Question One You just graduated with a Bachelor in Business Administration. With the knowledge acquired in entrepreneurship, you decided to set up a retail business. You outlined the following as part of the business plan. * Hire the service of financial accountant and sales personnel * Open 3 outlets after 5 years in business * Register the business as a public company after 10 years * Hire the service of an internal auditor and a management accountant. Requirement a) Discuss the role of financial accounting in business (EV: 7 marks) b) Ascertain the various interested parties of your business should it go public and comment on their information need. (AN: 7 marks) c) Examine the role of accounting concepts in the preparation of financial statements. Do you find any of the accounting concepts conflicting with each other? Give examples. (AP: 6 marks) (Total: 20 marks) Question Two You are provided with the following transactions for the month of March 2020 for Asokwa Trading Ent. 1. Harish started business with cash GHc 10,000 2. Bought goods from Manohar 5,000 3. Purchase fittings for cash GHc 800 4. Sold goods to Charanjeet GHc 1,600 5. Paid Manohar GHc 3,000 6. Sold goods to Vadva Ram GHc 2,000 7. Received from Charanjeet GHc 1,540 and allowed him discount GHc 60 8. Paid wages GHc 80 9. Bought goods for cash GHc 600 10. Sold goods to Ramesh GHc 3400 11. Purchased goods from Purchotam GHc 2,600 12. Paid Manohar in settlement GHc 1900 and discount allowed by him GHc 100 13. Paid carriage for goods sold GHc 40 14. Paid wages GHc 80 15. Bought goods from Manohar GHc 3000 16. Bought goods for cash GHc 800 17. Sold goods to Vadva Ram GHc 3,600 18. Vadva Ram paid on account GHc 4,000 19. Purchase goods from Harbans GHc 1,500 20. Sold goods for cash GHc 1,600 Required: a) Journalize the above transactions (CR: 8 marks) b) Post the journal entries to their respective ledger accounts ` (AP: 8 marks) c) Extract the trial balance (AP: 4 marks) (Total: 20 marks) Question Three You are provided with the following details of Akyere Trading Ent. for the month of January 2020. Jan. 1. Cash in hand GHc 50,000. 2. Paid into bank GHc 10,000. 3. Bought goods from Hari for GHc 200 for cash. 4. Bought goods for GHc 2,000 paid cheque for them, discount allowed 1% 5. Sold goods to Mohan for cash GHc 250. 6. Received a cheque from Shyam to whom goods were sold for GHc 800. Discount allowed 12.5% 8. Purchased an old typewriter for GHc 200. Spent GHc 50 on its repairs. 9. Bank notified that Shyams cheque has been dishonored and debited to the account in respect of charges of GHc 10. 10. Received a money order for GHc 25 from Hari. 11. Shyam settled his account by means of a cheque for GHc 820, GHc 20 being for interest charged. 12. Withdrew from bank GHc 10,000. 18. Discounted a bill of exchange for GHc1,000 at 1% through bank. 22. Withdrew for personal use GHc 1,000. 24. Paid trade expenses GHc 2,000. 25. Withdrew from bank for private expenses GHc 1,500. 26. Purchased machinery from Rajiv for GHc 5,000 and paid him by cheque 27. Issued cheque to Ram Saran for cash purchase of furniture GHc 1,575. 28. Received a cheque for commission GHc 500 from R. & Co. and deposited into bank. 30. Received payment of a loan of GHc 5,000 and deposited GHc 3,000 out of it into bank. 31. Paid rent to landlord Mohan by a cheque of GHc 500. Required: a) Prepare a three column cash book for the month ending January 2020 (AN: 10 marks) b) The standardization of accounting standards ensures the production of reliable accounting information. Discuss (AN: 5 marks) c) Financial accounting is described as the watchdog of a business. Comment. (EV: 5 marks) (Total: 20 marks) Question Four You have been provided with the following information. All amount in Ghana cedis Required: a) Prepare the adjusted cash book (AP: 10 marks) b) Prepare the bank reconciliation statement (AP: 10 marks) (Total: 20 marks) Question Five Below is the Trial Balance of Eno Afansor Enterprise: Notes: a) Inventory at 31 March 2012 was Ghc6805 b) Wages and salaries accrued at 31 March 2012 was GHc3, 500. Office expenses owing was GHc 16 c) Rent prepaid at 31 March 2012 was GHc 600 d) Increase the allowance for doubtful debts by GHc 110 e) Provide for depreciation as follows: fixtures and fittings GHc 190, Motor Van Ghc1,400 (AP: 20 marks) Required: a) Prepare the Income Statement for the year ended 31st March 2012 (AP: 10 marks) b) Prepare the Statement of Financial Position as at that date. (AP: 10 marks)