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Accounting Assignment Help | Accounting Homework Help

11/22/2014
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About Accounting: Etymologically the term accountancy is


derived from French word Compter . Accountancy is the
process used by business organizations for keeping the
financial records. Accountancy as a discipline has evolved over
the years on a set of norms called concepts and conventions.
The principles of accountancy are applied to the process of
book- keeping, accounting and auditing. The history of
Accountancy can be traced to the ancient Mesopotamia some
7000 years ago. The need for accounting at that time began
with the need to keep a record of the crops and the cattle.
Gradually when man evolved the system of business after the barter system the concept of
accounting
also
evolved
with
money
as
the
basis
of
record
keeping.
Accounting assignment help in the present times is called the language of money. The
developments of different types of businesses have led to the growth accounting. The Joint
Stock Company and its robust form of operation has given birth to monitoring of the
accounts being maintained. Thereby another school of study called auditing has been added
to accounting. A body of rules and regulations are present to govern the subject. These are
Generally Accepted Accounting Principles, or GAAP, International Financial Reporting
Standards, or IFRS.

Sample Accounting Assignment Help Questions:


Depreciation Sample Questions

Q 1. National Traders bought a piece of land in order to build a factory for $4,00,000 on 1
January 20x1. There was on old factory on the site which cost $17,200 to demolish although
some materials were salvaged and sold for $7,600. Architects fees were $17,400 plus $800
for civic charges. The building contractor was paid $19,00,000 as the contract price but
$24,000 paid for leveling the site before building commenced. After the building was
completed, a landscape gardener was paid $12,400 and a car park was constructed at a
cost of $16,000. Outside lighting cost $6,400 and a few weeks after the building was
occupied it was decide to build a wall at the rear of the plot for $11,600. Interim payments
were made during construction to the builder. Determine the cost of the land and cost of the
building.

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Solution:
National Traders
Calculation of cost of land and building
Land
Amount paid
Add: Cost of demolishing Factory
Less: Materials salvaged and sold

$
17,200
7,600
_________

Cost of Building
Architects fees
Civic charges
Contract price
Leavelling the land
Payment to landscape gardener
Construction of car park
Lighting
Wall construction

$
4,00,000
9,600
______
4,09,600

$
17,400
800
19,00,000
24,000
12,000
16,000
6,400
11,600

_________________________________________________________________________
Total
19,88,600

Q 2. A firm acquired an asset on 1 January 20*01 at a cost of $30,000. The asset has 10
year life at the end of which it is expected to realize $2,000. What would be the depreciation
for the first three years: (a) on a straight line basis? (b) on a diminishing balance basis?
Solution:

Original Cost

30,000

Less: Expected salvage value at the end of 10 years

2,000
___________

Depreciable cost over 10 years

28,000

(a) Straight Line Method


Depreciable expense per year
Thus depreciation fir three years:

28,000/10 = $ 2,800
2,800x3=$8,400

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(b) Diminishing Balance Method


Lets us first calculate the rate of depreciation:
r=1 /
=1 -

10

2,000/30,000 =1 -10 0.0666

=1 0.763*100=23.7% rounded to 24%


$
30,000
7,200
__________
22,800
5,470
___________

Original cost of the asset


Less: Depreciation-year 1@ 24%
Less: Depreciation-year 1@ 24%

17,330

Less: Depreciation - year 3 @ 24%

4,160
_________
13,170

Total Depreciation=$7,200+$ 5,470+$ 4,160= $16,830

Q 3. John Mike purchased a machine by cheque for $28,000 on 1 January 1995. Its
probable working life was estimated at eight years and its scrap value at the end of
probable working life was estimated at eight years and its scrap value at the end of
that time $ 4,000. It was decided to write off depreciation by equal annual instalments over
the years .Show the machinery account for the first four years

Solution:

John Mike
Machinery

1 January 1995
Bank account

Account

31 December 1995

28,000

Depreciation account

3,000

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28,000

Balance c/d

25,000
28,000

1 January 1996
Balance b/d

25,000
25,000

31 December 1996

3,000

Depreciation account

22,000

Balance c/d

22,000
1 January 1997
Balance b/d

19,000
1 January 1999

3,000
31 December 1997

22,000

Depreciation account
Balance c/d
31 December 1998

19,000

Balance b/d

25,000

19,000
22,000
3,000
16,000

Deprecation account
Balance c/d

19,000

16,000

Working Note
Original cost

28,000

Less: Salvage value

4,000
____________
24,000

Annual depreciation by equal instalments: 24,000 8= $3,000

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