A. Devine and Vicky are partners dealing in cosmetics and other assorted goods. They share profit...

   

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A. Devine and Vicky are partners dealing in cosmetics and other assorted goods. They share profit and losses in ratio 3:2. The trial balance below was extracted from the books of the partners as at 31* December, 2020. DR CR Rent Expenses 400,000 Bank overdraft 100,000 Discount 50,000 100,000 Turnover 2,100,000 Cost of Sales 700,000 Receivable 400,000 Patent 400,000 Stocks (31/12/2019) 150,000 Loan from Devine at 15% per annum 200,000 Land 900,000 Motor vehicle 600,000 Equipment 400,000 Provision for depreciation: Motor vehicles 140,000 Equipment 240,000 Payable 300,000 Drawings: Devine 70.000 Vicky 60,000 Capital Account: Devine 500,000 Vicky 300,000 Current Acunt: Devine 120,000 Vicky 30,000 Total 4,630,000 4,630,000 The following information is relevant: i. Interest on loan from Devine had neither been paid nor provided for. Motor Vehicles and Equipment are to be depreciated at the rate of the 10% and 20% ii. percent per annum respectively on the reducing balance methods. Rent expenses outstanding at 31/12/2000 amounted to GHc 50,000. Capital attracts interest of 10% per annum. Vicky is to be paid a monthly salary of GHc iii. iv. 3,000. V. No interest is allowed or charged on current accounts or on drawings or on drawings. You are required to prepare: a. Income Statement ( 2.5 Marks) b. Profit and Loss Appropriation Account (2.5 marks) c. Partners current account (2.5 marks) d. Statement of Financial Position as at 31/12/2000 (2.5marks) B. Critically examining why businesses that are made up of two or more people coming together with the aim of making profit fail in Ghana. You are to support your answers with relevant examples. ( 20 Marks) 3 A. Devine and Vicky are partners dealing in cosmetics and other assorted goods. They share profit and losses in ratio 3:2. The trial balance below was extracted from the books of the partners as at 31* December, 2020. DR CR Rent Expenses 400,000 Bank overdraft 100,000 Discount 50,000 100,000 Turnover 2,100,000 Cost of Sales 700,000 Receivable 400,000 Patent 400,000 Stocks (31/12/2019) 150,000 Loan from Devine at 15% per annum 200,000 Land 900,000 Motor vehicle 600,000 Equipment 400,000 Provision for depreciation: Motor vehicles 140,000 Equipment 240,000 Payable 300,000 Drawings: Devine 70.000 Vicky 60,000 Capital Account: Devine 500,000 Vicky 300,000 Current Acunt: Devine 120,000 Vicky 30,000 Total 4,630,000 4,630,000 The following information is relevant: i. Interest on loan from Devine had neither been paid nor provided for. Motor Vehicles and Equipment are to be depreciated at the rate of the 10% and 20% ii. percent per annum respectively on the reducing balance methods. Rent expenses outstanding at 31/12/2000 amounted to GHc 50,000. Capital attracts interest of 10% per annum. Vicky is to be paid a monthly salary of GHc iii. iv. 3,000. V. No interest is allowed or charged on current accounts or on drawings or on drawings. You are required to prepare: a. Income Statement ( 2.5 Marks) b. Profit and Loss Appropriation Account (2.5 marks) c. Partners current account (2.5 marks) d. Statement of Financial Position as at 31/12/2000 (2.5marks) B. Critically examining why businesses that are made up of two or more people coming together with the aim of making profit fail in Ghana. You are to support your answers with relevant examples. ( 20 Marks) 3

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A B Small and mediumsized enterprises SMEs in Ghana because of the character of Ghanas economy its difficult to quantify just how important theyre but ... View the full answer