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    Ugbs 208 Assignment One

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    quarcoonathaniel025
    The document contains two accounting questions asking to prepare departmental income statements and statements of financial position for Well-Done and a manufacturing company Unity. For Well-Done, adjustments are given regarding inventory, interdepartmental transfers, wages apportionment. For Unity, adjustments include closing inventory values, depreciation policies, outstanding expenses, rent prepayment, doubtful debts provision, and cost of goods transferred.

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    Ugbs 208 Assignment One

    Uploaded by

    quarcoonathaniel025
    10 views3 pages
    The document contains two accounting questions asking to prepare departmental income statements and statements of financial position for Well-Done and a manufacturing company Unity. For Well-Done, adjustments are given regarding inventory, interdepartmental transfers, wages apportionment. For Unity, adjustments include closing inventory values, depreciation policies, outstanding expenses, rent prepayment, doubtful debts provision, and cost of goods transferred.

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    UGBS 208 ASSIGNMENT ONE

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    The document contains two accounting questions asking to prepare departmental income statements and statements of financial position for Well-Done and a manufacturing company Unity. For Well-Done, adjustments are given regarding inventory, interdepartmental transfers, wages apportionment. For Unity, adjustments include closing inventory values, depreciation policies, outstanding expenses, rent prepayment, doubtful debts provision, and cost of goods transferred.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    10 views3 pages

    Ugbs 208 Assignment One

    Uploaded by

    quarcoonathaniel025
    The document contains two accounting questions asking to prepare departmental income statements and statements of financial position for Well-Done and a manufacturing company Unity. For Well-Done, adjustments are given regarding inventory, interdepartmental transfers, wages apportionment. For Unity, adjustments include closing inventory values, depreciation policies, outstanding expenses, rent prepayment, doubtful debts provision, and cost of goods transferred.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    UNIVERSITY OF GHANA BUSINESS

    SCHOOL
    DEPARTMENT OF ACCOUNTING
    UGBS 208: FUNDAMENTALS OF ACCOUNTING METHODS II
    Assignment one Date of submission – 13th June 2023 (after lectures or
    tutorials)

    Question one

    Departmental Accounts

    The following trial balance was extracted from Well-Done’s books as of 30th December 2021.

    GHC GHC
    Inventory 1/1/2021
    Department A 22800
    Department B 1960
    Purchases – Department A 79200
    Department B 74800
    Sales - Department A 148000
    Department B 132600
    Return outwards 5000
    Wages and salaries 45000
    Advertising 14400
    Land and building 46000
    Trade debtors and creditors 96000 64580
    Carriage outwards 4800
    Return inwards 12600
    Rent and rates 36600
    Furniture and fittings (cost 60000) 50000
    Sundry expenses 13800
    Provision for bad debts 1500
    Bank balance 23680
    Capital 200000
    Drawings 30040
    723040 616260

    Required: Prepare the departmental income statement and statement of financial position for
    the as at that date after making the following adjustments
    1. Bad debts amounting to Ghc3600 should be written off for the year. Provision for
    doubtful debts is also to increase to 5% of the outstanding trade debtors balance.
    2. Advertising expenses outstanding amount to Ghc900
    3. Furniture and fitting is depreciated at 10% per annum.
    4. The inventory balance at 31/12/2020 Department A Ghc 39200 and Department B
    Ghc 14000.
    5. Department A transferred goods worth Ghc 5000 to Department B at cost plus 20%
    profit. At the end of the year, goods transferred amounting to 30 percent of the closing
    stock of department B remained unsold.
    6. Department B also provided services to Department A at a cost of Ghc1000
    7. Wages and salaries, rent and rates, depreciation, and sundry expenses are to be
    apportioned equally. Return inwards, carriage outwards, bad debts, and advertising
    expenses should be apportioned based on the ratio of sales.

    Question two

    Manufacturing account

    The following balances were extracted from the books of Unity a manufacturing company for
    the year 31st December, 2021.
    GHC GHC
    Purchase of raw materials 258000
    Fuel and light 21000
    Factory wages 59000
    Administration salaries 17000
    Carriage outwards 2400
    Carriage inwards 1600
    Rent and rates 21000
    Sales 482000
    Return inwards 7000
    General office expenses 9000
    Repairs 9000
    Stock at 1st January 2021
    Raw materials 21000
    Work in progress 14000
    Finished goods 23000
    Trade creditors 37000
    Capital 457000
    Freehold premises 410000
    Plant and machinery 80000
    Debtors 20000
    Provision for depreciation on plant and 8000
    machinery 1 January 2021
    Cash in hand 11000
    984000 984000

    The following additional information is provided:


    a. The closing stock at 31st December 2021 are; Raw materials Ghc 25000, Work In
    Progress Ghc 11000 and finished goods Ghc 26000.
    b. The company’s policy on depreciation is 10% on plant and machinery on cost and 5%
    of freehold premises on the written down value.
    c. Outstanding expenses include fuel and light GHc 4,000, salaries 3000 and repairs Ghc
    2000.
    d. The rent and rate paid in advance was Ghc 5000.
    e. The provision for doubtful debts should be set at 5% of trade debtors.
    f. Goods are transferred to the selling department at 20% cost plus.
    g. Carriage inwards, Fuel and light, rent and rates, and repairs are apportioned ¾ to
    production.
    Required: Prepare the manufacturing and income statement and the statement of financial
    position as at the date.

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