{"id":9032,"date":"2022-12-22T21:30:25","date_gmt":"2022-12-22T10:30:25","guid":{"rendered":"https:\/\/casestudyhelp.com\/sample-questions\/?p=9032"},"modified":"2022-12-22T21:31:28","modified_gmt":"2022-12-22T10:31:28","slug":"financial-accounting-assignment-solutions-to-questions","status":"publish","type":"post","link":"https:\/\/casestudyhelp.com\/sample-questions\/financial-accounting-assignment-solutions-to-questions\/","title":{"rendered":"Financial Accounting Assignment Solutions to Questions"},"content":{"rendered":"<h2><strong>Financial Accounting Assignment Answers by Experts<\/strong><\/h2>\n<p>&nbsp;<\/p>\n<blockquote>\n<p style=\"text-align: justify\">Do you want Financial Accounting <a href=\"https:\/\/casestudyhelp.com\/sample-questions\/\" target=\"_blank\"><strong>Assignment Solutions Online<\/strong><\/a>? Casestudyhelp.com provides <a href=\"https:\/\/casestudyhelp.com\/mba\/financial-accounting-assignment-help.html\" target=\"_blank\"><strong>Financial Accounting Assignment Help Services<\/strong><\/a> from finance experts. Our Best Academic Writers assist you with 100% plagiarism free content. If you are seeking assignment writing help? We also offer top-quality <a href=\"https:\/\/casestudyhelp.com\/botswana\/\" target=\"_blank\"><strong>Assignment Help Botswana<\/strong><\/a> from our native writers. Place your order now.<\/p>\n<\/blockquote>\n<p>&nbsp;<\/p>\n<p><a title=\"Order Now\" href=\"https:\/\/casestudyhelp.com\/MyOrder.php\" target=\"_blank\"><img decoding=\"async\" loading=\"lazy\" class=\"aligncenter wp-image-8283 size-full\" src=\"https:\/\/casestudyhelp.com\/sample-questions\/wp-content\/uploads\/2021\/11\/order-now.jpg\" alt=\"Order Now\" width=\"700\" height=\"87\" srcset=\"https:\/\/casestudyhelp.com\/sample-questions\/wp-content\/uploads\/2021\/11\/order-now.jpg 700w, https:\/\/casestudyhelp.com\/sample-questions\/wp-content\/uploads\/2021\/11\/order-now-300x37.jpg 300w\" sizes=\"(max-width: 700px) 100vw, 700px\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<p><strong>Assignment Detail:-<\/strong><\/p>\n<ul>\n<li><strong>Number of Words: 2000<\/strong><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h3><strong><span style=\"text-decoration: underline\">SECTION A \u2013 ANSWER ALL QUESTIONS<\/span><\/strong><\/h3>\n<p>1. John has started a business and transferred his Motor vehicle, worth P20,500 into the business.<\/p>\n<p>What are the accounting entries to record this?<\/p>\n<ol>\n<li>Dr Capital\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Cr Motor vehicle<\/li>\n<li>Dr Motor vehicle\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Cr Drawings<\/li>\n<li>Dr Motor vehicle\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Cr Capital<\/li>\n<li>Dr Drawings\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Cr Motor Vehicle<\/li>\n<\/ol>\n<p style=\"text-align: justify\">2. Samuel purchased some Fixtures and Fittings on 1 July 20X9 for P80,000. The scrap value of the fixtures and fitting in ten years&#8217; time was estimated to be P8,000. Beta&#8217;s policy is to charge depreciation on the straight-line basis. Full Year depreciation is charged in the year of acquisition.<\/p>\n<p>What should be the depreciation charge for the plant in Beta&#8217;s accounting period of twelve months to 30 December 20X9?<\/p>\n<ol>\n<li>P 7,200<\/li>\n<li>P 8,000<\/li>\n<li>P 3,600<\/li>\n<li>P 675<\/li>\n<\/ol>\n<p>3. At 31 October 20&#215;6 John s trial balance included the following balances:<\/p>\n<ul>\n<li>Machinery at cost P 12,890<\/li>\n<li>Accumulated depreciation P\u00a0\u00a0 8,950<\/li>\n<li>Inventory P 5,754<\/li>\n<li>Trade receivables P11,745<\/li>\n<li>Trade payables P 7,830<\/li>\n<li>Bank overdraft P 1,675<\/li>\n<li>Cash at bank P 150<\/li>\n<\/ul>\n<p>What is the value of John \u2018s current liabilities on 31 October 20&#215;6?<\/p>\n<ol>\n<li>P17,649<\/li>\n<li>P17,499<\/li>\n<li>P9,505<\/li>\n<li>P13,734<\/li>\n<\/ol>\n<p>4. According to IAS 38 intangible assets which of the following are intangible non-current assets in the financial statement of IOTA co?<\/p>\n<ol>\n<li>A patent for a new glue purchased for 20 000 by IOTA co<\/li>\n<li>Development costs capitalized in accordance with IAS 38<\/li>\n<li>A license to broadcast a television series purchased y iota co for 150 000<\/li>\n<li>A state-of-the-art factory purchased by iota co for 1.5 million<\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<ol>\n<li>1 and 3 only<\/li>\n<li>1,2 and 3<\/li>\n<li>2 and 4 only<\/li>\n<li>1,2,3 and 4 Only<\/li>\n<\/ol>\n<p>5. What is the purpose of charging depreciation in financial statements?<\/p>\n<p>&nbsp;<\/p>\n<ol>\n<li>To allocate the cost of a non-current asset over the accounting periods expected to benefit from its use.<\/li>\n<li>To ensure that funds are available for the eventual replacement of the asset.<\/li>\n<li>To reduce the cost of the asset in the statement of financial position to its estimated market value.<\/li>\n<li>To account for the wearing of the asset over its life.<\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>6. Which one of the following journal entries is required to record goods taken from inventory by the owner of a business?<\/p>\n<p>&nbsp;<\/p>\n<ol>\n<li>DEBIT Drawing CREDIT Inventory<\/li>\n<li>DEBIT Sales CREDIT Drawings<\/li>\n<li>DEBIT Drawings CREDIT Purchases<\/li>\n<li>DEBIT Purchases CREDIT Drawings<\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">7. A manufacturer incurs the following costs: P38, 000 developing new techniques that will be put in place shortly to cut production costs: P 27,000 researching a new process to improve the quality of the standard product and P8,000 on market research into the commercial viability of a new type of product. It is company policy to capitalize costs whenever permitted by IAS 38 intangible Assets.<\/p>\n<p>How much should be charged as research and development expenditure in profit and loss? (Ignore amortization)<\/p>\n<ol>\n<li>P 35,000<\/li>\n<li>P 27,000<\/li>\n<li>P 38,000<\/li>\n<li>P 73,000<\/li>\n<\/ol>\n<p>8. Which of the following errors would cause trial balance not to balance?<\/p>\n<p>&nbsp;<\/p>\n<ol>\n<li>An error in the addition in the cash book<\/li>\n<li>Failure to record a transaction at all.<\/li>\n<li>Cost of a motor vehicle debited to motor expenses account. The cash entry was correctly made.<\/li>\n<li>Goods taken by the proprietor of a business recorded by debiting purchases and crediting drawings account<\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<ol>\n<li>All four items<\/li>\n<li>1 and 2 only<\/li>\n<li>3 and 4 only<\/li>\n<li>1 Only<\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>9. According to IAS 38 intangible assets, which of the following statements about research and development expenditure are correct?<\/p>\n<p>&nbsp;<\/p>\n<ol>\n<li>If certain conditions are met, an entity may decide to capitalize development expenditure.<\/li>\n<li>Research expenditure, other than capital expenditure on research facilities, must be written off as incurred.<\/li>\n<li>Capitalized development expenditure must be amortized over a period not exceeding 5 years<\/li>\n<li>Capitalized development expenditure must be disclosed in the statement of financial position under intangible non-current assets.<\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<ol>\n<li>1,2 and 4 Only<\/li>\n<li>1 and 3 only<\/li>\n<li>2 and 4 only<\/li>\n<li>3 and 4 Only<\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<p>10. Which of the following is\/are examples of payables of a business?<\/p>\n<ol>\n<li>Interest owed from the bank<\/li>\n<li>Loans and advances to employees<\/li>\n<li>Money owed from customers<\/li>\n<li>Tax owed to the tax authority<\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<ol>\n<li>4 only<\/li>\n<li>2 and 3 only<\/li>\n<li>2 and 4 only<\/li>\n<li>1 and 2 only<\/li>\n<\/ol>\n<p>11. What are the journal entries for an accrual of rent expenses of P500?<\/p>\n<p>&nbsp;<\/p>\n<ol>\n<li>DEBIT Prepayments P500, CREDIT Rent P500<\/li>\n<li>DEBIT Accrual P500, CREDIT Rent P500<\/li>\n<li>DEBIT Rent P500, CREDIT Accruals P500<\/li>\n<li>DEBIT Rent P500 , CREDIT Prepayments P500<\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>12. A non-current asset (Cost P 45,000, Accumulated Depreciation P 25,000 is given in part exchange for a new asset costing P20,500. The agreed trade-in value was P19,000.<\/p>\n<p>Which of the following will be included in the statement of profit or loss?<\/p>\n<ol>\n<li>A profit on disposal P 19,000<\/li>\n<li>A loss on disposal P 1,000<\/li>\n<li>A loss on purchase of a new asset P 1,500<\/li>\n<li>A profit on disposal P 500<\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<h3 style=\"text-align: center\"><strong><span style=\"text-decoration: underline\">S<\/span><\/strong><strong><span style=\"text-decoration: underline\">ECTION B 20 MARKS &#8211; ANSWER ONLY FOUR OUT OF THE SIX QUESTIONS<\/span><\/strong><\/h3>\n<p>1. Prepare the trial balance for Matthew for the year ended 30 June 20&#215;0 (5 Marks)<\/p>\n<p>&nbsp;<\/p>\n<table width=\"311\">\n<tbody>\n<tr>\n<td width=\"247\">Details<\/td>\n<td width=\"64\">000<\/td>\n<\/tr>\n<tr>\n<td width=\"247\">Share capital<\/td>\n<td width=\"64\">1250<\/td>\n<\/tr>\n<tr>\n<td width=\"247\">Revenue<\/td>\n<td width=\"64\">4500<\/td>\n<\/tr>\n<tr>\n<td width=\"247\">Purchases<\/td>\n<td width=\"64\">2850<\/td>\n<\/tr>\n<tr>\n<td width=\"247\">Cash<\/td>\n<td width=\"64\">50<\/td>\n<\/tr>\n<tr>\n<td width=\"247\">Trade receivables<\/td>\n<td width=\"64\">975<\/td>\n<\/tr>\n<tr>\n<td width=\"247\">Inventory at 1 July 20&#215;9<\/td>\n<td width=\"64\">400<\/td>\n<\/tr>\n<tr>\n<td width=\"247\">Trade payables<\/td>\n<td width=\"64\">625<\/td>\n<\/tr>\n<tr>\n<td width=\"247\">distribution and administrative expenses<\/td>\n<td width=\"64\">800<\/td>\n<\/tr>\n<tr>\n<td width=\"247\">Allowance for receivables at 1 July 20&#215;9<\/td>\n<td width=\"64\">25<\/td>\n<\/tr>\n<tr>\n<td width=\"247\">Revaluation Surplus 1 July 20&#215;9<\/td>\n<td width=\"64\">175<\/td>\n<\/tr>\n<tr>\n<td width=\"247\">Buildings at cost<\/td>\n<td width=\"64\">1850<\/td>\n<\/tr>\n<tr>\n<td width=\"247\">Building accumulated depreciation<\/td>\n<td width=\"64\">150<\/td>\n<\/tr>\n<tr>\n<td width=\"247\">Plant at cost<\/td>\n<td width=\"64\">550<\/td>\n<\/tr>\n<tr>\n<td width=\"247\">Plant accumulated depreciation<\/td>\n<td width=\"64\">275<\/td>\n<\/tr>\n<tr>\n<td width=\"247\">Retained earnings at 1 July 20&#215;5<\/td>\n<td width=\"64\">600<\/td>\n<\/tr>\n<tr>\n<td width=\"247\">Income tax expense<\/td>\n<td width=\"64\">125<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p>2. Find part of the trial balance as at 30 October 20&#215;0<\/p>\n<table width=\"473\">\n<tbody>\n<tr>\n<td width=\"345\">Buildings at cost<\/td>\n<td width=\"64\">740000<\/td>\n<td width=\"64\"><\/td>\n<\/tr>\n<tr>\n<td width=\"345\">Building accumulated depreciation,1 November 20&#215;9<\/td>\n<td width=\"64\"><\/td>\n<td width=\"64\">60000<\/td>\n<\/tr>\n<tr>\n<td width=\"345\">Plant at cost<\/td>\n<td width=\"64\">220000<\/td>\n<td width=\"64\"><\/td>\n<\/tr>\n<tr>\n<td width=\"345\">Plant accumulated depreciation, 1 November 20&#215;9<\/td>\n<td width=\"64\"><\/td>\n<td width=\"64\">110000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>Notes:<\/p>\n<ul>\n<li>Building are depreciated over 40 years on a straight-line method<\/li>\n<li>Plant and machinery is depreciated at 20 % on diminishing balance method<\/li>\n<\/ul>\n<p>Calculate the depreciation for Buildings and for plant and machinery (5 marks)<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<script type=\"text\/javascript\" charset=\"utf-8\" src=\"http:\/\/w.sharethis.com\/widget\/?wp=6.2.9\"><\/script>","protected":false},"excerpt":{"rendered":"<p>Financial Accounting Assignment Answers by Experts &nbsp; Do you want Financial Accounting Assignment Solutions Online? Casestudyhelp.com provides Financial Accounting Assignment Help Services from finance experts. Our Best Academic Writers assist you with 100% plagiarism free content. If you are seeking assignment writing help? We also offer top-quality Assignment Help Botswana from our native writers. 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