Advanced accounting

Dear friends,

Please refer page No. 1.4 in the attachment. There is a problem given in the study material as an example. I could not understand:

1. How the depreciation amount became 13,000 in case 1 (in P & L account for 31/03/2011)

2. How the Fixed asset has become 52,000 in Balance sheet in case 1 (if the above doubt is clarified it will be automatically clarified)

3. How the trade payables is 12,000 in case 1 (is it assumed that if the company is not going concern the discount of 5% is not available)

Kindly clarify. I am not good at accounts. Request you to explain in detail.

Thanks in advance

Vinay


Attached File : 1030196 1158358 ipcc advanced accounts 1.pdf downloaded: 172 times
Replies (1)

1. depreciation is 65000-0/5 =13000 because no scrap value after five year. 

3.revenue or income can not take advance in accounts like loss provision ,or only when income actually earned in going concern then we can consider while preparing accounts .

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