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

Read harvard business reviews in search of a second act

Read Harvard Business Review's "In Search of a Second Act" case study. You can search for it in Business Source Complete (EBSCO) or use the see "How to find an article" in the Course Information tab. Two authors gave the ...

Business finance assignmenttasks to complete1download and

Business Finance Assignment Tasks to complete: 1. Download and save the Excel file, "Excel_Assignment". The file is located in the Excel Assignment folder. 2. Save the file to your own drive and rename the file with your ...

Prior to the financial meltdown that occurred around 2008

Prior to the financial meltdown that occurred around 2008, bond-rating agencies were accused of unethical behavior because they were paid by the organizations that they rated. Many of these companies would shop around fo ...

1 several people claim that letters of credit will soon be

1. Several people claim that letters of credit will soon be replaced by the concept of TradeCard. What is this product, and why do those people think it has such a bright future? 2. There are three types of hedges that a ...

Appendix a in the textbook details criteria for designing

Appendix A in the textbook details criteria for Designing or Evaluating a Long-Term Care System. Research a long-term care facility in your area and prepare a PowerPoint slide presentation detailing how this specific fac ...

Sampling distributions - real estate part 2directions use

Sampling Distributions - Real Estate Part 2 Directions: Use the real estate data you used for your Week 2 learning team assignment. Analyze the data and explain your answers. 1. Review the data and for the purpose of thi ...

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 ...

Financial of accounting assignment1a explain the term bank

FINANCIAL OF ACCOUNTING ASSIGNMENT 1. a) Explain the term "bank reconciliation" and state the reasons for its preparation (6mks) b) Jalash, a sole trader received his bank statement for the month of June 2016. At that da ...

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 ...

The president of state university wants to forecast student

The president of State University wants to forecast student enrollment for this academic year based on the following historical data: year Enrollments 5 years ago 15,000 4 years ago 16,000 3 years ago 18,000 2 years ago ...

  • 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