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lbvjy [14]
3 years ago
12

Mr. Hamid is running his small retail business under the name of Hamid Store. He has recently hired Mr. Imran as a junior accoun

tant to maintain the books of accounts of his business. Mr. Imran has little knowledge in accounting. Recently, it has been observed that Mr. Imran wrongly treated installation charges of plant and machinery worth Rs. 500,000 as revenue expenditure under the heading of administration expenses. As a result, financial statements failed to reflect true and fair business affairs. Required: Identify the “type of error” committed by Mr. Imran. What will be the effect of given error on asset side of a balance sheet? (Just mention whether the assets would be overstated, understated or remains unaffected) What will be correct amount of fixed assets, if current assets and fixed assets before correcting this error were Rs. 160,000 and Rs. 940,000 respectively? What will be correct amount of operating profit, if operating loss before correcting this error was Rs. 300,000?Mr. Hamid is running his small retail business under the name of Hamid Store. He has recently hired Mr. Imran as a junior accountant to maintain the books of accounts of his business. Mr. Imran has little knowledge in accounting. Recently, it has been observed that Mr. Imran wrongly treated installation charges of plant and machinery worth Rs. 500,000 as revenue expenditure under the heading of administration expenses. As a result, financial statements failed to reflect true and fair business affairs.
Required:
1. Identify the “type of error” committed by Mr. Imran.
2.What will be the effect of given error on asset side of a balance sheet? (Just mention whether the assets would be overstated, understated or remains unaffected).
3. What will be correct amount of fixed assets, if current assets and fixed assets before correcting this error were Rs. 160,000 and Rs. 940,000 respectively? 4.What will be correct amount of operating profit, if operating loss before correcting this error was Rs. 300,000?
Business
1 answer:
zloy xaker [14]3 years ago
8 0

1) ERROR OF PRINCIPLE

2) Rs. 500,000/-.

3) 14,40,000

4) Profit=2,00,000

Explanation:

1)

Error Committed by Mr. Imran is "ERROR OF PRINCIPLE" . Error of Principle Means a transaction which is not in accordance with Generally accepted accounting principle( GAAP). In this case Mr. Imran has wrongly debited to revenue expenditure instead of debiting to Plant and machinery.

2)

The assets side of Balance sheet is understated by Rs. 500,000/-.

3)

Fixed Assets correct amount= Fixed assets before correcting the errors + installation charges

=9,40,000+5,00,000

=14,40,000

4)

Correct Profit= Profit/(loss) Before correcting the error+Installation Charges

Profit= (3,00,000)+5,00,000

Profit=2,00,000

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Sarah recently bought a bicycle. After a few days of cycling, she realized that she needed a basket on the bicycle to keep her b
Sloan [31]

Answer:

Functional need

Explanation:

Functional need -

It refers to the needs of the human being , which are important for the survival , is referred to as functional need .

These are basic requirements which are important for the day to day activities  of the people .

Hence , from the scenario of the question,

Sarah bought a cycle , but as soon as she realized that basket is important for keeping her bag and other item .

Hence, the need of basket is the functional need .

3 0
3 years ago
Precise Machinery is analyzing a proposed project. The company expects to sell 7,500 units, ±10 percent. The expected variable c
statuscvo [17]

Answer:

$2,703,940

Explanation:

Calculation for the operating cash flow based on this analysis

Particulars Amount

Sales amount 6,375,000

(850*7,500)

Less vaiable cost 2,355,000

(314*7,500)

Less Fixed cost 647,000

Less Depreciation 187,000

PBT 3,186,000

Tax 21% 669,060

(21%*3,186,000)

PAT 2,516,940

(3,186,000-669,060)

Add: Depreciation 187,000

Operating cash flow $2,703,940

(2,516,940+187,000)

Therefore the operating cash flow based on this analysis will be $2,703,940

4 0
3 years ago
In a shuffleboard game, the puck slides on a horizontal floor before coming to complete stop. If the coefficient of kinetic fric
OLga [1]

Answer:

22.33 m

Explanation:

We are given;

Coefficient of kinetic friction between the puck and floor; μ = 0.5

initial speed of the puck; u = 14.8m/s

From Newton's equation of motion, we know that;

v² = u² + 2as

But since it decelerate to rest, the acceleration will be negative.

Thus;

v² = u² - 2as

Final velocity is zero, thus;

0 = u² - 2as

Thus, a = u²/2s

Where s is the distance covered before coming to rest.

Now, we know that formula for the frictional force is;

F = μmg

F/m = μg

We also know that F/m = a

Thus, a = μg

Thus:

u²/2s = μg

s = u²/(2μg)

s = 14.8²/(2 × 0.5 × 9.81)

s = 22.33 m

3 0
2 years ago
The five stages a buyer passes through in making choices about which products and services to buy is called the postpurchase beh
pychu [463]

Answer:

Purchase Decision Process

Explanation:

The purchase decision process is the one through which the a buyer makes his decision of buying a certain product.

This consumer buying process has five step which they use to make their decision, are following;

  1. Need or Problem Recognition.
  2. Information Search.
  3. Evaluation of Alternatives.
  4. Purchase Decision.
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I hope the answer is helpful.

Thanks for asking.

8 0
2 years ago
Which organization does not work for consumers
Dvinal [7]

Answer:

Which organization does not work for consumers

Federal treasury

Explanation:

The other three are consumer-focused.  But the Federal Treasury is a US government agency that advises government on fiscal matters.  It performs some law enforcement activities to help government enforce laws on fiscal policies.  It is also responsible for manufacturing the currency and postage stamps.  Finally, it has responsibility for the supervision of national banks in the United States.

3 0
3 years ago
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