Sales: Sales: Support: Support:
Academic writing services  
 
Custom written essay Book report Research paper Dissertation Resume and CV Editing and proofreading  
main menu
discounts
discounts
By ordering custom paper you get
  • 24/7 Support
  • Over 100 professional US Writers
  • 300 words per page
  • Flexible discount system
  • FREE revision (within 2 days)
  • Anti-Plagiarism Software Check
we accept
sample essays
Accounting Essays
Admission Essays
Analysis Essays
Art Essays
Biography Essays
Biology Essays
Book Review Essays
Business Essays
Case Studies Essays
Cause and Effect Essays
Character Analysis Essays
Communication Essays
Communication and Media Essays
Compute Technologies Essays
Consideration Essays
Controversial Essays
Description Essays
Economics Essays
Education Essays
Evaluation Essays
Explanation Essays
History Essays
Job Essays
Law Essays
Management Essays
Medicine Essays
Music Essays
Personal Essays
Personal Experience Essays
Persuasive Essays
Persuasive Speech Essays
Philosophy Essays
Political science Essays
Politics Essays
Proposal Essays
Psychology Essays
Reflective Essays
Religion Essays
Research Essays
Response Essays
School Essays
Science Essays
Sociology Essays
Technology Essays
World Literature Essays
Management Accounting essay
 
← Tri-Cities Community Bank Benefits and Limitations of Financial Account →

Management Accounting. Custom Management Accounting Essay Writing Service || Management Accounting Essay samples, help

INCOME STATEMENT OF WALRUS PLC FOR THE YEAR ENDED MATCH 31 2007

                                                                                              Credit (HK$)      debit (HK$) 

Gross revenues                                                                                                         718000

Expenses

Directorfees                                                                                     150000

Corporation tax                                                         30000

Less Tax overate                                                          6000               24000

Wages and salaries                                                                            276000

Distribution costs                                                      101000

Add apportionment                                                    65737.50       166737.50

Administrative expenses                                           186000                                  

Add apportionment                                                      61887.50

Less profit on vehicle disposal                                      4500            243387.50

Total expenses                                                                                                          860125        Net loss                                                                                                            142125

Calculation summary

 

 

Segment

Description

Calculation Steps

Remarks

1

Gross Revenue      

Sales - {Inventory(4/1/2006)+

Purchase + Inventory (3/31/2007)}

(Atrill &McLaney, 1994)

1432000-(10700+488000+119000) =718000

This revenue is used in preparation of the company’s balance sheet. It is part of the capital.

 

The net revenue is obtained by finding the difference between the total revenue i.e. the gross revenue and revenues from external investments, and the expenditure (L. Chadwick, 1998).

2

Tax overrate

Tax liability- Tax overrate

{30000-6000=24000}Net Tax Liability

In the previous year, there was a tax overate. This should be subtracted from the estimated tax liability.

3

Building’s depreciation

Depreciation = HK$ 10000

Percentage apportionment should be 50% by 50% for distribution cost and the administrative expenses. For each.

The depreciation as an expense should be apportioned to the company’s distribution costs and the administrative expenses according to the percentage apportionment.

4

Equipment’s depreciation

Depreciation= HK$108800

The apportionment should be 25% by 75% respectively.  respectively

 

 

5

Depreciation Vehicles

Depreciation =HK$69625

The apportionment should be 70% and 30% respectively. respectively

 

6

Total administrative expenses

5000+36000+20887.50=HK$61887.50

 

7

Total distribution cost

5000+12000+48737.50=HK$ 65737.50,

 

8

Vehicle disposal

August 2003, HK$ 44000.

Sold in February at HK $10000

Depreciation for 3 ½ years;

Therefore, the company made a profit of HK$4500.

Any profits or losses from that sale were to be allocated to the administrative expenses i.e.  186000+61887.50- 4500= HK$ 243387.50.

 

 

 

WALRUS PLC BALANCESHEET AS AT 31 MARCH 2007

Dr                                                                                          Cr

Fixed asset                                                      Capital                                                                   

Land                           120000                        Ordinary shares (HK$1)200000

Add appreciation       180000         300000   less dividend                20000   180000

Building                     250000                        Retained earnings                      691000       

Less acc depreciation (10000)       240000

Equipment                  196000                      

Less acc depreciation              (124000)       72000   Accounts payable               117000   

Vehicles                       260000                        Tax Overrate                                    6000

Less acc depreciation  (192000)         68000   Rent accrual                        30000

 

 Current assets

Bank balance                                    57000

Inventory                                        119000

Receivables           183000

Less bad debt w/o   (8000)   

Less allowances      (7000)              168000    

                                         1024000                                                   1024000

 

 

 

 

Segment

Description

Calculation Steps

Remarks

1

Vehicle depreciation

 

Since august 2003, the vehicle has been depreciating. These are 3 and a half years ago before the vehicle was sold. Since the depreciation rate is 25% per annum (straight line), then the vehicle is worth HK$ 5500 by the time it is being sold. That means it earns a profit of HK$ 4500 which should be allocated to the administrative expenses.

