Phylis Ltd has the following transactions in respect of its goods during Dec 2015. Opening stock 78 units @ GH¢25 Dec 5 bought 250 units @ GH¢24 Dec 10 sold 175 units @ GH¢95 Dec 11 bought 140 units @...

Phylis Ltd has the following transactions in respect of its goods during Dec 2015. Opening stock 78 units @ GH¢25

Dec 5	bought 250 units @ GH¢24
Dec 10	sold 175 units @ GH¢95
Dec 11	bought 140 units @ GH¢26
Dec 12	sold 200 units @ GH¢48
Dec 15	paid for printing GH¢7,200
Dec 16	bought 400 units @ GH¢20
Dec 22	sold 140 units @ GH¢85
Dec 22	commission to sales Executives GH¢ 20,000
Dec 23	sold 155 units @ GH¢40

Additional information;

1. The cost of carrying a unit material inwards was agreed at GH¢1.5

2. Out of the general administrative expenses of GH¢15,200 only GH¢3,700 had been paid during December.

3. The goods sold on December 23^rd only 20% has been collected by the company as at close of the year-month

4. The outstanding balance of GH¢7,100 was paid on the 20^th January 2021

You are required to:

a. Write up the stores ledger card using the weighted average method of stock valuation.

b. Prepare trading, profit and loss account for the period from 1^st Dec to 31^st Dec 2020 using the weighted average method of stock valuation

c. Show the balance sheet extract as of 31/12/2020

Jun 02, 2022

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