(a) Identify the book of original entry in which each of the following transactions will be recorded:
(i) purchase of office equipment on credit; (ii) credit purchases;
(iii) bank charges;
(iv) goods returned by a customer.
(b) State one source from which each of the following items could be transferred into purchases ledger control account: (i) purchases; (ii) cash payments; (iii) returns outwards; (iv) discount received; (v) petty cash payments.
(c) Explain the following types of ledgers:
(i) sales ledger, (ii) purchases ledger; (ii) general ledger.
(a) List six adjustments that are shown in the final accounts.
(b) State three differences between capital expenditure and revenue expenditure.
Ose, a sole proprietor, does not keep proper books of account.
(a) Identify and explain the system of bookkeeping Ose operates.
(b) State three advantages and three disadvantages of the bookkeeping system Ose operates.
(a) State three differences between equity shareholders and debenture shareholders.
(b) Explain the following types of preference shares:
(i) cumulative preference shares;
(ii) redeemable preference shares;
(iii) participating preference shares.
The trial balance of Ahoofe Enterprises as at 31st December 2020 was as follows:
|
Dr GH¢ |
Cr GH¢ |
|
| Fixtures and fittings | 120,000 | |
| Motor Vehicle | 44,000 | |
| Debtors and creditors | 9,400 | 7,600 |
| Purchases | 184,900 | |
| Salos | 60,300 | 2,500 |
| Discounts | 2,900 | |
| Electricity | 3,100 | |
| Stock (1/1/2020) | 16,300 | |
| Cash | 54,600 | |
| Carriage inward | 4,000 | |
| Distribution expenses | 2,200 | |
| Returns | 4,500 | 3,000 |
| Rent | 24,000 | |
| Interest expenses | 3,500 | |
| Loan | 30,000 | |
| Capital | 121,200 |
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.
