Business, 16.01.2020 21:31 oreoassassin38

Mr. hamid is running his small retail business under the name of hamid store. he has recently hired mr. imran as a junior accountant to maintain the books of accounts of his business. mr. imran has little knowledge in accounting. recently, it has been observed that mr. imran wrongly treated installation charges of plant and machinery worth rs. 500,000 as revenue expenditure under the heading of administration expenses. as a result, financial statements failed to reflect true and fair business affairs. required: identify the “type of error” committed by mr. imran. what will be the effect of given error on asset side of a balance sheet? (just mention whether the assets would be overstated, understated or remains unaffected) what will be correct amount of fixed assets, if current assets and fixed assets before correcting this error were rs. 160,000 and rs. 940,000 respectively? what will be correct amount of operating profit, if operating loss before correcting this error was rs. 300,000? mr. hamid is running his small retail business under the name of hamid store. he has recently hired mr. imran as a junior accountant to maintain the books of accounts of his business. mr. imran has little knowledge in accounting. recently, it has been observed that mr. imran wrongly treated installation charges of plant and machinery worth rs. 500,000 as revenue expenditure under the heading of administration expenses. as a result, financial statements failed to reflect true and fair business affairs.
required:
1. identify the “type of error” committed by mr. imran.
2.what will be the effect of given error on asset side of a balance sheet? (just mention whether the assets would be overstated, understated or remains unaffected).
3. what will be correct amount of fixed assets, if current assets and fixed assets before correcting this error were rs. 160,000 and rs. 940,000 respectively? 4.what will be correct amount of operating profit, if operating loss before correcting this error was rs. 300,000?

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 21:30

The balance sheet contains the following major sections: current assets long-term investments property, plant, and equipment intangible assets other assets current liabilities long-term liabilities contributed capital retained earnings accumulated other comprehensive income required: the following is a list of accounts. using the letters a through j, indicate in which section of the balance sheet each of the accounts would be classified. if an account does not belong under one of the sections listed, select "not under any of the choices" from the classification drop down box. for all accounts, indicate if the account is a contra account or an account that would normally be deducted on the balance sheet by selecting "yes" from the second drop down box, otherwise select "no". account classification contra or deducted (yes/no) 1. cash 2. bonds payable (due in 8 years) 3. machinery 4. deficit 5. unexpired insurance 6. franchise (net) 7. fund to retire preferred stock 8. current portion of mortgage payable 9. accumulated depreciation 10. copyrights 11. investment in held-to-maturity bonds 12. allowance for doubtful accounts 13. notes receivable (due in 3 years) 14. property taxes payable 15. deferred taxes payable 16. additional paid-in capital on preferred stock 17. premium on bonds payable (due in 8 years) 18. work in process 19. common stock, $1 par 20. land 21. treasury stock (at cost) 22. unrealized increase in value of available-for-sale securities

Answers: 3

Answer

Business, 22.06.2019 10:10

Ursus, inc., is considering a project that would have a five-year life and would require a $1,650,000 investment in equipment. at the end of five years, the project would terminate and the equipment would have no salvage value. the project would provide net operating income each year as follows (ignore income taxes.):

Answers: 1

Answer

Business, 22.06.2019 11:20

Which stage of group development involves members introducing themselves to each other?

Answers: 3

Answer

Business, 22.06.2019 11:40

Define the marginal rate of substitution between two goods (x and y). if a consumer’s preferences are given by u(x,y) = x3/4y1/4, compute the consumer’s marginal rate of substitution as a function of x and y. calculate the mrs if the consumer has chosen to consumer 48 units of x and 16 units of y. show your work. (use the back of the page if necessary.

Answers: 3

Answer

You know the right answer?

Mr. hamid is running his small retail business under the name of hamid store. he has recently hired...

Questions