he ist machinefor Rs.38,500 and on the same date purchased a newmachinery for Rs.50,000. Depreciation is provided @ 20% p.a. on cost each year. Accounts are closedeach year on 31" March.Show the Machinery account for three years.0.5P Ltd. made a profit of Rs.5,00,000 after considering the following items:I. Preliminary expenses written offII. Depreciation on fixed assetsIII. Loss on sale of MachineryIV. Provision for doubtful debtsRs5,00050,00020,00010,0007,500V. Gain on Sale of LandThe following is the position of current assets & current liabilities:Particulars2017 (Rs.)52,00015,0002,00040,00019,00034,0002018 (Rs.)78,00012,0003,00051,00012,00020,000DebtorsBills ReceivablePrepaid ExpensesCreditorsBills PayableExpenses PayableCalculate Cash flow from Operating activities.Q.6 Calculate the current ratio and quick ratio from the following particulars and also give yourcomments about the sanme:Rs.4,000Cash

Q.5 P Ltd.'s Profit = Rs.500000 These profit is made after considering the following items : I.…

Q.5 P Ltd. made a profit of Rs.5,00,000 after considering the following items: Rs I. Preliminary expenses written off II. Depreciation on fixed assets III. Loss on sale of Machinery IV. Provision for doubtful debts V. Gain on Sale of Land 5,000 50,000 20,000 10,000 7,500 The following is the position of current assets & current liabilities: Particulars 2017 (Rs.) 52,000 15,000 2,000 40,000 2018 (Rs.) 78,000 12,000 3,000 51,000 12,000 20,000 Debtors Bills Receivable Prepaid Expenses Creditors Bills Payable Expenses Payable 19,000 34,000 Caleulate Cash flow from Operating activities.

Q.5 P Ltd. made a profit of Rs.5,00,000 after considering the following items: Rs I. Preliminary expenses written off II. Depreciation on fixed assets III. Loss on sale of Machinery IV. Provision for doubtful debts V. Gain on Sale of Land 5,000 50,000 20,000 10,000 7,500 The following is the position of current assets & current liabilities: Particulars 2017 (Rs.) 52,000 15,000 2,000 40,000 2018 (Rs.) 78,000 12,000 3,000 51,000 12,000 20,000 Debtors Bills Receivable Prepaid Expenses Creditors Bills Payable Expenses Payable 19,000 34,000 Caleulate Cash flow from Operating activities.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

was depreciated by the straight line method at 2% per year, assumine a 50-vear life and ni Tes walue. The building was re-valued to $2,250,000 on 1 January 20x6. The useful life was not ten The excess depreciation charge will be transferred from the revaluation surplus to retained earnings each year. The company's financial year ends on 31 December. What is the balance on the revaluation surplus at 31 December 20X6? %24 42 8.19 Banter Co an on 1 January 20X1. The cost was and ths
3. From the following information, calculate the amount of depreciation for one year rom the following particulars, prepare Machinery A/c for 3 years under S.L.M.: (Ans : Balance of Machinery A/c : Rs. 16,000] [Ans : Dep. : for Furniture Rs. 24,240; Plant : Rs. 37,380] Financial Accounting 1144 Depre Price of the Machine : Rs. 36,000 Freight charges : Rs. 2,500 Installation charges : Rs. 1,500 Life of the Machine : 5 years 2. [Bharathiar, B.B.M. Nov. 19991 10. under straight line method : Cost Turn-in-Value Estimated life Rs. Rs. Furniture 1,46,400 960 6 years 8 years Plant 3,05,600 6,560 4. How will you show asset in the balance sheet as on Dec. 31, 2002 when (i No depreciation method is adopted (ii) When provision for depreciation method is adonteds Details are : Cost price of the asset = Rs. 24,000 Depreciation per year = Rs. 2,000 Purchase date of the asset = 1-1-1998 [Ans : Value of asset to be shown in B/s: (i) Rs. 14,000 (i.e., 16,000 – 2,000); (ii) Rs. 14,000 (i.e., 24,000 –…
Packages Limited bought a machinery for Rs. 975,000 from Pakistan Ltd. Its residual value is expected to 71,000 at the end of useful life of 8 years. Accounts are closed each year on 31ª December. Required: Calculate depreciation at the rate of 21.8 % for first three years by applying reducing balance method.
On 31 March 20X9 a machine was sold which cost $20,000 on 1 May 20X5. The profit on disposal was $1,500.The depreciation policy is 20% pa straight line, with a full year being charged in year of acquisition and none inthe year of sale. The year end is 31 December.The sale proceeds were $________________.
A machine depreciates by 12% each year. The original cost is 8,500. Make out aschedule showing the annual depreciation, the total depreciation and book value atthe end of each year for 6 years. (Declining Balance Method)
On 1 June 20X9 a machine was sold which cost $20,000 on 31 July 20X5. The sale proceeds were $5,500. The depreciation policy for machinery is 20% pa straight line, with a full year being charged in the year of acquisition and none in the year of disposal. The year-end is 31 December. What is the profit or loss on disposal? A Profit $834 B Loss $834 C Profit $1,500 D Loss $1,500
An asset is purchased for $50,000. The rate of depreciation is 15% p.a. Calculate the annual depreciation for the first two years under diminishing balance method.
On 1 July 20X7 Brown Ltd bought a machine for GHS 48,000. The machine was depreciated at 25% per annum on a straight-line basis until 30 June 20X9. On 1 July 20X9, the machine was revalued to GHS 30,000. Brown Ltd considers that its remaining useful life is three years. According to IAS 16 Property, Plant and Equipment, what should be the depreciation charge for the year ended 30 June 20Y0 and the balance on the revaluation surplus as at 30 June 20Y0? (Ignore any transfer of excess depreciation.) Depreciation charge Revaluation surplus A GHS 8,000 GHS 4,000 B GHS 8,000 GHS 6,000 C GHS 10,000 GHS 6,000 D GHS 10,000 GHS 4,000
A Sala set which cost 9,250 depreciates by 25% of its value each year. Make out a depreciation table for the first 3 years and find the book value at the end of 3 years. (Declining Balance Method) O A. 3,902.34 В. 5,203.13 О с. 5,347.66 D. 4,046.88
During the year a grinding machine was purchased for 700,000. Expenses of cartage and installation was around 300,000. Calculate the amount of depreciation @20% p.a. as per Straight Line Method for the first year ending on 31st March, 2019, if this machine is purchased on: a. 1st April, 2018, b. 1st July, 2018, c. 1st October, 2018, d. 1st January, 2019.
Zul Cleaning Company bought a new delivery truck for RM45,000. Additional fitting for the truck costs RM2,500. The truck is expected to have a useful life of 5 years, and is classified as a light-duty truck and can be depreciated by straight line method. At the end of life the truck, it will be sold for RM5,000. The company's tax is 24%. Q. Prepare schedule of depreciation of 5 years.
On January 1, year 1, the Acme Company purchased a machine for $85,000. The useful life was 5 years or 320,000 units and the salvage value was $5,000. The expected b. 1. unit output per year is as follows: 1. 60,000 2. 100,000 3. 40,000 4. 90,000 5. 30,000 Instructions; On the worksheet provided, compute the depreciation expense per year under straight-line, double declining balance and unit of activity methods Based on your answer above, what is the book value of the asset after year 3 under the straight-line method 2. 2.