Financial Accounting-II

Financial Accounting-II is the subject of the students of the second semester or first year. Who studies at Pokhara University’s  (PUs) affiliated colleges. Financial Accounting-II studied in the course of BBA | BBA-BI | BBA-TT | BCIS | BCA.

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Inventories and cost of goods sold

It includes the nature of inventory, cost of goods sold model; perpetual and periodic inventory accounting system, inventory valuation, inventory costing methods; First in first out (FIFO), Last in last out (LIFO), Weighted average and Specific identification; methods of inventory estimation; Retail inventory method, Gross profit method.

Receivables

Account receivable and notes receivables; recognizing accounts receivable, valuation of account receivables, methods of accounting for doubtful and uncollectible debt, balance sheet presentation.

Property, Plant, and Equipment

Nature of operating assets, acquisition cost, concepts of capital and revenue expenditure, depreciation concepts, methods (straight-line method, double declining balance method, and units of production method), disposal of assets and accounting for gains and losses.

Current liabilities

Account payable, notes payable, current portion of long-term liabilities, contingent liabilities, and other current liabilities.

Non-current liabilities

Bonds payable; Amortization of bonds premium or discount, the redemption of bonds at and before maturity.

Lease:  Operating and financial lease, Balance sheet presentation.

Stockholder’s Equity and Dividends

Components of the stockholder’s equity section of the balance sheet; types of stock; common and preferred, types of preferred stocks, dividends; meaning and types of dividend, stock spit; stock dividend and stock split.

double decline method depreciation

Double decline method – PU 2011 Spring (Or)

Double decline method, straight-line method, units of production method Financial Accounting-II – Property, plant, and equipment PU 2011 Spring Q. No. 3 Or On 1st June 2011, Asada Trading Company purchased an oven at a cash price of Rs. 840,000. While purchasing the machine it incurred shipment insurance Rs. 84,000, custom duty Rs. 60,000 and …

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straight line method of depreciation

Straight line method of depreciation – PU 2011 Fall

Straight-line method of depreciation, acquisition entry, depreciation journal entry Financial Accounting-II – Property, plant, and equipment PU 2011 Fall Q. No. 5a Pradeep & Company purchase several assets for Rs. 1,50,000. The estimated market value of the assets was as follows: Land                            …

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units of production method depreciation

Units of production method (Production run method)

Definition of units of production method or Production run method The production run method is also known as units of production method or units of output method. Under this method, the depreciation rate is estimated based on the total estimated output. Then, annual depreciation is calculated to multiply the depreciation rate by units of production …

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double declining balance method depreciation

Double declining balance method | definition and example

Definition of double declining balance method of depreciation The double declining balance method of depreciation also called accelerated depreciation method. In this depreciation method first fall the straight-line depreciation rate is determined, just dividing the original cost by its life. It means the scrap value is ignored while calculating the rate of depreciation. The depreciation …

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reducing balance method depreciation

Reducing balance method or Declining balance method of depreciation

Definition of reducing balance method or Declining balance method of depreciation In this reducing balance method of depreciation, depreciation is charged on the assets based on the reduction value of the assets. A fixed percentage (%) of a depreciation rate is assigned on the reduced value of the assets. The depreciation value/ amount in the …

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straight line depreciation mehtod

Straight line depreciation or Original cost method | definition – example

Definition of straight line depreciation A straight line method of depreciation requires a fixed amount of depreciation to be charged on the assets every year. This method also called original cost method, fixed installment method, equal installment method. The depreciation is calculated on the original cost of the assets. The original cost is the acquisition …

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