You are employed by JohLex Limited as an accountant. The Accountant has produced the following trial balance
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Question:
You are employed by JohLex Limited as an accountant. The Accountant has produced the following trial balance at 31st December 2016.
Dr. | Cr. | |
GH₵ | GH₵ | |
Administrative expenses | 81,070 | |
Distribution costs | 164,450 | |
Trade receivables and payables | 130,920 | 144,000 |
Ordinary GH₵1 shares | 98,600 | |
Revaluation surplus | 22,450 | |
Revenue and purchases | 372,000 | 760,000 |
8% loan notes | 150,000 | |
Land and Buildings at cost | 309,500 | |
Motor vehicles at cost | 138,000 | |
Inventories at 1/1/2015 | 156,740 | |
Interim ordinary dividend | 1,440 | |
Interest paid | 6,000 | |
Bank overdraft | 23,470 | |
Retained profit at 1/1/2015 | 151,100 | |
Suspense | 10,500 | |
Total | 1,360,120 | 1,360,120 |
You have also ascertained the following information:
- The inventory at cost on 31st December, 2016 was GH₵210,000 and the net realizable value was GH₵189,000.
- The taxation charge for the year to 31st December, 2016 is estimated to be GH₵20,000.
- The company issued a 100,000 12% debenture at discount of 3% on January 1, 2016 redeemable in 3-year at par. This loan is omitted from the trial balance.
- To reflect a marked increase in property prices, JohnLex accepted the report of an independent surveyor who valued the building by GH₵5,000 on that on 31st December. 2016.
- The suspense account represents the corresponding credit for cash received for a fully subscribed issue of equity shares made on 30th December, 2016. The terms of the share issue was 7,000 new ordinary shares were issued at GH₵1.50.
- The company has declared a dividend 10pesewas per share for the year.
Required:
- Prepare the statement of comprehensive income for JohLex for the year ended 31st December, 2016.
- Prepare the statement of changes in equity for JohLex for the year ended 31st December, 2016.
- Prepare the statement of financial position of JohLex as at 31st December, 2016.
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