Outline the stages of group development.                                                                                                                           (5 marks)

Explain the following in relation to the motivation of employees:                                                                                     (4 marks)
i) Extrinsic rewards

ii) Intrinsic rewards

Mr. Patrick Mensah, a sole trader, has asked you to prepare the receivable and payable control accounts and ensure that the closing balances match with the list of balances. Currently, the closing balances as at 30 October 2017 are as follows:
                                                              GH¢
Receivables Control Account           126,845
Payables Control Account                103,240
Receivables list of balances             123,589
Payables list of balances                  104,476
On investigation, the following have been discovered:

• A contra entry of GH¢3,250 has not been included in either control account.
• Bad debt of GH¢1,680 has been written off in the list of balances but has not been included in the receivables control account.
• The sales day book has been overstated by GH¢890 and this has not been reflected in the control account.
• Purchase returns to Taifa, a supplier of GH¢256 have not been reflected in the control account.
• An invoice amounting to GH¢981 for Obojo, a customer has been entered in the sales day book as GH¢891.
• A balance due to Amasaman, a supplier amounting to GH¢1,248 was not included in the list of balances.
• Payment received from Amrahia, a customer for GH¢2,864 was posted to a supplier account Manhia mistakenly. The payment was correctly accounted for in the control account.
• Goods purchased from a supplier Kasoa amounting to GH¢3,126 have been omitted from the relevant control account.
• Bad debt recovered of GH¢300 relating to Tantra has not been updated in the list of balances but has been included in the control account.
  Required:
  i) Based on the information provided above prepare the Receivables and Payables Control Accounts for the year-ended 30 October 2017.                                                                                                                                                               (8 marks)

ii) Prepare a statement reconciling the list of balances with the revised control accounts for Receivables and Payables for the year-ended 30 October 2017.                                                                                                                                         (2 marks)

It is universally accepted that leadership is a vital factor that influences an organization’s success. However, it is very difficult to lay down general rules for effective leadership to fit all situations.
Required:
i) Explain the term Leadership.                                                                                                                                           (2 marks)

ii) Explain the following Theories of Leadership:                                                                                                               (9 marks)

• Trait

• Style

• Contingency

Identify FOUR users of financial statements and explain their information needs.                                                           (6 marks)

Accountancy is the language of business and the only profession that teaches students about business. A business primarily exist to make profit and one of the jobs of an Accountant is to prepare financial statements and to determine the profitability of a business.
Required:
What is a business?                                                                                                                                                           (4 marks)

STL has been in business for a number of years. In the past year, she has been busy training for the Olympics and has not kept proper records for her business. She has given you some information.
The balances as at 1 May 2016 are as follows:
                                                                     GH¢
Motor vehicle (carrying amount)                4,750
Inventories                                                      956
Trade receivables                                         2,632
Trade payables                                             1,745
Cash in hand                                                     50
Cash at bank (overdrawn)                          1,693
Capital                                                          4,950

The bank statements for the year to 30 April 2017 are summarised as follows:
                                                                     GH¢
Payments to suppliers                                6,463
Cash takings                                                5,907
Sundry expenses                                           763
Motor expenses                                             505
Rent                                                             1,800
Telephone                                                     135
The balance on the bank statement at 30 April 2017 was GH¢1,144. There were no timing differences.
You are given the following additional information:
i) Closing inventory is valued at GH¢1,324.
ii) STL took goods which had a cost of GH¢96 and would have been sold for GH¢124 for her own personal use.
iii) A telephone bill was received on 7 July 2017 for GH¢75, this related to the quarter ended 30 June 2017.
iv) Rent includes GH¢1,000 paid on 1 January 2017 for the year to 31 December 2017.
v) STL takes GH¢60 every week out of the takings before banking them. She also spends GH¢20 every week on petrol for the company van.
vi) Depreciation is to be charged at 15% reducing balance.

vii) Closing trade receivables and payables were GH¢2,072 and GH¢967 respectively. However, one customer, Caroline, has vanished and her debt of GH¢575 is not likely to be paid.
viii) STL always keeps a cash float of GH¢50.
ix) STL makes sales to cash and credit customers. Customers taking credit always pay by cheque or bank transfer.
Required:
a) Prepare the statement of profit or loss for STL for the year ended 30 April 2017.                                                       (12 marks)

b) Prepare the statement of financial position for STL as at 30 April 2017.                                                                       (8 marks)

The following is a summary of the Financial Statements of two companies in the retailing business.

Required:  (10 marks)
a) Calculate the following ratios for each company:
i) Current ratio

ii) Acid Test ratio

iii) Gross profit margin

iv) Return on capital employed

v) Trade Payable period

vi) Receivable collection period

b) Using the information in (a) above, interprete the results of the ratios under three broad categories of profitability, liquidity and efficiency.                                                                                                                                                               (10 marks)

Below are the statement of financial position for Saasa Company Limited at 31 December 2015 and 31 December 2016 and the income statement for the year ended 31 December, 2016.

Additional information:
i) Deferred development expenditure amortized during 2016 was GH¢25,000.

ii) Additions to property, plant and equipment totaling GH¢167,000 were made. Proceeds from the sale of equipment were GH¢58,000, giving rise to a profit of GH¢7,000. No other items of property, plant and equipment were disposed of during the year.
iii) Finance costs represent interest paid on the new 6% debentures (2016-2022) issued on 1 January 2016.
iv) Current asset investments represent treasury bills acquired. The company deems these to represent cash equivalents.
v) Dividends paid during the year amounted to GH¢65,000.
Required:
Prepare a statement of cash flow for Saasa Company for the year ended 31 December 2016, using the indirect method in accordance with IAS 7: Statement of Cash Flows.                                                                                                         (20 marks)

WD noted in 2016 that in 2015 it had omitted to record a depreciation expense on an asset amounting to GH¢600. Its accounts before the correction of the error are;

Required:

Describe how the above error should be corrected in accordance with IAS 8: Accounting policies, changes in accounting estimates and errors.                                                                                                                                                         (4 marks)