarah Osekere GH7250 May, 5th: Received Invoices from Comfort Doe GH 1 750 and Brian Quaye GH 1 500 May, 10th: Bought goods on credit from Franco phones GH 10,875 May, 13th: Sarah Osekre returned GH1250 worth of goods May, 18th: Sold goods on credit to A. Humador with a list price of GH 1800, allowing a 2.5% Trade discount May, 20th: Returned goods to Franco Phones of GH$2500 May, 21st: Sold goods for cash GH 10,000 to Vanny Ltd. May, 23rd: Bought Motor Vehicle on credit from Toyota Ltd worth GH 250,000 to be paid on six equal instalments. May, 25th: Paid Toyota Ltd first instalment of Motor Vehicle acquired. May, 27th: bought goods on credit from Freddies Corner Ltd, for GH 30,000 receiving a 5% Trade discsount May 30th: Paid Freddies Corner Ltd the amount due by cheque. Required: (a) Provide double entry for the transactions above (b) Prepare a Trial balance for the transactions above Page 2 of 4 QUESTION 2 (Double Column Cash book) Enter the following transactions in a Double Column Cash Book as relates to PBSL Ltd for the month of June, 2022: DATE PARTICULARS GHS June 1 Cash Balance 20,000 June 1 Bank Balance 25,000 June 3 Bought goods for cash 19,000 June 4 Sold goods for cash 10,000 June 8 Received cheque from Mary Oppong 10,500 June 9 Cash deposit into bank 5,000 June 16 Deposited Mary Oppongs cheque June 17 Mary Oppongs cheque is dishonored by the bank June 19 Paid rent by cheque 3,000 June 20 Paid DSTV Subscription for the month 5,000 June 24 Cash deposit 4,000 June 25 Withdrawn from bank for business use 16,000 June 27 Sold goods for cash 13,000 June 28 Bought goods for cheque 25,000 June 29 Sold goods on credit to Daniel Asante 29,000 June 29 Bought goods on credit from Joy Daddy Ltd 20,000 June 30 Credit transfer by Daniel Asante June 30 Paid Joy Daddy 70% of items bought by cheque and balance by cash Page 3 of 4 QUESTION 3 (Triple Column Cash book) Enter the following transactions in a Triple Column Cash Book as relates to GIMPA Ltd for the month of June, 2022: DATE PARTICULARS GHS June 1 Cash Balance 40,000 June 1 Bank Balance 55,000 June 3 Received a cheque from A. Addo for GHs31,000 in full settlement of his dues GHs34,000 and deposited into the bank. June 4 Sold goods for cash 10,000 June 8 Paid to Adamu Cash GHs$11,000 and a cheque for GHs9,600 in full settlement of his dues GHs21,000 June 9 Cash deposit into bank 5,000 June 16 Cash received from Despite GHs19,800 in full settlement of his dues GHs20,000 June 17 Received a cheque from D. Asante GHs4,800 in full settlement of his dues GHs5,500 and deposited into bank June 19 Paid rent by cheque 3,000 June 19 D. Asantes cheque is dishonored by the bank June 20 Paid DSTV Subscription for the month 5,000 June 24 Cash deposit 4,000 June 25 Withdrawn from bank for business use 16,000 June 27 Sold goods for cash, allowing a 9% trade discount 13,000 June 28 Bought goods for cheque 25,000 June 29 Sold goods on credit to Daniel Asante 29,000 June 29 Bought goods on credit from Joy Daddy Ltd 20,000 June 30 Credit transfer by Daniel Asante after allowing 5% discount for early settlement June 30 Paid Joy Daddy 80% of items bought by cheque and balance by cash QUESTION 4 (a) Distinguish between Single Column Cash Book, Double Column Cash book and Triple Column Cash Book (b) Explain the term contra entry. Page 4 of 4 QUESTION 5 (Final Accounts) Madam Idikoko owns a provision shop at Obuasi. On 31st December, 2020 the following trial balance was extracted from her books: Debit (GHS) Credit (GHS) Capital (1/1/2020) 960,000 Motor van (cost) 680,000 Equipment (cost) 320,000 Accumulated depreciation: Motor van 128,000 Equipment 104,000 Inventory (1/1/2020) 120,000 Purchases and sales 450,000 1,520,000 Returns 27,000 12,000 Carriage outwards 48,000 Carriage inwards 20,400 Trade receivables 290,000 Trade payables 120,000 Allowance for receivables 16,000 Bad debts 60,000 Wages and salaries 270,000 Discounts 54,000 88,000 Postage and stationery 132,000 Utility bills 42,000 10% Loan 160,800 Rent and rates 128,000 Sundry expenses 100,000 Cash 40,000 Bank 239,400 Personal drawings 88,000 3,108,800 3,108,800 The following additional information was made available: (i) Inventory at 31st December, 2020 was valued at GHS 176,000 (ii) Depreciation at the rate of 40% on cost of Motor Van and 50% on Equipment on straight line method basis (iii) An amount of GHS 28,000 is accrued in respect of Postage and Stationery at 31st December, 2020. (iv) Allowance for receivables is to be adjusted to GHS 10,000 at 31st December, 2020 as a result of improvement in debt recovery efforts. (v) Rent and rates pre-paid amounted to GH 25,600. (vi) The loan was contracted on 1st January, 2020. Provision should be made for the interest on loan. Required: (a) Prepare the Income Statement for the year ended 31st December, 2020 (b) Prepare the Statement of financial position as at 31st December, 2020