Question

QUESTION 1

The trial balance of The Parker Exclusive Mens Clubs at 31th May 2020 is as follows

GHS

Accumulated fund (1/06/2019) 28178400

Massage Palour inventory at beginning (1/06/2019) 5373000

Massage Palour Purchases 10109200

Building (Cost) 25511800

Equipment (Cost) 3184000

Furniture and fittings (Cost) 1990000

Subscriptions 2388000

Affiliation Fees 298500

Savings Account 6766000

Venue of the "Weekend in Paradise Trip" 139300

Executive Mens Club Entrance fees 238800

Massuer's Wages and Salaries 995000

Accumulated Depreciation Building 10204720

Equipment 796000

Furniture and Fittings 199000

Salaries 955200

Rent 382080

"Weekend in Paradise Trip" expenses 238800

Administrative expenses 692520

Interest on Savings account 378100

Sale of "Weekend in Paradise Trip" tickets 3024800

Bank account (Current) 4975000

Donation for "Weekend in Paradise Trip" 736300

Revenue from Massage Palour 15124000

Life membership fees 736300Utilities 394020

124008840

Additional Information

1. Massage Palour inventory (31st May 2020) 1074600

2. Subscription paid in advance by member for the year 2020/2021 477600

3. Depreciation : Building 2% per annum, Equipment 25% 10% per annum

4. Interest on saving includes an amount from the 2018/2019 year 19900

5. Affiliation fees was paid for the next 3 years on 1 June 2019

6. Utilities were prepaid at the end of the year 55720

7. Salaries were accrued at the end at the end of the year 79600

8. Parker Exclusive Mens Club organised a "Weekend in Paradise Trip" for

its members during the year

9. The Parker Exclusive Mens Club is affiliated to the International

Association of Executive Clubs

REQUIRED:

1. Prepare an Income and Expenditure Statement and a Statement of

Financial Position for the 2019/2020 Financial year

2.QUESTION 2

You have been contacted by the owner of a Jewelery Retail shop, Magna Qarta , to prepare

their accounts. You observe that they do not have a full set of accounts. However, you

extract the following data from their records

Balances as at 31/12/2019

Property, plant and

equipment

995000

Accumulated Depreciation 242382

inventories 358200

Receivables 199000

Pepayments-Rates 7960

Bank 39800

Cash 11940

Creditors 79600

Electricity Accrued 4975

Balances as at 31/12/2020

inventories 674610

Receivables 238800

Pepayments-Rates 8955

Bank overdraft 308450

Cash 11940

Creditors 91540

Electricity Accrued 5970

The records show cash and

bank transactions as follow:

Cash Receipts Balance B/D 11940

Sales 298500

Cash Payments Deposit into bank 298500

Bank Receipts Balance B/D 39800

Accounts Receivable 2786000

5% Loan received 597000

Sale proceeds from sale of motor van 163180

Cash banked 298500

Bank Payments

Accounts Payables 2189000

Rates 179100

Electricity 39800

Telephone 29850

Loan Interest 29850

Insurance 19900

Wages and Salaries 398000

Drawings 497500

Property, Plant and Equipment 796000Sundry Expenses 13930

ADDITIONAL INFORMATION

The loan was received on 1st January 2019 and depreciation for PPE is at

20% per annum

Cost of motor van that was disposed off 199000

Accumulated Depreciation of the motor van that was disposed off 37810

Discount received during the year amounted to 39800

During the year the owner gifted a pair of earings to his daughter worth 39800

REQUIRED:

1. Prepare an Income Statement and a Statement of Financial Position for

the 2020 Financial year

Answer 1

Income and Expenditure Statement a/c as at 31st May 2020

Expenditure	Amount (GHS )	Income	Amount (GHS )
Opening inventory	53,73,000	Subscriptions	23,88,000
Purchases	1,01,09,200	- Subscription for nextyear	-4,77,600
Weekend Trip Expenses	2,38,800	Donation for Weekend Paradise Trip	7,36,300
Wages and Salaries	9,95,000	Entrance Fees	2,38,800
Salary	9,55,200	interest on Saving a/c	3,78,100
+Outstanding Salary of C/Y	79,600	- interest on Saving a/c (18-19) received	-19,900
Rent	3,82,080	Sale on " weekand Trip" Tickets	30,24,800
Admin Expenses	6,92,520	Life membership Fees	7,36,300
Utilites )	3,94,020	Revenue from parlour	1,51,24,000
-(Prepaid Utilites )	-55,720	Closing inventory	10,74,600
Venue of Weekend Trip	1,39,300
Depreciation on Building @2%	5,10,236
Depreciation on Equipment @25%	7,96,000
Depreciation on Furniture @ 10 %	1,99,000
Affilation Fees (298500/3)	99,500
Surplus i.e. excess of income over expenditures	23,95,164
Total	2,33,02,900	Total	2,32,03,400

Finacial Statement as at 31st May, 2020

Equity and Liabilities	Amount (GHS )	Assets	Amount (GHS )
Capital :-		Fixed Assets :-
Accumulated Fund	2,81,78,400	Building	2,55,11,800
Surplus	23,95,164	Equipment	31,84,000
Accumulated Depreciation on :-		Furniture	19,90,000
Building	1,07,14,956	Current Assets :-
Equipment	15,92,000	Saving A/C	67,66,000
Furniture	3,98,000	Bank	49,75,000
		Prepaid Utilities	55,720
Current Liabiltites :-		Prepaid Affilation Fees	2,98,500
Outstanding Salaries	79,600	Closing Inventory ( 31 may 20)	10,74,600
Advance Subscription	4,77,600
interest on Saving a/c (18-19) received	19,900
Total	4,38,55,620	Total	4,38,55,620

: ) Hope You Liked The Answer

Please don't give Thumbs down, if you have any doubts please comment on answer i will reply.