Accounting Answers

9.The purpose of Accounting is to ….....
a.Value stocks and materials
b.Provide means of keeping money
c.Provide financial information
d.Calculate figures

10.Under the entity concept …...... … is different from its owner
a.Limited company only
b.Private cmpany only
c.Any business organisation
d.Partnership only

Prepare the cash flow statement from investing activities of Alpha Creative Ltd for the year ended March31, 2019 -

Particulars Amount

Plant acquired 160000

Claim received for loss of plant in fire 45500

Unsecured loans given to subsidiaries 595000

Interest on loan received from subsidiary companies 72500



• Also give reasons for the classification of above activities as inflow /outflow

A business uses linear depreciation for its machines. The depreciation time is set to five years. The machines were purchased at the entrance to Year 1 for NOK 3.000.000 including VAT ( Norwegian mva). Residual Value at the expiration of the service life was estimated at NOK 400.000 without VAT(Norwegian mva). After four years the machine was sold. The loss of sales was NOK 30.000.
What was the sales total including VAT ( Norwegian mva)?

which sections of the income statement would a debits balance in cash short and over be reported?

Required:
Would it be ethical for Patty Driver to maintain the accounting records for this company, or must they be maintained by someone who is independent of the organization?

Essay

The following is an extract of the trial balance of Gogi Ltd at year end 31 December 2016.
Dr
$ Cr
$
Revenue 1 000 000
Cost of sales 450 000
Cost of distribution 120 000
Cost of administration 80 000
Interest expense 100 000
Tax expense 70 000

Other comprehensive income included one item: 170 000 0n revaluation of a machine (net tax)
Required:
Prepare the statement of comprehensive income for the year ended 31 December 2016 assuming
a) Gogi Ltd uses the single statement layout
b) Gogi Ltd uses the two-statement layout

Journalise the year-end adjustments and appropriations (including closing transfers) in the general journal of Fox and Tront for the year ended 30 June 2017 narritions must be provided for all journal entries

Different user group are interested in an entit's financial statement for different reasons.identify any four potential user group and briefly describe the information which they May be interested in

Give an example of a transaction in the general journal that causes an entry to be posted twice (i.e.
to two accounts), one in the general ledger, the other in the subsidiary ledger. Does this affect the
debit/credit equality of the general ledger?

Musa has $6000 starting capital for money leading business. He hopes to lend out a standard $1000 per individual, lend up to three borrowers per day and work for 20 days in first 2 month and increase to as many borrowers as capital can allow during the first year. The maximum loan repayment period is 24 working days. The loan interest rate is $200 per $1000 for the entire loan period. The borrower will be required to repay the loan in spread installments of $500 per day, beginning the following day. Musa estimates the risk of bad loans to be 5% per month of the total investment and his business will not be insured.

Required
a. Projected total monthly interest
b. Projected monthly gross profit
c. Projected monthly net profit
d. How many borrowers can Musa lend each month from the third month?
e. Projected profits or loss statement
f. Statement of business financial position or trajectory