Accounting

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