Quality First Enterprise Financial Statements Review

Vocabulary flashcards covering key financial items, adjustments, and accounting concepts for Quality First Enterprise based on the provided exam transcript.

Quality First Enterprise

A sole proprietorship business operating in Tamale Central Market.

Closing Inventory (31st December 2023)

The end-of-period inventory valued at $\text{GH}\text{c}8,000,000$.

Accrued Expenses

Unpaid period-end expenses consisting of Electricity bills of $\text{GH}\text{c}200,000$ and Rent expenses of $\text{GH}\text{c}400,000$.

Prepaid Insurance

Insurance paid in advance for the period amounting to $\text{GH}\text{c}250,000$.

Proprietor Goods Withdrawal

Goods valued at cost price of $\text{GH}\text{c}800,000$ withdrawn by the proprietor for personal use that were not recorded in the books at the close of the period.

Bad Debt Written Off

An uncollectible amount of $\text{GH}\text{c}1,150,000$ written off during the year 2023 due to the enduring disability of customer Yaro Babilla.

Yaro Babilla

A customer of Quality First Enterprise whose debt of $\text{GH}\text{c}1,150,000$ was written off due to enduring disability.

Building Depreciation Rate

Depreciation applied to Building at a rate of $10\%$ using the straight line method.

Plant and Machinery Depreciation Rate

Depreciation applied to Plant and Machinery at a rate of $15\%$ using the straight line method.

Motor Van Depreciation Rate

Depreciation applied to Motor Van at a rate of $10\%$ using the straight line method.

Furniture and Fittings Depreciation Rate

Depreciation applied to Furniture and Fittings at a rate of $20\%$ using the straight line method.

Statement of Profit and Loss

A financial statement required to be prepared for Quality First Enterprise for the year ended 31st December 2023.

Statement of Financial Position

A financial statement required to be prepared for Quality First Enterprise as at 31st December 2023.