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

Accounting assignmentproject datanoble company is a small

Accounting Assignment Project Data Noble Company is a small but growing manufacturer of telecommunications equipment. The company has no sales force of its own; rather, it relies completely on independent sales agents to ...

No simple ldquoone-size-fits-allrdquo panacea exists for

No simple “one-size-fits-all” panacea exists for resolving the conflict between decision management versus decision control when it comes to budgeting. Nor is such a solution ever likely to be found.

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 ...

James investor corporation acquires 25 of the common shares

James (investor) Corporation acquires 25% of the common shares of Heck (investee) Company for $350,000 on January 1, 2014. For 2014, Heck reports net income of $50,000 and paid dividends of $16,000. Instructions (a) Prep ...

Assignmentproject instructionsyou have just been contracted

Assignment PROJECT INSTRUCTIONS You have just been contracted as a budget consultant by LBJ Company, a distributor of bracelets to various retail outlets across the country. The company has done very little in the way of ...

1 discuss how marketing is often misunderstood by the other

1. Discuss how marketing is often misunderstood by the other functional areas of business. 2. What is the meaning of Balanced and Unbalanced Assignment Problems? 3. Describe the function of a Change Control Board 4. Disc ...

There are four main methods for documenting specific

There are four main methods for documenting specific business processes, systems, and so on. If your company asked you to document the workflow in your department, where would you start and why? How would that change if ...

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 ...

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 ...

Assignmentfinancial statement analysisprepare an eight- to

Assignment Financial Statement Analysis Prepare an eight- to ten-page fundamental financial analysis (excluding appendices, title page, abstract, and references page) that will cover each of the following broad areas bas ...

  • 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