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Wildcat Ltd, a manufacturing company sold a machinery for Rs 8 lacs at the year end. The company had purchased the machinery four years back for Rs 15 lacs and had depreciated the same using written down value method of depreciation @ 20%. As an accounts executive of Wildcat Ltd, calculate the WDV of the asset for the four years, accumulated depreciation for four years and profit/loss on sale, if any.
The 3,000, 6% Redeenmable Preference Shares of R100 each, fully paid of XxY Ltd.
were due for redemption on 30 - 06-18 at a premium of 5%. The company made
an issue of 2,000 Equity Shares of T 100 each at a premium of 20% on the above
mentioned date. The issue was immediately subscribed and paid for. Expenses of
issue of the shares came toR 10,000. The General Reserve and P/L had balance of
3,50,000 and { 60,000 on 30 - 06-18. The redemption was carried out, holders
of 500 shares not being traceable. A bonus issue of 3,00,000 in the form of fully
paid equity shares was made.
Show the journal as summing that revenue reserve or surplus is to be used to the
minimum extent possible. (Amount transfe;red to C. R. R. Account 1,00,000)
George’s T-Shirt Shop produces 5,000 custom printed T-shirts per month. George’s fixed costs are $15,000 per month. The marginal cost per T-shirt is a constant $4. What is his break-even price? What would be George’s break-even price if he were to sell 50% more shirts?
You and two friends of yours decided to handle the supply of vegetables to the shops of the city and created a limited liability company. Your friends have invested in the case 5 thousand euro each and you gave the company the right to use your personal car for one year. The car costs 4 thousand euro, you estimated your contribution in the form of the rights of use as agreed with the partners at 7 thousand euro. You have successfully completed the year of work. At your disposal 1800 euro of profit after accounting all costs. How will you share profit between partners?
Provide a list of the payments that will need to be remitted to external parties at various frequency levels throughout the year as part of payroll system.
A company is considering an investment proposal to install new milling controls. The project will cost Kes50,000. The facility has a life expectancy of five years and no salvage value. The company’s tax rate is 40%. The estimated cash flows from the proposed investment proposal are as follows:
Year CF
1 10,000
2 11,000
3 14,000
4 15,000
5 25,000
Compute:
a. Accounting Rate of Return and advise management if
the required rate of return is 6 % (4Mks)
b. Traditional Payback period and advise management
on the feasibility of the project (4Mks)
c. Discounted payback period at 6% discounting factor (4 Mks)
d. Net present value at 6% discounting factor and advise
management on the project’s feasibility (4 Mks)
e. Net present value at 15% discounting factor and advise
management on the project’s feasibility ( 4 Mks)
f. Internal rate of return and explain its significance to the firm (6 mks)
g. Profitability Index at 10% discounting factor ( 4 Mks)
When you receive a declaration, how long do you get to send the form to the ATO? What happens if you fail to do so?
How would you describe period- end adjustments and which aspects of the business activity can be highlighted in it? Provide examples.
2. Describe the purpose of a trial balance and identify three posting errors that would not be revealed by an 'out-of-balance' trial balance.
You have a new employee, Steven Maxwell who will be working in the warehouse. You have provided the TFN declaration form however Steven does not want to quote his TFN. What do you do in this situation?
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