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

A progress feedback and normative comparison feedback how

A. Progress feedback and Normative (comparison) feedback. How do these relate to intrinsic motivation? How does one's perception of competence (self-efficacy) or how long they've been doing an activity relate to these co ...

Assignmentfreds electrical inc sells electrical parts to

Assignment Fred's Electrical, Inc. sells electrical parts to electrical contractors in the northwestern United States. Fred's customers mail their payments - attached to the stub (i.e., remittance advice [RA]) from their ...

Paper preparation topic abortion- please read instructions

Paper Preparation Topic: Abortion- Please read instructions in red. To prepare for your Paper (due in Week Five), complete the following assignment and submit it to your instructor for feedback. Your paper should include ...

What is the main purpose of the healthcare reform also

What is the main purpose of the Healthcare Reform also known as the Affordable Care Act? How will individual States influence delivery and how should reform alternatives be considered?

Financial accounting multiple choice1 preparing a bank

Financial Accounting Multiple Choice 1) Preparing a bank reconciliation enables a company to ________. A) locate any errors, whether made by the bank or by the company B) make adjustments for transactions that have alrea ...

Part 1 please respond the following question no less then

PART 1 PLEASE RESPOND THE FOLLOWING QUESTION NO LESS THEN 350 WORDS (ORIGINAL WORK, NO PLAGIARISM, 1 Reference Part 1 of our week discussion questions require us to discuss Profitability. Please watch this Youtube lectur ...

Question 1archer daniels midland company is considering

Question 1: Archer Daniels Midland Company is considering buying a new farm that it plans to operate for 10 years. The farm will require an initial investment of $12.00 million. This investment will consist of $2.00 mill ...

Infrastructure of homeland security hmls 4081 i choose the

Infrastructure of Homeland Security (HMLS 408) 1. I choose The Department Of Energy 2. Parts I and II are to be submitted as one submission, in the form of a continuous document. Make sure to delineate/identify part I an ...

Choose one of the following two assignments to complete

Choose one of the following two assignments to complete this week. Do not do both assignments. Identify your assignment choice in the title of your submission. Option #1: Income Statement, Retained Earnings, and Balance ...

Assignmentin a survey 24 it professionals in chicago were

Assignment In a survey, 24 IT professionals in Chicago were asked how much their annual salary was for the year 2012. The results are shown below: $109,000 $ 65,000 $ 65,000 $ 59,000 $ 180,000 $ 101,325 $ 130,000 $95,000 ...

  • 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