Even complicated and confusing topics will be easily developed and covered if you request our help writing an essay. Place an order today!

QUESTION ONE

a) i) Discuss five limitations of ratio analysis (5 marks )

ii) “Accounting practice has rules governing the manner in which accounting information should be presented”. Discuss the five major financial statements according to IAS 1.8.

(5 marks )

b) i) Briefly discuss three distinguishing characteristics of a partnership that govern its accounting procedures (3 marks )

ii) Musa and Otieno are in partnership sharing profits and losses in the ratio 3:2 respectively after crediting themselves with a 5% interest on capital and a salary of sh 20,000 and 30,000 per month respectively. Their trial balance for the year ended 31 /12/2013 is as follows :

DR CR
Sh’000’ Sh’000’
Plant and machinery 5,000
Motor vehicle 4,000
Furniture and fittings 3,000
Sales 11,000
Stock 1/1/2013 1,000
Purchases 5,000
Discount 500 1,000
Provision for bad debts 500
Debtors and creditors 3,000 2,000
Cash at bank 2,000
Rent and rates 500
Electricity and water
Provision for depreciation:

400
Motor vehicles 1,000
Plant and machinery 2,000
Furniture and fittings 1,000
Salaries and wages 1,000
Bad debts 400
Returns 500 1,000
Drawings: Musa 1,000
Otieno 500
General expenses 1,000
Capital account: Musa 5,400
Otieno

3,000
Current account: Musa 500
Otieno

400
28,800 28,800
Additional information:

1. Stock as at 31/12/2013 amount to sh 1,500,000

2. Salaries and wages in arrears amount to sh 200,000 while rent and rates paid in advance is sh 100,000

3. General expenses paid in advance amount to sh 300,000 while electricity and water arrears is sh 200,000

4. Depreciation is charged as follows:

i) Plant and machinery 10% on cost ii) Motor vehicles 20% reducing balance iii) Furniture and fittings 15% on cost

5. Provision for bad debts is to be maintained at 10% of debtors. Required:

i) Partners income statement for the year ended 31/12/2013 marks)
(7

ii) Partners appropriation account for the year ended 31/12/2013 (3 marks )


 

. .

The post Discuss five limitations of ratio analysis appeared first on Brainy Term Papers.

testimonials icon
Running head:1Psychopath Test: Biased Towards Women?Author Name(s), First M. Last, Omit Titles and DegreesInstitutional Affiliation(s)2Psychopath...
testimonials icon
  Buy Nursing Papers Buy Nursing Paper...
testimonials icon
1. ERM textbook (Fraser, J., Simkins, B., & Narvaez, K. (2014). Implementing enterprise risk management: Case studies a...
testimonials icon
Let's say that you are in charge of ensuring that your state or country has enough energy in the long run. From that position, complet...
testimonials icon
As an HR Manager part of your job is to analyze the staffing levels within the organization. You have to hire to fill one position within the orga...
testimonials icon
-The Department of compiles the statistics on the nations output and income.CommerceInternal RevenueHealth and Huma...
testimonials icon
Problem #1 – On May 31, the inventory balances of Tog Designs, a manufacturer of high quality children’s clothing,...
testimonials icon
Essay about Sula book story 700 words 5 paragraphs, simple language....
testimonials icon
1) Supply chain management does not involves integrating the efforts ofA. RetailorB. wholesellerc.warehouseD. PublicE....
testimonials icon
EVALUATION - GENERAL ISSUESEVALUATION - GENERAL ISSUES1Definition of evaluation and its types2Basic methods of evaluation surveys7Data collection met...
testimonials icon
Data Breach Communications Strategy StatementIn the course of organizational operation, it is evident that breaches and other forms of attackshappen....
testimonials icon
REPORT ON EDRMS IMPLEMENTATIONImplementation of Electronic Document or Records Management SystemStudent NameInstitution Affiliation1REPORT ON EDRMS I...

Other samples, services and questions:

Calculate Price

When you use PaperHelp, you save one valuable — TIME

You can spend it for more important things than paper writing.

Approx. price
$65
Order a paper. Study better. Sleep tight. Calculate Price!
Created with Sketch.
Calculate Price
Approx. price
$65