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Introduction to Accounting and Finance - Assignment

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Added on  2020-10-22

Introduction to Accounting and Finance - Assignment

   Added on 2020-10-22

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INTRODUCTION TOACCOUNTING ANDFINANCE
Introduction to Accounting and Finance - Assignment_1
Table of ContentsINTRODUCTION................................................................................................................................3PART A- Dexter Plc..............................................................................................................................3PART B: Philly Ltd..............................................................................................................................7a...................................................................................................................................................7b...................................................................................................................................................8c...................................................................................................................................................9d...................................................................................................................................................9e. Assumption of breakeven model...........................................................................................10PART C: Sankrust Ltd........................................................................................................................11a. Calculation of net present value, payback period and accounting rate of return..................11b. Merits and limitation of investment appraisal techniques ....................................................12c. Budget as a tool for strategic planning .................................................................................13CONCLUSION .................................................................................................................................16REFERENCES...................................................................................................................................17
Introduction to Accounting and Finance - Assignment_2
INTRODUCTION Accounting assist in measuring the financial performance and profitability of the firm onthe basis of which the organisation is able to effective decision. In this assignment, it will includethe information regarding the Dexter Plc which is a new business started trading on 1 January 2018.also , it will contains Philly ltd on the basis of which the calculation will be made in the in part2.This study will include the information regarding the net present value , accounting rate of return,payback period etc. It will prepare the income statement and the statement of financial position onthe basis of the information provided by Dexter Plc. PART A- Dexter PlcIncome StatementFor the year ended 31 December 2018Particulars££Revenues:-Sales(604800+154800)633000Other income0Total Revenues633000Expenses:-Cost of goods sold or cost of sales24300054000297000Depreciation9600Wages paid117000AddOutstanding wages at the end of the year2175119175Electricity Expenses7725Van running expenses33600Bad debts1500Rent paid112500Less:-prepaid rent at the end of the year2250090000Total Expenses:-558600Net profit before tax74400Less:-Tax paid5775Net profit after tax68625
Introduction to Accounting and Finance - Assignment_3
From the above statement of income which has provided information about the income andexpenses which are being incurred by the organisation in that period which help in identifying theprofits earned by the firm during that period. The net profit earned by the firm in that period is181905 which means the business is profitable and is growing to increase their market share in theindustry. Balance SheetFor the year ended 31 December 2018££AssetsFixed AssetsDelivery Van50400Current AssetsPrepaid Rent22500Closing Inventory228000Trade Recievables64500Prepaid Tax1125Cash90000Total Assets456525LIABILITIESShareholder's EquityEquity share capital180000Reserves and surplus68625Long Term LiabilitiesCurrent LiabilitiesOutstanding Wages2175Outstanding Electricity Expenses2025Trade Payables93000Bank Overdraft110700
Introduction to Accounting and Finance - Assignment_4

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