Bob and Sons prepares its financial statements to 31 December every year. At 31 December 2017, the company's trial balance was as follows: Dr GHC'000 GH¢'000 Sales 50,000 42,156 1,245 Purchases Inventory 1/1/2017 Printing and Stationery Rent and Rates 1,692 480 Travelling and Transport Repairs and Maintenance 780 1,523 Other administrative expense 500 Land at cost 13,500 Building at cost 45,000 Acc. Depreciation- Building 6,750 Motor Vehicle at cost 24,500 Acc. Depreciation- Motor Vehicle Equipment and Furniture Acc. Depreciation -Equipment & Furniture 19,600 12,450 4,980 Trade Receivables 9,450 Cash and Bank balance 9,524 Trade Payables 18,450 Short term loan 12,500 Share Capital Retained Earnings TOTAL 15,000 35,520 162,800 162,800 The following additional information is relevant: 1) Depreciation is to be provided as follows: Building - 3% per year on cost Motor Vehicle - 20% per year on cost Equipment & Furniture - 10% per year on cost ii) It is the policy of the company not to charge depreciation in the year of disposal. yThe previous year depreciation for motor vehicle was over charged by GHC240. iv) Land was revalued later in the year for GHE15,000,000. No change was required to the value of the building.
Bob and Sons prepares its financial statements to 31 December every year. At 31 December 2017, the company's trial balance was as follows: Dr GHC'000 GH¢'000 Sales 50,000 42,156 1,245 Purchases Inventory 1/1/2017 Printing and Stationery Rent and Rates 1,692 480 Travelling and Transport Repairs and Maintenance 780 1,523 Other administrative expense 500 Land at cost 13,500 Building at cost 45,000 Acc. Depreciation- Building 6,750 Motor Vehicle at cost 24,500 Acc. Depreciation- Motor Vehicle Equipment and Furniture Acc. Depreciation -Equipment & Furniture 19,600 12,450 4,980 Trade Receivables 9,450 Cash and Bank balance 9,524 Trade Payables 18,450 Short term loan 12,500 Share Capital Retained Earnings TOTAL 15,000 35,520 162,800 162,800 The following additional information is relevant: 1) Depreciation is to be provided as follows: Building - 3% per year on cost Motor Vehicle - 20% per year on cost Equipment & Furniture - 10% per year on cost ii) It is the policy of the company not to charge depreciation in the year of disposal. yThe previous year depreciation for motor vehicle was over charged by GHC240. iv) Land was revalued later in the year for GHE15,000,000. No change was required to the value of the building.
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter14: Accounting For Uncollectible Accounts Receivable
Section: Chapter Questions
Problem 3AP
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