The balance on Queen Covids current account is determined as

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question

The two queens of lockdown kingdom ,Queen Corona and Queen Covid came together to form a business .The lockdown Enterprise ,to better the economic stance of the kingdom . In this busines ,they agreed to share profits and losses in the ratio of the opening capital. 

      Trial Balance as at 31march ,2020.

Particulars       Debit(Gh).  Credit

Land and premises 2000,000

Furniture 120,000

Inventory (1/04/19) 80,000

Import duty on goods 4,000

Wages of contract workers.46,000 

Salaries and wages of staff 4,000

Carriage for goods purchased 5,200

Carriage for goods sold 12,400

Discount 24,900.                 25,080

Purchased and sales 905,200.   2,375,220

Rent 15,600                    13,000

Commission 15,600.        17,400

Bills receivable 108,000

12% investment (1/10/18) 

Donation to national pandemic fund 

10% Bank loan                  112,000

Factory rent  64,000

Receivables and payables.                                    920,000.     240,000

Bank                                    728,000

Bad debt.        66,000

Provision for doubtful debt 

                                              20,000

Rates and Taxes    31,200

Brokerage                13,000

Capital Account.        

      Queen Corona              500,000

      Queen Covid                500,000

Current Accounts 

          Queen Corona 20,000

        Queen Covid              128,000

                     

Additional information:

a. Due to the economic recession at the moment ,the partners estimated that more of their receivable may not be able to settle their debts . Hence they wrote of additional debts of Gh 15,000 and agreed to maintain provision for the doubtful at 5%.

b. They agreed to provide for discount on receivables at 5%

c. All property ,plant and equipment are to be depreciated at 10% .

d. The business claimed insurance of the Gh 21,000 for goods that were lost due to fire . The insurance claim ,through admitted ,had not been paid as at the year end.

e. Queen Corona bought goods amounting to Gh 17,400 for personal use.

f. Goods worth Gh 24,000 bought on 24/04/19 on credit were not recorded I the books .

g. Outstanding salaries were GH 32,000 whereas wages of Gh 24,600 were paid in advance. 

I. The partners agreed to charge interest on capital at 6% and on drawings at 7%.

j. Bills receivable of Gh 12,600 was dishonoured.

k. The inventory count at the year -end -revealed goods worth Gh 300,000.

The balance on Queen Covids current account is determined as?

Expert Solution
steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Knowledge Booster
Financial Statements
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education