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

Assignmentsqueezed by rising costs a confectioner struggles

Assignment Squeezed by Rising Costs, a Confectioner Struggles to Cope Telford James and his wife Ivey are the second-generation owners of James Confectioners, a family-owned manufacturer of premium chocolates that was st ...

The product life cycle plc is a theory that has strong

The Product Life Cycle (PLC), is a theory that has strong roots in marketing and is a standard for determining the historical development of products and industries from introduction to a presumably eventual decline. Eac ...

Tree top company manufactures a single product and uses a

Tree Top Company manufactures a single product and uses a process costing system. On the first day of April, there were 5,000 units in process that were 100% complete as to direct materials and 50% complete as to direct ...

Assignment non florida fte case problemin the state of xxx

Assignment: Non Florida FTE Case Problem In the State of XXX, funding of public education is handled through a Foundation program. The state funds a student at a weighted FTE value of $3,150. Based on a local school dist ...

Project preparing annual report documentsfor this 6-8 page

Project: Preparing Annual Report Documents For this 6-8 page Final Project (Not including the title page, abstract if included or reference page), you will create 1) the Financial Highlights, 2) the Presidents Letter to ...

The market environment heavily influences corporate

The market environment heavily influences corporate decision-making ability. Identify the differences in executive decisions concerning pricing, product design, and advertising between a company in a competitive market a ...

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 ...

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 ...

Assignmenti structuring a keep-or-drop product line

Assignment: I. Structuring a Keep-or-Drop Product Line Problem Shown below is a segmented income statement for Orzo Company's three laminated flooring product lines:   Strip Plank Parquet Total Sales revenue $400,000 $20 ...

Assignemnta explain the term bank reconciliation and state

Assignemnt (a) Explain the term "bank reconciliation" and state the reasons for its preparation. (b) Ssemakula, a sole trader received his bank statement for the month of June 2001. At that date the bank balance was Sh. ...

  • 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

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

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen