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    Accounts TS 2 2023

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    Given Chigabwa

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    Accounts TS 2 2023

    Uploaded by

    Given Chigabwa
    4 views2 pages

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    ACCOUNTS TS 2 2023

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    4 views2 pages

    Accounts TS 2 2023

    Uploaded by

    Given Chigabwa

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    THE UNIVERSITY OF ZAMBIA

    SCHOOL OF HUMANITIES AND SOCIAL SCIENCES


    DEPARTMENT OF ECONOMICS
    BBA 2210 TUTORIAL SHEET 2 2023
    QUESTION 1
    You are to enter up the necessary accounts for the month of May from the following information
    relating to a small printing firm. Then balance off the accounts and extract a trial balance.
    as at 31 January 2023.
    2022
    May 1 Started in business with capital in cash of K800 and K2,200 in the bank.
    2 Bought goods on credit from the following persons: J Ward K610; P Green K214;
    M Taylor K174; S Gemmill K345; P Tone £542.
    4 Sold goods on credit to: J Sharpe K340; G Boycott K720; F Titmus K1,152.
    6 Paid rent by cash K180.
    9 J Sharpe paid us his account by cheque K340.
    10 F Titmus paid us K1,000 by cheque.
    12 We paid the following by cheque: M Taylor K174; J Ward K610.
    15 Paid carriage by cash K38.
    18 Bought goods on credit from P Green K291; S Gemmill K940.
    21 Sold goods on credit to G Boycott K810.
    31 Paid rent by cheque K230.
    QUESTION TWO

    500,000 equity shares K1 each 500,000


    60,000; 7% redeemable preference shares of 50 Ngwee each 30,000
    Equipment : cost 350,000
    Equipment: accumulated depreciation 75,000
    Motor vehicles : cost 160,000
    Motor vehicle : accumulated depreciation 25,650
    Premises 220,000
    Inventory as at 1 january 2021 51,980
    Bank 10,050
    Sales 508,420
    Purchases 225,000
    Trade receivables 130,010
    Trade payables 10,200
    Distribution costs 80,400
    Administration expenses 45,240
    Irrecoverable debts 1,250
    Income tax liability 14,360
    Rent received 8,500
    Income from investments 17,040
    Interim dividend on equity shares 7,420
    Retained earnings 51,760
    General reserves 40,420
    1,281,350 1,281,350

    Additional information:
    (i) Inventories as at 31 December 2021 are valued at K85,420.
    (ii) Insurance include K840 for one and half-year. Insurance is included in administrative
    expenses.
    (iii) Rent received includes an amount of K2,400 paid in advance as at 31 December 2021.
    (iv) Distribution costs of K750 were prepaid and administrative expenses of K800 were owing as
    at 31 December 2021.
    (v) The total trade receivables balance of K130,010 includes a balance of K1,010 which has been
    outstanding for ten months. Poland Ltd has decided to write off this balance.
    (vi) The charge for income tax liability is included in the figure for administration expenses.
    (vii) On 15 January 2021 Poland Ltd purchased premises at a cost of K105,000. This cost
    included K3,500 relating to legal costs. The legal costs of K3,500 had been included in
    administrative expenses and not in the cost of premises. Premises are not depreciated.
    (viii) On 1 April 2021 Poland Ltd purchased equipment which cost K50,000. This transaction
    was entered in the accounts on 1 April 2021.
    (ix) Provide depreciation on Equipment at 20% per annum on cost and Motor vehicles 20% per
    annum reducing balance basis
    (x) Depreciation on equipment is apportioned 20% to administrative expenses and 80% to
    distribution costs. Depreciation is charged for each month of use. Depreciation of motor vehicles
    is treated as a distribution cost.
    Required:
    (a) Statement of Profit and Loss for the year ended 31 December 2021
    (b) Statement of Financial Position as at 31 December 2021.

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