Accounting Answers

Love Doddle is a gifting enterprise of Ms. Dorati. The enterprise generates inflows by arranging gift hampers for the customer’s loved ones. The inflows arises from the sale of gift hampers Rs 505000 and from bank interest, dividend receipt Rs4200. Ms. Dorati is confused on how to record these inflows. She would like to understand from you about the concepts Revenue from operation and other income, so that she can record the information so as to prepare the profit and loss statement of the enterprise. Define, share examples, and elaborate on your understanding towards the terms Revenue from Operation and Other Income

 Unpaid utilities for July 2020 in GHJ Manpower Services are ₱2,300. what is the adjusting entry?

MTN Ghana Ltd. acquired a brand new property (land and buildings)on 1st January, 2016

for GH¢ 40 million (including GH¢15 million in respect of the land).The asset was

revalued on the 31st of December, 2017 to GH¢ 43 million (including GH¢16.6 million in respect of the land).The buildings element was depreciated over a 50-year useful life to a

zero residual value. The usefulll life and residual value did not subsequently need revision.

On the 31st of December, 2018 the property was revalued downwards to GH¢ 35 million as

A result of the recession (including GH¢14 million in respect of the land).The company

makes a transfer from revaluation surplus to retained earnings in respect of realised profit.

Required:

i. Determine the amounts that should be recognised in profit or loss and other

comprehensive income for the years ended 31 December 2017 and 31 December

2018.

MTNGhanaLtd.acquiredabrandnewproperty(landandbuildings)on1stJanuary,2016

forGH¢40million(includingGH¢15millioninrespectoftheland).Theassetwas

revaluedonthe31stofDecember,2017toGH¢43million(includingGH¢16.6millionin

respectoftheland).Thebuildingselementwasdepreciatedovera50-yearusefullifetoa

zeroresidualvalue.Theusefullifeandresidualvaluedidnotsubsequentlyneedrevision.

Onthe31stofDecember,2018thepropertywasrevalueddownwardstoGH¢35millionas

aresultoftherecession(includingGH¢14millioninrespectoftheland).Thecompany

makesatransferfromrevaluationsurplustoretainedearningsinrespectofrealisedprofit.

Required:

i.Determinetheamountsthatshouldberecognisedinprofitorlossandother

comprehensiveincomefortheyearsended31December2017and31December

2018.

ii.Explainthereasonsforyourtreatmentofthetworevaluationsthatoccurredin

2017and2018inthefinancialstatements

Discuss and analyze the following transactions for X Ltd, using the concept of accounting equation (Assets, Liabilities and Equities). 1. Purchased Furniture for Rs675000 2. Capital Introduced by the business Owner by depositing 12 Lakhs in the bank account 3. Goods purchased on credit from Aman Enterprises for Rs105000 4. Goods sold on credit for Rs 400000. The cost of the goods sold was Rs 300000 5. Purchased goods from Sneha Enterprises for Rs 600000 and made the payment from the business's bank account

Financial statements should reflect a true and fair view of the business. Explain in your own words what is meant by this statement by explaining the qualitative characteristics of financial statements. 

Financial statements should reflect a true and fair view of the business.

merry transferred birr 168,000 out of a personal saving bank account

The following information has been taken from the books of Lobelia Traders, a general trading shop in Braamfontein, for the month of April 2020: Lobelia Traders is a registered VAT vendor and trades only with registered VAT Vendors. The business charges 15% VAT on all its sales. TRANSACTION JOURNAL AMOUNT EXCLUDING VAT VAT AMOUNT AMOUNT INCLUDING VAT Cash sales CBR 35 000 A  B Advertising paid CBP C D 920 Goods purchased for cash CBP E 750 F Drawings of Petty Cash GJ 500 G H Credit sales DJ I 1 200 J    Q.3.2.1  Calculate the amounts for A to J (10) Q.3.2.2  Calculate the Input VAT Total (2½) Q.3.2.3  Calculate  the Output VAT total (2½) Q.3.2.4 Calculate the Vat payable or refundable. Clearly indicate if it is payable or refundable and if it is an asset or liability  (5)

Hoban limited