operating expnses ratio is 32.87%
operating ratio is 62.87%
plz check

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.

__________________
It is not sufficient that I succeed — all others must fail. Genghis Khan

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...

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.

__________________
It is not sufficient that I succeed — all others must fail. Genghis Khan

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.........

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

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...

__________________
"Our Lord, give us the good in this world and the good in the hereafter." (Al-Qur'an, 2:201).

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...

__________________
"Our Lord, give us the good in this world and the good in the hereafter." (Al-Qur'an, 2:201).

2005(q3)
B/d 78246

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