UGBS 205: FUNDAMENTALS OF ACCOUNTING METHODS

MY TUTORIAL GUIDE

Tutorial set six (6)

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 TUTUKA ENTERPRISE
Machine account

GH¢ GH¢
03/01/15 Cash (machine A) 30,000 31/12/15 Balance c/d 130,000
01/07/15 Cash (machine B) 40,000
30/09/15 Cash (machine C) 60,000
130,000 130,000
01/01/16 Balance b/d 130,000 31/12/16 Balance c/d 210,000
01/04/16 Cash (machine D) 80,000
210,000 210,000
01/01/17 Balance b//d 210,000 01/07/17 Disposal (machine C) 60,000
31/08/17 Disposal (machine A) 30,000
31/12/17 Balance c/d 120,000
210,000 210,000
01/01/18 Balance b/d 120,000

Provision for depreciation account

GH¢ GH¢
31/12/15 balance c/d 11,500 31/12/15 profit and loss 11,500
11,500 11,500
31/12/16 Balance c/d 35,500 01/01/16 balance b/d 11,500
31/12/16 profit and loss 24,000
35,500 35,500
01/07/17 Disposal (machine C) 10,500 01/01/17 Balance b/d 35,500
31/08/17 Disposal (machine A) 13,360 31/12/17 Profit and loss 19,320
31/12/17 Balance c/d 30,960
54,820 54,820
01/01/18 Balance b/d 30,960

Machine disposal account

GH¢ GH¢
01/07/17 Disposal (machine C) 60,000 01/07/17 Prov. for depre. 10,500
31/08/17 Disposal (machine A) 30,000 31/08/17 Prov. for depre. 13,360
Profit and loss 1,860 01/07/17 cash 50,000
31/08/17 cash 18,000
91,860 91,860

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 Statement OF financial position (extract)
COST ACC. DEPRE. N.B.V
NON-CURRENT ASSETS GH¢ GH¢ GH¢
Plant
31/12/15 130,000 11,500 118,500
31/12/16 210,000 35,500 174,500
31/12/17 120,000 30,960 89,040

Income statement (extract)

GH¢ GH¢
Gross profit xxx
Less expenses
Depreciation on machine;
2015 (11,500)
2016 (24,000)
2017 (19320)

Calculation of depreciation

Year ending Machine A Machine B Machine C Machine D TOTAL

GH¢ GH¢ GH¢ GH¢ GH¢

31/12/2015 20% x 30,000 20% x 40,000 10% x 60,000 x - 11,500

= 6,000 x 6/12 = 4,000 3/12 = 1,500

31/12/2016 20% x 24,000 20% x 36,000 10% x 60,000 = 10% x 80,000 24,000
= 4,800 = 7,200 6,000 x 9/12= 6,000

31/12/2017 20% x 19,200 20% x 28,800 10% x 60,000 10% x 80,000 19,320
x 8/12= 2,560 = 5,760 x 6/12 = 3,000 = 8,000

ACC. DEPRE. 13,360 16,960 10,500 14,000

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 BOGOBIRI

Plant account

GH¢ GH¢
01/01/12 Cash (plant no.1) 40,000 31/12/12 Balance c/d 40,000
40,000 40,000
01/01/13 Balance b/d 40,000 31/12/13 Balance c/d 110,000
30/06/13 Cash (plant no.2) 70,000
110,000 110,000
01/01/14 Balance b/d 110,000 31/12/14 Balance c/d 190,000
31/12/14 Cash (plant no.3) 80,000
190,000 190,000
01/01/15 Balance b/d 190,000 31/12/15 Balance c/d 29,800
01/12/15 Cash (plant no.4) 108,000
298,000 298,000
01/01/16 Balance b/d 298,000 30/06/16 Disposal (plant no.3) 80,000
01/10/16 Disposal (plant no.1) 40,000
31/12/16 Balance c/d 178,000
298,000 298,000
01/01/17 Balance b/d 178,000

Plant disposal account

GH¢ GH¢
30/06/16 Plant (no.3) 80,000 30/06/16 Prov. for depre. 16,000
01/10/16 Plant (no.1) 40,000 01/10/16 Prov. for depre. 23,616
Cash (plant no.3) 60,000
Cash (plant no.1) 20,000
Profit and loss 384
120,000 120,000

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 Provision for depreciation account

GH¢ GH¢
31/12/12 balance c/d 8,000 31/12/12 profit and loss 8,000
8,000 8,000
31/12/13 balance c/d 21,400 01/01/13 balance b/d 8,000
31/12/13 profit and loss 13,400
21,400 21,400
31/12/14 balance c/d 33,520 01/01/14 balance b/d 21,400
31/12/14 profit and loss 12,120
33520 33,520
31/12/15 balance c/d 71,416 01/01/15 balance b/d 33,520
31/12/15 profit and loss 37,896
71,416 71,416
30/06/16 disposal (plant no.1) 16,000 01/01/16 balance b/d 71,416
01/10/16 disposal (plant no.2) 23,616 31/12/16 profit and loss 17,800
31/12/16 balance c/d 49,600
89,216 89216
01/01/17 balance b/d 49,600

Calculation of depreciation

Year ending Plant no. 1 Plant no.2 Plant no. 3 Plant no.4 TOTAL
GH¢ GH¢ GH¢ GH¢ GH¢

31/12/2012 20% x 40,000 - - - 8,000

= 8,000

31/12/2013 20% x 32,000 10% x 70,000 - - 13,400

= 6,400 = 7,000

31/12/2014 20% x 25,000 10% x 70,000 - - 12,120

= 5,120 = 7,000

31/12/2015 20% x 20,480 10% x 70,000 20% x 80,000 10% x 108,000 37,896
= 4,096 = 7,000 = 16,000 = 10,800

31/12/2016 - 10% x 70,000 - 10% x 108,000 17,800

= 7,000 = 10,800

ACC. DEPRE. 23,616 28,000 16,000 21,600 -

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 AKAPORISO

VEHICLES ACCOUNT
GH¢ GH¢
01/04/15 Bank (V1) 50,000 31/12/15 Balance c/d 225,000
30/06/15 Bank (V2) 75,000
30/09/15 Bank (V3) 100,000
225,000 225,000
01/01/16 Balance b/d 225,000 31/12/16 Balance c/d 310,000
02/01/16 Bank (V4) 85,000
310,000 310,000
01/01/17 Balance b/d 310,000 30/06/17 Disposal (V1) 50,000
03/10/17 Disposal (V3) 100,000
31/12/17 Balance c/d 160,000
310,000 310,000
01/01/18 Balance b/d 160,000

PROVISION FOR DEPRECIATION ACCOUNT

GH¢ GH¢
31/12/15 Balance c/d 16,875 31/12/15 Profit and loss 16,875
16,875 16,875
31/12/16 Balance c/d 68,625 01/01/16 Balance b/d 16,875
31/12/16 Profit and loss 51,750
68,625 68,625
30/06/17 Disposal 19,400 01/01/17 Balance b/d 68,625
30/09/17 Disposal 31,250 31/12/17 Profit and loss 40,750
31/12/17 Balance c/d 58,725
109,375 109,375
01/01/18 Balance b/d 58,725

VEHICLE DISPOSAL ACCOUNT

GH¢ GH¢
30/06/17 Disposal (V1) 50,000 30/06/17 Prov. for depre. 19,400
03/10/17 Disposal (V3) 100,000 30/09/17 Prov. for depre. 31,250
30/06/17 Bank 27,000
03/10/17 Bank 65,000
Profit and loss 7,350
150,000 150,000

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 Statement of financial position (extract)
COST ACC. DEPRE. N.B.V
NON-CURRENT ASSETS GH¢ GH¢ GH¢
Vehicles
31/12/15 225,000 16,875 208,125
31/12/16 310,000 68,625 241,375
31/12/17 160,000 58,725 101,275

INCOME STATEMENT (extract)

GH¢ GH¢
Gross profit xxx
Less expenses
Depreciation on vehicle;
2015 (16,875)
2016 (51,750)
2017 (40,750)

Calculation of depreciation

Year ending Vehicle 1- Vehicle 2 - Vehicle 3 - Vehicle 4 - TOTAL

Tico Opel Opel Tico
GH¢ GH¢ GH¢ GH¢ GH¢

31/12/2015 20% x 50,000 15% x 75,000 15% x 100,000 - 16,875

x 9/12 =7,500 x 6/12 = 5,625 x 3/12 = 3,750

31/12/2016 20% x 42,500 15% x 75,000 15% x 100,000 20% x 85,000 51,750
= 8,500 = 11,250 = 15,000 = 17,000

31/12/2017 20% x 34,000 15% x 75,000 15% x 100,000 20% x 68,000 40,750
x 6/12 =3,400 = 11,250 x 10/12 = = 13,600
12,500

ACC. DEPRE. 19,400 28,125 31,250 30,600

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 ALL SAINTS LTD

EQUIPMENT ACCOUNT
GH¢ GH¢
01/01/17 Balance b/f 1,200,000 31/12/17 Disposal 50,000
01/05/17 Cash 120,000 31/12/17 Balance c/d 1,395,000
01/07/17 Cash 125,000
1,445,000 1,445,000
01/01/18 Balance b/d 1,395,000

MOTOR VAN ACCOUNT

GH¢ GH¢
01/01/17 Balance b/f 960,000 31/12/17 Disposal 32,000
01/05/17 Cash 120,000 31/12/17 Balance c/d 1,103,000
01/07/17 Cash 55,000
1,135,000 1,135,000
0101/18 Balance b/d 1,103,000

PROVISION FOR DEPRECIATION FOR EQUIPMENT

GH¢ GH¢
31/12/17 Disposal 35,000 01/01/17 Balance b/f 160,000
31/12/17 Balance c/d 393,500 31/12/17 Profit & loss 268,500
428,500 428,500
01/01/18 Balance b/d 393,500

PROVISION FOR DEPRECIATION FOR MOTOR VAN

GH¢ GH¢
31/12/17 Disposal 19,200 01/01/17 Balance b/f 80,000
31/12/17 Balance c/d 220,925 31/12/17 Profit and loss 160,125
240,125 240,125
01/01/18 Balance b/d 220,925

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 DISPOSAL OF EQUIPMENT ACCOUNT

GH¢ GH¢
31/12/17 Equipment 50,000 31/12/17 Prov. for depre. 35,000
31/12/17 Profit & loss 27,000 31/12/17 Cash (20,000 + 22,000) 42,000
77,000 77,000

DISPOSAL OF MOTOR VAN ACCOUNT

GH¢ GH¢
31/12/17 Motor van 32,000 31/12/17 Prov. for depre. 19,200
31/12/17 Cash 10,000
31/12/17 Profit & loss 2,800
32,000 32,000

Workings
Calculation of depreciation as at 31/12/201
Equipment

01/01/17 – 31/12/17: 1,200,000 x 20% = GH¢240,000

01 /05/17 – 31/12/17: 120,000 x 20% x 8/12 = GH¢16,000
01/07/17 – 31/12/17: (5 x 25,000) x 20% x 6/12 = GH¢12,500
GH¢268500
Motor van
01/01/17 – 31/12/17: 960,000 x 15% = GH¢144,000
01 /05/17 –31/12/17: (2 x 60,000) x 15% x 8/12 = GH¢12,000
01/07/17 – 31/12/17: 55,000 x 15% x 6/12 = GH¢4,125
GH¢160,125
Accumulated depreciation on disposed equipment

20% x (2 x 25,000) x 3.5years = GH¢35,000

Accumulated depreciation on motor van
15% x 32,000 x 4years = GH¢19,200

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 ALL SHALL PASS

PLANT AND EQUIPMENT ACCOUNT

GH¢ GH¢
01/01/06 Cash (plant) 37,500 31/12/06 Balance c/d 52,500
Cash (equipment) 15,000
52,500 52,500
01/01/07 Balance b/d 52,500 31/12/07 Balance c/d 94,500
30/06/07 Cash (equipment) 27,000
31/10/07 Cash (plant) 15,000
94,500 94,500
01/01/08 Balance b/d 94,500 31/12/08 Balance c/d 94,500
94,500 94,500
01/01/09 Balance b/d 94,500 03/09/09 Disposal 37,500
31/12/09 Balance c/d 57,000
94,500 94,500
01/01/10 Balance b/d 57,000

PROVISION FOR DEPRECIATION ACCOUNT

GH¢ GH¢
31/12/06 Balance c/d 5,250 31/12/06 Profit and loss 5,250
5,250 5,250
31/12/07 Balance b/d 12,975 01/01/07 Balance b/d 5,250
31/12/07 Profit and loss 7,725
12,975 12,975
31/12/08 Balance b/d 21,562.50 01/01/08 Balance b/d 12,975
31/12/08 Profit and loss 8,587.50
21,562.50 21,562.50
03/09/09 Disposal 10,162.50 01/01/09 Balance b/d 21,562.50
31/12/09 Balance c/d 16,815 31/12/09 Profit and loss 5,415
26,977.50 26,977.50
01/01/10 Balance b/d 16,815

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 PLANT DISPOSAL ACCOUNT
GH¢ GH¢
03/09/09 Plant and equipment 37,500 03/09/09 Prov. for depre. 10,162.50
03/09/09 Cash 24,800
Profit and loss 2,537.50
37,500 37,500

Calculation of depreciation

Year ending Old plant New plant Old New TOTAL

equipment equipment
GH¢ GH¢ GH¢ GH¢ GH¢

31/12/2006 10% x 37,500 - 10% x 15,000 - 5,250

=3,750 = 1,500

31/12/2007 10% x 33,750 10% x 15,000 10% x 15,000 10% x 27,000 7,725
= 3,375 = 1,500 = 1,500 x 6/12 = 1,350

31/12/2008 10% x 30,375 10% x 13,500 10% x 15,000 10% x 27,000 8,587.5
= 3,037.5 = 1,350 = 1,500 = 2,700

31/12/2009 - 10% x 12,150 10% x 15,000 10% x 27,000 5,415

= 1,215 = 1,500 = 2,700

ACC. DEPRE. 10,162.5 4,065 9,000 6,750

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