Accounting Questions and Answers

\(\begin{array}{c|c} & Ade(N) & Bola(N) \\ \hline Capital & 40,000 & 30,000 \\ \hline Drawings & 10,000 & 15,000 \end{array}\)

Interest on drawing is 5%; profit is shared equally.

Ade's share of profit is

\(\begin{array}{c|c} & 1/7/10 & 30/6/11 \\ & D & D \\ \hline \text{Stock} & 1,460 & 4,200 \\ \hline \text{Motor Car} & 3,600 & 3,200 \\ \hline \text{Creditors} & 600 & 700 \end{array}\)

Drawings during the year amounted to D1,500.

Net profit for the year is

\(\begin{array}{c|c} & 1/7/10 & 30/6/11 \\ & D & D \\ \hline \text{Stock} & 1,460 & 4,200 \\ \hline \text{Motor Car} & 3,600 & 3,200 \\ \hline \text{Creditors} & 600 & 700 \end{array}\)

Drawings during the year amounted to D1,500.

Opening capital is

\(\begin{array}{c|c} & \text{Dr GH¢} & \text{Cr GH¢} \\ \hline Advertising & 36,000 & - \\ \hline Electricity & 60,000 & - \end{array}\)

Advertising was paid by cheque covering 12 months installments ending March 31 2012. Electricity was paid by cash covering 15 monthly installments from March 1, 2011.

Electricity in arrears as at June 30, 2012 amounted to

\(\begin{array}{c|c} & \text{Dr GH¢} & \text{Cr GH¢} \\ \hline Advertising & 36,000 & - \\ \hline Electricity & 60,000 & - \end{array}\)

Advertising was paid by cheque covering 12 months installments ending March 31 2012. Electricity was paid by cash covering 15 monthly installments from March 1, 2011.

What was the amount charged to the profit and loss account in respect of advertising for the ended June 30 2012 is_____?