Ask Question, Ask an Expert


Ask Financial Accounting Expert

problem 1:

A) Able Engineering Co. purchased new machinery for Rs 200, 000 on 1st January 2009. As the business expanded, it was essential to purchase the other machinery on 1st July 2010 for Rs100,000. Each machine had an estimated life of 10 years and nil residual value. On 30th September 2011, the first machinery was sold for Rs125, 000.

The company uses the straight-line method to depreciate both assets at the rate of 10% per annum. It is the company’s policy to give depreciation on a time basis according to the number of months of use.

For the year ended 31st

December 2011, prepare:

a) The machinery account.
b) The accumulated depreciation of machinery account.
c) The disposal of machinery account.
d) An extract of Income statement.
e) An extract of the balance sheet.

B) Illustrate how the matching concept applies to depreciation.

problem 2:

On reconciling his bank statement, Joy found that it showed his overdraft on 31 July 2012 to be Rs 5 230 and those two deposits on 31 July of Rs 600 and Rs 350 correspondingly, not yet recorded by the bank. Bank charges and interest appearing in the bank statement of Rs 380 have yet to be entered in his books which will change the existing credit balance in his bank overdraft account of Rs 4350.

Unpresented cheques were Rs 720. Additionally, an amount of Rs 850 paid to John was erroneously recorded in the cash book as Rs 580. This cheque was paid correctly by the bank as Rs 850. The bank overdraft account is understated by Rs 270 since of this error.


a) Compute the corrected bank balance that must appear in the cash book of Joy at 31st July 2012.

b) A bank reconciliation statement at 31st July 2012.

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M96391

Have any Question? 

Related Questions in Financial Accounting

Quattro began operations in april of this year it makes all

Quattro began operations in April of this year. It makes all sales on account, subject to the following collection pattern: 30% are collected in the month of sale; 60% are collected in the first month after sale; and 10% ...

Soar incorporated is considering eliminating its mountain

Soar Incorporated is considering eliminating its mountain bike division, which reported an operating loss for the recent year of $1,000. The division sales for the year were $1,046,000 and the variable costs were $856,00 ...

Kidz amp company paid 4080 on may 1 2010 for a two-year

Kidz & Company paid 4,080 on May ?1, 2010, for a? two-year insurance policy beginning on that date. The company recorded the entire amount as prepaid insurance. By using the following? chart, calculate how much expense a ...

Mallard company rents a warehouse on a month-to-month basis

Mallard Company rents a warehouse on a month-to-month basis for the storage of its excess inventory. The company periodically must rent space whenever its production greatly exceeds actual sales. For several years, the c ...

Steel company a wholesaler that has been in business for

Steel Company, a wholesaler that has been in business for two years, purchases its inventory from various suppliers. During the two years, each purchase has been at a lower price than the previous purchase. Steel uses th ...

Stockholders equity category peeler company was

Stockholders' Equity Category Peeler Company was incorporated as a new business on January 1, 2014. The corporate charter approved on that date authorized the issuance of 1,000 shares of $100 par, 7% cumulative, nonparti ...

On december 1 2014 garden corporation incurs a 30-year

On December 1, 2014, Garden Corporation incurs a 30-year, $400,000 mortgage liability upon purchase of a warehouse. This mortgage is payable in monthly installments of $4,116, which include interest computed at the rate ...

Estimate production levels lo 13-4 hoffmann corporation has

Estimate Production Levels (LO 13-4) Hoffmann Corporation has just made its sales forecasts and its marketing department estimates that the company will sell 61,200 units during the coming year. In the past, management h ...

Popersquos garage had the following accounts and amounts in

Pope’s Garage had the following accounts and amounts in its financial statements on December 31, 2013. Assume that all balance sheet items reflect account balances at December 31, 2013, and that all income statement item ...

The production department in a process manufacturing system

The production department in a process manufacturing system completed 309,000 units of product and transferred them to finished goods during a recent period. Of these units, 89,000 were in process at the beginning of the ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate