2024 WAEC Accounts - Principles of Accounts Theory The trial balance of Ahoofe Enterprises as at 31st December 2020 was as follows:  ...

The trial balance of Ahoofe Enterprises as at 31st December 2020 was as follows:

349,200 349,200

Additional information:
(i) Depreciation for all fixed assets is at 15% per annum on cost;

(ii) Electricity prepaid was GH¢ 640 and rent in arrears was GH¢ 12,000;

(iii) Closing stock was valued at GH¢ 24,200.

You are required to prepare:
(a) Trading, Profit and Loss Account for the year ended 31st December 2020,
(b) Balance Sheet as at 31st December 2020.

Ahoofe Trading, Profit and Loss account for the year ended 31st December 2020

Dr			Cr
	GH¢		GH¢
Opening stock	16,300	Sales	184,900
	60,300	Less return inward	4,500
Add purchases	4,000		180,400
	80,600
	3,000
Less return outward	77,600
Cost of goods available for sale	24,200
Less closing stock	53,400
Cost of goods sold	127,000
	180,400		180,400
	18,060
Depreciation fixture	6,000
Motor Vehicle	2,460
Electricity	2,900
Discount allowed	2,200
Distribution expenses	24,000
Rent	3,500
Interest expenses	69,780
	129,500		129,500