Learn more about our help with Assignments: Accounting
Search & Filtering
Accounting
Which of the following is not an intangible asset? please explain
A, Software development cost
B, Goodwill
C, Pre-payment for purchase of softwares
D, Website development cost
E, None of the above
A, Software development cost
B, Goodwill
C, Pre-payment for purchase of softwares
D, Website development cost
E, None of the above
Accounting
The principle of consistency means that the company should use the same method of depreciation for all the fixed assets. is it true or false? please explain
Accounting
A worksheet can not be used for which of the following purposes?
A) Preparing interim financial statements without actually adjusting or closing the accounts.
B) Reducing to a single page the presentation of financial information within the company’s annual report.
C) Showing accountants and management how proposed adjusting entries and transactions will affect the financial statements.
D) None of the above
A) Preparing interim financial statements without actually adjusting or closing the accounts.
B) Reducing to a single page the presentation of financial information within the company’s annual report.
C) Showing accountants and management how proposed adjusting entries and transactions will affect the financial statements.
D) None of the above
Accounting
All of the following statements are generally true except:
A) The accounting process only recognizes value changes arising from actual transactions.
B) Accrual accounting may allocate transactions and cash flows to time periods other than those in which the cash flows occur.
C) Reported income under the accrual concept provides a measure of current operating performance based solely on actual current period cash flows.
A) The accounting process only recognizes value changes arising from actual transactions.
B) Accrual accounting may allocate transactions and cash flows to time periods other than those in which the cash flows occur.
C) Reported income under the accrual concept provides a measure of current operating performance based solely on actual current period cash flows.
Accounting
Which of the following statements is False?
A) Patent and copyright costs are expensed when incurred.
B) Software development costs may be capitalized.
C) Research and development costs are expensed when incurred.
D) None of the above
A) Patent and copyright costs are expensed when incurred.
B) Software development costs may be capitalized.
C) Research and development costs are expensed when incurred.
D) None of the above
Accounting
Cash book is an example of:
A) General journal B) It is not a journal
C) Special journal D) None of the above
A) General journal B) It is not a journal
C) Special journal D) None of the above
Accounting
On 01-01-2000 a firm purchases machinery amounting to Rs. 500,000 on 1-07-
2002 it buys additional machine worth Rs. 100,000 and spends Rs. 10,000 on its
erection. The accounts are closed each year on 31st December. The firm charges
annual depreciation @ 10%.
Required:
Machinery Account for 5 years under
(i) Straight line Method (ii) Reducing balance method.
2002 it buys additional machine worth Rs. 100,000 and spends Rs. 10,000 on its
erection. The accounts are closed each year on 31st December. The firm charges
annual depreciation @ 10%.
Required:
Machinery Account for 5 years under
(i) Straight line Method (ii) Reducing balance method.
Accounting
Balance Sheet of AA & Co. showed the following information as at December 31, 2005.
Account Receivables 225,300
Allowance for Doubtful Accounts 6,759
Following transactions took place during the year ended December 31, 2006.
Credit sales 1,245,500
Cash Sales 230,600
Cash collected 1,386,200
Doubtful accounts written off 2,300
Company has a policy of providing for 3% of outstanding Receivables as Allowance for doubtful accounts.
Required:
(a) Prepare the following accounts for the year as they would appear in the books of AA & Co. (Journal entries are not required) :
i) Accounts Receivable Account.
ii) Allowance for Doubtful Accounts.
(b) Compute the amount of allowance for doubtful accounts required at the end of the year.
Account Receivables 225,300
Allowance for Doubtful Accounts 6,759
Following transactions took place during the year ended December 31, 2006.
Credit sales 1,245,500
Cash Sales 230,600
Cash collected 1,386,200
Doubtful accounts written off 2,300
Company has a policy of providing for 3% of outstanding Receivables as Allowance for doubtful accounts.
Required:
(a) Prepare the following accounts for the year as they would appear in the books of AA & Co. (Journal entries are not required) :
i) Accounts Receivable Account.
ii) Allowance for Doubtful Accounts.
(b) Compute the amount of allowance for doubtful accounts required at the end of the year.
Accounting
Modern Traders completed books of accounts, prepared Trial Balance for 30th June 2006. It found “debits” exceeded “credits” by $ 27,880 and was credited to suspense account, after sometime following errors were detected:
Sales returns book was undercast by $1,000.
Purchase of furniture for $3,000 was passed through purchase day book.
$3,750 paid as wages to workers for making show-cases was charged to wages account.
Purchase of $ 6,710 was posted to the debit of creditors account as $ 6,170.
A cheque for $2,000 received from Saleem was dishonoured & was passed to the debit of allowances account.
Goods costing $ 1,000 had been returned by a customer and were taken into stock but no entry was made in the books.
A sale of $ 2,000 to Imran & co. was credited to their account.
Sale amounting to $10,000 was passed through purchased day book. The customer’s account had however been correctly debited.
Required:
(A) Journal Entries (without narration) to rectify the errors with reasons.
(B) suspense Account
Sales returns book was undercast by $1,000.
Purchase of furniture for $3,000 was passed through purchase day book.
$3,750 paid as wages to workers for making show-cases was charged to wages account.
Purchase of $ 6,710 was posted to the debit of creditors account as $ 6,170.
A cheque for $2,000 received from Saleem was dishonoured & was passed to the debit of allowances account.
Goods costing $ 1,000 had been returned by a customer and were taken into stock but no entry was made in the books.
A sale of $ 2,000 to Imran & co. was credited to their account.
Sale amounting to $10,000 was passed through purchased day book. The customer’s account had however been correctly debited.
Required:
(A) Journal Entries (without narration) to rectify the errors with reasons.
(B) suspense Account
Accounting
On 30th June, 2008 the balance on an organisation's cash book was a debit of
Rs 10,420. On the same date the bank statement showed that the organisation was in
credit with a total of Rs 8,380. The following was then discovered:
(A) Bank charges of Rs 240 were shown on the bank statement but had not been
entered into the cash book.
(b) The payments side of the cash book had been undercast by Rs 1,000.
(c) A standing order payment of Rs 700 appeared on the bank statement but had
been omitted from the cash book.
(d) Cheques drawn by the organisation for Rs 1,200, Rs 600 and Rs 350, had not
yet been presented at the bank by 30th June and there fore did not appear on
the bank statement.
(e) A cheque receipt from a customer of Rs 2,250 had been paid into the bank
account on 29th June but did not appear on the bank statement until 3rd July.
Required:
Prepare the bank reconciliation statement as at 30th June 2008
Rs 10,420. On the same date the bank statement showed that the organisation was in
credit with a total of Rs 8,380. The following was then discovered:
(A) Bank charges of Rs 240 were shown on the bank statement but had not been
entered into the cash book.
(b) The payments side of the cash book had been undercast by Rs 1,000.
(c) A standing order payment of Rs 700 appeared on the bank statement but had
been omitted from the cash book.
(d) Cheques drawn by the organisation for Rs 1,200, Rs 600 and Rs 350, had not
yet been presented at the bank by 30th June and there fore did not appear on
the bank statement.
(e) A cheque receipt from a customer of Rs 2,250 had been paid into the bank
account on 29th June but did not appear on the bank statement until 3rd July.
Required:
Prepare the bank reconciliation statement as at 30th June 2008
