QUESTION TWO The trial balance of SHAKERS LTD as at 31st December 2009 is as follows: GH¢ GH¢ Revenue and Purchases 20,000 50,000 8,000 Inventory Distribution costs 8,000 Administration expenses 15,550 Receivables and Payables 10,000 20,000 Reorganization expenses 2,400 Cash and bank 8,100 Stated Capital (@GH¢1.00/share) 10% Irredeemable Preference Shares (@GH¢1.00/share) 11,000 9,000 10% Debentures 8,000 Non-current Assets at Net Book Value 35,000 Retained Earnings (@ 1 January 2009) Debenture interest paid Preference dividend paid Interim ordinary dividend paid 3,000 400 450 1,600 Тах 500 Suspense 8,000 109,500 109,500 The following is to be taken into account 1. A building whose Net Book Value is currently GH¢5,000 was revalued to GH¢11,000. 2. A final ordinary dividend of GH¢0.10 per share is to be provided for, in addition to the interim dividend paid. 3. The balance on the corporation tax account represents an overprovision of tax for the previous year. Tax for the current year is estimated at GH¢3,000. 4. Closing inventory is GH¢12,000. 5. The balance on the suspense account represents the proceeds from the issue of 4,000 ordinary shares @ GH¢2.00/share raised on the last day of the year. Required: Prepare for Shakers Ltd a: a) Statement of comprehensive income for the year ended Dec 31 2009, b) Statement of changes in equity for the year ended Dec 31 2009, c) Statement of financial position as at Dec 31 2009. NB: Notes to the accounts are not required.
QUESTION TWO The trial balance of SHAKERS LTD as at 31st December 2009 is as follows: GH¢ GH¢ Revenue and Purchases 20,000 50,000 8,000 Inventory Distribution costs 8,000 Administration expenses 15,550 Receivables and Payables 10,000 20,000 Reorganization expenses 2,400 Cash and bank 8,100 Stated Capital (@GH¢1.00/share) 10% Irredeemable Preference Shares (@GH¢1.00/share) 11,000 9,000 10% Debentures 8,000 Non-current Assets at Net Book Value 35,000 Retained Earnings (@ 1 January 2009) Debenture interest paid Preference dividend paid Interim ordinary dividend paid 3,000 400 450 1,600 Тах 500 Suspense 8,000 109,500 109,500 The following is to be taken into account 1. A building whose Net Book Value is currently GH¢5,000 was revalued to GH¢11,000. 2. A final ordinary dividend of GH¢0.10 per share is to be provided for, in addition to the interim dividend paid. 3. The balance on the corporation tax account represents an overprovision of tax for the previous year. Tax for the current year is estimated at GH¢3,000. 4. Closing inventory is GH¢12,000. 5. The balance on the suspense account represents the proceeds from the issue of 4,000 ordinary shares @ GH¢2.00/share raised on the last day of the year. Required: Prepare for Shakers Ltd a: a) Statement of comprehensive income for the year ended Dec 31 2009, b) Statement of changes in equity for the year ended Dec 31 2009, c) Statement of financial position as at Dec 31 2009. NB: Notes to the accounts are not required.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:QUESTION Two
The trial balance of SHAKERS LTD as at 31st December 2009 is as follows:
GH¢
GH¢
Revenue and Purchases
20,000
50,000
8,000
Inventory
Distribution costs
8,000
Administration expenses
Receivables and Payables
Reorganization expenses
15,550
10,000
20,000
2,400
Cash and bank
8,100
Stated Capital (@GH¢1.00/share)
10% Irredeemable Preference Shares (@GH¢1.00/share)
11,000
9,000
10% Debentures
8,000
Non-current Assets at Net Book Value
35,000
Retained Earnings (@ 1 January 2009)
Debenture interest paid
3,000
400
Preference dividend paid
Interim ordinary dividend paid
450
1,600
Тах
500
Suspense
8,000
109,500
109,500
The following is to be taken into account
1. A building whose Net Book Value is currently GH¢5,000 was revalued to GH¢11,000.
2. A final ordinary dividend of GH¢0.10 per share is to be provided for, in addition to the
interim dividend paid.
3. The balance on the corporation tax account represents an overprovision of tax for the
previous year. Tax for the current year is estimated at GH¢3,000.
4. Closing inventory is GH¢12,000.
5. The balance on the suspense account represents the proceeds from the issue of 4,000
ordinary shares @ GH¢2.00/share raised on the last day of the year.
Required: Prepare for Shakers Ltd a:
a) Statement of comprehensive income for the year ended Dec 31 2009,
b) Statement of changes in equity for the year ended Dec 31 2009,
c) Statement of financial position as at Dec 31 2009.
NB: Notes to the accounts are not required.
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