Question 1

JOY Plc is a manufacturing company with a stated capital of 10,000 at GH¢5.00 each fully
paid. The following is the trial balance of the company as at 31st December 2022.
GH¢ GH¢
Purchases 10,400
Sales 30,000
Returns 600 400
Debtors 2,400
Creditors 2,000
Land and Buildings 16,000
Plant and Equipment 10,000
Furniture and Fittings 6,000
Motor Vehicles 4,000
Discounts 300 1,000
Rent 2,000
Insurance 1,800
Selling expenses 1,500
General expenses 1,800
Salaries 4,000
Carriage outwards 200
Directors’ remuneration 5,000
Auditor’s fees 4,000
Interest on bank loan 100
Advertising 500
Cash in hand 5,800
Bank 8,000
Stated capital 50,000
Income surplus 3,600
Inventories (1/1/2022) 2,600
87,000 87,000
Additional information:
1. Inventories at 31/12/2022 GH¢1,500.
2. Insurance amounting to GH¢300 relates to 2023.
3. A rent of GH¢200 was owed for 2022
4. The company has the policy to depreciate its assets on the straight-line basis as follows
Land and building 10%
Plant and equipment 15%
Fixtures and fittings 5%
Motor vehicles 20%
5. A provision of 5% is to be made for doubtful debts
Required:
Prepare Income Statement for JOY Plc for the year ended 31st December 2022 and a Statement
of Financial Position for the same period for internal use.

Question 2
Djan Plc is a Merchandising Company. The trial balance of the company for the year ending 31st
March, 2023 is as follows:
DR CR
GH¢ GH¢
Stated Capital (100,000 shares) 400,000
Purchases and Sales 762,000 2,400,000
Carriage outwards 31,800
Wages and Salaries 100,400
Inventories (1/4/22) 358,000
Carriage inwards 44,000
Motor Running Expenses 52,000
Lighting and Heating 90,000
Taxation 46,000
Debtors and Creditors 138,000 179,800
Bank and Cash 511,200
Discounts 57,800 20,000
Rent 25,200
Rates 47,800
Insurance 32,600
Administrative Expenses 64,400
Power 48,600
Factory Equipment 170,000
Plant and Machinery (cost 300,000) 184,000
Motor Vehicle (cost 325,000) 236,000
2,999,800 2,999,800
st
Additional information at 31 March 2023
(i) Inventories as at 31st March 2023 was GH¢300,500
(ii) Bad debts of GH¢4,000 are to be written off. Provision should be made for doubtful debts
at 10%
(iii) Charge for depreciation
Equipment 5%
Plant and Machinery 10%
Motor Vehicle 20%
(iv) Rent prepaid and rates outstanding at the end of the period were GH¢5,000 and GH¢1,200
respectively.
 (v) The directors proposed the following before the year end:
(a) Audit fees of GH¢20,000
(b) Dividend of GH¢0.5 per share
(c) Directors’ Remuneration of GH¢15,000

Required:
Prepare Djan Plc’s Income Statement for the year ended 31st March 2023 and Statement of
Financial Position as at that date for the usage of the management of the company.