Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Financial Accounting Expert

problem 1: Differentiate between capital and revenue expenditure.

problem 2: The University took delivery of a microcomputer and printer on 1 July 2008, the starting of its financial year. The list price of the equipments was Rs 99,980 however the University was able to negotiate a price of Rs 80,000 with the supplier. Though, the supplier charged an additional Rs 6,800 to install and test the equipments. The supplier gave a 5% discount if the University paid for the equipments and the additional installation costs in seven days. The University was capable to take benefit of this additional discount. The installation of special electrical wiring for the computer cost Rs 2,200. After initial testing certain modifications costing Rs 3,980 proved essential. Staffs were sent on special training courses to operate the microcomputer and this cost Rs 19,800. The University insured the machine against fire and theft at a cost of Rs 980 per annum. A maintenance agreement was entered into with Clarke Insurance Ltd. Beneath this agreement Clarke Insurance Ltd promised to give 24-hour breakdown cover for one year. The cost of the maintenance agreement was Rs 7,000.

Required: Compute the acquisition cost of the microcomputer to the University.

problem 3: The financial year of Glassware Ltd. will end on 31 December 2008. At 1 January 2008, the company had in use equipment with a total accumulated cost of Rs 135,620 that had been depreciated by a total of Rs 81,734. Throughout the year ended 31 December 2008, Glassware Ltd. purchased new equipment costing Rs 47,800 and sold off equipment that had originally cost Rs 36,000 and that had been depreciated by Rs 28,224, for Rs 5,700. No further purchases or sales of equipment are planned for December. The policy of the company is to depreciate equipment at 40% by using the diminishing balance method. A full year’s depreciation is given for on all equipment in use by the company at the end of each year.

Required:

Show the given ledger accounts for the year ended 31 December 2008:

a) The equipment account.

b) The Provision for depreciation on equipment account.

c) The Asset disposal account.

d) Give three causes of depreciation and for each give an illustration of the type of fixed asset for which that cause is suitable.

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M96923

Have any Question? 


Related Questions in Financial Accounting

Assignmentaug 1 purchased merchandise from arotek company

Assignment Aug. 1 Purchased merchandise from Arotek Company for $9,000 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1. 4 At Arotek's request, Sheng paid $360 cash for freight charges on the Aug ...

Assignment exxon versus chevronaccording to the textbook

Assignment: Exxon versus Chevron According to the textbook, the income statement measures the success of a company's operations for a given period. The income statement is important to investors and creditors, because it ...

Definedescribediscuss database fields records tables

Define/Describe/Discuss Database (Fields, Records, Tables, Database) and Database Management Define/Discuss/Describe ERD: Relationships, Primary Keys, Foreign Keys, Cardinality, etc. Provide Examples. Define/Describe/Dis ...

Assignment intermediate accounting for finance working

Assignment: Intermediate Accounting for Finance Working Capital Case Study Your job is to make ABC cash flow in years 2 and 3 (positive ending cash balances); which means you must balance ABC's cash conversion cycle days ...

Assignmentthe kroger company reported the following data in

Assignment The Kroger Company reported the following data in its annual report (in millions).   January 31, 2015 February 1, 2014 February 2, 2013 Net sales $108,465 $98,375 $96,619 Cost of sales (using LIFO) 85,512 78,1 ...

Long-term liability transactionsfollowing are a number of

Long-term Liability Transactions Following are a number of unrelated transactions for the Village of Centerville, some of which affect governmental activities at the government-wide level. None of the transactions has be ...

Is there something in your life that is typically

Is there something in your life that is typically considered credible (product, tradition, performance technique, equipment, etc.) that you believe needs to be critically challenged? What and why?

Case second department-weighted-average methoddurall

CASE: Second Department-Weighted-Average Method Durall Company manufactures a plastic gasket that is used in automobile engines. The gaskets go through three processing departments: Mixing, Forming, and Stamping. The com ...

Accounting - financial statement projectobjectivethe

Accounting - Financial Statement Project Objective: The project is meant to show your ability to analyze financial statements of selected companies in depth on a particular accounting method or standard. Submission: Hard ...

Assignment purchase point media corporation ppmc

Assignment: Purchase Point Media Corporation (PPMC) INTRODUCTION Purchase Point Media Corporation (PPMC) INTRODUCTION This case is based on actual financial projections developed and provided by a publicly traded firm, P ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro