Kofi Mensah started a furniture business on January 1, 2018 and undertook the following transactions during the year:

• On 1/1/18, he paid GH¢150,000 into the business.
• On 4/1/18, he borrowed GH¢150,000 from Ama.
• He paid GH¢200,000 on 6/1/18 for one room to be used as a small shop for his furniture business.
• Kofi Mensah bought furniture costing GH¢80,000 on 8/1/18, which he plans to sell.
• On 10/1/18, he bought furniture for resale from Kwame for GH¢150,000 agreeing to pay for them within 15 days.
• Kofi Mensah sold furniture which had cost GH¢60,000 for GH¢90,000 on 12/1/18.
• Furniture worth GH¢110,000 was sold for GH¢180,000 to AA Ltd on credit on 20/1/18.
• On 24/1/18 Kwame was paid GH¢90,000.
• On 28/1/18 AA Ltd paid GH¢ 80,000 of the amount he owed.

Note: All monies paid and received were through the bank account.
Required:
Post the above transaction to the following ledgers in the books of Kofi Mensah:
i) Bank account                                                                                                                                                                  (3 marks)

ii) Inventory account                                                                                                                                                          (2 marks)

iii) Capital account                                                                                                                                                              (1 mark)

iv) Kwame account                                                                                                                                                            (2 marks)

v) AA Ltd account                                                                                                                                                             (2 marks)

Asasepa Ltd prepares its financial statements to 31 December each year until 31 December 2016, when the business changed its accounting date. The company prepared its next financial statements for 15 months to 31 March 2018.
At 1 January 2017 the following balances existed in the business’s accounting records:

• Plant and machinery: cost GH¢819,000 accumulated depreciation GH¢360,000.
• Motor vehicles: cost GH¢148,000 accumulated depreciation GH¢60,000.

Depreciation policy
The business’ policy on depreciation is to charge proportionate depreciation in the periods of purchase and sale of its non-current assets, charging depreciation as from the first day of the month in which assets are acquired, and up to the last day of the month before any disposal.
Annual rates of depreciation taken are:
(i) Plant and machinery 15% straight line
(ii) Motor vehicles 25% straight line
Transactions during the year
During the 15 months ended 31 March 2018, the following transactions took place.
10 January 2017 – An item of plant was purchased. The cost was made up as follows:

18 April 2017 – A new motor vehicle was purchased for GH¢18,000. An existing vehicle which had cost GH¢12,000, and which had a book value at 1 January 2017 of GH¢6,000, was given in part exchange at an agreed value of GH¢5,000. The balance of GH¢13,000 was paid in cash.
Required:
a) Prepare the ledger accounts to show the balances at 1 January 2017.

b) Record the non-current asset transactions for the 15 months period ending 31 March 2018.

PQ Ltd had, among others the following balances in the books at 1st January 2015.

                                                                                   Debit (GHȼ)       Credit (GHȼ)
Machinery at cost                                                          750,000     

Machinery accumulated depreciation                                                       301,000

Motor vehicles at cost                                                1,000,500

Motor vehicles accumulated depreciation                                                402,000

The following information relate to the non-current assets for the financial year ended 31st December 2015.

a) On 1st July 2015 PQ Ltd purchased machinery at a cost price of GHȼ75,000, paying by cheque.
b) On 1st December 2015 PQ Ltd purchased machinery at a cost price of GHȼ27,600, on credit from BD Machinery Ltd.
c) No disposals of machinery took place during the year ended 31st December 2015.
d) Machinery is depreciated at 20% per annum using the straight line method, the rate being charged for each proportion of the year the machinery is owned. No allowance is made for any residual value. All machinery held at 31st December 2015 had been purchased within the previous four years.
e) On 30th June 2015 motor vehicles which originally cost GHȼ40,000 and with a net book value of GHȼ16,000 at the date of sale, were sold at a profit of GHȼ600. The disposal receipt was paid into the bank account.
f) No purchases of motor vehicles took place during the year ended 31st December 2015.
g) Motor vehicles are depreciated at 25% per annum using the straight line method, the rate being charged for each proportion of the year the motor vehicles are owned. No allowance is made for any residual value. All motor vehicles held at 31st December 2015 had been purchased within the previous three years.

Required:

Prepare the following ledger accounts of PQ Ltd for the year ended 31st December 2015, where appropriate showing the balance carried down to the next financial year. Dates are not required.

a) Machinery.                                                                                                                                                                   (4 marks)

b) Accumulated Depreciation of Machinery.                                                                                                                  (4 marks)

c) Motor vehicles.                                                                                                                                                            (4 marks)

d) Accumulated Depreciation of Motor vehicles.                                                                                                           (4 marks)

e) Disposal of Motor Vehicles.                                                                                                                                        (4 marks)

Atta Moses is a trader who prepares account to 31st December each year. The following transactions with regard to Assets have taken place.
i. 3rd January, 2010 purchased one Office Equipment (Laptop) for GH¢2,000.
ii. 5th July, 2011 purchased Plant and Machinery costing GH¢50,000.
iii. 1st December, 2011 purchased Plant and Machinery for GH¢20,000
iv. 15th December, 2012 bought Office Equipment (Printer) for GH¢1,000.
Mr. Atta maintains its Fixed Assets at cost and depreciates its Asset at a constant rate of 20% using the straight line method of providing for depreciation for all Assets. Assets purchased attract full depreciation charge in the year of purchase, whilst any asset disposed off attracts no depreciation charge.
You are required to prepare the following:                                                                                                                         (6 marks)
i. Office Equipment Account.

ii. Plant and machinery Account.

iii. Provision for Depreciation Account.