Reference no: EM132651138
FINANCIAL ACCOUNTING
Task 1
"International Accounting Standards (IAS) has brought a sort of harmony among accountants from different corners of the world. Inaccurate financial reporting caused by the unethical or deceptive practices of a company's accountants can lead to loss of revenue through an exposed accounting scandal, or worse, corporate collapse."
Discuss.
Task 2
Details for receipts and issues of Gabriel Ltd for the year 2019 were as follows:
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Receipts
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Issues
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January
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145 kgs @ $17
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February
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270 kgs @ $18
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March
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177kgs @ $25
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April
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232 kgs @ $19
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June
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134 kgs @ $25
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August
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246 kgs @ $20
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November
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212kgs @ $27
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December
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148kgs @ $ 21
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169 kgs @ $30
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(a) You are required to prepare profit statements for the year ending 31 December 2019 when stock is based on:
(i) FIFO method
(ii) AVCO method
(b) Discuss how inventory is valued according to IAS 2
Task 3
The Eastern Music Club produced the following receipts and payments summary for the year ended 31 March 2019.
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Receipts:
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$
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Subscriptions
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30 000
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Sales of refreshments
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50 000
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Loan from bank
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30 000
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Income from concerts
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116 800
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Sale of surplus equipment
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30 000
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Payments:
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Balance, 1 April 2018
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12 000
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Purchase of new equipment
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10 000
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Hire of hall for concerts
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27 000
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Printing
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14 000
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Equipment maintenance and repairs
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8 000
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Purchases of refreshments
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23 000
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Salaries
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45 000
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Cost of concerts
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83 500
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Sundry expenses
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760
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Sponsorship from banks
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1 000
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Balance, 31 March 2019
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?
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Additional information:
31 March 2018 31 March 2019
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$
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$
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Salaries in arrears
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2 800
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1 600
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Subscriptions owing
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1 600
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2 600
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Subscriptions prepaid
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1 000
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400
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Printing accrued
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2 600
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2 800
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Equipment (cost $200 000), at NBV
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160 000
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?
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Food and drink inventory
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15 400
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13 200
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The bank loan was received on 1 July 2018. Interest is charged at 12% per annum. No Interest had been paid by the year end.
The equipment sold was purchased on 1 June 2017 and had a NBV of $32 000.
Depreciation is provided at 20% on cost for equipment in use at the year end.
REQUIRED
(a) Prepare the trading section of the income statement for the year ended 31 March 2019.
(b) Prepare the income and expenditure account of the Eastern Music Society for the year ended 31 March 2019.
Attachment:- Financial Accounting.rar