We are here with you hands in hands to facilitate your learning & don't appreciate the idea of copying or replicating solutions. Read More>>

Looking For Something at vustudents.ning.com? Click Here to Search

www.bit.ly/vucodes

+ Link For Assignments, GDBs & Online Quizzes Solution

www.bit.ly/papersvu

+ Link For Past Papers, Solved MCQs, Short Notes & More

On 1st January 2000, Ali (Pvt.) Ltd. signed a contract of lease financing with Mahmood (Pvt.) Ltd. The brief details of the contract are as follows:

  •   The leasing contract is about a piece of machine for the period of 6 years which will be used in the operations of the business. The cost of machine is Rs. 350, 000.

  •   The interest rate to be applied to the six payments is 15%.

  •   Lessor and lessee (Ali and Mahmood) cannot terminate the lease contract at any stage

    of lease financing.

  •   It is estimated the annual lease rentals will be paid at the end of each year (on 31st

    December of every year).

  •   Estimated annual lease rental is Rs. 92,500.

  •   Estimated residual value is 0 for the machinery and useful economic life of the machine

    is 8 years.

  •   Ali (Pvt.) Ltd. uses straight line method of depreciation for all categories of assets.

  •   Net profit for the Ali (Pvt.) Ltd. for the year 2000 is Rs. 185,000

    Requirements:
    Based on the above information, you are required to answer the following questions:

    1. a)  Show how Ali (Pvt.) Ltd. will account for the above transaction in its statement of financial position at 31st December 2000, in accordance with the principles laid down in IAS 17.

    2. b)  Also, show the effects of Lease agreement in Income statement and cash flow statement of the entity (suppose Ali (Pvt.) Ltd. is using indirect method for the preparation of cash flow statement).

    3. c)  Explain why the need of standardization of lease agreements, was felt by the standard setters (FASB) and discuss some of the rationales behind the approach adopted by the standard setters.

    4. d)  The lessor has suggested that the lease could be drawn up with a minimum payment period of one year and an option to renew. Discuss with logical points that why this option might be attractive to the lessee. 

+ How to Join Subject Study Groups & Get Helping Material?

+ How to become Top Reputation, Angels, Intellectual, Featured Members & Moderators?

+ VU Students Reserves The Right to Delete Your Profile, If?


See Your Saved Posts Timeline

Views: 769

.

+ http://bit.ly/vucodes (Link for Assignments, GDBs & Online Quizzes Solution)

+ http://bit.ly/papersvu (Link for Past Papers, Solved MCQs, Short Notes & More)

+ Click Here to Search (Looking For something at vustudents.ning.com?)

+ Click Here To Join (Our facebook study Group)

Replies to This Discussion

guys plz share ur views about this question over here...thnx

Please Discuss here about this assignment.Thanks

Our main purpose here discussion not just Solution

We are here with you hands in hands to facilitate your learning and do not appreciate the idea of copying or replicating solutions. Read More>>

 

Note:-

For Important Helping Material related to this subject (Solved MCQs, Short Notes, Solved past Papers, E-Books, FAQ,Short Questions Answers & more). You must view all the featured Discussion in this subject group.

For how you can view all the Featured discussions click on the Back to Subject Name Discussions link below the title of this Discussion & then under featured Discussion corner click on the view all link.

Or visit this link 

Click Here For Detail.

&

.•°How to Download past papers from study groups°•.

 

Please Click on the below link to see…

.... How to Find Your Subject Study Group & Join .... 

helpout guys....plz share ur views

no update for this scenario????

Solution File?

idea share kro ge to solution find out ho ga...plz share

solution share kro bhaiyo....aik dsry ke help se idea mil jy ga

bro share kro ideas apny...solution find out ho ga

RSS

Latest Activity

+ M.Tariq Malik replied to + Iuuoɔǝut+'s discussion Har Shaks Naraz hy meri baton sy
1 minute ago
+ M.Tariq Malik liked + Iuuoɔǝut+'s discussion Har Shaks Naraz hy meri baton sy
1 minute ago
+ Adeeena replied to + Adeeena's discussion usay pasand hai
2 minutes ago
+ Adeeena replied to + Adeeena's discussion usay pasand hai
2 minutes ago
Profile IconArham, Muhammad Farhan and Zahid Hussain joined Virtual University of Pakistan
2 minutes ago
+ Iuuoɔǝut+ posted a discussion
3 minutes ago
+ "AS" liked +¢αяєℓєѕѕ gιяℓ's discussion Jin sey Mohabbat Ho.....
7 minutes ago
+ "AS" liked +¢αяєℓєѕѕ gιяℓ's discussion Urdu Waqt kasay bachatie Hai xD
7 minutes ago
+ "AS" liked Muhammad Umar's discussion Kash K Mari Muhabhat Ku Is Tera Samjh Jahay
8 minutes ago
+ "AS" liked +¢αяєℓєѕѕ gιяℓ's discussion Beshak...
8 minutes ago
+ "AS" liked + Adeeena's discussion usay pasand hai
8 minutes ago
+ "AS" replied to + "AS"'s discussion Jesi Ab hai ..
8 minutes ago
+ "AS" replied to + "AS"'s discussion Suna Hai Ab ..
9 minutes ago
+ M.Tariq Malik left a comment for Mughal G
12 minutes ago
+++LEARNER+++ replied to + Adeeena's discussion usay pasand hai
28 minutes ago
+ Iuuoɔǝut+ replied to + "αяsαℓ " Ќąƶµяɨ •"'s discussion Muhabato me li gaye kasmain
29 minutes ago
+"Khwab Zaadi"+ replied to +¢αяєℓєѕѕ gιяℓ's discussion Mujhe Bachpan Sey He xD
34 minutes ago
+ M.Tariq Malik replied to + Adeeena's discussion usay pasand hai
34 minutes ago
+"Khwab Zaadi"+ liked +¢αяєℓєѕѕ gιяℓ's discussion Mujhe Bachpan Sey He xD
34 minutes ago
+ M.Tariq Malik liked + Adeeena's discussion usay pasand hai
34 minutes ago

© 2019   Created by + M.Tariq Malik.   Powered by

Promote Us  |  Report an Issue  |  Privacy Policy  |  Terms of Service