HI6025
ACCOUNTING THEORY AND CURRENT ISSUES
FINAL ASSESSMENT
TRIMESTER 2, 2022
TIME ALLOWED: 24 hours
Assessment Weight: 50 complete marks
Directions:
• All questions should be answered through the use of the reply bins offered on this paper.
• Accomplished solutions should be submitted to Blackboard by the revealed due date and time.
• No referencing is required.
• Don’t transcend 250 phrase counts for answering theoretical Question Assignment.
Please make sure you comply with the submission directions at the finish of this paper.
Objective:
This Assessment consists of six (6) questions and is designed to evaluate your degree of information of the key subjects coated on this unit.
Question Assignment 1 (11 marks)
ABC Ltd has the following land and buildings in its monetary statements as of 30 June 2022:
Residential land, at price 2,294,013
Manufacturing unit land, at valuation 2020 2,064,612
Buildings, at valuation 2020 1,835,210
Collected depreciation -229,401
On 30 June 2022, the stability of the rAssessment surplus is $917 6305, of which $688 204 pertains to the manufacturing facility land and $229 401 to the buildings. On this identical date, impartial valuations of the land and buildings are obtained. In relation to the above property, the assessed honest values on 30 June 2022 are:
Residential land, beforehand recorded at price 2,523,414
Manufacturing unit land, beforehand revalued in 2020 1,605,809
Buildings, beforehand revalued in 2020 2,064,612
Required:
Present the journal entries to account for the rAssessment on 30 June 2022. ABC Ltd classifies residential land and manufacturing facility land as completely different lessons of property.
ANSWER: ** Reply field will enlarge as you sort
Question Assignment 2 (11 marks)
XYZ Ltd acquires 100 per cent of Crimson-X Ltd on 1 July 2021. XYZ Ltd pays the shareholders of Crimson-X Ltd the following consideration:
Money 85 033
Plant and tools honest worth $303 688;
carrying quantity in the books of XYZ Ltd $206 400
Land honest worth $364 425;
carrying quantity in the books of XYZ Ltd $242 950
There are additionally authorized charges of $230 803 concerned in buying Crimson-X Ltd.
On 1 July 2021, Crimson-X Ltd’s assertion of economic place reveals complete property of $364 425 and liabilities of $364 425. The honest worth of the property is $971 800.
Required:
Has any goodwill been acquired, and if that’s the case, how a lot? And focus on the potential for together with related authorized charges into the price of buying Crimson-X utilizing applicable accounting requirements.
ANSWER:
Question Assignment three (7 marks)
Discuss the differences between bad debt and doubtful debt. In your clarification, use your perception and focus on if the recognition/disclosure really helpful in the normal is enough.
ANSWER:
Question Assignment four (7 marks)
Clarify when ought to each fundamental and diluted EPS be disclosed. In your response, focus on the potential affect (if any) on the stockholders. Distinguish between bad debt and questionable debt. Use your perception to clarify whether or not the normal’s really helpful recognition/disclosure is enough.
ANSWER: 4TH QUESTION (7 marks)
Clarify when fundamental and diluted EPS needs to be declared. Discuss the possible affect (if any) on traders in your response.
ANSWER:
Question Assignment 5 (7 marks)
Referring to the suggestion in requirements on the therapy for rAssessment increment or decrements, use your perception and focus on if the differences between the therapy of those occasions are conceptually right.
ANSWER:
Question Assignment 6 (7 marks)
Clarify if the organisation has any accountability towards future generations and how this will affect accounting.
ANSWER:
END OF FINAL ASSESSMENT
Submission directions:
Earlier than you submit your Assessment, please examine all of the following:
• You could have named your file together with your Scholar Quantity and Unit Code e.g. ABCD1234 HI6025
It’s crucial you comply with this file title instruction to make sure the file belongs to you.
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• You could have checked you might be submitting the right doc as particular consideration isn’t granted should you make a mistake.
After getting checked the above:
Add your file to the applicable hyperlink on Blackboard.
You could have two makes an attempt to submit your Assessment with solely the closing submission being marked.
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