The following Trial Balance was extracted from the books of KM Enterprise, a trader as at...
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The following Trial Balance was extracted from the books of KM Enterprise, a trader as at 31st December 2018. Capital account Freehold Land & Building Furniture & Fittings Inventory in Trade -1 Jan. 2018 Purchases Sales Trade Receivables Trade Payables Rent Received Loan from Adwoa Yankey at 5% p.a Interest on Adwoa Yankey's loan- Outstanding at 1 Jan. 2018 Discount allowed Discount received Allowance for receivables, 1 Jan. 2018 Bad debts Wages and salaries Drawings General Expenses Bank Balance Rate and Insurance GH¢ 700,000 140,000 610,000 5,870,000 585,000 132,000 32,500 704,500 160,000 86,500 68,000 30,000 9,118,500 GH¢ 1,500,000 6,930,000 434,500 27,500 120,000 3,000 92,500 11,000 9,118,500 The following are to be taken into account: Inventory in trade: 31st December 2018, GH¢850,000; wages and salaries outstanding at 31st December 2018 GH¢1,500. Rate as paid advance at 31st December 2018 GH¢5,000, allowance for receivables is to be increased to GH¢17,000. KM Ent. had not pay interest on Adwoa Yankey during 2018. Part of freehold building was let to tenant who owed GH¢2,500 as at 31st December 2018. Prepare a) Income statement for the year 2018 b) A statement of financial position as at 31 December 2018. The following Trial Balance was extracted from the books of KM Enterprise, a trader as at 31st December 2018. Capital account Freehold Land & Building Furniture & Fittings Inventory in Trade -1 Jan. 2018 Purchases Sales Trade Receivables Trade Payables Rent Received Loan from Adwoa Yankey at 5% p.a Interest on Adwoa Yankey's loan- Outstanding at 1 Jan. 2018 Discount allowed Discount received Allowance for receivables, 1 Jan. 2018 Bad debts Wages and salaries Drawings General Expenses Bank Balance Rate and Insurance GH¢ 700,000 140,000 610,000 5,870,000 585,000 132,000 32,500 704,500 160,000 86,500 68,000 30,000 9,118,500 GH¢ 1,500,000 6,930,000 434,500 27,500 120,000 3,000 92,500 11,000 9,118,500 The following are to be taken into account: Inventory in trade: 31st December 2018, GH¢850,000; wages and salaries outstanding at 31st December 2018 GH¢1,500. Rate as paid advance at 31st December 2018 GH¢5,000, allowance for receivables is to be increased to GH¢17,000. KM Ent. had not pay interest on Adwoa Yankey during 2018. Part of freehold building was let to tenant who owed GH¢2,500 as at 31st December 2018. Prepare a) Income statement for the year 2018 b) A statement of financial position as at 31 December 2018.
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The answer provided below has been developed in a clear step by step manner Step 1 1 KM Enterprises Income Statement For the year ended December 31 20... View the full answer
Related Book For
Financial Accounting and Reporting
ISBN: 978-0273744443
14th Edition
Authors: Barry Elliott, Jamie Elliott
Posted Date:
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