AIOU SOLVED ASSIGNMENT 02 CODE 444 ADVANCE ACCOUNTING

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AIOU SOLVED ASSIGNMENT 02 CODE 444 ADVANCE ACCOUNTING

AIOU SOLVED ASSIGNMENT 02 CODE 444

Q 1: Answer

A Profit & Loss A/C

To Dividend to Shareholders A/C

(20000 @ 100 = 20000000 @ 20%

400000  

400000

B Profit & Loss A/C

To Reserve Fund A/C

250000  

250000

C Profit & Loss A/C

To Employee Bonus A/C

20000  

20000

 

PROFIT AND LOSS APPROPRIATION A/C

AS ON 31.12.2013

PARTICULARS AMOUNT PARTICULARS AMOUNT
Dividend

To Shareholder

Reserve Fund

Employee Bonus

Balance (c/d)

400000

250000

20000

161000

Balnce B/D

Profit & Loss A/C

31000

800000

8310000 831000

 

 

Q 2: Answer

ANNUAL RENTALS PAYABLE

Annual  Payment + Annual  Interest

1000           +        900  =  1900

 

Date Annual Payment A. Interest Lease R/A R/A Liability Balance
01.01.12 10000
31.12.12 1000 (1000) 9000
31.12.12 900 900 8100
01.01.13 1000 1000 7100
31.12.13 710 710 6390
01.01.14 1000 1000 5390
31.01.14 539 539 4851
01.01.15 1000 1000 3851
31.12.15 385 385 3466
01.01.16 1000 1000 2466
31.12.16 247 247 2219

 

 

 

 

JOURNAL ENTERIES.

DATE PARTICULARS AMOUNT AMOUNT
01.01.13 Lease Equipment

To Lease Liability

10000  

10000

31.12.13 Interest Exp.

To Accumulated Depreciation

1000  

1000

31.12.13 Depreciation Exp.

Accumulated Depreciation

900  

900

01.01.14 Lease Liability

To Cash

9000  

9000

31.12.13 Interest Exp.

To Accumulated Depreciation

900  

900

31.12.13 Depreciation Exp.

To Accumulated Depreciation

710  

710

 

 

Q 3: Answer

AMALGAMATION


The combination of one or more business entities into a new business entity is called amalgamation. It is different from merger. Because in amalgamation two or more companies combine their business and start business with another new name while in merger one company join its business with another company. E.g in Amalgamation there are two companies Company A and Company B they both join their business and start business with new name as Company C, while in merger e.g there are two companies Company A and Company B, and Company B merge itself in Company A the business of Company B totally closed and Company A remain starts its business. In amalgamation the companies forming amalgamation go in to liquidation and sell their business to a new one, which takeover the assets and liabilities of the old companies.

 

LIQUIDATION

When a company cannot afford to pay its debts and becomes insolvent, or when the members of a company determine that its affairs should be brought to an end, liquidation can occur. When a company goes into liquation it means that all the assets of the company sold and the amount is pay to the creditors. Liquidation may be inevitable for a company that finds itself insolvent. When a company is in the undesirable situation of insolvent the business owner needs to be proactive in placing the company into liquidation as soon as possible. This action can help to prevent insolvent trading and its associated hardships.

 

Business owners need to take this seriously as there are significant risks in failing to place a company into liquidation when it is appropriate to do so. A business owner may become personally liable for debts incurred by the company if the company is insolvent but not placed into administration or liquidation.

 

Q 4: Answer

SHARE CAPITAL

Funds are raised through issuing shares against cash or other considerations. The amount of Share capital changes over the period of time when company needs or think better it sell more shares to the public in exchange for cash, the amount of share capital will increase. Share capital can be composed of both common and preferred.

 

SHARES ISSUE AT PAR

The nominal value shown on the principal which is also called face value of the share. For example if the shares are issued on the amount that is written on the face of the share then the process is called shares issued at par. Par value is typically different from the market price. If the market price is higher than the par value, the difference is called a premium, if it is lower, the difference is called a discount. Par value is also called face value, nominal value, or redemption value. The entry for shares issue at par is:-

We assume if the par value or face value is Rs. 100

Bank A/C                                 100

To Share Capital                      100

 

 

SHARES ISSUE AT PREMIUM

If the shares are issued above the par value then it is called shares issued at premium.  The excess amount than par value is credited to share premium account. E.g if a company issued share having the face value of Rs. 100 but sold at 105 then the entry will be:-

Bank A/C                    105

To Share Capital          100

To Share Premium         05

 

SHARE ISSUED AT DISCOUNT

If the shares are issued below the face value or par value then it is called shares issued at discount. The difference between the issued value and par value is debited to the Discount on Issue of Share Account. We assume that a company issued a share having face value of Rs. 100 at amount of Rs. 95 then the entry will be:-

Bank Account                                      95

Discount on issue of Share                  05

To Share Capital                                  100

 

Q 5: Answer

Debt-Equity Ratio:     =          Total Debt/Equity

=          1200000/1800000

=          0.67:1

 

Proprietary Ratio       =          Proprietary Fund/Total Assets

=          1800000/3000000

=          0.6:1

 

Current Ratio             =          Current Assets/Current Liabilities

=          3000000/700000

=          4.28:1

 

Return on Investment =          (Net Profit before Interest & Tax/Capital Employed)X100

=          (200000/2300000)x100

=          8.69%

 

Asset Turnover Ratio =          Cost of Sales / Fixed Assets

=          5000000 / 3000000

=          1.67 Times

Solved Assignment No.1 Code 444

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6 Comments
  1. […] Solved Assignment No.2 Code 444 […]

  2. Reply dolidol June 27, 2015 at 1:59 pm

    mujy in questions ki samajh nai a rai me kiy karn

    • Reply Error June 28, 2015 at 4:48 am

      You should have to consult with your tutor

      • Reply dolidol June 28, 2015 at 12:02 pm

        meny un sy pocha tha or wo khe rai thi mery pass abi time nai hai bad me btao gi

  3. Reply rushma June 29, 2015 at 4:31 am

    plz sir uplod the assignmnt spring 2015 i dn’t knw hw em solve this assignmnts plz sir

  4. Reply Meno August 21, 2015 at 4:51 pm

    Sir plz upload Assignment spring 2015 plz plz

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