Mr. Sintim runs an angling shop in Kyereboase. He spends most of his time fishing and has consequently kept no accounting records in the year ended 31 December 2018. He knows that he has taken GH¢6,800 cash out of his business during the year plus bait which cost the business GH¢250. He can also remember putting his GH¢20,000 winnings from SuperbetLottery into the business in March.

Mr. Sintim knows that at the previous year end his business had assets valued at GH¢40,000 and liabilities of GH¢14,600. He has also calculated that the assets of the business at 31/12/18 are worth GH¢56,000 and the liabilities, GH¢18,750.

Required: Determine the profit or loss for Mr. Sintim’s business for the year under review.

 

Question 2

Mrs Kentinka runs a metal bending shop at Kasoa. She has no accounting knowledge and keeps no accounting records but was able to provide you with the following information regarding her assets and liabilities at the beginning and end of the period ending 31 December 2020. 

	01/01/2020	31/12/2020
Premises	12,000	12,000
Fixtures and fittings	2,300	2,500
Tools	500	620
Inventory	1,250	1,080
Debtors	1,420	970
Cash	350	1,200
Creditors	630	1,550
Loan	500	1,000

 

During the period, Mrs Kentinka received an amount of GHC 2,000 from her trade union susu which she immediately invested into the business. She also depends on the proceeds of the business for her livelihood, and as such she draws about GHC 450 from the business every month for her personal use.

You are required to determine the profit or loss of Mrs Kentinkafor the year ended 31 December 2020

Answer rating: 100% (QA)

Solution Accoumting cqualion Toteh Asset capital Liabil... View the full answer