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  #11  
Old Wednesday, January 23, 2013
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Quote:
Originally Posted by zahra raza View Post
friends i am posting ratio analysis answers here please check it and correct it if i am wrong

2012
part a
(1) current assets = 200,000
(2) inventory = 60,000
(3)net sales = 360,000
(4) gross profit = 72000

part b

(1)working capital = 500,000
(2)current ratio = 3
(3)quick ratio = 2.4
(4) inventory turnover ratio = 4 times
(5)accounts receivable turnover = 5 times
(6) gross profit percentage = 70.41%
(7) net profit percentage = 37.53%
(8)operating expenses rate = 62.47%
operating expnses ratio is 32.87%
operating ratio is 62.87%
plz check
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  #12  
Old Wednesday, January 23, 2013
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Quote:
Originally Posted by Rohail Khan View Post
Journal entries Dr Cr

Apr 1:

Off: equipments 1000000 Dr
Cash 1000000 Cr

Machinery 50000 Dr
Cash 50000 Cr

Jul 15

Repairs exp:5000 Dr
Cash 5000 Cr

Sept 30

Cash 82000 Dr
Acc: Dep 20000 Dr
Machinery 100000 Cr
Profit(I/S) 2000 Cr

Dec 31

Machinery (new) 85000 Dr
Acc Dep: (working 1)15000 Dr
Loss in trade in (working 2) 3000 Dr
Machinery(old) 50000 Cr
Cash(working 3) 53000 Cr


Computation

Land Rs. 1,000,000(a)

Office equipment(working 4) 6,000,000
Less: accumulated depreciation(working 5) 400,000 = 5,600,000(b)

Machinery(w6) 585,000
Less: accumulated depreciation(w7) 145,000 = 440,000(c)

Total non current asset(a+b+c) 7,040,000


Workings:

W1

Acc: Dep @ 2005 add dep for year 2006
10000+5000=15000

W2

Old machinery less Acc: dep(w1)=net book value less trade in allowance = loss in trade
50000-15000=35000-32000=3000

W3

New machinery price less trade in allowance = cash paid
85000 32000 = 53000

W4

Old equipments + new equipments = office equipments
5000000+1000000=6000000

W5

Depreciate at straight line basis means divide equipments with their life
So 6000000/40 years= 150000 is depreciation charges for the year 2006

Means

The accumulated depreciation is
250000 till 2005
150000 of 2006
400000 is total acc: dep till 2006.

W6

old machinery 600000(a)
add: machine purchase on 1 April 50000(b)
less: machine sold on 30 September 100000(c)
less: machine sold on 31 December 50000(d)
add machine purchase on 31 December 85000(e)
total machinery (a+b-c-d+e) 585000

W7

Acc: dep for machine @ 2005 120000(a)
Less dep of asset sold on September 20000(b)
Less dep of asset sold on December 10000(c)
Acc: dep @ 2005 after sold assets(a-b-c) 90000(d)
Add: dep for the year 2006 (w8) 55000(e)
Total Acc: dep till 2006 (d+e) 145000


W8

old machinery 600000(a)
add: machine purchase on 1 April 50000(b)
less: machine sold on 30 September 100000(c)
less: machine sold on 31 December 50000(d)
available for dep of 2006 are (a+b-c-d) 500000
nw 500000/10years so 50000 plus 5000(w1) =55000


seniors check please..
in sep 30 entry i think accumulated depreciation will be 27500(20000 upto 31 dec 2005+7500 current year 9 month depriciation)
plz members check this question
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  #13  
Old Wednesday, January 23, 2013
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Quote:
Originally Posted by haadiya View Post
in sep 30 entry i think accumulated depreciation will be 27500(20000 upto 31 dec 2005+7500 current year 9 month depriciation)
plz members check this question
ya sure..apki baat sahi hai par jaldi me maine assumption likhna bhol gaya k i assume that in the year of disposal if any asset dispose in last month than that assets dep: is taken to the account..if disposal occur during the year so dep exp should not taken into account..
agr apki baat ko mana jae tou phr april me jo office equipment aur machinery purchase ki hai uski b hum ko complete year k bajae sirf 9 months ka Dep: exp account for krna parega.. marks ko samne rkhte hi assumption use kr k calculations ko simplfy kia hai.

Assumption ye tha k jis year me purchase kro us me full depreciation expense account for karo aur jis me dispose off kro us me account for nh kro. par last me jo disposal hua h usne pora year economic benefit die hain so usko depreciate kia mene..

this is my suggestion.. what you say.. me solve this question with both method..one i post and second you point out..

and thanks for checking.
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  #14  
Old Thursday, January 24, 2013
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Quote:
Originally Posted by Rohail Khan View Post
ya sure..apki baat sahi hai par jaldi me maine assumption likhna bhol gaya k i assume that in the year of disposal if any asset dispose in last month than that assets dep: is taken to the account..if disposal occur during the year so dep exp should not taken into account..
agr apki baat ko mana jae tou phr april me jo office equipment aur machinery purchase ki hai uski b hum ko complete year k bajae sirf 9 months ka Dep: exp account for krna parega.. marks ko samne rkhte hi assumption use kr k calculations ko simplfy kia hai.

