of Hazrat Mawlana Jalaluddin Rumi's work, regardless of who they are and Immersing oneself in the ocean of love and co Load more similar PDF files. No doubt tº is us -y, Ar-Rahiq Al-Makhtoom (The Sealed Nectar) is a book of great value and praiseworthy work on the l. Financial Accounting. Richard Lewis and. David Pendrill seventh edition. Advanced. Financial Accounting. Lewis and P endrill th edition.
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Market Risk - Advanced Library of 04 Courses an imprint of ilalsmaknersound.mln- ilalsmaknersound.ml Advanced Financial Accounting Lewis and Pendrill seventh edition. SYLLABUS: ADVANCED FINANCIAL ACCOUNTING. electrostatic, magnetic , pdf, mechanical, recording or otherwise, without prior. 1. Advanced Financial Accounting & Reporting (Study Material), Pdf ( MB). 2. Advanced Financial Accounting & Reporting (Compendium), Pdf ( MB).
Kumar Sangakara balanced the accounts at the end of June and received an account sale from the consignee to this date: If the goods are taken for private purposes the drawings account is debited. The agents sold tin at Lkr. They drew on Anusha Stores at 3 Months for Lkr. The expenses incurred by the Anusha Stores were: They sent their account sales to their principal showing as a deduction there from their commission and the various expenses incurred by them a month later.
All the debtors except one who owed Lkr. The freight and other charges paid by A amounted to Lkr. A sent the documents through Bank and drew upon B a bill for Lkr. The bill was met on maturity.
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On March 15, B sent Account sales together with the amount due showing that packets had realized Lkr. B incurred Lkr. On March 31 B informed A that 15 packets were damaged due to bad packing and it was estimated that the selling price of the damaged packets would be about Lkr. Both A and B close their books on March Prepare ledger accounts in the books of A and B.
Proportionate expenses incurred by A i. Value of 15 packets Lkr.
Hence Lkr. Take the total cost of goods consigned and add all the non-recurring expenses incurred by the consignor and consignee. Deduct the quantity and cost of abnormal loss from the total number of goods consigned and the cost as obtained in 1 above, respectively. Deduct the quantity of normal loss from the quantity worked out in 2 above without making any adjustment in cost.
Calculate cost per unit of goods units by dividing the cost remaining after deducting the cost of abnormal loss by the number of goods units.
Multiply the number of unsold units with the cost per unit obtained in 4 above to arrive at the value of unsold stock. Oils Ltd paid Lkr.
The insurance claim was settled at Lkr. Ranga and Co. On 31 st March Ranga and co. Godown rent Lkr. They paid the amount due in respect of consignment on 31 st March itself.
Show the consignment account, the account of Ranga and Co. Cost of 10, Kg of ghee Lkr. During the transit shirts were totally damaged by fire. Zing took delivery of the remaining shirts and paid 72, on custom duty. Expenses incurred by Zing on godown rent and advertisement etc. One of the customer to whom the goods were sold on credit could not pay the cost of 25 shirts. Zing settled his account immediately. Nothing was recovered from the insurer for the damaged goods.
Valuation of goods Lost-in-transit and unsold Stock: Lkr Total Cost 18, 75, Add: Non-recurring Ex. Since Del Credere Commission is not given by the consignor to the consignee, amount of bad debt is to be charged against Consignment Account.
Lubrizols Ltd. The insurance claim was settled at Lkr 15, and was paid directly to the consignor. Central Oil took delivery of the consignment on On LKR Clearing charges 11, Godown Rent 10, Wages 30, Printing, Stationery, Advertisement 20, 25 barrels of oil were lost due to leakage which is considered to be normal loss.
Central Oil Co. Central Oil Company paid the amount due in respect of the consignment on 31 st March itself. X, the consignor, consigned goods to Mr. Y Radio sets valued Lkr 50, X paid Lkr 5, for freight and insurance. X received Lkr 5, from the Insurance Company. Y received remaining goods in good condition. He incurred Lkr 4, for freight and miscellaneous expenses and Lkr 3, for godown rent. He sold 60 sets for Lkr 50, Show the necessary ledger account in the books of Mr.
Advanced Financial Accounting
X assuming that Mr. Y was entitled to an A. He also reported that Lkr 1, were proved bad. Prepare the necessary Accounts. P Load C. P 25 C. Non recurring expenses of Mr.
