Assets – Knowsia

BCL – L1 – Q97 – Legal implications relating to companies in difficulty or in crisis

State the two types of winding up under the Companies Act.

Question

(a) State the two types of winding up.

(b) Giving examples, indicate the role(s) of the registrar, if any, in winding up of a company.

(d) Explain the contents of ‘Statement of Affairs’ as required to be submitted to the liquidator.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Assets, Insolvency, Liabilities, Liquidator, Statement of affairs
Level: Level 1

Topic: Legal implications relating to companies in difficulty or in crisis

BCL – L1 – Q95 – Legal implications relating to companies in difficulty or in crisis

Assess if selling all assets can cover liabilities for a struggling radio station.

Question

Kofi Amo set up a radio station, Amo FM, investing GH¢10,000 initial capital. After some years, the business is not successful. At the end of the fifth year, furniture and fixtures were worth GH¢5,000; the delivery van was valued at GH¢2,000, and Kofi lived in a small flat valued at GH¢50,000, which he owns. This house was mortgaged from Apex Finance, with an outstanding balance of GH¢40,000 to pay off the mortgage.

Now the business has hit hard times: rent for the office location has increased, and Kofi owes the landlord GH¢10,000; workers have not been paid for months, with salary arrears of GH¢7,000; the bank overdraft is GH¢15,000, and the bank has refused to extend it; Kofi has received a demand from the National Communication Authority to renew the license for GH¢8,000.

(a) If all of your assets were sold off, would you be able to meet all of your liabilities?

(b) What options do your creditors have? Is your home safe?

Answer

Find Related Questions by Tags, levels, etc.

Tags: Assets, Creditors, Judgement Debt, Sole proprietorship, Unlimited Liability
Level: Level 1

Topic: Legal implications relating to companies in difficulty or in crisis

FR – L2 – Q3 – Conceptual Framework for Financial Reporting

Appraise the validity of a statement claiming the statement of financial position is sufficient for assessing business performance, defining key terms.

Question

“A statement of financial position is a snapshot of a business at a point in time. It shows the assets that an entity owns and the liabilities that it owes. This is all that is required to convey a business’s performance, position and adaptability.

As income generated and expenses incurred by a business are already reflected within the assets and liabilities shown in the statement of financial position, a statement of profit or loss is a superfluous statement.”

Required

Briefly appraise the validity of the above statement, defining the words underlined.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Assets, Conceptual Framework, Expenses, Financial Statements, Income, Liabilities, Statement of Financial Position, Statement of profit or loss
Level: Level 2

Topic: Conceptual Framework for Financial Reporting

FA – L1 – Q89 – Preparation of not-for-profit accounts

Prepare the bar trading account for KNUST Social Club for the year ended 31 December 20X8 using provided receipts and payments data.

Question

The KNUST Social Club prepares its accounts annually on 31st December. The receipts and payments account for the year ended 31st December 20X8 was prepared by the treasurer as follows:

	GH¢		GH¢
Balance b/d	7,000	Caretaker’s wages	18,000
Subscriptions received		Heating and lighting	4,000
for the year: 20X7	600	Insurance	1,000
20X8	13,500	Bar payables	22,000
20X9	1,100	Dinner dance expenses	1,000
Dinner dance ticket sales	1,800	Equipment purchases	12,000
Bar takings	55,000	Bar staff wages	16,000
Donations	2,500	Savings account	3,000
Sale of equipment	450	Balance c/d	18,350
	81,350		81,350

The following additional information is available:
(i) The equipment sold during the year was valued in the books at GH¢600 as at 1st January 20X8. The club’s policy is to provide a full year’s depreciation in the year of purchase but none in the year of sale.
(ii) The savings account (short term) pays a fixed rate of interest of 5% per annum. An additional amount of GH¢400 was paid into the account on 1st July 20X8. There were no withdrawals made during the year. Interest due on 31st December 20X8 has not been received.
(iii) The remaining assets and liabilities of the club at the beginning and end of the year were:

	1st January 20X8	31st December 20X8
	GH¢	GH¢
Clubhouse	230,000	230,000
Equipment	26,000	25,200
Bar inventory	2,000	2,400
Savings account	2,000	2,400
Insurance prepaid	100	80
Subscriptions owing	180	160
Subscriptions in advance	800	300
Bar payables	700	1,000
Bar staff wages owing	2,400	1,400
Cash at bank	7,500	8,700

(iv) All subscriptions due for the year 20X7, but unpaid on 31st December 20X7, are considered to be irrecoverable debts.
(v) Bar staff wages are the only expense to be charged to the bar trading account.

Required:
(a) Prepare the bar trading account for the year ended 31st December 20X8.

(b) Prepare the income and expenditure account for the year ended 31st December 20X8.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accumulated fund, Assets, Financial Statements, Liabilities, Not-for-profit, Statement of Financial Position
Level: Level 1

Topic: Preparation of not-for-profit accounts

Tag (SQ): Assets

Filter by Professional Bodies

Filter by Subject

Filter by Topics

Filter by Levels

BCL – L1 – Q97 – Legal implications relating to companies in difficulty or in crisis

State the two types of winding up under the Companies Act.

BCL – L1 – Q95 – Legal implications relating to companies in difficulty or in crisis

Assess if selling all assets can cover liabilities for a struggling radio station.

FR – L2 – Q3 – Conceptual Framework for Financial Reporting

Appraise the validity of a statement claiming the statement of financial position is sufficient for assessing business performance, defining key terms.

FA – L1 – Q89 – Preparation of not-for-profit accounts

Prepare the bar trading account for KNUST Social Club for the year ended 31 December 20X8 using provided receipts and payments data.

Our offerings

Contact Info

Customer

Get In Touch

Tag (SQ): Assets

Filter by Professional Bodies

Filter by Subject

Filter by Topics

Filter by Levels

BCL – L1 – Q97 – Legal implications relating to companies in difficulty or in crisis

State the two types of winding up under the Companies Act.

You're reporting an error for "BCL – L1 – Q97 – Legal implications relating to companies in difficulty or in crisis"

BCL – L1 – Q95 – Legal implications relating to companies in difficulty or in crisis

Assess if selling all assets can cover liabilities for a struggling radio station.

You're reporting an error for "BCL – L1 – Q95 – Legal implications relating to companies in difficulty or in crisis"

FR – L2 – Q3 – Conceptual Framework for Financial Reporting

Appraise the validity of a statement claiming the statement of financial position is sufficient for assessing business performance, defining key terms.

You're reporting an error for "FR – L2 – Q3 – Conceptual Framework for Financial Reporting"

FA – L1 – Q89 – Preparation of not-for-profit accounts

Prepare the bar trading account for KNUST Social Club for the year ended 31 December 20X8 using provided receipts and payments data.

You're reporting an error for "FA – L1 – Q89 – Preparation of not-for-profit accounts"

Our offerings

Contact Info

Customer

Get In Touch

admin