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Yinsongya, a sole proprietor trading as Yinsongyasco Trading Enterprise requested Yintomya and Company, a firm of Chartered Accountants (where you are employed as a trainee

Yinsongya, a sole proprietor trading as Yinsongyasco Trading Enterprise requested Yintomya and Company, a firm of Chartered Accountants (where you are employed as a trainee accountant) to prepare the accounts of her business for the year ended 31st December 2019.Your audit manager assigned this work to you. Your interview with Yinsongya and the scrutiny of her records revealed the following:- i) She did not maintain double entry book-keeping system. ii) All sales were on credit basis. During the year Yinsongya received GH9,025,000 andGH475,000 in cheques and cash respectively from her customers. The cash was not banked iii) Suppliers of goods during the year were paid GH6,840,000 by cheque. iv) Yinsongya rented two premises at Tongo and Bawku for residential and business purposes respectively. In July, 2018 she paid GH480,000 at two years rent advance for her residence. In July 2019 she again paid by cheque GH600,000 to CB cover one year advance for her residence. The rent for the premises at Bawku was GH60,000 per month in 2019. Yinsongya always paid all her rent by cheque. v) General business expenses paid by cheque came up to GH106,200 vi) She also took cash of GH38,000 every month for her private use. vii) Yinsongya was able to provide the following information: 31/12/19 31/12/18 GH GH Trade debtors 1,254,000 1,045,00 Trade creditors 617,500 380,000 Rent owing 60,000 120,000 Cash at Bank 3,000,000 1,073,500 Cash on Hand 60,000 76,000 Stock 1,700,500 1,510,500 viii) Fixtures and fittings held at 31st December 2018 were valued GH920,000. ix) Depreciations to be provided annually at the rate of 20% x) Yinsongya agreed to pay GH100,000 as accountancy fees. xi) Differences in cash and bank balance at the end of 2019 represent additional drawings and not proceeds received by Yinsongya on the funeral of her late uncles respectively. REQUIRED: a) Cash and Bank Accounts for 2019 b) Computation of the profit of Yinsongya using the net worth method c) Trading, Profit and Loss Account for the year ended 31st December 2019

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