capita expenditure and revenue expenditure, Financial Accounting

Assignment Help:
The company selected a suitable site and commissioned a survey and valuation report, for which
the fee was £1,500. On the basis of the report the site was acquired for £90,000.
Solicitor’s fees for drawing up the contract and conveyancing were £3,000.
Fees of £8,700 were paid to the architects for preparing the building plans and overseeing the
building work. This was carried out partly by the company’s own workforce (at a wages cost of
£11,600), using company building materials (cost £76,800), and partly by subcontractors who
charged £69,400, of which £4,700 related to the demolition of an existing building on the same
site.
The completed building housed two hydraulic presses.
The cost of press A was £97,000 (ex works), payable in a single lump sum two months after
installation. Sema was given a trade discount of 10% and a cash discount for prompt payment of
2%. Hire of a transporter to collect the press and to convey it to the new building was £2,900.
Installation costs were £2,310, including hire of lifting gear, £1,400.
Press B would have cost £105,800 (delivered) if it had been paid in one lump sum. However,
Sema opted to pay three equal annual instalments of £40,000, starting on the date of acquisition.
Installation costs were £2,550, including hire of lifting gear, £1,750.
The whole of the above expenditure was financed by the issue of £500,000 7% Debentures (on
which the annual interest payable was £35,000).
Before the above acquisitions were taken into account, the balances (at cost) on the fixed asset
accounts for premises and plant were £521,100 and £407,500 respectively.
Required:
(a) Using such of the above information as is relevant, post and balance the premises and plant
accounts for the 20X6 financial year.
(b) State, with reasons, which of the given information you have not used in your answer to (a)
above.

Related Discussions:- capita expenditure and revenue expenditure

Default risk premium , A Treasury bond that matures in 10 years has a yield...

A Treasury bond that matures in 10 years has a yield of 3%. A 10-year corporate bond has a yield of 9%. Suppose that the liquidity premium on the corporate bond is 0.8%. What is th

Construct the market value balance sheet, Construct the Market Value Balanc...

Construct the Market Value Balance Sheet XYZ, Inc., another company founded by Larry Davidson in 2005, is currently entirely equity financed. That means the company carries no

International financial reporting standards and gaap, Alta Velocidad Espera...

Alta Velocidad Esperanza de L'Argentina, Sociedad Anónima (AVE), a high-speed railway operator domiciled in Rio Norte, Argentina, is a Foreign Private Issuer as defined by the U.S.

Simple balance sheet statement, Current analysis You will need about $1...

Current analysis You will need about $150,000 in start-up costs but you can only borrow half of that amount from your family's home equity (at 13% interest). You will have to b

Time value of money, The concept that money has time value is one of the mo...

The concept that money has time value is one of the most fundamental notions of investment analysis. For any type of productive asset its value will based on the future cash flows

Annuity, An annuity is explained as stream of uniform duration cash flows. ...

An annuity is explained as stream of uniform duration cash flows. The payment of life insurance premium through the policyholder to the insurance company is an illustration of an a

Cash budget, What is a cash budget? How it is useful in managerial decision...

What is a cash budget? How it is useful in managerial decision making?

What are the organization expenditures, Q. What are the Organization Expend...

Q. What are the Organization Expenditures? Organization Expenditures -Costs of organizing a business or trade or for profit activity before it begins active business. A taxpaye

Personal financial specialist, Personal Financial Specialist (PFS) - CERTIF...

Personal Financial Specialist (PFS) - CERTIFIED PUBLIC ACCOUNTANT who specializes in PERSONAL FINANCIAL PLANNING and completes a series of requirements which compriseexperience, ed

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd