Reference no: EM132465090

problem 1: Pusher commenced business on 1 January 2010 with two lorries - A and B. A cost £1,000 and B cost £1,600. On 3 March 2011, A was written off in an accident and Pusher received £750 from the insurance company. This vehicle was replaced on 10 March 2011 by C which cost £2,000. A full year's depreciation is charged in the year of acquisition and no depreciation is charged in the year of disposal.

Question a. You are required to show the appropriate extracts from Pusher's statement of financial position and income statement for the three years to 31/12/10, 31/12/11 and 31/12/12 assuming that:

i) the vehicles are depreciated at 20 per cent on the straight-line method.

ii) the vehicles are depreciated at 25 per cent on the reducing balance method.

Question b. Comment briefly on the pros and cons of using the straight line and reducing balance methods of depreciation.

problem 2: Double entry book-keeping has been in existence for a long time. In fact, it revolutionised the way in which accounting records were kept and what they tried to record. Many events, including the emergence of this form of recording caused the role of the accountant and the purpose of financial statements to change.

Required:

Question 1: Discuss the emergence of accounting as it is today. Identify the major historical events that stimulated change in the way financial statements are prepared.

problem 3: There is a wide range of users of financial (accounting) information. Every user has different needs.

Required:

Question 1: Identify any FIVE (5) users of financial information and explain how their needs are met (or not) by financial information.

Question 2: Who is responsible for providing this information?

Question 3: Discuss how these needs are met or not met.
(Think about the various ways they can get the financial information they require)