2

Building depreciation

 

The straight line method of accounting for depreciation does not involve the cumulative depreciation (Bhimani 1996, pp26). Therefore, the percentage rate is used only.

3

Vehicle depreciation

284000-5500=278500.

 

 

4

Equipment’s depreciation

The cumulative balance is HK$76000. 196000-76000=HK$120000

40/100*120000= HK 48000

The equipments’ depreciation is being calculated using the reducing balance method (Khan & Jain 2006, pp126).

 

 

The net revenue is considered as additional capital when it is a profit, and considered to reduce capital if it is a loss (Chadwick 1998, pp 96). In our case the company has made a loss that is subtracted from the initial capital. The allowances turn out to be at 4%. But this is after writing off a debt. That means the initial HK$8000 isn’t to be considered when accounting for the receivables. The debt is HK$ 8000, and the new allowances will start to operate when the debt is written off.

The land is now valued at HK$300000. According to the statement given, it is worth HK$ 120000. This means it has appreciated in value. This has to be incorporated in the balance sheet (Weetman 2010, pp 25).

 

  STATEMENT OF CHANGES IN EQUITY AS AT 31st MARCH 2007

                                                                                  (HK$000)

Retained earning as at 1/4/06                                    503

For the year                                                               (142,125)

Less: Dividends paid

-          Interim            (HK$200000/1= 200,000 shares        (20)

200000x0.1=20,000                                     

-          Final                                                              -

Retained earnings as at 31/3/07                    340.875

Segment

Description

Calculation Steps

Remarks

1

Retained earnings for the previous year

HK $503000

 

2

Loss for the year

(142,125)

The company incurred a loss

3

Dividends paid

Interim            (HK$200000/1= 200,000 shares

200000x0.1=20,000  

An interim dividend of 20,000 was also paid to the shareholders. There was no final dividend paid as it is indicated that only an interim dividend was proposed for the year ended 31st March 2007.

4

Retained earnings for year ended march 31t 2007

503000-(142,125-20)= HK $340,875

The final amount of retained endings at the end of that financial year amounted to HK $340,875.

There is a general decline in the retained earnings from the previous year to 340,875 due to the loss that has occurred during the year (Atrill & McLaney 1994, pp 123).

 

Management Accounting. Custom Management Accounting Essay Writing Service || Management Accounting Essay samples, help

Order Now
Order nowhesitating

Related essays

  1. Benefits and Limitations of Financial Account
  2. Statictics Phase
  3. Tri-Cities Community Bank
  4. Country Differences in Accounting Standards


order now

 
 
3.6K
1.2K
Order now
Email
Password
 
why choose us
96% of satisfied returning customers
24/7 customer support
A wide range of services
Up-to-date sources
100% privacy guaranteed
MA/PhD writers
Custom written papers only
Free plagiarism report
Free revision (within 2 days)
Free extras by your request
Direct communication with a writer
faq
Are your writers qualified for the custom writing?
How quick can my order be accomplished?
Is it legal to buy custom essays, term papers or book reports from your company?
Are essays offered by your company truly custom-written?
Is it safe to buy from SupremeEssays.com?
How secure is the payment system of your company?
Can I submit custom essays or term papers done by your company as my own?
How can I contact your company if I've got problems with my ordered paper?
testimonials

Finally, I've found the real custom writing service . My grades are saying "Thank you, it's been a pleasure to work with you."

Jamal, South Africa

I can't believe you finished my essay under such a short deadline! You saved me from a disaster once again. You guys deliver exactly what you promise. I'll be back. That's for sure!

William H , Kansas, US

contact us
Toll free for US & Canada only. International callers are charged for outgoing calls.

Our phone numbers:
SupremeEssays.com provides custom term paper writing/rewriting services inclusive of research material for assistance purposes only. The term papers should be used with proper reference and are not meant to replace actual assignments.
 

Get 15% off your first custom essay order

Order now

PRICES
from $12.99/PAGE

X