Accounting Answers

1. The government has called upon its residents and citizens to pay taxes and assume monetary burdens so that it can finance public needs and perform its functions. Mr. Dela Cruz refused to pay taxes. Accordingly, he does not care whether the government continue to exist or not. Aside from that, he just wanted to save all his millions for himself. Is the contention of Mr. Dela Cruz correct? Why?

1. What are the nature of the state's power to tax?

The controller of Pane Co. was preparing the company's financial statements. Pane had a wholly owned subsidiary in a foreign country that used the euro as its currency. At December 31, the exchange rate was $1 U.S. for 1.25 euro. The weighted average exchange rate for the year was $1 U.S. for 1.50 euro. At December 31, the subsidiary had assets of 1 million euro and revenue for the year of 2 million euro. What amounts would assets and revenue translate for consolidation?   

1. The government has called upon its residents and citizens to pay taxes and assume monetary burdens so that it can finance public needs and perform its functions. Mr. Dela Cruz refused to pay taxes. Accordingly, he does not care whether the government continue to exist or not. Aside from that, he just wanted to save all his millions for himself. Is the contention of Mr. Dela Cruz correct? Why?

Enter the following transactions in the accounts:

20X9 May 1

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== 5

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== 18

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== 28

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== 31

Started in business with £18,000 in the bank. Bought goods on credit from B Hind £1,455. Bought goods on credit from G Smart £472. Sold goods for cash £210.

We returned goods to B Hind £82.

Bought goods on credit from G Smart £370. Sold goods on credit to P Syme £483.

Sold goods for cash £305.

Took £250 of the cash and paid it into the bank. Bought a printer by cheque £620.

Sold goods on credit to H Buchan £394.

P Syme returned goods to us £160.

H Buchan returned goods to us £18.

We returned goods to G Smart £47.

We paid Hind by cheque £1,373.

Bought machinery on credit from A Cobb £419.

Write up the accounts to record the following transactions:

20X7 March 1

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== 24

== 31

Started business with £750 cash and £9,000 in the bank. Received a loan of £2,000 from B Blane by cheque.

Bought a computer for cash £600.

Bought display equipment on credit from Clearcount Ltd £420. Took £200 out of the bank and put it in the cash till.

Repaid part of Blane’s loan by cheque £500.

Paid amount owing to Clearcount Ltd £420 by cheque. Repaid part of Blane’s loan by cash £250.

Bought a printer on credit from F Jones for 200

Write up the accounts to record the following transactions:

20X7 March 1

== 2

== 3

== 5

== 8

== 15

== 17

== 24

== 31

Started business with £750 cash and £9,000 in the bank. Received a loan of £2,000 from B Blane by cheque.

Bought a computer for cash £600.

Bought display equipment on credit from Clearcount Ltd £420. Took £200 out of the bank and put it in the cash till.

Repaid part of Blane’s loan by cheque £500.

Paid amount owing to Clearcount Ltd £420 by cheque. Repaid part of Blane’s loan by cash £250.

Bought a printer on credit from F Jones for £200.

Chapter 2 l The double entry system for assets, liabilities and capital

The accounting equation and the balance sheet

2 The double entry system for assets, liabilities and capital

3 The asset of stock

4 The effect of profit or loss on capital and the double entry system for expenses and revenues

5 Balancing off accounts

6 The trial balance

3 18 28

38 49 57

On 15 May 20X7, Blake pays a cheque for £3,000 to D Smith in part payment of the amount owing. The asset of cash at bank is therefore reduced, and the liability to the creditor is also reduced. The balance sheet is now:

 B Blake

Balance Sheet as at 15 May 20X7

Shop

Stock of goods Debtor

Cash at bank

Less: Creditor

Capital

 Assets

£ 32,000 6,000 600 25,400 64,000

( 4,000) 60,000

60,000

   Note how the total of each part of the balance sheet has not changed. The business is still worth £60,000 to the owner.

a)     Describe ONE MAIN accounting principle, concept, assumption, rule, quality or other conceptual framework of accounting component that may be used in resolving the following accounting problems:

                   i.           A logistics service provider of the company ferrying delicate goods from Mombasa has had a long standing history of damaging some of the goods under its care with no recourse.