Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Financial Accounting Expert

problem 1: You have been given with the following trial balance as at 31 May 2008 for a limited liability company termed Macdillon.

978_trial balance sheet.jpg

The given notes are relevant:

A) Inventory at 31st May 2008 was valued at Rs 800,000.

B) Marketing and advertising expenses comprise Rs 6,000 paid in advance for a marketing campaign which will start in June 2004. Marketing and advertising expenses must be allocated to administrative expenditures.

C) There are wages outstanding of Rs 10,000 for the year ended 31st May 2008.

D) A customer ceased trading owing the company Rs 38,000; the debt is not expected to be recovered.

E) The allowance for doubtful debts is to be established amounting to 5% of trade receivables.

F) Depreciation is to be given for as follows:

a) Buildings at 5% per annum on their original cost, allocated 50% to cost of sales, 20% to distribution costs and 30% to administrative expenses.
b) Motor vehicles at 25% per annum of their written-down value, allocated to distribution costs.
c) Plant and equipment at 20% per annum of their written-down value, allocated to cost of sales.

G) No dividends have been paid or declared.

H) Income tax of Rs 250,000 is to be given for the year.

I) The audit fees are estimated to be Rs 20,000.

J) The expenses listed below must be apportioned as shown:

101_expenses list.jpg

Required:

Make the following financial statements for the year ended 31 May 2008 for Macdillon in accordance with IAS 1 Presentation of Financial Statements:

I) An Income Statement

II) A Statement of Financial Position (Balance Sheet)

problem 2: As per IAS1, preparation of financial statements is based, inter-alia, on the given concepts:

a) Going Concern
b) Accruals basis of accounting
c) Consistency of presentation
d) Materiality

Required: In brief describe the above-mentioned concepts.

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M96937

Have any Question? 


Related Questions in Financial Accounting

Assignmentalto company consists of the red river division

Assignment Alto Company consists of the Red River Division and the White Mountain Division. Red River produces and sells 100 pound bags of pottery clay which can either be sold to outside customers or to White Mountain. ...

Assignmentbullpreparationfor this problem you will need to

Assignment • Preparation For this problem, you will need to select two publicly traded companies. For comparison purposes, the two companies should be competitors within the same industry. Once you have selected two publ ...

Gaappartnershipsethics1500 words - apa formatyou are an

GAAP/Partnerships/Ethics (1,500 Words - APA Format) You are an accounting student taking a class in accounting. Your professor has given you an assignment for the weekend. He wants you to look at each ethical scenario li ...

Burger king investigation of the following1decreasing

Burger King investigation of the following: 1.Decreasing Revenue 2.Change in Revenue Mix 3.Significant Change in "food paper & product costs" line item 4.Other significant change in expense Tim Horton's 1-Accounts Receiv ...

Determine how you would segment the market to conduct

Determine how you would segment the market to conduct research for the health care product or service you found. Explain your rationale. Referring to the same health care product or service, determine the most effective ...

Short investment horizon suppose you plan to go to graduate

Short investment horizon: Suppose you plan to go to graduate school in two years and you will need money for tuition. Which type of risk would you be most concerned with and why? Long investment horizon: Suppose that a y ...

Complete problem 14-10 prepare a statement of cash flows

Complete "Problem 14-10 Prepare a Statement of Cash Flows; Free Cash Flow" in chapter 14 of Managerial Accounting. Present your responses in an Excel spreadsheet. Joyner Company's income statement for Year 2 follows: Sal ...

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 ...

Cnsider the following optimization problemmax x1

Consider the following optimization problem: Max: X1 + X2 Subject to: -4 X1 + 4 X2 -8 X1 + 10 X2 >= 15 X1, X2 > 0 Part a: What is the optimal solution to the problem? Part b: Now suppose that X1 and X2 must be integers. ...

Mid-atlantic container corporation1assess the current

Mid-Atlantic Container Corporation 1) Assess the current financial health and recent financial performance of the company. What strengths and/or weaknesses would you highlight to Sarah Conner? 2) What are the key driver ...

  • 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