Advanced Financial Accounting, 7th Ed.pdf
Expenses Paid: Bill Accepted 7,50, Less: Mantu paid that on Lkr 2, for freight and Lkr 1, for insurance. On arrival of the goods, Pandey paid Lkr 1, as carriage to godown. During the year ended 30th June , Pandey paid Lkr th 3, for godown rent and Lkr 1, for selling expenses. As on You are required to prepare the following ledger accounts in the books of Mantu of Chennai for the year ended There is no normal Profit or Loss on Consignment.
Valuation of goods destroyed by fire and unsold stock Total Insurance Claim 50, Add: Non- recurring expenses of Pandey 1, 50, Less: Usha spent Lkr 8, 25, on transportation.
Gayatri spent Lkr 5, 25, on unloading.
She sent a cheque to Usha for the amount due after deducting commission. The commission is payable only on sales to outsiders and not on goods taken over by Gayatri. Thus, commission is 8. Lkr 8, 50, The required ledger accounts are shown below. Lost in transit Less: Normal loss due to leakage Less: Hence no entry is needed to be passed in the books of consignor.
It spent Lkr on packing. They sold machines at Lkr 3, per machine.
They accepted a bill drawn by Sangita Machine Corporation for Lkr 3, 00, and remitted the balance by demand draft along with account sale. LKR Invoice value of 30 machines 72, Add: Shyam remits the balance of proceeds after sales, deducting his commission by sight draft.
Goods consigned by Ram to Shyam costing Lkr 20, including freight and were invoiced at Lkr 28, Sales made by Shyam were Lkr 26, and goods in his hand unsold at 31st Dec, represented an invoice price of Lkr 6, Original cost including freight Lkr 5, Sight draft received by Ram from Shyam up to 31st Dec was Lkr 6, Others were in- transit.
Prepare necessary Ledger Accounts. Calculation of Commission: LKR Invoice value of goods 28, Less: Unsold stock 6, Invoice value of goods sold 21, Total sale proceeds 26, Less: The goods consigned to the agent cannot be treated as sales at the time of the consignment; they are treated as sales only when those are sold by the consignee.
In a consignment transaction, the consignor sends goods to the consignee and makes a bill called Proforma Invoice. The value recorded in the proforma invoice may be the actual cost to the consignor or actual cost to the consignor plus mark-up. The objectives of A. To achieve this, he prepares consignment account and consignee account.
The consignee makes accounts relating to consignment relating to consignment to effect the settlement with the consignor and to recognize his commission entitlement as consignee. Keywords Consignment: A shipment of goods by a manufacturer or wholesale dealer to an agent to be sold by him on commission basis, on the risk and account of the former, is known as consignment.
The person who sends the goods to the agent to be sold by him as commission basis is called the consignor. It is a commission which is paid by the consignor to the consignee for taking additional risk of recovery of debts on account of sales made on credit by the consignee on behalf of the consignor.
It is a statement which contains the details of sales, expenses incurred and commission entitlement and balance due to the consignor. Normal Loss: Self Evaluation Questions: Theoretical Questions: Distinguish between a sales and consignment. What is "consignment of goods"? Is it the same as "goods on sale or return"?
Describe how the consignment account is maintained in the books of a consignor b the consignee. If a consignment remains partly unsold closing stock or unsold stock at the time of balancing the books, how do you deal with it? Why goods are sent to consignee at invoice price? What adjustment entries are recorded in the books of the consignor to find profit on consignment when goods are invoiced at proforma prices? Write short notes on: State whether each of the following statements is 'true' or 'false'.
Despatch of goods on consignment amounts to sale of goods by the consignor F 2. A consignee is paid over-riding commission for bearing the risk of bad debts on account of credit sales made by him F 3.
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Sales account and account sales are synonymous terms F 4. The consignee passes no entry in his books for unsold stock of the consignor, lying with him T 5. Discount on bills discounted is debited on profit and loss account and not to the consignment account on account of it being treated as a financial expense T 6. Abnormal loss of stock arises on account of natural and inherent characteristics of goods F 7.
As soon as goods are sent to the consignee, consignee becomes liable to pay for them F 8. An account sale is submitted by consignee to the consignor T 9. Value of abnormal loss or stock is debited to consignment account F Fill in the Blanks: Goods dispatched by a manufacturer or wholesaler to an agent for the purpose of sale are called Abnormal loss is credited to account. Del-Credere commission is normally calculated on sales. The document giving the description of goods and their price sent to the consignee by the consignor is known as Consignment account of the nature of a account.
Consignment 2. Consignment 3. Total 4. Pro forma invoice 5. Normal A. In accounting consignment, signifies a Goods forwarded from one place to another b Goods forwarded by a person to another. Goods sent on consignment should be debited by consignor to: In the books of consignor the balance of the consignment stock would be shown: In the books of consignee, on dispatch of goods by the consignor the entry would be: In the books of consignee the expenses incurred by him on consignment are debited to: In the books of consignee the sale of goods is credited to: Fundamentals of Accounting by R.
Gupta and V. Advanced Accounting by R. Gupta and M. Advanced Accounts by M. Shukla, T. Grewal and S. Gupta, S. Chand and Co.
It is a temporary partnership, without the use of a firm name limited or restricted to a particular venture in which the two or more persons agree to contribute a specific amount of capital and to share profits or losses either in equal proportions or in any other agreed proportion. Once the joint undertaking is complete and over; the joint venture or limited partnership ends and no liability will then attach to any party.
If the public does not take them, the underwriters agree to take up the shares or debentures. The basic features of a Joint Venture business are: Advantages of a Joint Venture Sometimes a party may be in a position to download goods at a much lower cost and on far better terms than others.
Or, it may so happen that merchandise is bought cheap at one place by one party and when sent to another place it can be sold at a higher price by the second party.
A third A.
A combination of all these parties in a common venture may result in a successful and remunerative business. The business activities for which Joint Ventures JV are formed could be: Nature of Business Agent is not necessarily a It is a partnership Though partner; hence it is not a temporary since Co-ventures partnership. Scope Consignment is concerned only Joint Venture may be undertaken with the sale of movable goods. Finance Consignor Principal provides Funds are provided by the Co- the funds.
Ventures Profits and The Consignee is entitled to Profits or losses are shared by commission receive only commission and the Co-ventures in the reimbursement of his expenses. Commission may or may not be granted to Co-ventures. Number of Persons There are normally two parties The number of Co-ventures will namely the principal and the be at least two though it may be agent.
A Partnership firm always has a firm name. Continuance It comes to an end as soon as the It is of a continuous nature. Books of accounts There is no need for a separate Separate set of books have to be set of books. The accounts can maintained. Similar business The co-ventures are free to carry No partner can carry on a similar on the business of a similar business.
Registration There is no need for registration Although the registration of at all. The following are main methods of recording joint venture transactions: A When one of the Co-ventures is appointed to manage the Joint Venture Under this method, only one co-venturer records the joint venture transactions who open a joint venture account and personal accounts of other co-venturers.
This method of recording transactions is followed when the business is not very large. Under this method, one of the venturers is entrusted with the task of recording the transactions in his book.
In this case, all other co-venturers will send their contributions to such a venturer. He will open a joint venture account and the personal accounts of other co- venturers in his books. The joint venture account is prepared to ascertain the profit or loss of the joint venture.
It is a nominal account. All the expenses are debited and the incomes are credited in the joint venture account. The difference between debit and credit is the profit or loss of the venture.
The venturer who manages the joint venture transfers his share to profit and loss account and the share of other venturers to their personal accounts.
The personal accounts of other co- venturers are prepared to ascertain the amount due from them. The following entries are passed in the books of the co-venturer appointed to manage the affairs before the necessary accounts of the joint venture: They brought Lkr. Madhu downloadd goods for Lkr. Expenses on the venture paid by him amounted to Lkr. They shared profits and losses equally.
Pass journal entries and prepare ledger accounts in the books of Madhu. Cr 12, A. Anil and Sunil contributed Lkr. They agreed to share profits and losses in the ratio of 4: Anil bought the necessary materials for Lkr. Anil also contributed building materials from his own stock worth Lkr. Sunil took over the stock of materials for an agreed valuation of Lkr.
The building was completed and the contract money was duly received. Record the above transactions in the books of Anil and show the joint venture account that the outstanding wages were paid by Anil. Cr 2, A. Anu supplied goods worth Lkr. During transit the goods costing Lkr. Towards the end of the venture, a fire damaged the balance stock lying unsold with Anil.
