In: Accounting
Task 1 | ||||||
Calculate the initial value of capital in an Ltd. (limited liability) company, if | ||||||
net profit of the previous year was 160,000 it has fixed assets of 800,000 at | ||||||
its disposal (machinery – 500,000 and vehicles – 300,000), but the properties are | ||||||
partly depreciated (machinery depreciation is 100,000 while vehicles 150,000). | ||||||
The entity owns 120,000 worth of finished goods in a warehouse as well as nonfinished | ||||||
goods worth 40,000. The company is behind in payment of contributions | ||||||
to the National Health Service and to the Tax Office by a total of 16,000. | ||||||
The company took a bank loan in the value of 300,000, and it has 10,000 in its | ||||||
bank account. | ||||||
Task 2 | ||||||
Explain which of the business events below not economic operations are: | ||||||
5) payment of ZUS contributions by the employer, | ||||||
6) contract with client to built a warehouse, | ||||||
7) selling the finished goods – VAT invoice has been issued, | ||||||
8) sending an offer of products to clients, | ||||||
10) product packaging costs incurred, | ||||||
11) cost of product transport to clients incurred | ||||||
12) release of goods from stock | ||||||
Dear student, we cannot able to post solution more than one question as per our policy.
Balance sheet | |
Assets | |
Bank balance | 10,000 |
Finished goods | 120,000 |
Nonfinished goods |
40,000 |
Net Fixed assets (800000-(100000+150000)) | 550,000 |
Total assets | 720,000 |
Liabilities and owner's eqiuity | |
Liabilities | |
Other payables | 16,000 |
Bank loan | 300,000 |
Total liabilities | 316,000 |
owner's eqiuity (160000+244000) | 404,000 |
Total liabilities and owner's eqiuity | 720,000 |
As per accounting equation, Assets = liabilities + owner's equity
Assets | 720,000 |
Less: liabilities | 316,000 |
Total owner's eqiuity at ending | 404,000 |
Total owner's eqiuity at ending | 404,000 |
Less: net profit of the previous year | 160,000 |
Initial value of capital | 244,000 |