Interested to Buy Any Domain ? << Click Here >> for more details...
Answer Posted / venkatesham varganti
small amounts incurred for the running of business is called misc. expenses and it will be shown at debit side in profit & loss a/c. some times there is no perfect head for expenses incurred in that case also the amount spent is shown under misc.exp. a/c
| Is This Answer Correct ? | 12 Yes | 1 No |
Post New Answer View All Answers
What are the uses of journal in accounting?
After close Balance Sheet, we find a expense which was wrongly debited in Profit and Loss A/c. How we adjust next accounting period?
Do you know what are trade bills?
What is short term solvency ratio?
What does a demo/presentation need to be effective?
how to finalised the Balance sheet & profit & loss A/C
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?
Tell me where do generally accruals appear on the balance sheet?
Tell me in accounting, vat abbreviates what?
What do we mean by purchase return in accounting?
Tell me in accounting, how do you define premises?
What is bad debt expense?
How is an accounting department structured?
Tell me deferred taxation is a part of which equity?
Do you think accounting standards are mandatory and why?
