Tag (SQ): Trial Balance

Search 500 + past questions and counting.

FR – L2 – Q69 – Presentation of Financial Statements

Prepare Nova Bekasi Ltd's statement of profit or loss and financial position for 20X5 per IAS 1, considering inventory, depreciation, tax, and goodwill impairment.

Question

NOVA BEKASI LIMITED
The list of balances of Nova Bekasi Limited shows the following balances at 31 December 20X5.

	Dr GH₵’000	Cr GH₵’000
Share capital (600,000 shares)		320
General reserve		20
Accumulated profit 1 January 20X5		50
Inventory (goods for resale) at 1 January 20X5	60
Revenue		1,000
Purchases	540
Purchases returns		26
Sales returns	28
Carriage outwards	28
Warehouse wages	80
Sales representatives salaries	60
Administrative wages	40
Warehouse plant and equipment – cost	126
Accumulated depreciation – 1 January 20X5		50
Delivery vehicle hire	20
Goodwill	100
Distribution expenses	10
Administrative expenses	30
Directors’ salaries (charge to administrative expenses)	30
Rental income		16
Trade receivables	330
Cash at bank	60
Trade payables		60
	1,542	1,542

Additional information
(1) Inventory (goods for resale) at 31 December 20X5 amounted to GH₵100,000.
(2) Annual depreciation on warehouse plant and equipment of GH₵32,000 should be provided.
(3) Income tax for 20X5 should be taken as GH₵50,000.
(4) The recoverable amount of goodwill was only GH₵90,000.

Required
Prepare the company’s statement of profit or loss for the year to 31 December 20X5 and a statement of financial position at that date in accordance with IAS 1 Presentation of Financial Statements.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Depreciation, Financial Reporting, Financial Statements, Goodwill Impairment, IAS 1, Income Tax, Inventory Valuation, Statement of Financial Position, Statement of profit or loss, Trial Balance
Level: Level 2

Topic: Presentation of Financial Statements, Presentation of Financial Statements (IAS 1)

FR – L2 – Q67 – Presentation of Financial Statements

Prepare Wenchi Exports' profit/loss statement and financial position for 20X4 using trial balance, with adjustments for inventory, patents, revaluation, bad debts, and tax.

Question

The trial balance of Wenchi Exports Limited at 31 December 20X4 is as follows.

	GH₵ in million
	Dr	Cr
Patent rights	60
Work-in-progress, 1 January 20X4	125
Buildings at cost	300
Ordinary share capital		600
Revenue		1,740
Staff costs	260
Accumulated depreciation on buildings, 1 January 20X4		60
Inventories of finished games, 1 January 20X4	155
Consultancy fees	44
Directors’ salaries	360
Computers at cost	50
Accumulated depreciation on computers, 1 January 20X4		20
Dividends paid	125
Cash	440
Receivables	420
Trade payables		294
Sundry expenses	94
Accumulated profits, 1 January 20X4		279
	2,633	2,633

The following information is also relevant.
(1) Closing inventories of finished games are valued at GH₵180 million. Work in progress has increased to GH₵140 million.
(2) The patent rights relate to a computer program with a three-year lifespan.
(3) On 1 January 20X4 buildings were revalued to GH₵360 million. This has not yet been reflected in the accounts. Computers are depreciated over five years. Buildings are now to be depreciated over 30 years.
(4) An allowance for bad debts (irrecoverable debts) of 5% is to be created.
(5) There is an estimated bill for current tax of GH₵120 million which has not yet been recognised.

Required
Prepare a statement of profit or loss (analysing expenses by nature) for the year ended 31 December 20X4 and a statement of financial position as at that date.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Amortisation, Bad Debts, Depreciation, Inventory Valuation, Revaluation, Statement of Financial Position, Statement of profit or loss, Tax Provision, Trial Balance
Level: Level 2

Topic: Presentation of Financial Statements (IAS 1)

FR – L2 – Q66 – Presentation of Financial Statements

Prepare profit or loss and financial position statements for Kumasi Healthcare Limited using trial balance and additional info.

Question

The following trial balance has been extracted from the books of Kumasi Healthcare Limited, at 31 March 20X5.

	GH₵ 000	GH₵ 000
Administrative expenses	210
Share capital (ordinary shares of GH₵ 1 fully paid)		600
Trade receivables	470
Bank overdraft		80
Income tax (overprovision in 20X4)		25
Retirement benefit liability		180
Distribution costs	420
Non-current asset investments	560
Investment income		75
Plant and equipment
At cost	750
Accumulated depreciation (at 31 March 20X5)		220
Accumulated profit (at 1 April 20X4)		240
Purchases	960
Inventories (at 1 April 20X4)	140
Trade payables		280
Revenue		1,950
Interim dividend paid	20
	3,630	3,630

Additional information
(1) Inventories at 31 March 20X5 were valued at GH₵ 150,000.
(2) The following items are already included in the balances listed in the above trial balance.

	Distribution costs GH₵ 000	Administrative costs GH₵ 000
Depreciation (for year to 31 March 20X5)	27	20

(3) A final dividend of GH₵ 120,000 was proposed but not yet paid.
(4) The retirement benefit liability increased by GH₵ 16,000 during the year which has not been included in the trial balance.
(5) Income tax for the year is estimated at GH₵ 29,000.

Required
Prepare a statement of profit or loss (analysing expenses by function) for the year ended 31 March 20X5 and a statement of financial position at 31 March 20X5.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Financial Position, Financial Statements, Healthcare, Income Tax, Inventory, Profit or Loss, Trial Balance
Level: Level 2

Topic: Presentation of Financial Statements (IAS 1)

FR – L2 – Q65 – Presentation of Financial Statements

Prepare a statement of profit or loss and financial position for Lorry Limited using the trial balance and additional info for 20X4.

Question

LORRY LIMITED
The trial balance of Lorry Limited at 31 December 20X4 is as follows.

	GH₵ in million
Administration	86
	5
	918
	189
	175
	2,830
	20
	400
	18
	1,562
	3,304
	6,313

The following information is also relevant.
(1) Inventories on 31 December 20X4 amounted to GH₵127 million.
(2) Current tax of GH₵75 million is to be provided.
(3) The loan is repayable by equal annual instalments over three years.

Required
Prepare a statement of profit or loss (analysing expenses by function) for the year ended 31 December 20X4 and a statement of financial position as at that date.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Financial Statements, Income Tax, Inventory, Loan repayment, Statement of Financial Position, Statement of profit or loss, Trial Balance
Level: Level 2

Topic: Accounting for Income Taxes (IAS 12)

FA – L1 – Q76 – Preparation of limited liability company financial statements

Prepare Etabila Travel Limited's statement of profit or loss for 20X9 and statement of financial position as at 31 December 20X9 per IAS 1.

Question

The trial balance of Etabila Travel Limited as at 31 December 20X9 is as follows:

	DR (GH¢000)	CR (GH¢000)
Ordinary share capital (GH¢1 shares)		600
Cash at bank	23
Tax (over-provision in 20X8)		25
10% loan notes (repayable in 2020)		300
General administrative expenses	300
Administrative salaries	46
General distribution expenses	160
Distribution salaries	24
Directors’ remuneration	35
Loan notes interest paid	10
Development costs (incurred during 20X9)	30
Dividend paid	15
Dividends received		30
Investments	45
Land and buildings – at cost	2,600
– accumulated depreciation at 1 January 20X9		200
Plant and machinery – at cost	320
– accumulated depreciation at 1 January 20X9		75
Retained earnings at 1 January 20X9		64
Purchases and sales	1,250	2,250
Profit on disposal of factory		60
Trade receivables and trade payables	100	220
Inventory at 1 January 20X9	60
Irrecoverable debts	5
Total	4,824	4,824

Additional Information:
(1) Closing inventory is valued at the lower of cost or net realisable value. At 31 December 20X9 it amounted to GH¢55,000.
(2) Non-current assets are depreciated on a straight-line basis assuming no residual value. The following depreciation rates are to be applied:

Buildings: 5%
Plant and machinery: 20%
The depreciation charge for the year is to be apportioned as follows:

	Distribution costs	Administrative expenses
Buildings	70%	30%
Plant and machinery	75%	25%

The cost of the land was GH¢3,200,000. There were no purchases or sales of non-current assets during the year.
(3) Development costs are an intangible asset and are to be amortised (depreciated) over a three-year period. The amortisation (depreciation) charge is to be allocated to cost of sales.
(4) The profit (after tax) on disposal of the factory is considered to be a material amount for which separate disclosure is required.
(5) Tax on the profits for the year is estimated at GH¢95,000.
(6) Directors’ remuneration is to be analysed between distribution costs and administrative expenses as follows:

Distribution: GH¢15,000
Administration: GH¢20,000

Required:
Prepare the company’s statement of profit or loss for the year ended 31 December 20X9 and statement of financial position as at 31 December 20X9.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Amortisation, Depreciation, Financial Statements, IAS 1, Limited Liability Company, Non-current Assets, Profit or Loss, Statement of Financial Position, Taxation, Trial Balance
Level: Level 1

Topic: Preparation of limited liability company financial statements

FA – L1 – Q73 – Preparation of limited liability company financial statements

Prepare Kamisa Health Limited's statement of profit or loss and financial position for 31 March 20X9 per IAS 1, using trial balance and additional info.

Question

The following trial balance has been extracted from the books of account of Kamisa Health Limited, a limited liability company, at 31 March 20X9.

Description	ZMW ‘000 (DR)	ZMW ‘000 (CR)
Administrative expenses	210
Share capital (ordinary shares of ZMW 1 fully paid)		600
Trade receivables	470
Bank overdraft		80
Income tax (overprovision in 20X8)		25
Retirement benefit liability		180
Distribution costs	420
Non-current asset investments	560
Investment income		75
Plant and equipment (At cost)	750
Accumulated depreciation (at 31 March 20X9)		220
Accumulated profit (at 1 April 20X8)		240
Purchases	960
Inventories (at 1 April 20X8)	140
Trade payables		260
Revenue		1,950
Dividend paid	120
Total	3,630	3,630

Additional Information
(1) Inventories at 31 March 20X9 were valued at ZMW 150,000.
(2) The following items are already included in the balances listed in the above trial balance.
(3) The income tax expense based on the profit on ordinary activities is estimated to be ZMW 54,000.
(4) The retirement benefit liability is to be increased by ZMW 16,000. The increase should be charged to administrative expenses. No retirement benefits are expected to be paid for the foreseeable future.

Required:
Prepare the company’s statement of profit or loss for the year to 31 March 20X9 and a statement of financial position at that date in accordance with IAS 1 Presentation of Financial Statements.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Financial Statements, IAS 1, Inventory, Limited Company, Profit or Loss, Retirement Benefits, Statement of Financial Position, Taxation, Trial Balance
Level: Level 1

Topic: Preparation of limited liability company financial statements

FA – L1 – Q72 – Preparing financial statements of a sole trader

Prepare Zanko Ventures' statement of profit or loss for 20X9 using trial balance and adjustments.

Question

(a) Distinguish between capital expenditure and revenue expenditure.
(b) (i) The following trial balance was extracted from the books of Zanko Ventures, a second-hand bags dealer as at 31st December, 20X9.

Description	DR (GH₵)	CR (GH₵)
Inventory	120,000
Vehicle (Cost)	150,000
Trade receivables	25,000
Accumulated depreciation: Vehicle		30,000
Accumulated depreciation: Furniture & fittings		10,120
Trade payables		100,000
Drawings	120,000
General expenses	65,000
Allowance for receivables		2,500
Rate & rent	14,000
Insurance	5,000
Irrecoverable debt	7,000
Discount received		25,150
Discount allowed	15,160
Bank balance	165,240
Wages & salaries	250,000
Sundry expenses	6,150
Vehicle running expenses	15,650
Furniture & fittings	50,600
Repairs to the shop	6,500
Purchases	650,120
Sales		1,079,130
Capital		473,520
Total	1,720,420	1,720,420

The following additional information is provided:
(i) Allowance for receivables is to be reduced by 10%.
(ii) Rate and rent has been paid in advance by two (2) months. Note that Zanko Ventures pays GH₵1,000 each month.
(iii) Inventory as at 31st December, 20X9 is GH₵80,150.
(iv) A bill of GH₵6,150 for vehicle running was outstanding as at 31st December, 20X9.
(v) The enterprise provides depreciation as follows:

Vehicle: 20% per annum on straight-line basis.
Furniture and fittings: 20% per annum on straight-line basis.

You are required to:
(i) Prepare the statement of profit or loss for the year ending 31st December 20X9.

(ii) Prepare the statement of financial position as at 31st December 20X9.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accruals, Allowances, Bad Debts, Depreciation, Financial Statements, Inventory, Prepayments, Sole Trader, Statement of Financial Position, Trial Balance
Level: Level 1

Topic: Preparing financial statements of a sole trader

FA – L1 – Q64 – Correction of Errors

Prepare journal entries to correct errors in Mensah and Partners' trial balance, including irrecoverable debts and misposted transactions.

Question

The trial balance of Mensah and Partners did not agree as at 31 December 20X9, and the difference was carried to a suspense account. On scrutinising the books of account, the following types of errors were detected:
(i) Receivables include GH₵15,000 which are irrecoverable and need to be written off.
(ii) Goods invoiced at GH₵4,600 were returned by a customer. It was entered in the purchases book and posted from there to a creditor’s account as GH₵6,400.
(iii) A cheque of GH₵8,000 received from a customer was not posted to his ledger account. Moreover, the corresponding sales invoice for GH₵12,000 was incorrectly passed through the sales day book as GH₵2,000.
(iv) Sales include goods sold for cash amounting to GH₵25,000 on behalf of Mr Kwame. Mensah and Partners were entitled to a commission of 10% on the sales plus selling expenses, for which no adjustment was made. The related selling expenses amounted to GH₵1,500.
(v) An amount of GH₵3,800 owed by Y & Co. for goods supplied was to be adjusted against an amount of GH₵8,500 owed to Y & Co. No entry has been made in this regard.
(vi) A purchase of GH₵15,100 was entered in the purchase day book as GH₵1,500 and posted to the supplier’s account as GH₵5,100.
(vii) Goods invoiced at GH₵23,000 and returned by J K, a debtor, were entered in the purchase day book and posted therefrom to K J, a creditor, as GH₵32,000.
(viii) A supplier’s invoice for GH₵12,300 had been entered in the purchase day book on 28 December 20X9. However, the goods were received on 2 January 20Y0.
(ix) Some items of furniture which stood in the books at GH₵24,000 on 1 January 20X9 were disposed of on 30 June 20X9 in exchange for new furniture costing GH₵20,800. A net invoice of GH₵9,200 was passed through the purchase day book. Depreciation on furniture is charged at 10% on written down value.
(x) Mensah and Partners maintains an allowance of 5% of the gross amount of receivables.

Required:
Prepare journal entries to rectify the errors identified above.
(Narrative is not required.)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Bad Debt, Depreciation, Error Correction, Inventory, Journal entries, Purchases, Receivables, Sales, suspense account, Trial Balance
Level: Level 1

Topic: Correction of Errors

FA – L1 – Q63 – Correction of Errors

Prepare journal entries to correct errors in B.B. Ventures' trial balance, including unposted returns, sales errors, and inventory issues.

Question

The trial balance prepared by B.B. Ventures showed a difference of GH₵47,060, which was put on the credit side of a suspense account. An investigation disclosed that:
(i) The total of purchase return day book amounting to GH₵16,160 had not been posted to the ledger.
(iii) The sales account had been added short by GH₵10,000.
(iv) An asset bought four years ago for GH₵7,000 and depreciated to GH₵1,200 had been sold for GH₵1,500 at the beginning of the year. The receipt of cash has been posted in the bank book but corresponding entries have not been recorded.
(v) A credit sale of GH₵1,470 had been credited to the customer’s account as GH₵1,740. An irrecoverable debt of GH₵1,560 has to be written off. Allowance for receivables is to be maintained at 10% of receivables. Receivables appearing in the trial balance are GH₵23,390, and the allowance for receivables account shows a credit balance of GH₵2,320.
(vi) A sub-total of GH₵29,830 on the list of closing inventory had been carried over as GH₵29,380, and another sheet had been overcast by GH₵1,000.

Required:
(a) Prepare journal entries to correct the above errors. (Narrations are not required)

(b) Explain why it is important that the accountant of B.B. Ventures behaves in an ethical manner when preparing financial statements.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Error Correction, Ethics, Financial accounting, Financial Reporting, Professional conduct, Trial Balance
Level: Level 1

Topic: Correction of Errors

FA – L1 – Q62 – Correction of Errors

Prepare journal entries to correct errors in Western Medical Supplies' trial balance as of June 30, 20X9.

Question

The trial balance of Western Medical Supplies showed a short credit of ZM₵6,264 as at June 30, 20X9. A suspense account was opened for the difference and the profit for the year was then calculated at ZM₵956,180.
The following errors and adjustments were discovered subsequently:
(i) An invoice of ZM₵3,700 was debited to purchases but the goods were received after year-end and were not included in the closing inventory.
(ii) Store equipment costing ZM₵8,100 and having a book value of ZM₵3,600 was sold for ZM₵2,500. Cash was debited and store equipment was credited. No other entries were made.
(iii) A cheque of ZM₵1,850 received from a customer was dishonoured on June 25, 20X9 but no entry was made in the books. Cash there against was received after year-end.
(iv) Purchase of office equipment costing ZM₵15,200 was entered in the purchases account. Depreciation on office equipment is provided at the rate of 10%.
(v) A purchase invoice of ZM₵197 was debited to the supplier account as ZM₵917.
(vi) Purchase returns book was under-casted by ZM₵650.
(vii) The opening balance of furniture account was brought forward as ZM₵18,300 instead of ZM₵13,800. Depreciation on furniture is provided at the rate of 10%.
(viii) A balance of ZM₵730 in the sales ledger is to be offset against a balance of ZM₵880 in the purchase ledger.

Required:
(a) Prepare journal entries to adjust the above items.

(b) Recalculate the net profit for the year.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Depreciation, Error Correction, Inventory, Net profit, Non-current Assets, Payables, Profit Adjustment, Receivables, suspense account, Trial Balance
Level: Level 1

Topic: Correction of Errors

Tag (SQ): Trial Balance

Filter by Professional Bodies

Filter by Subject

Filter by Topics

Filter by Levels

FR – L2 – Q69 – Presentation of Financial Statements

Prepare Nova Bekasi Ltd's statement of profit or loss and financial position for 20X5 per IAS 1, considering inventory, depreciation, tax, and goodwill impairment.

FR – L2 – Q67 – Presentation of Financial Statements

Prepare Wenchi Exports' profit/loss statement and financial position for 20X4 using trial balance, with adjustments for inventory, patents, revaluation, bad debts, and tax.

FR – L2 – Q66 – Presentation of Financial Statements

Prepare profit or loss and financial position statements for Kumasi Healthcare Limited using trial balance and additional info.

FR – L2 – Q65 – Presentation of Financial Statements

Prepare a statement of profit or loss and financial position for Lorry Limited using the trial balance and additional info for 20X4.

