Accounting Answers

Suppose you are owner of a company and you have to write a letter to a foreign client. Briefly describe five planning steps that you will consider before writing an effective business letter.

Prepare Income Statement with following data.
1) Net Income for the year Rs. 1.2 Million
2) Rate of Income 0.1 time of the sales
3) Gross profit 0.4 time of sales
4) Marketing Expense 10% of sales
5) 7% bonds payable represent 37.5% of total liabilities Rs. 2 Million.

you purchased 10 shares of L&T company last year.on 5th march 2019,the company has declared a devidend Rs 50 Per share.The income is earned but not yet collected in your account during this financial year......5 Mark value ......assignment

You recently accepted an assignment with Oxford Limited as a financial consultant. One of your first
assignments is the analysis of two proposed capital investment projects. Details of initial investments,
after-tax cash flows and average annual profits are represented below:
Year After-tax Cash flows
Initial investments
Cash flows
Average annual profits
1
2
3
4
Project A Project B
(R50 000)
R26 200
R12 200
R12 200
R5 000
R1 400
(R50 000)
R14 200
R14 200
R14 200
R14 200
R1 700
2.1. Which project has a shorter payback period? Motivate your answer by doing the relevant
calculations (answers expressed in years, months, and days).

Nancy buys a pair of jeans from HJ Jeans for R175.00, the pair is discounted by 20%. What is the discount amount?

Calculate the amount payable to the landlord from the following data:
Royalty :Re.1per ton of coal easier
Minimum rent: 1999:10000
2000:15000
2001:20000
2002:25000
Output in tons:1999:5000
2000:8000
2001:30000
2002:30000
Shortworkings are recoverable only out of excess royalties in the next year but not later

Discuss for question (a) and (b)
- Define and identify the type of Income / Expenses
- Treatment of the Income / Expenses in the Profit and Loss account, Impact of the
Income / Expenses in the Balance Sheet

a. You purchased 10 shares of L& T Company last year. On 5th March 2019, the
company has declared a dividend Rs 50 per share. The income is earned but not yet
collected in your account during this financial year. (5 Marks)

b. On 5th March 2019, Mehta Brothers received 100% advance for goods, to be supplied
in the next month. The Cost of the goods was Rs50000. They usually sells the goods at
10% mark up.

Edward Smith, an Australian resident individual, received the following cash dividends:
• $246,720 (franked to 50%) from XYZ Ltd on 1 February 2019;
• $14,000 (unfranked) from ABC Ltd on 1 March 2019;
• $4,900 (fully franked) from DEF Ltd on 1 May 2019
Required:
What is his assessable income (rounded to the nearest dollar)?

Question 1
a) Doug (resident of Australia) earns $190,000 from his employment as an IT specialist. He has
no allowable deductions.
b) Doug (resident of Australia) earns $32,500 from his employment as an IT specialist. He has
no allowable deductions.
c) XYZ Pty Limited (resident of Australia and not an SBE / BRE) has assessable income of $32,500 for
the tax year. It has no allowable deductions.
Required:
Calculate the net tax payable / refundable that would be assessed in relation to the situations
referred to above for the year ended 30 June 2019.