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

Mr great kid an experienced budget analyst at toysforall

Mr. "Great" Kid, an experienced budget analyst at ToysForAll Manufacturing company, has been charged with assessing the firm's financial performance during 2014 and its financial position at year end 2014. To complete th ...

Dickens corps fiscal year ends on december 31 it started

Dickens Corp.'s fiscal year ends on December 31. It started fiscal year 20X6 with $4,800 retained earnings. Below is its financial information as of December 31, 20X6. Cash $3,810 Depreciation expense  $1,005 Accumulated ...

Capital investment analysisgyro corporation is considering

Capital Investment Analysis Gyro Corporation is considering two investment projects, each of which will cost $1,340,000. The estimated cash flow for each project is as follows. Year Plant Expansion Retail Store Expansion ...

Assignmentcomprehensive problem differential

Assignment Comprehensive Problem: Differential Apportionment Mortar Corporation acquired 80 percent ownership of Granite Company on January 1, 20x7, for $173,000. At that date, the fair value of the non-controlling inter ...

Assignmenttask 1 accounting systemsbrave brands marketing

Assignment Task 1. Accounting systems Brave Brands Marketing is a well-renowned marketing organisation with a strong workforce of dedicated employees. However, the CEO has recently identified that many of his staff membe ...

Key assignment draftthe owners of the car wash have asked

Key Assignment Draft The owners of The Car Wash have asked you to prepare their tax return. Their financial statements are audited by a local certified public accountant (CPA) firm, and they have provided them to you as ...

Problem q 1on july 1 2014 linked up inc acquired a new

Problem: Q 1 On July 1, 2014 Linked Up Inc. acquired a new machine at a cost of $15,000 with a residual value of $3,000. The estimated useful life is 5 years and 100,000 units. For the year ending June 30, 2015 the machi ...

Financial acounting assignmentcompanies1-oula fuel

FINANCIAL ACOUNTING ASSIGNMENT Companies: 1- Oula fuel marketing co 2- Kuwait resort company http://www.boursakuwait.com.kw/Stock/Financials.aspx?Stk=651&S=INC 1. Revenue Recognition Revenue is the largest item on the in ...

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 ...

Intermediate accounting assignmentpart 11 the receipt of

Intermediate Accounting Assignment Part 1 1) The receipt of interest on loans would be reported on a statement of cash flows under the: A) Financing B) operating activities C) investing activities D) Interest received on ...

  • 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