The goods A. Selling expenses incurred by Anil totaled Lkr. Anil had earlier remitted an advance of Lkr. Anil paid the balance due to Anu by a bank draft. Computation of sales: LKR Cost of goods sent 30, Less: Loss by fire borne by Anil: Abnormal loss in respect of damage in transit relates to the joint venture. Hence, no computation is required. Ram downloadd goods for Lkr. Rahim also supplied goods to the value of Lkr. Ram paid Lkr. Ram sold goods on behalf of the joint venture and realized Lkr.
Unsold goods amounting to Lkr. Dr 1, Rahim………………………………………………………….
Cr 1, Goods for Lkr. Cr 14, Amount remitted to Mohan and Rahim in settlement of their accounts A. There is no much difference in the recording of transactions between the previous and this method.
The main difference is A. Here each venturer prepares joint venture account to find out the profit or loss and other venturers accounts to ascertain the amount due to or due by the venturer. The usual entries under this method are as follows: Cr 17 For profit on Joint venture: Cr For loss on Joint venture: Aji supplied goods for Lkr. Aji paid Lkr.
Aji sold some of the goods for Lkr. Pass journal entries and prepare ledger account in the books of both Aji and Giji. Cr 1, The amount received from Giji on settlement of account A.
Cr 20, A. The following transactions took place during the course of venture. Smith downloadd goods for Lkr. Smith drew a bill of Lkr. Smith spent Lkr. Smith sold goods for Lkr. On closing the venture, Smith took over unsold goods for Lkr. The corresponding credit should be given to bills receivable account. In the books of the venturer who accepted the bill, the amount of discount should be debited in the joint venture account by giving corresponding credit to the venturer who discounted the bill.
In such a case, the entry for discount would be: A sends 60 bales at Rs. All the bales are sold by the consignee for rs. He remits a bank draft for rs. Give the necessary ledger account to record these transaction in the books of A and B. For example a building contractor say A who is independently handling a big business is awarded a contract jointly with another builder say B. These persons may not like to disturb their accounting records for this specific activity and may decide to open a separate set of books for the venture.
The main accounts maintained under the system are: All the venturers deposit a certain amount into the account.
Dr venturer or expenses paid by him. Cr 3 For download of goods for cash.
Cr 6 For good sold Cash. Cr 8 Payment to creditors in cash or issue Bills payable. Cr 10 Any Commission, salary, interest etc. Cr 12 For profit on joint venture. A agrees to bring capital in cash. Accordingly a joint bank account is opened by A for a sum of Lkr.
B downloads goods worth Lkr. Further goods worth Lkr. The goods were sent to Calcutta for sale. Expenses totaling Lkr. Part goods were damaged and a sum of Lkr. The balance goods were sold for Lkr.
Give journal entries to record the above transactions. Also prepare joint venture account, joint bank account and accounts of A and B assuming that the promissory note was duly honoured. Cr 25, Being amount received from the insurance company for part of A. They opened a joint bank account to which Arun contributed Lkr.
Arun andArvind downloadd goods for Lkr. Arun supplied goods for Lkr. They sold goods for Lkr. On closing the venture, the unsold goods were taken over by Arvind for Lkr.
Show journal entries and prepare joint bank account, joint venture account and joint venturers account. Cr 2, Profit on joint venture shared in the proportion of 2: Cr 36, Payment made to joint venturers in final settlement of their accounts Joint Venture Account A. Price is usually received partly in cash and partly in the form of shares and debentures.
The additional entries then are made as follows: The contract price was settled at Lkr. They opened a joint bank account wherein P deposited Lkr , and Q paid Lkr. They agreed to share the profits and losses in the ratio of 2: P and Q bought materials for Lkr.
They paid Lkr. P and Q supplied materials worth Lkr. R was paid by Lkr. P agreed to take up the shares of the company at a valuation of Lkr. Q took over the remaining material at an agreed value of Lkr. Prepare joint bank account, joint venture account and joint venturers account.
A bank account is opened in their joint name, Prabir paying Lkr. They are to share profit or loss in the proportion of 2: Their transactions were as follows: The joint venture was closed by Prabir taking up all the equity shares of thee company at an agreed valuation of Lkr.
Loss to: They undertake jointly to build and install new machinery for a company for a contract price of Lkr.
A bank account is opened in joint, Dilip paying Lkr. LKR Amount advanced to suppliers for supply of materials 52, Value of materials supplied by suppliers 89, Balance amount paid to suppliers in full and final settlement 35, Paid wages 36, Materials downloadd in cash 2, Materials supplied by Dilip from stock 9, Engineering consultant fees paid 3, Value of stock lost by fire and not covered by insurance 3, The contract was completed and the price duly received.
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Dilip took all the shares at the agreed value of Lkr. Prepare the joint venture account, showing the resultant profit or loss and the accounts of Dilip and Raj and also the Bank Account. The Contract price was fixed at Lkr. A joint bank account is opened in which A and B deposited Lkr. The profit or loss is to be shared in the ratio of 2: The details of their transaction are: Half of the plant was taken over by A for Lkr. Joint Venture Account was closed by A taking up all the shares at an agreed valuation of Lkr.
Separate books were maintained for the Joint Venture. Give ledger accounts. The depreciation value of the plant is recorded on the credit side of the Joint Venture Account. Under writing of Shares When the co-venturers agree to under write the share of a limited company, they become entitled to underwriting commission which may be received partly in cash and partly in shares. As per the nature of the underwriting business the underwriters will have to take up the shares received as commission and the shares not subscribed by the public.
The shares are ultimately sold or taken over by co venturers at an agreed price in order to calculate the overall profit or loss on joint-venture. The additional entries are given below: Co-Venturers Account Dr. Shares Account Illustration: They agree to share profits and losses in the ratio of 2: The terms with the company are: The public take up 88, of the shares and the balance shares of the A. The commission in cash is taken by the partners in the ratio 4: The entire share holding of the Joint Venture is then sold through brokers: Prepare a joint venture account and the separate accounts of A and B showing the adjustment of final balance between A and B.
Ignore interest and income tax. The account is personal account and is A. Hence it will not disclose the profit or loss of the venture All transactions are recorded from the perspective as if the co-venturer is the debtor of the business. The memorandum joint venture account is prepared exactly like a joint venture account prepared under the method B and this method is an alternative method of B method. Cr The same set of entries is to be followed in the books of B for preparing joint venture with A Illustration: Anu downloadd cycles FOR Lkr.
Repairing and other charges paid by Anu was Lkr. A nu sold cycles for Lkr. On closing the books on June 30, the unsold cycles of the download price of Lkr. Prepare memorandum joint venture account. Repairing 4, 39, Cycles taken over Profits: July 1.
Ravi downloadd goods worth Lkr. Why download extra books when you can get all the homework help you need in one place?
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Finally the consultants prepare a statement of profit or loss for the period and also a balance sheet as on the closing date of such period. But over here in the absence of a trial balance we are not able to prepare an Income Statement.
To calculate Net Profit figure from the above equation one must know the all other information that has to be put into it.
If you have not yet forgotten the basic accounting equation then Statement of Affairs is very simple to understand. Closing Rs. Practice Questions 1 2 From the following information prepare statement of profit or loss for the year. Unfortunately he did not keep proper books of account.
His drawings were: cash Rs. Draw up statements to show the profit or loss for the year. Winnings from a football pool Rs. At 31 August his assets and liabilities were: Cash Rs. By solving this question students will learn that the only items of Statement of Profit or loss are four i.
Remember one thing the adjustments like depreciations, provision for doubtful debts, accruals etc are not accounted for in the statement of profit or loss. Question Ali and Bilal are partners in a firm sharing profits and losses in the proportion of Gupta, S. They agreed to share profits or losses in the ratio of 3: IFRS 6 requires entities recognising exploration and evaluation assets to perform an impairment test on those assets when facts and circumstances suggest that the carrying amount of the assets may exceed their recoverable amount.
Apportion a share of the unallocated goodwill to the cash generating unit. Cr 20, A. It must be noted that a separate consignment account must be opened for different agents. Pass journal entries and prepare ledger accounts in the books of Madhu. Prepare consolidated nancial statements on disposal of subsidiaries. It is measured at amortised cost.
LKR Clearing charges 11, Godown Rent 10, Wages 30, Printing, Stationery, Advertisement 20, 25 barrels of oil were lost due to leakage which is considered to be normal loss.