Accounting Answers

Activity #1

Analyzing transactions as to what account is debited and credited

Robinson Company uses the perpetual inventory system and this is a VAT Registered Company. All

transactions include 12% VAT.

1. Purchased merchandise from X Company for P7,200 under credit terms, n/30.

2. Purchased merchandise from BBB Company for P11,200 Cash.

3. Paid freight on the shipment in No. 2, P500.

4. Robinson Company sold merchandise costing P 20,000 for P25,000 under credit terms, 2/10, n/30,

FOB Destination.

5. Robinson Company paid P1,000 freight on no. 4 transaction.

6. Robinson sold merchandise costing P30,000 for P40,000 for cash. Freight of P 1,200 is also paid by

Robinson because the credit term is FOB Destination.

REQUIRED: Using the format given below, prepare an analysis for transaction as to what is debited or credited. Analyze the effects of the transactions on the accounting equation.

Lee Company reported the following data for the current year:

Legal and audit fees                                                1,700,000

Rent for office space                                               2,400,000

Interest on inventory loan                                        2,100,000

Loss on abandoned data processing equipment           350,000

What amount should be classified as general and administrative expense?

1. The management of XYZ Company provides you with comparative balance sheets of the years ended December 31, 2012 and 2011. Management asks you to prepare a horizontal analysis on the information.

As indicated in table above sales increased by 8.3% while net income decreased by 21.9%. You identified that there were increases in both cost of goods sold (14.3%) and operating expenses (2.1%). These increased costs more than offset the increase in sales, yielding an overall decrease in net income. You already identified the Couse of the problem. Therefore, what are the possible actions should be taken to eliminate the reduction of the net income?

2. Assume you are a manager of XY Company, while you conduct a vertical analysis it is identified that 85% of the company expenses are incurred for salary. This intern highly affected the profitability of the organization. As a manager what are the possible remedial actions that you suppose to take in order to mitigate this drawbacks?

SunnyDay Sdn.Bhd. Is a company that sells scarves. Each of its scarves has its own sewn logo. The cost of each logo is ￥27. Darryl, the company's operations manager, received $20 per logo from an outside carrier. SunnyDay Sdn. bhd. Produces 100,000 logos for scarves every month. Its last cost accounting statement is: Direct Material =$550,000, Direct cost=$800,000, Variable overhead=$350,000, Fixed cost=$1,000,000, The Total cost = $2700000.

As the company's accountant, do you suggest Darryl accept the offer from this supplier? Why is that?

• Write True if the statement is correct; False if otherwise.

1. The account holder may issue a bank check from a savings account.
2. The account holder may use the withdrawal slip to get money from the checking account.
3. Time deposits account are investment accounts in nature.
4. Time deposits has a fixed interest rate and fixed placement period.
5. Bank statement is a letter issued by the bank that certifies the existence of the bank account.

From the following information, furnished by Ms. Anucampa pertaining to the financial

year ended as on 31st march 2021,

• Short term capital gains on sale of shares in an Indian company received in Japan - 10000
• Dividend from a Chinese company received in China - 3000
• Agricultural income from land in Madhya Pradesh - 5000
• Dividend from PJV Ltd an Indian Company- 4745
• Gross Rent from a residential property located at Singapore, later on remitted to the saving account in Bank of Maharashtra, Mumbai using the approved channels - 600000

Compute the total income and give reason for considering/ not considering these specific

items for the relevant assessment year 2021-22, if she is

a. Resident and ordinary resident

b. Non resident

GST is called as consumption based tax. Discuss and verify this statement with the help of a relevant example. Also, elaborate on the different categories of GST.

June 10,2013 purchased 300 units at cost of 20 on cash. On August 20, 2013 returned 10 units from june 10 purchase.Inventory left on hand is 340. 50 units are from March 7, purchases.Record transaction on periodic perpetual system.

At April 1, 2013 sold 150 units for $ 25,100 from the beginning and remaining from March.At June 10, 2013 purchased 300 units at cost of 20 on cash.Record the following transaction on periodic perpetual system.

At May 7, 2013 purchase 200 units on account for $15.Record the following transaction on periodic perpetual system.