Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Financial Accounting Expert

On a pilot basis a Government Department, PPO, is making its financial statements by using accrual basis. The information is given below:

The given balances appeared in the balance sheet of PPO at 31 March 2008.

                                                    Rs
Plant and equipment-cost           840,000
Accumulated depreciation           370,000

In the year ended 31 March 2009 the given transactions occur:

1) Plant which cost Rs 100,000 with a written down value of Rs 40,000 was sold for Rs 45,000 on 10 December.

2) New plant was purchased for Rs 180,000 on 1 October 2008.

It is the policy of the company to charge depreciation at 10 % per year on a straight line basis, with a proportionate charge in the year of acquisition and no charge in the year of sale. None of the plant was over 10 years old at 31 March 2008.

Required:

problem 1: Make the following ledger accounts to record such transactions for the period. A cash account is not necessary.

a) A Plant and Equipment Account                                        
b) A Depreciation Account                                                         
c) A Disposal Account

problem 2: At 31 March 2008, PPO had a provision for doubtful debts of Rs10,000, appearing as a balance on the bad and doubtful debts account.

At 31 March 2009 trade debtors amounted to Rs 280,000 and on reviewing the balances it was decided to prepare off debts totaling Rs 17,000 and to adjust the provision to 5% of the debtors.

Show the bad and doubtful debts account for the year 2009.

problem 3: Make extracts of Balance Sheet and Income Statement as at 31 March 2009 to show how the balances will be presented.

problem 4: Describe how such transactions would be accounted by using the cash basis.

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M96419

Have any Question? 


Related Questions in Financial Accounting

1 for initial measurement identify the initial valuation

1. For INITIAL measurement identify the initial valuation criteria and for SUBSEQUENT measurement identify the situation requiring the subsequent measurement and the ongoing valuation basis. a) The asset loses value over ...

Effect of doubtful accounts on net incomeduring its first

Effect of Doubtful Accounts on Net Income During its first year of operations, Master Plumbing Supply Co. had sales of $270,000, wrote off $4,300 of accounts as uncollectible using the direct write-off method, and report ...

Spreadspreadsheets are especially useful for computing

SpreadSpreadsheets are especially useful for computing stock value under different assumptions. Consider a firm that is expected to pay the following dividends:      Year 1        2          3          4          5       ...

Swindall industries uses straight-line depreciation on all

Swindall Industries uses straight-line depreciation on all of its depreciable assets. The company records annual depreciation expense at the end of each calendar year. On January 11, 2007, the company purchased a machine ...

Which of the following statements is true of financial

Which of the following statements is true of financial accounting? A. It focuses on detailed reports for parts of the company rather than the whole company. B. It focuses on planning and controlling? day-to-day operation ...

1 what document initiates the sales process2 distinguish

1. What document initiates the sales process? 2. Distinguish between a packing slip, a shipping notice, and a bill of lading. 3. What function does the receiving department serve in the revenue cycle? 4. The general ledg ...

Lerner inc issued bonds several years ago for more than

Lerner Inc. issued bonds several years ago for more than face value. The bonds had a face value of $100,000 and pay interest annually at 9% on 12/31 each year. The market rate on the date of issue was 8%. Assume the carr ...

Reporting issuance and retirement of long-term debton the

Reporting Issuance and Retirement of Long-Term Debt On the basis of the details of the following bonds payable and related discount accounts, indicate the items to be reported in the Financing Activities section of the s ...

Darth company sells three products sales and contribution

Darth Company sells three products. Sales and contribution margin ratios for the three products follow: Product X Product Y Product Z Sales in dollars $ 40,000 $ 80,000 $ 200,000 respectively and Contribution margin rati ...

Discussions of affirmative action and its offshoot of

Discussions of affirmative action and its offshoot of reverse discrimination generally raise more heat than light. As a starting point, please read the case of Taxman v. Board of Education (see link below) that no matter ...

  • 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

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate