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Suppose Scarlett purchased a 3-year bond with the face
value of 20,000 in the primary market. The current risk-free interest rate was
0.25%, and a risk premium on that bond is 3%. A year later after collecting her
yearly coupon payment, Scarlett decided to sell that bond in the secondary market.
By that time, the economic situation has improved, and the risk-free interest rate
has risen to 1%. What is Scarlett’s rate of return for the one-year period she held
the bond?

bills of exchange

K owes ` 60,000 to Z. The debt is discharged by K on 1st June, 2016 by accepting two bills of exchange drawn on him by Z—one for ` 40,000 at 2 months and the other for ` 20,000 at 3 months. The first bill is endorsed in favour of R, a creditor, in full settlement of his debt for ` 42,000. The second bill is discounted with the

bank at 15% p.a. on 4th June. Both the bills were dishonoured, the noting charges in each case being ` 600. On 5th September, K agreed to accept another bill for the total amount including interest @ 18% p.a. payable after 3 months. On the due date the bill was dishonoured. K was declared insolvent and a final dividend@ 30% was realised from his estate.

Show the Journal entries in the books of Z and K.


On 31 August, M traders purchased a machine on credit for a cost price of R402 500 (including VAT at 15%). Machine is depreciated over 6 years according to the straight-line method and there is residual value on this machine. M traders has a 30 June year end. Calculate depreciation and accumulated depreciation for 2019 and 2020
Pulse, a dance club, saw a $40,000 drop in revenue during 2020 due to the Covid-19 virus. How will this affect the 2020 incomes statement, balance sheet, and statement of cash flows? What if anything will be affected and by how much?
differetiate between the two types of accounting system for inventory
Choose the correct answer.
Paid to ram ₹ 11500 in full settlement of ₹ 12000. Posting will be made in ram' s A/c:
(A) ₹ 12,000 on debit side
(B) ₹ 12000 on credit side
(C) ₹ 11,500 on debit side
(D) ₹ 11,500 on credit side
Machine cost = 5 lack
Salvage value = 54994.35
Find book value of machine after 5 years and also find accumulated depreciation after nine years .
By using db method
A machine was purchased on 1 st april, 2008. The balnce of his machine on 31 st march ,2011 is ₹ 5,83,200. Depreciation is charged @ 10% p.a. on written down value method. What was the cost price of the machine on 1 st apirl,2008 ?
Calculate the material turnover ratio for the yers 199 from the following details:

(mx) (my)
Opening stock 25,000 87,500
Closing stock 15,000 62,500
Purchase 1,90,000 1,25000
What affect does depreciation, being a non cash expense, have in a seasonal cash budget.
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