Rahat and company Operates in the building industry. the following information related to propertyplant and equipment as at 31 December 2003.Date ofpurchaseCost/carrying Residualvalue Rs.Useful lifevalueYears.Rs.1 jan 2001EquipmentAircraft:140,000(wd)01 jan 2001380,00080,00080,0000200,00080,000100,0000Vehicle1 jan 2003100,00010,0004Additional information;●The equipment was partially repaired on 5 Jan 2004 at a cost of Rs 30,000. this was paid foron the date of repair..It was inspected on 31 December 2004 at a cost of Rs 171,000. this was paid for on the dateof inspection.●It has been estimated that next major inspection will cost Rs 205,000.●The air craft flew 3000,2000,1000 and 3000 miles in 2001,2002,2003 and 2004.●Half of Remaining miles flew in 2005.●It is expected that the vehicle will sell for Rs 17,500 at the end of its useful life in two years'time.Requirements:.Prepare all journal entries for the year ended 31 December 2002 to 31 December2005.●Prepare relevant Financial statements as at 31 December 2004 - 2005.O Body workO EngineOinspection7815,000 miles4

Depreciation Expenses There are different method which are opted for the assets of the business. To…

Half of Remaining miles flew in 2005. ● It is expected that the vehicle will sell for Rs 17,500 at the end of its useful life in two years' time. Requirements: . Prepare all journal entries for the year ended 31 December 2002 to 31 December 2005. ● Prepare relevant Financial statements as at 31 December 2004 - 2005.

Half of Remaining miles flew in 2005. ● It is expected that the vehicle will sell for Rs 17,500 at the end of its useful life in two years' time. Requirements: . Prepare all journal entries for the year ended 31 December 2002 to 31 December 2005. ● Prepare relevant Financial statements as at 31 December 2004 - 2005.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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