BK owns a small business in a small-town call Twapiasea in the Dormaa District call the...

  

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BK owns a small business in a small-town call Twapiasea in the Dormaa District call the PiGMen Enterprise. BK does not keep full set of accounts. The following records has been obtained in respected of the year ended 31" December 2019. Summary of Bank Accounts GHS GHS Bal b/d 4,820.00 1,560.00 Receipt from Trade Receivables Sundry Expenses Payment to Trade 94,608.00 Payables 76,040,00 Insurance 2,640.00 Rent 5,200.00 Equipment 4,000,00 Drawings 7,200.00 Bal c/d 2.788.00 99,428.00 99.428.00 BK made cash sales of GHS 13,336.00 and use this to pay the following: GHS Wages and Salary 12,427.00 Sundry Expenses 106.00 803.00 Cash Purchase He took for his use GHS 260.00 worth of good. A discount of GHS 87.00 had been allowed to BK for prompt payment of trade payable. The following information was also available: 1st January 2019 31st December 2019 GHS Equipment Rent Accrued GHS 8,400.00 400.00 9,920.00 Trade Receivable 7,360.00 9,900.00 Trade Payable 5,928.00 6,836.00 Insurance Prepaid 420.00 8,428.00 480.00 11,280.00 Inventory BK has indicated that GHS 120.00 included in the insurance payment during the year is for his personal insurance. Required: • Determine the opening capital for BK Determine the total sales and Total Purchases (2 Marks) (2 Marks) (6 Marks) Prepare statement of Income for the year ended 31 December 2019 • Prepare statement of Financial position as at 31 December 2019 (5 marks) BK owns a small business in a small-town call Twapiasea in the Dormaa District call the PiGMen Enterprise. BK does not keep full set of accounts. The following records has been obtained in respected of the year ended 31" December 2019. Summary of Bank Accounts GHS GHS Bal b/d 4,820.00 1,560.00 Receipt from Trade Receivables Sundry Expenses Payment to Trade 94,608.00 Payables 76,040,00 Insurance 2,640.00 Rent 5,200.00 Equipment 4,000,00 Drawings 7,200.00 Bal c/d 2.788.00 99,428.00 99.428.00 BK made cash sales of GHS 13,336.00 and use this to pay the following: GHS Wages and Salary 12,427.00 Sundry Expenses 106.00 803.00 Cash Purchase He took for his use GHS 260.00 worth of good. A discount of GHS 87.00 had been allowed to BK for prompt payment of trade payable. The following information was also available: 1st January 2019 31st December 2019 GHS Equipment Rent Accrued GHS 8,400.00 400.00 9,920.00 Trade Receivable 7,360.00 9,900.00 Trade Payable 5,928.00 6,836.00 Insurance Prepaid 420.00 8,428.00 480.00 11,280.00 Inventory BK has indicated that GHS 120.00 included in the insurance payment during the year is for his personal insurance. Required: • Determine the opening capital for BK Determine the total sales and Total Purchases (2 Marks) (2 Marks) (6 Marks) Prepare statement of Income for the year ended 31 December 2019 • Prepare statement of Financial position as at 31 December 2019 (5 marks)

Answer rating: 100% (QA)

OPENING BALANCE SHEET OF BK As on 01 January 2019 CAPITAL LIABILITIES AMOUNT ASSETS AMOUNT Trade Pay... View the full answer