Answer Posted / h.r. sreepada bhagi

When payment is made, debit the expense account with the
amount relating to that period, debit Prepaid Expenses with
the remaining and credit bank or Cash A/c. Next year as and
when the expense accrues, debit expense a/c and credit
Prepaid Expenses A/c.
For example Insurance paid in Feb,10 for the period March,10
to Feb,11 - Rs. 35000/-

Payment entry in March,10:-

Insurance A/c Dr. Rs.2917/-
Prepaid Expenses A/c Dr. Rs.32083/-
Bank A/c Cr. Rs.35000/-

Next year from April to Feb, every month pass the following
Journal entry:-
Insurance A/c Dr. Rs.2917/-
Prepaid Expenses A/c Cr. Rs.2917/-

Prepaid expenses can be divided between different accounting
period based on number of days or months, based on
materiality of the transaction.

As you know any other accounting application?

1028

---

Explain different branches of accounting?

1272

---

What are the 4 principles of gaap?

1105

---

wat is mass allocation and when it is used

2015

---

How do you handle rejection?

1095

---

Is there Disqualification of Auditor u/s 139 of Companies Act 2013 if the auditor is indebted towards the company to be appointed as an auditor, if amount exceeds more than Rs.1000 as against the provision related to Companies Act, 1956 ?

1698

---

1.what is the entry of petrol of payment made by credit card of owner? 2.what is the entry of petrol of payment made by credit card of Company?

1336

---

Explain the Invoice verification process

2759

---

if company having a loss consecutive last more than 2 years, Depreciation on equipment should be appear in profit and loss a/c or pass the provision entry every unless company not recover profit. Please explain.

1677

---

X, PURCHASE HOUSE PROPERTY IN 2005, RS 400000,AND SALE IT IN2010, RS 1800000,IF X HANDICAP, AND IN 2008 MADE SENIOR CITIZON, HOW CALCULATE IT?

2006

---

Explain what is account receivable?

1069

---

Case Study: Deepak Hand tools Private Limited DHPL is a small sized firm manufacturing hand tools. It manufacturing plan is situated in Haryana. The company’s sales in the year ending on 31st March 2007 were Rs.1000 million (Rs.100 crore) on an asset base of Rs.650 million. The net profit of the company was Rs.76 million. The management of the company wants to improve profitability further. The required rate of return of the company is 14 percent. The company is currently considering an investment proposal. One is to expand its manufacturing capacity. The estimated cost of the new equipment is Rs.250 million. It is expected to have an economic life of 10 years. The accountant forecasts that net cash inflows would be Rs.45 million per annum for the first three years, Rs.68 million per annum from year four to year eight and for the remaining two years Rs.30million per annum. The plant can be sold for Rs.55 million at the end of its economic life. The company would need to raise debt to the extent of Rs.200 million. The company has the following options of borrowing Rs.200 million: a. The company can borrow funds from a nationalized bank at the interest rate of 14 percent for 10 years. It will be required to pay equal annual installment of interest and repayment of principal. b. A financial institution has offered to lend money to DHPL at 13.5 per annum but it needs to pay equated quarterly installment of interest and repayment of principal. Questions: 1. Should the company expand its capacity? Show the computation of NPV 2. What is the annual installment of bank loan? 3. Calculate the quarterly installments of the Financial Institution loan 4. Should the company borrow from the bank or from the financial institution?

6526

---

Why did you select accounting as your profession?

1002

---

I am a Leaving Cert Student. From Solutions to exam questions etc. I know what to do with the following adjustment but I cannot explain why. A thypical Adjustment is: A building is acquired for €60000 plus VAT at 10%. The amount paid to the Vendor was entered in the Buildings Account. No entry made in the VAT account. Could you explain why the VAT amount is deducted from the VAT amount in the TB? And why it is sometimes an Asset in the BS. Thank you, Mary

1825

---

What is the purpose of a balance sheet?

1318

---