3.a. AG Pharma has taken deposits from the public under the name Public Deposit, for a duration of 5 years, for a total amount of Rs 1 crores. Discuss by passing a journal entry how AG Pharma will record the transaction in the books of original entry Reflect by preparing the Balance Sheet how the transaction will be reflected in the books of accounts by following the correct classification of current and non -current item. Give reason

3.a. AG Pharma has taken deposits from the public under the name Public Deposit, for a duration of 5 years, for a total amount of Rs 1 crores. Discuss by passing a journal entry how AG Pharma will record the transaction in the books of original entry Reflect by preparing the Balance Sheet how the transaction will be reflected in the books of accounts by following the correct classification of current and non -current item. Give reason

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets

Section: Chapter Questions

Problem 6AP

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AG Pharma has taken deposits from the public under the name Public Deposit, for a duration of 5 years, for a total amount of Rs 1 crores. Discuss by passing a journal entry how AG Pharma will record the transaction in the books of original entryReflect by preparing the Balance Sheet how the transaction will be reflected in the books of accounts by following the correct classification of current and non -current item. Give reason for such classification.
AG Pharma has taken deposits from the public under the name Public Deposit, for a duration of 5 years, for a total amount of Rs 1 crores. Discuss by passing a journal entry how AG Pharma will record the transaction in the books of original entry. Reflect by preparing the Balance Sheet how the transactions will be reflected in the books of accounts by following the correct classification of current and non-current items. Give reasons for the classification.
Please show work. On July 1 of the current year, Rio Bravo factored receivables with a carrying value of $250,000 to a local bank. The transfer was made with a recourse of $3000. The bank assesses a finance charge of 3% of the amount of accounts receivable and retains an amount equal to 5% of the accounts receivable (for probable adjustments). The journal entry for this transaction will include which of the following? A. Debit to Recourse Liability of $3,000 B. Debit to Cash of $233,000. C. Debit to Due from Bank of $15,500. D. Debit to Loss on Sale of Receivables of $10,500. E. Mor than one of these.
Given below is a list of transactions relating to the stationery business of Aryan & Co. for the year ending March 31, 2020. You are required to journalize the transactions, create the ledger accounts and prepare the trial balance. Date Particulars Amount 1st Apr, 19 Capital contributed by Aryan 1,00,000 3rd Apr,19 Purchases from Kabir & Co. 200 pens of Rs. 80 each 100 copies of Rs. 40 each 5th Apr, 19 Purchased Furniture 30,000 7th Apr, 19 Deposited in Bank 50,000 10th Apr, 19 Paid Salaries 15,000 15th Apr, 19 Cash purchases made 20,000 20th Apr, 19 Sold goods to Mr. Rohit & Co.500 pens of Rs. 125 each; 250 copies of Rs 110 each 22nd Apr, 19 Returned to Kabir & Co. 20 pens 15 copies 30th Apr, 19 Issued a cheque to Kabir & Co. in full settlement of their account 5th May, 19 Received cash Rs 5,000 and cheque for Rs 10,000 from Rohit & Co. The cheque was deposited in…
On 1 August 2021, the owners of the ABC Enterprise, Maurice & brothers, decided that they will boldly go and keep their records on a double entry system. Their assets and liabilities at that date were. Their assets and liabilities at that date were: office fixtures £1200, a van £32,000 and£36,800 in the bank account. They have no liabilities at the 1st of August 2021Their transactions during August 2021 were as follows:2021August2 Maurice & brothers received a loan of £12,400 from Santander Bank and they deposited in their bank account. 3 The amount of £2800 was transferred from bank Account to Cash in hand account.4 Bought a second-hand Van paying by cheque £6,200 5 Bought office fixtures £3400 from Sharp Office Ltd. They paid £1000 by issuing a cheque and rest of the fixtures value would remain as credit. 8 Bought a new van on credit from Toyota Co. £8,700 15 Bought office fixtures paying by cash £110 19 Paid Toyota Co. a cheque for whole amount of debt25 Paid £430 of the…
The company takes out a $1,000,000 loan from the bank. Provide the journal entry that would be necessary to record the transaction.
Brian Sipe began operations of his business, Sipe Sons Incorporated, on January 1, Year One. During the year, the company performed services on credit of $192,000. Of that amount, $115,750 was collected in cash during the year. Brian estimates, of the remaining amount due, $5,100 may not be collected. Prepare the entries for the events during year one What is the balance in the accounts receivable account? What is the amount of receivables reported on the balance sheet? Why would Brian have a separate allowance account and not reduce the receivable balance for the amount estimated to e uncollectible? What type of account is Allowance for Doubtful Accounts
Brian Sipe began operations of his business, Sipe Sons Incorporated, on January 1, Year One. During the year, the company performed services on credit of $192,000. Of that amount, $115,750 was collected in cash during the year. Brian estimates, of the remaining amount due, $5,100 may not be collected. Prepare the entries for the events during Year One. What is the balance in the accounts receivable account? What is the amount of receivables reported on the balance sheet? Why would Brian have a separate allowance account and not reduce the receivable balance for the amount estimated to be uncollectible? What type of account is Allowance for Doubtful Accounts? Continuing problem 2, Sipe Sons Incorporated continued to have successful operations in Year Two. Sales on credit amounted to $205,000 and cash collections were $183,250. At the end of Year Two, he estimates of the remaining amount due, $8,600 may not be collected. What is the balance in the accounts…
Which of the following would appear on the balance sheet as a current liability? Group of answer choices A. Amounts owed to suppliers for purchases on account. B. Amounts due from customers for services provided on account. C. Cash in the bank. D. Amounts due to the bank to be repaid in 5 years.
Bee Kay & Co has been appointed as an auditor of Syarikat Elektrik Fudu for the year ended 31 October 2020. During the year, Syarikat Elektrik Fudu obtained a long-term loan amounted RM35 millions from Glory Bank with the following financing agreement:1. The loan was secured by a fixed charge over two pieces of land and buildings of the company located in Alor Setar.2. Monthly installment rate of 5% started from 1 February 2020. The loan secured was used to expand the business. Syarikat Elektrik Fudu has increased the number of staff from 100 to 130 staff for the purpose of business expansion. During the planning process, Bee Kay & Co determined that the inherent risk of overstatement of payroll might be high as compared to prior financial year. (a) Explain THREE (3) procedures that Bee Kay should employ in examining the long-term loan from Glory Bank. (b) Describe TWO (2) audit procedures to be performed in the audit of payroll transactions in addressing the risk of…
On January 1, 2024, Nantucket Ferry borrowed $14,000,000 cash from BankOne and issued a four-year, $14,000,000, 6% note. Interest was payable annually on December 31. Prepare the journal entries for both firms to record interest at December 31, 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
On January 1, a company borrowed $3,000 from the bank by signing a 12%, 3-month note payable. The amount borrowed plus accrued interest is due on April 1. Make journal entries to record the following transactions: a) Issuance of the note payable on January 1 b) Repayment of the note on April 1 Use the same facts given in question 12 above, except assume that the company borrowed the money on November 1 (not Jan. 1) and will repay the note on February 1 of the next year. A.) What adjusting entry should the company make on December 31 to record accrued interest on the note? b) What journal entry should be made on February 1 when the company repays the note?