Accounting

This document provides study material and solved assignments on Accounting. It includes questions and answers, explanations of events, and journal entries. The document also includes information on current and non-current assets, liabilities, and equity.

Running head: ACCOUNTING
Accounting
Name of the Student:
Name of the University:
Author’s Note:
Course ID:

1ACCOUNTING
Table of Contents
Question 1:.......................................................................................................................................2
Question 2:.......................................................................................................................................4
i) Describing the event:....................................................................................................................4
ii) Explaining the decisions made for each event:...........................................................................4
iii) Preparing the journal entries:.....................................................................................................4
Question 3:.......................................................................................................................................5
Question 4:.......................................................................................................................................6
Bibliography:...................................................................................................................................8

2ACCOUNTING
Question 1:
Particulars Amount Amount
Sales revenue 11,06,000
Interest revenue 8,000
Total revenue 21,35,000
Cost of sales 5,24,000
Gross profit 16,11,000
Administrative expenses
Amortization expense - patent 18,000
Depreciation – motor vehicles 27,200
Doubtful debts expense 0
Office expense 85,000
Rental expense 5,100
Salaries 93,500
Selling expense 0
Miscellaneous expense 28,000 2,56,800
Selling and distribution expenses
Amortization expense - patent 0
Depreciation – motor vehicles 40,800
Doubtful debts expense 11,000
Office expense 0
Rental expense 11,900
Salaries 93,500
Selling expense 68,000
Miscellaneous expense 0 2,25,200
Operating income 11,29,000
Other income
Revenue from translation reserve 15,000
Impairment loss – goodwill -5,000
Gains from sales of motor vehicles 10,000
Proceeds from insurance claims 20,000 40,000
EBIT 11,69,000
Interest expense 21,000
EBT 11,48,000
Income tax expense 42,000
Profit for the year 11,06,000

3ACCOUNTING
Particulars Amount Amount
Current assets
Cash on hand 4,000
Inventories 92,000
Accounts receivable 1,18,000
Allowance for doubtful debts 11,000
Bank deposits 1,30,000
Deferred tax assets 21,000
Total current assets 3,76,000
Non Current assets
Patent (cost) 2,20,000
Accumulated amortization – patent -20,000
Goodwill 1,00,000
Accumulated impairment losses – goodwill -25,000
Motor vehicles 4,72,000
Accumulated depreciation – motor vehicles
-
2,03,000
Total non current assets 5,44,000
Total assets 9,20,000
Current liabilities
Accounts payable 1,14,000
Bank overdraft 13,000
Dividend declared 32,000
Current tax liabilities 37,000
Deferred tax liabilities 22,000
Total current liabilities 2,18,000
Non current liabilities
Bank loan 1,75,000
Total liabilities 3,93,000
Net assets 5,27,000
Equity
Paid up capital (ordinary) 4,00,000
Foreign currency translation reserve 19,000
Retained earnings at 16 December 2018 1,08,000 5,27,000
Particulars Amount
Opening balance 4,00,000
total income 88,000
Dividend paid -16000
Income from other source 19,000
Retained earnings at 16 December 2018 36,000

4ACCOUNTING
Ending balance 5,27,000
Question 2:
i) Describing the event:
Even
t Describes the circumstance of each of the event
1
Events occurring after the end of the reporting period – state if the event would fall
under adjusting or non-adjusting category.
2 Change in accounting estimate
3 Prior period error; or
4
Events occurring after the end of the reporting period – state if the event would fall
under adjusting or non-adjusting category.
ii) Explaining the decisions made for each event:
Eve
nt Describes the circumstance of each of the event
1
The first event has occurred after the reporting period, hence no information will be
included in the current financial statement
2
In the second event the overall accounting estimate has been changed, where the
depreciation value of the plant is calculated
3
The third event has conducted prior to the year, which will be recorded in current
financial year.
4
No adjustments will be conducted in the financial year, as the information has been
presented after the completion of the financial year.
iii) Preparing the journal entries:
Event Particulars Debit Credit
30-06-2019
1) No entries

5ACCOUNTING
2) Accumulated depreciation 66,667
Depreciation expense 66,667
3) Vehicle 80,000
Depreciation expense 16,000
Accumulated depreciation 24,000
Retained earnings 72,000
4) Allowance for doubtful accounts 75,000
Accounts receivable 75,000
Question 3:
Date Particulars Debit Credit
31-07-
2018 Cash 1,50,00,000
Share application 1,50,00,000
Money received from application
10-08-
2018 Share application 1,50,00,000
Share allotment 25,00,000
Share capital 1,25,00,000
Transfer of money to share capital
12-08-
2018 Share capital Commission 17000
Cash 17000
Payment to under writing commission
10-09-
2018 Share allotment 50,00,000
Share capital 50,00,000
Share allotment money becomes due
10-09-
2018 Cash 25,00,000

6ACCOUNTING
Share allotment 25,00,000
Date Particulars Debit Credit
01-02-
2019 Share call 25,00,000
Share capital 25,00,000
Recording share call money
28-02-
2019 Cash 24,90,000
Calls in arrears 10000
Share call 25,00,000
Recording all money received except 20,000
shares
20-03-
2019 Share capital 80000
Forfeited shares 70000
Calls in arrears 10000
Forfeiture of shares
05-04-
2019 Cash 68,000
Forfeited shares liability 12,000
Share capital 80000
Reissue of shares
05-04-
2019 Forfeited shares liability 5,000
Cash 5,000
'Cost of re-issue of shares
12-04-
2019 Forfeited shares liability 53,000
Cash 53,000
Amount to be refunded

7ACCOUNTING
Question 4:
Date Particulars Debit Credit
01-07-2017 Plant A 8,00,000
Plant B 6,00,000
Cash 14,00,000
Date Particulars Debit Credit
30-06-2018 Depreciation expense (Plant A) 72,000
Revaluation surplus (Plant A) 32,000
Plant A 40,000
Date Particulars Debit Credit
30-06-2018 Depreciation expense (Plant B) 1,20,000
Revaluation loss (Plant B) 80,000
Plant B 2,00,000
Date Particulars Debit Credit
30-06-2019 Depreciation expense (Plant A) 85,000
Revaluation loss (Plant A) 75,000
Plant A 1,60,000
Date Particulars Debit Credit
30-06-2019 Depreciation expense (Plant B) 80,000
Plant B 80,000

8ACCOUNTING
Bibliography:
Kaplan, R. S., & Atkinson, A. A. (2015). Advanced management accounting. PHI Learning.