FA – L1 – Q76 – Preparation of limited liability company financial statements

Prepare Etabila Travel Limited's statement of profit or loss for 20X9 and statement of financial position as at 31 December 20X9 per IAS 1.

FA – L1 – Q73 – Preparation of limited liability company financial statements

Prepare Kamisa Health Limited's statement of profit or loss and financial position for 31 March 20X9 per IAS 1, using trial balance and additional info.

FA – L1 – Q72 – Preparing financial statements of a sole trader

Prepare Zanko Ventures' statement of profit or loss for 20X9 using trial balance and adjustments.

FA – L1 – Q64 – Correction of Errors

Prepare journal entries to correct errors in Mensah and Partners' trial balance, including irrecoverable debts and misposted transactions.

FA – L1 – Q63 – Correction of Errors

Prepare journal entries to correct errors in B.B. Ventures' trial balance, including unposted returns, sales errors, and inventory issues.

FA – L1 – Q62 – Correction of Errors

Prepare journal entries to correct errors in Western Medical Supplies' trial balance as of June 30, 20X9.

Our offerings

Community

Contact Info

Customer

Get In Touch

Tag (SQ): Trial Balance

Filter by Professional Bodies

Filter by Subject

Filter by Topics

Filter by Levels

FR – L2 – Q69 – Presentation of Financial Statements

Prepare Nova Bekasi Ltd's statement of profit or loss and financial position for 20X5 per IAS 1, considering inventory, depreciation, tax, and goodwill impairment.

You're reporting an error for "FR – L2 – Q69 – Presentation of Financial Statements"

FR – L2 – Q67 – Presentation of Financial Statements

Prepare Wenchi Exports' profit/loss statement and financial position for 20X4 using trial balance, with adjustments for inventory, patents, revaluation, bad debts, and tax.

You're reporting an error for "FR – L2 – Q67 – Presentation of Financial Statements"

FR – L2 – Q66 – Presentation of Financial Statements

Prepare profit or loss and financial position statements for Kumasi Healthcare Limited using trial balance and additional info.

You're reporting an error for "FR – L2 – Q66 – Presentation of Financial Statements"

FR – L2 – Q65 – Presentation of Financial Statements

Prepare a statement of profit or loss and financial position for Lorry Limited using the trial balance and additional info for 20X4.

You're reporting an error for "FR – L2 – Q65 – Presentation of Financial Statements"

FA – L1 – Q76 – Preparation of limited liability company financial statements

Prepare Etabila Travel Limited's statement of profit or loss for 20X9 and statement of financial position as at 31 December 20X9 per IAS 1.

You're reporting an error for "FA – L1 – Q76 – Preparation of limited liability company financial statements"

FA – L1 – Q73 – Preparation of limited liability company financial statements

Prepare Kamisa Health Limited's statement of profit or loss and financial position for 31 March 20X9 per IAS 1, using trial balance and additional info.

You're reporting an error for "FA – L1 – Q73 – Preparation of limited liability company financial statements"

FA – L1 – Q72 – Preparing financial statements of a sole trader

Prepare Zanko Ventures' statement of profit or loss for 20X9 using trial balance and adjustments.

You're reporting an error for "FA – L1 – Q72 – Preparing financial statements of a sole trader"

FA – L1 – Q64 – Correction of Errors

Prepare journal entries to correct errors in Mensah and Partners' trial balance, including irrecoverable debts and misposted transactions.

You're reporting an error for "FA – L1 – Q64 – Correction of Errors"

FA – L1 – Q63 – Correction of Errors

Prepare journal entries to correct errors in B.B. Ventures' trial balance, including unposted returns, sales errors, and inventory issues.

You're reporting an error for "FA – L1 – Q63 – Correction of Errors"

FA – L1 – Q62 – Correction of Errors

Prepare journal entries to correct errors in Western Medical Supplies' trial balance as of June 30, 20X9.

You're reporting an error for "FA – L1 – Q62 – Correction of Errors"

Our offerings

Community

Contact Info

Customer

Get In Touch

admin

Pick a Form