The following transactions relate to Philips enterprise for the month of January, 2018.

Jan 1 Philip commences business introducing Gh 10,000 cash

2 Bought a motor vehicle costing Gh 4000 which cash was paid

3 Bought stock for Gh 2,000 and paid cash

4 Sold all the stock bought on day 3 for Gh 3,000 cash

5 Bought stock for Gh 4,000 on credit

6 Sold half of the goods bought on Day 5 on credit for Gh 2500

7 Pays Gh 2,000 to his trade creditor

8 Receives Gh 1000 from a debtor

9 Proprietor draws Gh 750 in cash

10 Paid rent of Gh 400 in cash

11 Receives a loan of Gh 6,000 repayable in two years

12 Paid cash of Gh 300 for insurance

You are required to post the above transactions to the relevant ledgers, balance the accounts and extract a trial balance.

ILLUSTRATION TWO

The following trail balance was extracted from the books of ADOM ENTERPRISE on 31/12/2017.

DR GHS 000CR GHS 000

Sales 37,200

Purchases 23,112

Stock 1/1/2017 7,552

Carriage outwards 652

Return inwards 880

Return outwards 710

Salaries and wages 4,894

Motor expenses 1,328

Rent 1,152

Sundry expenses 2,404

Motor vehicles 4,800

Fixtures and fittings 1,200

Debtors 8,154

Creditors 6,090

Bank 7,752

Cash 240

Drawings 4,100

Capital 25,688

69,68869,688

The following additional notes have been given:

1. Stock at 31/12/17 was GHS9,996, 000

2. Rent prepaid is GHS157, 000

3. Sundry expenses accrued amounted to GHS52, 000

4. Depreciation is provided at rate of 20% on cost.

You are required to prepare:

a. Trading, Profit and Loss account for the year ended 31/12/2017

b. Statement of financial position or Balance Sheet as at 31/12/2017