Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Financial Accounting Expert

The given information has been extracted from the books of Colombo, a limited liability company as at 31 December 2011.

1246_income statement.jpg

You have been given with the information below:

1) Inventory at 31 December 2011 was valued at Rs 280,000 based on its original cost. Though, Rs 55,000 of this inventory has been damaged and the directors have agreed to value it for Rs 20,000.

2) The marketing expenses comprise Rs 4,000 that relates to February 2012.

3) Based on the past experience the allowance for receivables is to be raised to 5 % of the trade receivables.

4) There are wages and salaries outstanding of Rs 30,000 for the year ended 31 December 2011.

5) Buildings are depreciated at 5 % of cost. At 31 December 2011 the buildings were professionally valued at Rs 1,800,000 and the directors wish this valuation to be incorporated to the accounts.

6) Depreciation is to be charged as shown:

a) Motor vehicles at 10 % of written down value.
b) Furniture and equipment at 5 % of cost.

7) No dividends have been paid or declared.

8) Tax of Rs 130,000 is to be given for the year.

Required:

problem 1: Make an income statement for the year ended 31 December 2011 and a statement of financial position as at that date, as per the IAS 1 Presentation of Financial Statements.

problem 2: Distinguish between a provision and a reserve.

problem 3: Describe in brief the terms profitability and liquidity. 

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M96961

Have any Question? 


Related Questions in Financial Accounting

Describe corporate espionagedefine at least three ways to

Describe Corporate Espionage. Define at least three ways to prevent it. Your paper should meet the following requirements: Be two to three pages in length

Financial statement analysismy company is walmartpart

Financial Statement Analysis My company is Walmart. Part I • Perform at least one profitability ratio to measure the income and operating success of your selected company. • Perform at least one liquidity ratio to measur ...

Briefly describe a health care provider with which you are

Briefly describe a health care provider with which you are familiar and how that organization should position its offerings. Provide specific examples to support your response. Referring to the same health care provider, ...

Discussionanswer in 2-3 paragraphs and use

DISCUSSION ANSWER IN 2-3 PARAGRAPHS AND USE SCHOLARLY SOURCE(S) First, search the internet for the official website of your local city government. If you cannot find your city, select your state. After reviewing this web ...

Accounting assignmentapplication break-even analysiswhen

Accounting Assignment Application: Break-Even Analysis When expenses and revenues are equal, this is known as the "break-even point" or BEP. To determine break-even, an examination of fixed and variable costs (expenses) ...

Financecarefully work through the analysis of the companys

Finance Carefully work through the analysis of the company's short term financial situation. You will see that the company will be in a negative cash situation three quarters from now. As an adviser to the company you ar ...

I correction of improper cost entries plant acquisitions

I. (Correction of Improper Cost Entries) Plant acquisitions for selected companies are presented below. 1. Protex Inc acquired land, buildings, and equipment from a bankrupt company, for a lump-sum price of $700,000. At ...

Robert wondered why he was always so stressed out when he

Robert wondered why he was always so stressed out when he was dealing with Lucas, the latest addition to his team. On the face of it, the new hire seemed very agreeable and supportive, but whatever interactions he had ha ...

Assignment excel spreadsheet projecton december 31 2016

Assignment: Excel Spreadsheet Project On December 31, 2016, Carson Company rendered services to Lincoln Corporation at an agreed price of $125,939, accepting $50,000 down and agreeing to accept the balance in three equal ...

Course projectfinancial statement analysislearning

COURSE PROJECT FINANCIAL STATEMENT ANALYSIS Learning Objectives • Analyze a company's financial statements in terms of liquidity, profitability and long-term solvency, and cash flows from operations. • Prepare in good fo ...

  • 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