Sole Trader – Page 2

FA – L1 – Q45 – Inventory

Record inventory in ledger accounts and prepare trading account for Mensah and Associates for 20X9, adjusting for post-year-end transactions.

Question

Mensah and Associates carried out a physical count on 31 December 20X8 and finds GH₵10,000 of inventory in its warehouse.
During the year ended 31 December 20X9 the company makes GH₵70,000 of sales and buys GH₵58,000 of supplies.
The company carries out a physical count for the year ended 31 December 20X9 on 7 January 20X9 and finds GH₵15,000 worth of goods. In the six day intervening period there were sales of goods which had cost GH₵4,800 and deliveries inwards of goods costing GH₵8,000.

Required
Record inventory in the relevant ledger accounts and prepare the trading account for inclusion in the statement of profit or loss for the year ended 31 December 20X9.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Closing Inventory, Cost of Sales, Financial Statements, Inventory, Ledger accounts, Physical Count, Purchases, Sales, Sole Trader, Trading Account
Level: Level 1

Topic: Inventory

FA – L1 – Q43 – Inventory

Write up inventory, purchases, and revenue accounts for two years for a sole trader.

Question

Kofi started business on 1 January 20X8. At the end of his first year of trading he had closing inventory of GH¢5,000. During 20X9 he traded continuously and at 31 December 20X9 he had inventory amounting to GH¢7,500.
Sales for 20X8 and 20X9 were GH¢120,000 and GH¢155,000 respectively and purchases were GH¢75,000 and GH¢110,000 respectively.

Required
(a) Write up the inventory account, purchases account, and revenue account for the two years.

(b) Prepare the trading account for EACH of the two years.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Financial Statements, Inventory, Ledger accounts, Purchases, Revenue, Sole Trader, Trading Account
Level: Level 1

Topic: Inventory

FA – L1 – Q41 – Preparing financial statements of a sole trader

Prepare Kweku's statement of profit or loss and financial position for 20X9 using trial balance and adjustments.

Question

The following list of account balances was extracted from the books of Kweku at 30 April 20X9.

	Dr GH¢(000)	Cr GH¢(000)
Revenue		18,955
Purchases	12,556
Inventory 1 May 20X8	3,776
Salaries and wages	2,447
Motor expenses	664
Rent	456
Rates	120
Insurance	146
Packing expenses	276
Lighting and heating expenses	665
Sundry expenses	115
Motor vehicles	2,400
Fixtures and fittings	600
Trade receivables	4,577
Trade payables		3,045
Cash at bank	3,876
Cash in hand	120
Drawings	2,050
Capital		12,844
	34,844	34,844

Notes at 30 April:
(1) Expenses which have been prepaid – rates GH¢20,000; Insurance GH¢35,000.
(2) Expenses which are owing – motor expenses GH¢56,000; rent GH¢24,000; sundry expenses GH¢26,000.
(3) Inventory GH¢4,998,000.

Required:
From the list of balances and the notes, prepare Kweku’s statement of profit or loss for the year ended 30 April 20X9 and a statement of financial position at that date.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accruals, Adjustments, Financial Statements, Inventory, Ledger accounts, Prepayments, Profit or Loss, Sole Trader, Statement of Financial Position, Trial Balance
Level: Level 1

Topic: Preparing financial statements of a sole trader

FA – L1 – Q39 – Preparing financial statements of a sole trader

Prepare a trial balance, statement of profit or loss, and statement of financial position for an antique dealer based on given balances and transactions.

Question

JOHNNY
Johnny is in business as an antique dealer. The trial balance of his business at 1 January 20X9 was as follows.

	Dr GH₵(000)	Cr GH₵(000)
Capital		5,000
Cash	4,200
Motor van	600
Trade payable – A		200
Trade receivable – B	300
Rates prepaid	100
	5,200	5,200

Cash transactions during the period to 31 March 20X9 were

	GH₵(000)
Purchases	2,000
Revenue	3,000
Drawings	500
Motor running expenses	350
Rates	250

At 31 March inventory was GH₵700,000 and rates paid in advance amounted to GH₵150,000.

Required
(a) Prepare the trial balance at 31 March 20X9.

(b) Prepare the statement of profit or loss for the period to 31 March 20X9 and a statement of financial position at that date.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cash Transactions, Financial Statements, Inventory, Prepayments, Profit or Loss, Sole Trader, Statement of Financial Position, Trial Balance
Level: Level 1

Topic: Preparing financial statements of a sole trader

FA – L1 – Q13 – Preparing financial statements of a sole trader

Prepare a statement of profit or loss and financial position for Worthe's business for the year ended 30 June 20X9 using the given trial balance and inventory data.

Question

The following is a trial balance for Worthe after his first year’s trading. You are required to prepare a statement of profit or loss for the year ended 30 June 20X9 and a statement of financial position as at that date.

Worthe – Trial balance as at 30 June 20X9

	DR GH₵(000)	CR GH₵(000)
Sales		28,794
Purchases	23,803
Rent	854
Lighting and heating expenses	422
Salaries and wages	3,164
Insurance	105
Land and buildings	50,000
Fixtures and fittings	1,000
Receivables	3,166
Sundry expenses	506
Payables		1,206
Cash at bank	3,847
Drawings	2,400
Motor vans	5,500
Motor running expenses	1,133
Capital		65,900
Total	95,900	95,900

Inventory at 30 June 20X9 was GH₵4,166,000.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Capital, Drawings, Expenses, Financial Statements, Inventory, Non-current Assets, Profit or Loss, Sole Trader, Statement of Financial Position, Trial Balance
Level: Level 1

Topic: Preparing financial statements of a sole trader

FA – L1 – Q9 – Preparing financial statements of a sole trader

Prepare profit or loss statement and financial position for Kwame's business for the year ended 31 December.

Question

The following information is available for Kwame’s business for the year ended 31 December. He started his business on 1 January.

	GH¢’000
Trade payables	1,206
Trade receivables	3,166
Purchases	23,803
Revenue	28,794
Motor van	5,500
Drawings	2,400
Insurance	105
General expenses	506
Rent and rates	854
Salaries	3,164
Inventory at 31 December	4,166
Sales returns	50
Cash at bank	3,847
Cash in hand	100
Capital introduced	65,900

Required:
Prepare a statement of profit or loss for the year ended 31 December and a statement of financial position at that date.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Expenses, Financial Statements, Inventory, Profit or Loss, Revenue, Sole Trader, Statement of Financial Position, Trial Balance
Level: Level 1

Topic: Preparing financial statements of a sole trader

Tag (SQ): Sole Trader

Search

Filter by Professional Bodies

Filter by Subject

Filter by Topics

Filter by Levels

FA – L1 – Q45 – Inventory

Record inventory in ledger accounts and prepare trading account for Mensah and Associates for 20X9, adjusting for post-year-end transactions.

FA – L1 – Q43 – Inventory

Write up inventory, purchases, and revenue accounts for two years for a sole trader.

FA – L1 – Q41 – Preparing financial statements of a sole trader

Prepare Kweku's statement of profit or loss and financial position for 20X9 using trial balance and adjustments.

FA – L1 – Q39 – Preparing financial statements of a sole trader

Prepare a trial balance, statement of profit or loss, and statement of financial position for an antique dealer based on given balances and transactions.

FA – L1 – Q13 – Preparing financial statements of a sole trader

Prepare a statement of profit or loss and financial position for Worthe's business for the year ended 30 June 20X9 using the given trial balance and inventory data.

FA – L1 – Q9 – Preparing financial statements of a sole trader

Prepare profit or loss statement and financial position for Kwame's business for the year ended 31 December.

Our Offerings

Contact Info

My Account

Get In Touch

Tag (SQ): Sole Trader

Search

Filter by Professional Bodies

Filter by Subject

Filter by Topics

Filter by Levels

FA – L1 – Q45 – Inventory

Record inventory in ledger accounts and prepare trading account for Mensah and Associates for 20X9, adjusting for post-year-end transactions.

You're reporting an error for "FA – L1 – Q45 – Inventory"

FA – L1 – Q43 – Inventory

Write up inventory, purchases, and revenue accounts for two years for a sole trader.

You're reporting an error for "FA – L1 – Q43 – Inventory"

FA – L1 – Q41 – Preparing financial statements of a sole trader

Prepare Kweku's statement of profit or loss and financial position for 20X9 using trial balance and adjustments.

You're reporting an error for "FA – L1 – Q41 – Preparing financial statements of a sole trader"

FA – L1 – Q39 – Preparing financial statements of a sole trader

Prepare a trial balance, statement of profit or loss, and statement of financial position for an antique dealer based on given balances and transactions.

You're reporting an error for "FA – L1 – Q39 – Preparing financial statements of a sole trader"

FA – L1 – Q13 – Preparing financial statements of a sole trader

Prepare a statement of profit or loss and financial position for Worthe's business for the year ended 30 June 20X9 using the given trial balance and inventory data.

You're reporting an error for "FA – L1 – Q13 – Preparing financial statements of a sole trader"

FA – L1 – Q9 – Preparing financial statements of a sole trader

Prepare profit or loss statement and financial position for Kwame's business for the year ended 31 December.

You're reporting an error for "FA – L1 – Q9 – Preparing financial statements of a sole trader"

admin

Pick a Form