Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

problem 1) Part A

Malcolm was in business as the import merchant and the following balances were extracted from his books on 31st December 2003:

2099_Import merchant.jpg
Additional Information:

1. Stock at 31st December 2002 was valued at Rs. 17,920.

2. Motor Vehicles are to be depreciated by 20 %.

3. Interest on loan by Donald is at the rate of 12 % per annum and has been paid to 30 September 2003.

4. A provision for doubtful debts at 5% of debtors is to be made.

5. One quarter of the wages was for staff employed in re-packaging the goods for sale.

6. Rates amounting to Rs.800 has been paid in advance for the year 2003.

Required:

(a) Prepare the Trading Account and the Profit and Loss Account for the year ended 31st December 2003

(b) Create the Balance Sheet as at 31st December 2003.

(c) Identify 4 User’s of financial statements and briefly describe their information needs.

Part B

The following two paragraphs were included in the auditor’s report of Blue Marlin Company limited:

“The accounts have been prepared on a going concern basis and the validity of this depends on the company’s bankers who are continuing to support by providing adequate overdraft facilities”.

“Because of the materiality of the matters referred to in the previous paragraph we are unable to form an opinion as to whether the accounts give a true and a fair view of the state of affairs of the company:

Required:

Describe the following terms

i. Going concern basis

ii. Materiality

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M96359

Have any Question? 


Related Questions in Basic Finance

In 2006 ben bernanke said the goals of strong output growth

In 2006, Ben Bernanke said the goals of strong output growth and low inflation "are almost always consistent with each other." Alan Greenspan once called the trade-off between output and inflation "ephemeral." a. Are the ...

You estimate that you will owe 40300 in student loans by

You estimate that you will owe $40,300 in student loans by the time you graduate. The interest rate is 4.25 percent. If you want to have this debt paid in full within ten years, how much must you pay each month? Atlas In ...

A and b play a game in which each has 3 coins a 5p a 10p

A and B play a game in which each has 3 coins a 5p, a 10p and a 20p respectively.- Each selects a coin without the knowledge of the others choice. If the sum of the coins is an odd amount A win's B's coins. If the sum is ...

An inverted yield curve occurs when short-term interest

An inverted yield curve occurs when short-term interest rates are higher than long-term rates. It is often said that an inverted yield curve is a sign of coming recession. Why do you think the view makes sense? Why not?

Write a three to four page paper in which you discuss

Write a three to four page paper in which you discuss incremental analysis and the 5 different types of incremental analysis. You should use/provide a detailed example for each of the five types of analysis you discuss. ...

Stocksin 2-3 pages write a recommendation to your friend

Stocks In 2-3 pages, write a recommendation to your friend outlying the ten stocks you would suggest they pick to create a diversified portfolio with the goal of eliminating unsystematic risk. Explain how this group of s ...

Suppose that lilymac photography has annual sales of 232000

Suppose that LilyMac Photography has annual sales of $232,000, cost of goods sold of $167,000, average inventories of $4,700, average accounts receivable of $25,400, and an average accounts payable balance of $7,200. Ass ...

Impact of exchange rates on interest rates assume that if

Impact of Exchange Rates on Interest Rates: Assume that if the U.S. dollar strengthens it can place downward pressure on U.S. inflation. Based on this information, how might expectations of a strong dollar affect the dem ...

Suppose we define money as that which serves as a store of

Suppose we define money as that which serves as a store of value. Explain why this is a poor defi nition.

Problemthe guidance system of a ship is controlled by a

Problem The guidance system of a ship is controlled by a computer that has three major modules. In order for the computer to function properly, all three modules must function. Two of the modules have reliabilities of .9 ...

  • 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