Limited Liability Company

BL – Nov 2020 – L1 – SB – Q2a – Company Law

Advise on eligibility for company secretary, AGM notice recipients, and grounds for registration refusal by CAC.

Question

Ronkey, Peace, and Victoria intend to register a limited liability company. They have consulted you as an expert for advice on the appointment and duties of the officers of the company as well as other issues pertaining to registration of companies.

Required:
i. Advise the three on FOUR categories of persons eligible for appointment as a company secretary.
ii. State FOUR categories of persons who will be entitled to receive the notice of the Annual General Meeting when the company is eventually registered.
iii. State FOUR grounds on which the Corporate Affairs Commission may refuse to register the documents of incorporation to be submitted for registration.

Answer

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Tags: Annual General Meeting, Company Registration, Company Secretary, Corporate Affairs Commission, Limited Liability Company
Level: Level 1

Topic: Company Law
Series: NOV 2020

BMIS – Nov 2019 – L1 – Q1a – The Business Organization and its Stakeholders

Explain three business types available to individuals venturing into business.

Question

Kofi Stone, Ama Black and Adwoa Sika who were your students at the Ultimate Business School have decided to venture into business after their National Service which ends in the next three months. They have approached you for your advice on the type(s) of business(es) which they should invest in, considering the country’s economic environment.

Required:
Explain THREE (3) business types available to them. (6 marks)

Answer

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Tags: Business Types, Limited Liability Company, Partnership, Sole Proprietorship
Level: Level 1

Topic: The Business Organisation and its Stakeholders
Series: NOV 2019

BL – March July 2020 – L1 – SB – Q2c – Company Law

Involves a case regarding the liability of the company and its shareholders when the company is winding up.

Question

Chief Ochoma was a very successful electronics dealer as a sole proprietor. Two years ago, he incorporated a limited liability company with the name “Ochoma and Sons Limited” to take over the business. Ochoma and his sons are the subscribers of the 1,000,000 equity shares of the company at ₦1.00 per share. Chief Ochoma subscribed 970,000 shares and each of the three sons subscribed to 10,000 shares.

The company’s warehouse was razed by fire last year, and all the stock of electronics was burnt, resulting in the company’s huge indebtedness to unsecured trade creditors. In the process of winding up Ochoma and Sons Limited, the unsecured creditors insisted that Chief Ochoma should pay the debts the company owes them because he is the de facto owner of the company.

Required:
Advise Chief Ochoma, stating the legal issues involved.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Company Law, Corporate Veil, Limited Liability Company, Shareholding, Unsecured Creditors
Level: Level 1

Topic: Company Law
Series: MAR/JULY 2020

AT – MAR 2024 – L3 – Q5b – Tax Administration in Ghana

Discusses the restrictions on foreign business activities and the tax benefits of sole proprietorship versus limited liability companies.

Question

You are an external consultant to the Ministry of Trade and Industry. The Minister has received a delegation of both foreigners and Ghanaians to deliberate on investment opportunities available in Ghana.

Required:
i) Business activities that cannot be engaged in by foreigners. (5 marks)
ii) The tax benefits of establishing a sole proprietorship business as against a limited liability company. (5 marks)

Answer

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Tags: Business Restrictions, Business Structures, Foreign Investment, Foreigners, Limited Liability Company, Sole Proprietorship, Tax Benefits
Level: Level 3

Topic: Tax administration in Ghana
Series: MAR 2024

FA – May 2017 – L1 – Q2 – Preparation of limited liability company financial statements | The IASB’s Conceptual Framework

Preparation of financial statements for Adepa Ltd, including income statement and statement of financial position from trial balance and additional information.

Question

Adepa, a limited liability Company, has the following Trial balance as at 31 December 2016:

	Dr (GH¢’000)	Cr (GH¢’000)
Cash at bank	100
Inventory at January, 2016	2,400
Administrative expenses	2,206
Distribution costs	650
Non-current assets at cost:
– Buildings	10,000
– Plant and equipment	1,400
– Motor vehicles	320
Suspense		1,500
Accumulated depreciation:
– Buildings		4,000
– Plant and equipment		480
– Motor vehicles		120
Retained earnings		560
Trade receivables	876
Purchases	4,200
Dividend paid	200
Sales revenue		11,752
Sales tax payable		1,390
Trade payables		1,050
Capital surplus		500
GH¢ 1 ordinary shares		1,000
Totals	22,352	22,352

The following additional information is relevant:

Inventory at 31 December, 2016 was valued at GH¢1,600,000. While doing the inventory count, errors in the previous year’s inventory count were discovered. The inventory brought forward at the beginning of the year should have been GH¢2,200,000 not GH¢2,400,000 as stated above.
Depreciation is to be provided as follows:
- Buildings at 5% straight line, charged to administrative expenses
- Plant and equipment at 20% on the reducing balance basis, charged to cost of sales
- Motor vehicles at 25% on the reducing balance basis, charged to distribution costs.
No final dividend is being proposed.
A customer has gone bankrupt owing GH¢76,000. This debt is not expected to be recovered and an adjustment should be made. 5% provision for bad debt is to be made.
1 million new ordinary shares were issued at GH¢1.50 on 1 December 2016. The proceeds have been left in a suspense account.

Required: a) Prepare an Income Statement for Adepa Ltd for the year ended 31 December, 2016. (10 marks)

b) Prepare a Statement of Financial Position as at 31 December, 2016. (10 marks)

Answer

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Tags: Adjustments, Financial Statements, Limited Liability Company, Trial Balance
Level: Level 1

Topic: Preparation of limited liability company financial statements, The IASB’s Conceptual Framework
Series: MAY 2017

BL – Nov 2020 – L1 – SB – Q2a – Company Law

Advise on eligibility for company secretary, AGM notice recipients, and grounds for registration refusal by CAC.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Annual General Meeting, Company Registration, Company Secretary, Corporate Affairs Commission, Limited Liability Company
Level: Level 1

Topic: Company Law
Series: NOV 2020

BMIS – Nov 2019 – L1 – Q1a – The Business Organization and its Stakeholders

Explain three business types available to individuals venturing into business.

Question

Required:
Explain THREE (3) business types available to them. (6 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business Types, Limited Liability Company, Partnership, Sole Proprietorship
Level: Level 1

Topic: The Business Organisation and its Stakeholders
Series: NOV 2019

BL – March July 2020 – L1 – SB – Q2c – Company Law

Involves a case regarding the liability of the company and its shareholders when the company is winding up.

Question

Required:
Advise Chief Ochoma, stating the legal issues involved.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Company Law, Corporate Veil, Limited Liability Company, Shareholding, Unsecured Creditors
Level: Level 1

Topic: Company Law
Series: MAR/JULY 2020

AT – MAR 2024 – L3 – Q5b – Tax Administration in Ghana

Discusses the restrictions on foreign business activities and the tax benefits of sole proprietorship versus limited liability companies.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business Restrictions, Business Structures, Foreign Investment, Foreigners, Limited Liability Company, Sole Proprietorship, Tax Benefits
Level: Level 3

Topic: Tax administration in Ghana
Series: MAR 2024

FA – May 2017 – L1 – Q2 – Preparation of limited liability company financial statements | The IASB’s Conceptual Framework

Preparation of financial statements for Adepa Ltd, including income statement and statement of financial position from trial balance and additional information.

Question

Adepa, a limited liability Company, has the following Trial balance as at 31 December 2016:

	Dr (GH¢’000)	Cr (GH¢’000)
Cash at bank	100
Inventory at January, 2016	2,400
Administrative expenses	2,206
Distribution costs	650
Non-current assets at cost:
– Buildings	10,000
– Plant and equipment	1,400
– Motor vehicles	320
Suspense		1,500
Accumulated depreciation:
– Buildings		4,000
– Plant and equipment		480
– Motor vehicles		120
Retained earnings		560
Trade receivables	876
Purchases	4,200
Dividend paid	200
Sales revenue		11,752
Sales tax payable		1,390
Trade payables		1,050
Capital surplus		500
GH¢ 1 ordinary shares		1,000
Totals	22,352	22,352

The following additional information is relevant:

Inventory at 31 December, 2016 was valued at GH¢1,600,000. While doing the inventory count, errors in the previous year’s inventory count were discovered. The inventory brought forward at the beginning of the year should have been GH¢2,200,000 not GH¢2,400,000 as stated above.
Depreciation is to be provided as follows:
- Buildings at 5% straight line, charged to administrative expenses
- Plant and equipment at 20% on the reducing balance basis, charged to cost of sales
- Motor vehicles at 25% on the reducing balance basis, charged to distribution costs.
No final dividend is being proposed.
A customer has gone bankrupt owing GH¢76,000. This debt is not expected to be recovered and an adjustment should be made. 5% provision for bad debt is to be made.
1 million new ordinary shares were issued at GH¢1.50 on 1 December 2016. The proceeds have been left in a suspense account.

Required: a) Prepare an Income Statement for Adepa Ltd for the year ended 31 December, 2016. (10 marks)

b) Prepare a Statement of Financial Position as at 31 December, 2016. (10 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Adjustments, Financial Statements, Limited Liability Company, Trial Balance
Level: Level 1

Topic: Preparation of limited liability company financial statements, The IASB’s Conceptual Framework
Series: MAY 2017

Question Tag: Limited Liability Company

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BL – Nov 2020 – L1 – SB – Q2a – Company Law

Advise on eligibility for company secretary, AGM notice recipients, and grounds for registration refusal by CAC.

BMIS – Nov 2019 – L1 – Q1a – The Business Organization and its Stakeholders

Explain three business types available to individuals venturing into business.

BL – March July 2020 – L1 – SB – Q2c – Company Law

Involves a case regarding the liability of the company and its shareholders when the company is winding up.

AT – MAR 2024 – L3 – Q5b – Tax Administration in Ghana

Discusses the restrictions on foreign business activities and the tax benefits of sole proprietorship versus limited liability companies.

FA – May 2017 – L1 – Q2 – Preparation of limited liability company financial statements | The IASB’s Conceptual Framework

Preparation of financial statements for Adepa Ltd, including income statement and statement of financial position from trial balance and additional information.

BL – Nov 2020 – L1 – SB – Q2a – Company Law

Advise on eligibility for company secretary, AGM notice recipients, and grounds for registration refusal by CAC.

BMIS – Nov 2019 – L1 – Q1a – The Business Organization and its Stakeholders

Explain three business types available to individuals venturing into business.

BL – March July 2020 – L1 – SB – Q2c – Company Law

Involves a case regarding the liability of the company and its shareholders when the company is winding up.

AT – MAR 2024 – L3 – Q5b – Tax Administration in Ghana

Discusses the restrictions on foreign business activities and the tax benefits of sole proprietorship versus limited liability companies.

FA – May 2017 – L1 – Q2 – Preparation of limited liability company financial statements | The IASB’s Conceptual Framework

Preparation of financial statements for Adepa Ltd, including income statement and statement of financial position from trial balance and additional information.

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Question Tag: Limited Liability Company

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BL – Nov 2020 – L1 – SB – Q2a – Company Law

Advise on eligibility for company secretary, AGM notice recipients, and grounds for registration refusal by CAC.

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BMIS – Nov 2019 – L1 – Q1a – The Business Organization and its Stakeholders

Explain three business types available to individuals venturing into business.

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BL – March July 2020 – L1 – SB – Q2c – Company Law

Involves a case regarding the liability of the company and its shareholders when the company is winding up.

You're reporting an error for "BL – March July 2020 – L1 – SB – Q2c – Company Law"

AT – MAR 2024 – L3 – Q5b – Tax Administration in Ghana

Discusses the restrictions on foreign business activities and the tax benefits of sole proprietorship versus limited liability companies.

You're reporting an error for "AT – MAR 2024 – L3 – Q5b – Tax Administration in Ghana"

FA – May 2017 – L1 – Q2 – Preparation of limited liability company financial statements | The IASB’s Conceptual Framework

Preparation of financial statements for Adepa Ltd, including income statement and statement of financial position from trial balance and additional information.

You're reporting an error for "FA – May 2017 – L1 – Q2 – Preparation of limited liability company financial statements | The IASB’s Conceptual Framework"

BL – Nov 2020 – L1 – SB – Q2a – Company Law

Advise on eligibility for company secretary, AGM notice recipients, and grounds for registration refusal by CAC.

You're reporting an error for "BL – Nov 2020 – L1 – SB – Q2a – Company Law"

BMIS – Nov 2019 – L1 – Q1a – The Business Organization and its Stakeholders

Explain three business types available to individuals venturing into business.

You're reporting an error for "BMIS – Nov 2019 – L1 – Q1a – The Business Organization and its Stakeholders"

BL – March July 2020 – L1 – SB – Q2c – Company Law

Involves a case regarding the liability of the company and its shareholders when the company is winding up.

You're reporting an error for "BL – March July 2020 – L1 – SB – Q2c – Company Law"

AT – MAR 2024 – L3 – Q5b – Tax Administration in Ghana

Discusses the restrictions on foreign business activities and the tax benefits of sole proprietorship versus limited liability companies.

You're reporting an error for "AT – MAR 2024 – L3 – Q5b – Tax Administration in Ghana"

FA – May 2017 – L1 – Q2 – Preparation of limited liability company financial statements | The IASB’s Conceptual Framework

Preparation of financial statements for Adepa Ltd, including income statement and statement of financial position from trial balance and additional information.

You're reporting an error for "FA – May 2017 – L1 – Q2 – Preparation of limited liability company financial statements | The IASB’s Conceptual Framework"

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