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

1 what is experimental contamination2 does a nonequivalent

1. What is experimental contamination? 2. Does a nonequivalent groups pretest-posttest design eliminate local history as a potential explanation of the results? Explain.

Test the hypothesis using the classical approach and the

Test the hypothesis using the classical approach and the P-value approach. H0: p = 0.45 versus H1: p n = 150, x = 62, α = 0.05 (a) Perform the test using the P-value approach. P-value = ______ (Round to four decimal plac ...

Explain how characteristics of mncs can affect the cost of

Explain how characteristics of MNCs can affect the cost of capital ? From an investor's standpoint, have small companies, in general over the past, been more profitable than their larger brethren?

1 what three rules govern the construction of a grouped

1. What three rules govern the construction of a grouped frequency distribution? 2. What is the difference between a histogram and a bar graph? 3. Distinguish among the median, mode, and mean.

A newly issued 10 year bond is valued at par on june 1 2017

A newly issued 10 year bond is valued at par on June 1, 2017. The bond has an annual coupon of 8.0 percent. On June 1 2020, the bond has a yield to maturity of 7.1 percent. The first coupon is invested at 8.0 percent and ...

Problems about the ability of borrowers to meet mortgage

Problems about the ability of borrowers to meet mortgage payments and the evolution of fixed interest rate mortgages with various payment patterns were discussed. Why didn't this evolution address problems faced by lende ...

Future value kyle has 1000 in cash received for high school

Future Value. Kyle has $1,000 in cash received for high school graduation gifts from various relatives. He wants to invest it in a certificate of deposit (CD) so that he will have a down payment on a car when he graduate ...

A large corporation is interested in determining whether an

A large corporation is interested in determining whether an association exists between the commuting time of its employees and the level of stress-related problems observed on the job. A study of 116 assembly-line worker ...

What is the relation between a strategy and an objective

What is the relation between a strategy and an objective? How are comparative advantages different from competitive advantages? What is a strategic plan? What is a financial plan, and how does it relate to a company's st ...

An annual survey of first-year college students asks 270000

An annual survey of first-year college students asks 270,000 students about their attitudes on a variety of subjects. According to a recent survey, 54% of first-year students believe that abortion should be legal. Use a ...

  • 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