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QUESTION 2 A) Nananom enterprise purchased 3 Motor Vehicles for their business operations at a cost of GHS 50,000 each on January 1, 2016. On

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QUESTION 2 A) Nananom enterprise purchased 3 Motor Vehicles for their business operations at a cost of GHS 50,000 each on January 1, 2016. On July 1, 2017, they added a new BMW X5 which cost GHS 100,000 to the fleet. On June 30, 2018, one of the vehicles purchased in 2016 was disposed for GHS 19,200. On October 1, the same year, another vehicle was acquired for GHS 120,000 on credit from Silver Star Auto Limited to replace the disposed vehicle. Depreciation is charged at 20% on cost and on one-month ownership basis. The financial year ends on December 31. You are required prepare: a) Motor Vehicles Account (2016-2019) (3 marks) b) Provision for depreciation Account (2016-2019) (4 marks) c) Disposal account (2018) (1.5 marks) d) Extract of Statement of profit or loss account (2018 and 2019) (1.5 marks) e) Extract of Statement of financial position. (2018 and 2019) (2 marks) B) The trial balance of Paa Kwasi Enterprise has an excess of credit over debit of GHS 50,000. Suspense account has been opened to balance the accounts. The following transactions were later discovered: i) Discount allowed of GHS 20,000 and Discount received of GHS 32,000 have both been entered on the wrong side of the trial balance. ii) The receivable control account balance of GHS 897,548 had been included in the trial balance as GHS 969,548 iii) Sales of GHS 8,000 had been omitted from the sales records (i.e from the sales account). iv) Purchase of raw material of GHS 16,020 was entered in the purchase account as GHS 18,000. v) The debit balance of GHS 11,980 on the current account with the Proprietor's wife had been omitted from the trial balance. Required: a) Make journal entries to correct the errors (5 marks) b) Prepare the suspense account. (3 marks) (Total 20 marks)

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