12 | Page SECTION B: Question 1 ATTEMPT ANY ONE (1) QUESTION FROM THIS SECTION The whole of financial accounting is based upon the very simple idea that, resources supplied by the owner of the business plus liabilities that must be settled at a future date must be equal to the resources in the business. It follows that the capital plus liabilities of the entity must be equal to assets of the entity expressed as: Capital + Liabilities Assets (ie. C+L-A). Demonstrate the effects of the following transactions on the accounting equation, and prepare the resultant balance sheet as at 31 July, 2020, I July started business with cash 30,000 2 Sales on cash 50,000 4 Stock of materials paid by cash 10,000 5 Paid cash into bank 20,000 7 Withdrew cash for office use 10,000 8 Loan received by cash 20,000 10 Sales of goods received cheque 30,000 19 Cash sales 80,000 21 Debtor paid us by cash 50,000 30 Sales, received cheque 40,000 20 marks (GP goods dest- 3FFRIE Question 2 The following trial balance has been extracted from the ledger of Mr. Cole, a sole trader. Trial balance as at 31 December, 2020 Particulars Debit Credit Sales 138,000 Purchases 82,350 Travel expenses 5,200 Drawings 7,800 Rent, rates & insurance 6,600 Postage and stationery 3,000 Advertisement 1,330 Salaries and wages 26,420 Bad debt 8,700 Investment Income 15,890 Debtors 12,120 Creditors 130 Cash in hand 1,700 Cash at bank 1,000 Inventory as at 1 January, 2020 11,800 Equipment at cost 58,000 Loan 19,000 Capital 53,000 226,020 226,020 Inventory at the close of business has been valued at $13,500 Required; Prepare an income statement for the year ending 31" December, 2020. 13 Page 20 marks SECTION C: Question 3 ATTEMPT ANY ONE (1) QUESTION FROM THIS SECTION a) How do managers solve problems and make decisions? 5 marks b). In brief explain any three (3) quantitative tools that are used in aiding the process c). 3 marks James, your big brother just graduated with a second class degree in software engineering. He has been employed by Total Ghana. On the first day of work, as part of his orientation, he was introduced as the new manager in charge of the fleet management software department. During lunch time he had a call from your mum about his new job. James told mum he is the manager of fleet management software department. Your mum called you on phone and asked you to explain the following: (i) Who is a manager? (ii). what are his functions? (iii) Are there any levels? de 10 mark (Total 20 marks) Question 4 a). State and explain the steps involved in control process. b). Draw and explain the Abraham Maslow's hierarchy of needs. 10 marks 10 marks (Total 20 marks) 14 Page END OF QUESTIONS Decision Tree cost benefit Analys Shanthan An alphs