What are the relevant journal entries for indera bhd

Assignment Help Financial Accounting
Reference no: EM132554640

Indera Bhd sold a freezer to Tasty Bhd under hire purchase scheme on 1 November 2018. The selling price and cost of goods sold for the freezer are RM12,000 and RM7,000 respectively.

Indera Bhd required Tasty Bhd to pay a deposit of RM6,000. The hire purchase period is 18 months which due at the end of each month starting from 30 November 2018. The interest rate for the hire purchase agreement is 8% per annum.

Indera Bhd recognized interest using the sum of years' digit at the end of accounting period which is on 31 December every year. Sales method is applied to record the hire purchase transaction and the gross profit is recognized based on collection.

Question 1: Calculate gross profit realised for the year 2018. What are the relevant journal entries for Indera Bhd on 31 December 2018.

Question 2: How is it presented in Statement of Profit or Loss for the year ended 31 December 2018

Reference no: EM132554640

Questions Cloud

Required end of payment on a four year loan bearing : The required end of payment on a four year loan bearing interest of 7.5% compounded monthly is $458.79. What is the balance owed just after the 30th payment?
What balances will appear on the december : What balances will appear on the December 31, 2014, balance sheet of Bunting Enterprises Inc. with respect to these transactions?
Define what work breakdown structure : Define what a work breakdown structure (WBS) is. Discuss the benefits of a WBS and its importance as the foundation of the project structure.
Analysts least likely use the financial statements to : In security valuation, analysts least likely use the financial statements to? Identify the type of accruals and valuation entry. Detect fraudulent accounting.
What are the relevant journal entries for indera bhd : Indera Bhd sold, Calculate gross profit realised for the year 2018. What are the relevant journal entries for Indera Bhd on 31 December 2018.
How you feel about need for internet privacy : Explain how you feel about the need for Internet privacy. If you value your own privacy, explain why you do.
What minimum amount will have to be deducted today : What minimum amount will have to be deducted today to a perpetual fund earning 5.6% compounded quarterly, if the first payment of $2000 is made in 3 months from
What is the mirr on the project : If the cost of capital is 17 percent, what is the MIRR on this project? Calculate the NPV and IRR. The required rate of return is 8 percent.
Cancer society is beginning community-awareness campaign : The local cancer society is beginning a community-awareness campaign. The text states that executives are the face of the organization.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd