the suspense figure. Prepare the Income Statement for the year ended 31st December, 2020 and a Statement of Financial Position as at that date with the following additional information Stock at the end of the year was GHS72,500 Rent & rate have been prepaid by GHS3,600 Loan interest is accrued by GHS1,500 Equipment is to be depreciated at 10% p.a on cost
Bonsu is the owner of a retail business. He has employed an inexperienced book-keeper to maintain the accounting records. On 31st December 2020, the end of the business’s accounting year, the book-keeper extracted the following
Trial balance as at 31st December 2020
Debit (GHS) Credit (GHS)
Sales 1,250,000
Purchases 700,000
Discount Allowed 18,300
Carriage Inwards 28,000
Carriage Outwards 31,200
Rent, rate & insurance 61,700
Heating & Lighting 38,000
Postage & stationery 4,200
Advertising 10,600
Wages & salaries 94,000
Interest on Bank Loan 3,500
Debtors/Creditors 63,900 74,000
Cash in hand 12,500
Bank Overdraft 18,400
Stock at 01/01/2006 50,550
Equipment (Cost GHC540,000) 444,000
Bank Loan 40,000
Drawings 20,800
Capital 245,950
Suspense 24,300
1,673,500 1,673,500
Redraft the trial balance to eliminate the suspense figure.
Prepare the Income Statement for the year ended 31st December, 2020 and a
Stock at the end of the year was GHS72,500
Rent & rate have been prepaid by GHS3,600
Loan interest is accrued by GHS1,500
Equipment is to be depreciated at 10% p.a on cost
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