1. The aggregate amount of costs incurred and recognized profits (less recognized losses) to date.
2. The amount of advances received.
3. The amount of retention.
Wilfykil answered the question on February 11, 2019 at 06:25
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Explain two methods of accounting for construction contracts.
Date posted: February 11, 2019. Answers (1)
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Date posted: February 11, 2019. Answers (1)
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Three firms of accounts decided to amalgamate into a new firm Cheloti Gusera Kandie & Co. with effect from 1 April 1999. Until 31 March 1999 Apopo. Cheloti and Chuma were partners in Apopo Cheloti & Co. sharing capital and profits equally. Guserwa. Kurgat and
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Date posted: February 11, 2019. Answers (1)
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Maina and Ojara have been in partnership for a number of years sharing profits in the ratio 3:2. Because of the present difficult economic situation in the country, it has been agreed that in the period ended 30 April 2000, no salaries will be paid to the partners and no drawings will be made either. Interest has been credited to the partners in respect of their capital accounts. They decided to turn the partnership into a company on 30 April 2000, with its accounts being made up to 30 April each year. They decided that they would not open a separate set of accounts on 30 April 2000, but would continue to record the transactions of the business in the partnership books.
The trial balance extracted by the accountant, after he had computed the profit for the period ended 30 April 2000 and the year ended 30 April 20001, was as follows:
Required:
(a). Prepare the Realisation and Capital Accounts of Maina and Ojaro to record the dissolution of the partnership.
(b). Prepare for Maoja Limited the income statement for the year ended 30 April 2001 and the balance sheet at that date in conformity with Kenya Companies Act and the International Accounting Standards. Do not prepare the statement of changes in equity – deal with dividends proposed and paid in the income statement. Ignore deferred tax.
Date posted: February 11, 2019. Answers (1)
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Emojong, Barmoi and Kimani have been partners sharing profits and losses in the ratios 2:2:1. Accounts have been prepared on an annual basis to 31 December of each year Emojong the only active partner, died on 31 May 2002 and the remaining partners decided to cease business from that date. The assets are to be realized, outstanding debts paid and the remainder to be shared by the partners (including the executors of Emojong’s estate) in an equitable manner, distributions of cash being made as soon as possible.
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Date posted: February 11, 2019. Answers (1)
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Date posted: February 11, 2019. Answers (1)
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Date posted: February 8, 2019. Answers (1)
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Date posted: February 8, 2019. Answers (1)
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December.
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Date posted: February 8, 2019. Answers (1)
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Date posted: February 8, 2019. Answers (1)
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Ali, Baba and Cheche were in partnership sharing profits and losses in the ratio 2:2:1 respectively. Following serious disagreement, the partners decided to dissolve the partnership. The proceeds from sale of assets were to be paid to the individual partners after all expenses and liabilities had been paid.
The balance sheet as at 30 September 2007 when the partners made the decision to dissolve the partnership was as follows:
Required:
a) Briefly explain the rule in Garner Vs Murray.
b) A statement showing how cash realized would be distributed to the partners.
c) Realization account, cash at bank account and capital accounts to close off the books of the
partnership.
Date posted: February 8, 2019. Answers (1)
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Meme, Noni and Zenah are partners sharing profits and losses in the ratio 3:2:1 respectively, after allowing for interest on fixed capitals t the rate of 5% per annum. The partners prepare their partnership accounts annually to 30 September.
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Date posted: February 8, 2019. Answers (1)
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X and Y are partners with equal capital contributions in a wholesale business and sharing profits and losses among X,Y and Z in the ratio of 2:2:1respectively. The partners however disagreed after six months of operation and dissolved the partnership on 30th November 2009. No adjustment has been made to record the amalgamation. The following statements of financial position as at 31st May 2009 and 30th November 2009 are provided.
Date posted: February 8, 2019. Answers (1)
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Michael and Stella were in partnership sharing profits and losses equally until 30 April 2011 when they decided to convert the partnership into a limited company, Michelle Ltd. The company was registered immediately
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Date posted: February 8, 2019. Answers (1)
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Able, Patient and Hastine were in partnership sharing profits and losses in the ratio of 5:3:2 respectively. Due to irreconcilable differences they agreed to dissolve the partnership. Any realisation of assets was distributed to the partners on realization after all expenses and liabilities were paid.
The following is the statement of financial position as at 31 August 2012 when the resolution to dissolve the partnership was effected
Required;-
(i) Statement of cash distribution to the partners.
(ii) Realization account,
(iii) Bank account.
(iv) Partners' capital accounts.
Date posted: February 8, 2019. Answers (1)
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Alice and Benard Advocates and Maneno and Neno Advocates were practicing firms of Advocates. On 1 July 2012, they agreed to amalgamate their partnership businesses into one firm and called it Abliman advocates. The accounts of the separate partnerships have been prepared annually to 30 June 2012.
The agreed profit and loss sharing ratios in the old and new firms are as follows:
Date posted: February 8, 2019. Answers (1)
- Kamili Ltd leased a machine from Super Machines Ltd. The terms of the lease were as follows:
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Kamili Ltd leased a machine from Super Machines Ltd. The terms of the lease were as follows:
Date posted: February 8, 2019. Answers (1)
- Capps Ltd.., a manufacturing company, leased production equipment from Deux Ltd On 1st January 2008. The lease provided for an immediate rental payment of sh....(Solved)
Capps Ltd.., a manufacturing company, leased production equipment from Deux Ltd On 1st January 2008. The lease provided for an immediate rental payment of sh. 10 million and three other annual rentals of shs. 10 million commencing 1 January 2009. The equipment has an estimated useful life of four years with a nil residual value. The cash selling price of equipment is shs.32.1 million. Interest rate implicit in the lease is 17 per cent per annum.
Required:-
For the years ended 31 December 2008, 2009, 2010 and 2011, show in the books of Capps Ltd:-
i) Extracts of the profit and loss account.
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Date posted: February 8, 2019. Answers (1)
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On 1 November 2008, Apple Ltd sold a plant with a book value of Sh. 10 million to Mango Ltd. The fair value and the selling price of the plant at the date of sale was Sh. 15.2 million. The plant was immediately leased back over a lease term of four years which the assets is remaining useful life. The residual value at the end of the lease period is estimated to be a
negligible amount. Apple Ltd can purchase the plant at the end of the lease period for a nominal amount of sh. 1000. The lease is non-cancellable and requires equal annual rental payments of sh. 4.35 million at the commencement of each financial year. The implicit interest in the lease is 10% per annum. The plant is depreciated on straight line basis. The present value of an ordinary annuity of Sh.1 per year for 3 years at 10% interest is Sh.2.49.
Required:
Explain the classification of the above lease and show how the lease should be accounted for in the financial statements of Apple Ltd for the year ended 31 October 2009 in accordance with IAS 17(Leases).
Date posted: February 8, 2019. Answers (1)