Accounting Assignment Help Service

Accounting Assignment Help Service | Accounting Homework Help Service

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About Accounting: Etymologically the term accountancy is

derived from French word Compter . Accountancy is the

process used by business organizations for keeping the

financial records. Accountancy as a discipline has evolved over

the years on a set of norms called concepts and conventions.

The principles of accountancy are applied to the process of

book- keeping, accounting and auditing. The history of

Accountancy can be traced to the ancient Mesopotamia some

7000 years ago. The need for accounting at that time began

with the need to keep a record of the crops and the cattle.

Gradually when man evolved the system of business after the barter system the concept of

accounting also evolved with money as the basis of record keeping.

Accounting assignment help Service in the present times is called the language of

money. The developments of different types of businesses have led to the growth

accounting. The Joint Stock Company and its robust form of operation has given birth to

monitoring of the accounts being maintained. Thereby another school of study called

auditing has been added to accounting. A body of rules and regulations are present to

govern the subject. These are Generally Accepted Accounting Principles, or GAAP,

International Financial Reporting Standards, or IFRS.

Sample Accounting Assignment Help Service Questions:

Depreciation Sample Questions

Question-1:

Mr. X purchased a second-hand machinery on 1.2.1996 for $50,000l; paid $11,000 for its

overhauling and $5,000 for its installation which was completed by 31.3.1996, The company

providers depreciation on its machinery at 15% p.a. on diminishing balance method from

the date it was put to use and closes to books on 31 December every year. On 1.10.1997, a

repair work was carried out on the machine and $31.10.1998 for a sum of $11,000 and an

amount of $1,000 was paid as dismantling charges. Prepare Machinery Account from 1996

to 1998.

Solution:

Mr.x

Machinery Account

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1996 $ 1996 December 31 Depreciation $ February Cash 50,000 (15% for 9 months) 7,425 March 31 Cash December 31 Balance c/d 66,000 58,575

1997 1997 66,000 January 1 Balanced b/d58,575 December 31 Depreciation December 31 Balance c/d 8,786 49,789

58,575 58,575

1998 1998 6,223 January 1 Balanced b/d 49,789 October 31 Depreciation Cash 1,000 (@ 15% for 10 months)

Cash Account Profit and Loss Account 11,000 33,566 50,789 50,789

(i) Repair cost is not be capitalized since there is no improvement in the capacity of the

machine.

(ii) Cost of dismantling is to be deducted from the sale price for ascertaining profit or loss

on the disposal of machine.

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Question-2:

A transport company purchases 5 Trucks at $2,00,000 each on April 1992. The company

writes deprecation @ 20% per annum on original cost and observes calendar year as its

accounting year. On 1 October 1994 one of the trucks is involved in an accident and is

completely destroyed. Insurance company pays rs, 90,000 in full settlement of the claim.

On the same day the company purchases a truck for $1,00,000 and spends $20,000 on its

overhauling. Prepare Truck Account for three years ending on 31 December 1994.

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Solution:

Transport Company Trucks Account

1 April 1992 $ 31 December 1992 $ Bank Account 10,00,000 Depreciation Account 1,50,000 Balance c/d 8,50,000 10,00,000 10,00,000

Page no.60 1 January 1993 31 December 1993 Balanced 8,50,000 Depreciation Account 2,00,000

1 January 1994 8,50,000 Balance c/d

6,50,000

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Question-3:

A trader has the following transactions in a certain product for six months to 30 june 1996.

January 1-Purchase 600 items at $20 each

February 2- Purchase 200 items at $24 each

February 15 Sells 200 items at $30 each

April 1 Purchases 300 items at $30 each

April 15 Sells 400 items at $40 each

June 1 Purchase 300 items at $40 each.

June 15 Sells 350 items at $50 each.

Required

(i) Compute the gross profit earned during the period and

(ii) Compute the value of the closing stock at June 30, 1996 using each of the following

alternatives bases of valuation

(a) Fifo (b) Lifo (c) Weighted Average Method.

Solution:

Stock Ledger Sheet (Assumption: Fifo)

Date Receipts Issued Balance

1 Jan. 600 20 = 12,000 - 600 20] 12,000

2 Feb. 200 24 = 4,800 - 600 20200 24

16,800

15 Feb. - 200 20 4,000 400 20200 24

12,800

1 April 300 30 = 9,000 400 20200 24300 30

15 April 400 20 8,000 200 20300 30

13,800

1 June 300 40 = 12,000 200 24300 30300 40

25,800

15 June - 200 24150 30

9,300

150 30300 40

16,500

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Sales = (200 30) + (400 40) + (350 50) = 6,000 + 17,500 = $39,500

Cost of Sales = 4,000 + 8,000 + 9,300 = $21,300 Profit = 39,50021,300=$18,200

Stock of Sales (Assumption : Lifo)

Date Receipts Issued Balance

1 Jan. 600 20 = 12,000 - 600 20 12,000

1 Feb. 200 24 = 4,800 - 600 20 200 24

12,000

15 Feb. 200 24 4,800 600 20 12,000

1 April 300 30 = 9,000 600 20300 24

21,000

15 April - 300 30100 20

11,000 500 20 10,000

1 June 300 40 = 12,000 500 20300 40

22,000

15 June - 300 40100 20

13,000 45 20 9,000

Sales = $39,500 Cost of Sales = 4,800 + 11,00 + 13,000 = $28,800

Profit = 39,800 28,800 = $ 10,700

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