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Financial Accounting Assignment- Answers

   

Added on  2019-11-29

15 Pages2372 Words169 Views
By student name ProfessorUniversityDate: 28 August 2017.
Financial Accounting Assignment- Answers_1
1ContentsQuestion no 26 ..............................................................................2Question no 23 ..............................................................................4Question no 25 ..............................................................................6Question no 17 ..............................................................................7Question no 19 ..............................................................................8Question no 9 ................................................................................9Question no 43 ..............................................................................10Question no 19 ..............................................................................11Question no 2 ................................................................................12Question no 15 ..............................................................................13References.....................................................................................141 | P a g e
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2Question no 26Total cost of the plantAmount in $Cost of power generator and associated technology12550000Cost obtaining in getting access to site2500500Power permits400500Engineer's Fees1100500Total cost of the plant to the company16,551,500A plant can be capitalised in the books of the company from the date when it is ready for use i.e.,from the day of its intended use. Here, it is 1st July. 2018. [ CITATION Bae17 \l 1033 ]Estimated useful life of the asset is 10 years here.Dismantling cost to be incurred at the end of the useful lifeAmount in $Cost of dismantling the plant750500Environmental remediation cost1249500Replacement of flora and fauna100000Total cost of dismantling to the company2100000Discount rate to the company10%Present value of dismantling as on 1st July, 2018 (2100000, 10%, 10 years)809,641Total depreciable cost = 16551500+809641 = 17,361,140Amount of depreciation each year = 17361140/10 = 1,736,114In the books of Modnight Boil Ltd.Journal EntriesDate Dr./ParticularsAmt in $Amt in $2 | P a g e
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3Cr.30th June'18Dr.Plant A/C17,361,140.00 Cr.Bank A/C17,361,140.00 (Being Plant purchased)30th June'19Dr.Depreciation on Plant A/C1,736,114.00 Cr.Accumulated Depn on Plant A/C1,736,114.00 (Being depn charge for the year)30th June'24Dr.Depreciation on Plant A/C1,736,114.00 Cr.Accumulated Depn on Plant A/C1,736,114.00 (Being depn charge for the year)Question no 233 | P a g e
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