Assumption ye tha k jis year me purchase kro us me full depreciation expense account for karo aur jis me dispose off kro us me account for nh kro. par last me jo disposal hua h usne pora year economic benefit die hain so usko depreciate kia mene..

this is my suggestion.. what you say.. me solve this question with both method..one i post and second you point out..

and thanks for checking.
may be you r right but i think to be on safe side assumption ki bajye jaisa hai usy waisy solve karain to its better...
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  #15  
Old Thursday, January 24, 2013
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Quote:
Originally Posted by seher bano View Post
I am confused about the depreciation. Some time we have to take the whole year into account while depreciating. on the other hand, sometimes we use specific months and dates??? Why??
because it is wrong to charge those months depreciation expense in which asset is not available.
For example we purchase a asset in july @ Rs:20000 with a life of 10years depreciate on straight line method.
so the depreciation expense for the year is Rs 2000( 20000/10years)
but the asset is only available for 6 months.. and it is wrong to charge whole years depreciation against the economic bebefits of only 6 months..
so the depreciation charge to this year is 1000(2000/12months*6monts)

but practically some companies have different polices.. for example a company have the policy not to charge depreciation in the purchasing year and charge full year's depreciation in the year of disposal.. or vice versa.
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Last edited by Rohail Khan; Thursday, January 24, 2013 at 07:04 PM. Reason: further explaination
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  #16  
Old Saturday, September 21, 2013
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Default question-9,2012 depriciation

ENTRIES
jan1,2004:
land 1000000
equipment 5000000
machinery 600000
bank 66,000,00

31DEC,2004
depriciation 185000
accu:depriciation 185000
(12500+60000)

31DEC,2005:
dep 185000
accu:dep 185000

Apri6,2006:
Equipment 1000,000
machinery 50,000
Bank 1050,000

July15,2006:
Repait A/c 5000
cash a/c 5000

Continued.........
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  #17  
Old Wednesday, September 25, 2013
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Quote:
Originally Posted by mhz99 View Post
Profit and loss account is to be prepared in statement form or t account form

Also tell about balance sheet
Well you can prepare profit and loss account in either of the two, In Pakistan T form is in practice though.

Quote:
Originally Posted by wikki khan View Post
@mhz bro do u have solved accounting papers?
I am solving the past papers. I will post the answers of past papers questions of depreciation, profit and loss account, and then so on...
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  #18  
Old Friday, October 04, 2013
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Depreciation

Paper 2003
Q No. 3


Answers: 1 (a) straight line method, Balance b/d as on Jan, 2003: Rs. 238750
(b) Diminishing Balance Method, Balance b/d as on Jan, 2003: Rs. 172800
2 Diminishing Balance Method is appropriate for the company.
3 As above.

Paper 2005
Q No. 3

Answers: Balance B/d of machine A/c as on jan, 2005: Rs. 78301

Paper 2006
Q No. 5

Theoretical Question...

Paper 2011
Q No. 9

Answers: (a) Cash(dr)................................19500
Accumulated Depreciation(dr).....8000
Loss on Sale(dr)......................2500
Tractor A/c (cr)......................................30,000
__________________________________________________ _____________

(b) New Truck a/c (Dr).....................34000
Accumulated Depreciation(Dr)......12000
Cash(Cr)....................................16000
Old Tractor(Cr)............................30,000
__________________________________________________ _________

(c) Removing Service Charges(Dr)..............10,000
Tractor a/c(Cr)............................................. .........10,000


Paper 2012
Q No. 9


Answers: Land a/c (Dr)........ ......10,00,000
Office Equipment(Dr.).....50,00,000
Machine A/c..... (Dr.).....600,000
Cash(Cr.)......................6600,000
_______________________________

Dec, 31,2004) Depreciation Exp(Dr.)..........185000
Accumulated Depreciation office Equipment(Cr.)......125000
Accumu Dep (Machine)(Cr)..................................60, 000
_____________________________

Profit and Loss a/c(Dr.)..........185000
Depreciation Expense(Cr).................185000
_________________________________

Dec, 31, 2005) Depreciation Exp(Dr.)..........185000
Accumulated Depreciation office Equipment(Cr.)......125000
Accumu Dep (Machine)(Cr)..................................60, 000
_____________________________

Profit and Loss a/c(Dr.)..........185000
Depreciation Expense(Cr).................185000
_________________________________

April,1) Equipment a/c (Dr.)..........10,00,000
Machinery a/c (dr.)...........50000
Cash(Cr).....................1050000
_____________________________

July, 15) Repair Expense a/c(Dr.)..........5000
Cash(Cr)............................5000
_________________________________

Sep, 30) Cash(Dr.)................................82000
Accumulated Depreciation (dr)....27500
Machinery a/c(Cr)............100,000
Gain on Sale(cr)...............9500
_____________________________

Dec,31 New Truck a/c(Dr.)...........................117000
Accumulated Depreciation(Dr)....10000
Loss on Exchange(dr)................8000
Cash(cr).................85000
Old Machine(cr).......50000
_________________________________


Paper 2013
Q No. 8

Theoretical...


Rectifications are welcome...
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  #19  
Old Friday, October 04, 2013
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2005(q3)
B/d 78246
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  #20  
Old Monday, October 14, 2013
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Default final account questions

Q.no5. 2002. Trading p&l acc. 15,700,000. Balance sheet. 15,200,000
q.no5.2003. Trad. P&l acc. 149360. Balc. Sheet. 211495
q.no5.2005. Trad. P&l acc. 135000. Baln sheet. 348852
q. No.5.2004. Trad p&l. Acc. 35762. Bal sheet. 141017
q.no3.2007. Trad p&l. Acc. 149800. Bal sheet. 451910
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