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

Asignmentthe regal cycle company manufactures three types

Asignment The Regal Cycle Company manufactures three types of bicycles-a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow:   Total Dirt Bikes Mountain Bikes Racing Bik ...

Assignmentthe company is premier inc that needs to be usedi

Assignment The company is Premier Inc. that needs to be used. I will need a 3-4 pageanalysis and a Power Point presentation (no more than 10 slides) Write your paper, read carefully, and consider possible edits and chang ...

Assignmentbullwhen a company owns inventory it has to

Assignment • When a company owns inventory, it has to decide how to consistently value the inventory sold and on hand. Four inventory valuation methods are available to help the organization effectively value its invento ...

Assignment financial reporting and analysisyou are required

Assignment: Financial Reporting and Analysis You are required to prepare an investigative report on a recent corporate scandal that involve improper accounting practices or any form of financial scandal. The report must ...

Journal entriesprepare the journal entries for the

Journal Entries Prepare the journal entries for the following: May 3 - Received cash from clients as advanced payment for services to be provided and recorded as unearned fees $4500 5. Received cash from clients on accou ...

Trust activities and fund issuesexercise 1a concerned

Trust Activities and Fund Issues Exercise 1 A concerned citizen provides resources and establishes a trust with the local government. What factors should be considered in determining which fund to report the trust activi ...

Discussion financial conditionbullfor this discussion

Discussion: Financial Condition • For this discussion, assume the role of a financial manager in a company, and assume that you have just hired a new bookkeeper to join your team. You want to assess the new hire's unders ...

Cindy and glenn are married taxpayers who file a joint

Cindy and Glenn are married taxpayers who file a joint return. Both Cindy and Glenn work. During 2014, they had three young children for whom they paid $10,000 of qualifying child care expenses. What is the maximum and m ...

Assignmentuse the following information for questions 1

Assignment Use the following information for Questions 1 through 5: Assume you are presented with the following mutually exclusive investments whose expected net cash flows are as follows: EXPECTED NET CASH FLOWS: Year P ...

Assignmentsplit-offparentco sells street vending carts and

Assignment Split-Off ParentCo sells street vending carts and has been in business for 10 years. The subsidiary, SubCo, has been in the business of selling refrigerated vending carts for 8 years. You are a 50% partner of ...

  • 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