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Revised Syllabus of Class 9-10 (Year 2078)
Specification Grid
Test Specification Chart
External Assessment (Written Examination)
The time for written test is 3 hours.
Reading and writing skills will be assessed through a written test. Grammar is included in the writing section. The test will be based on the specification chart given below.
Reading (40 marks |
Writing (35 marks) |
|
The assessment of reading skill follows the following structure: |
The assessment of writing skill follows the following structure: |
|
(1) Reading 1: One short reading text from the textbook with one type of comprehension question (5 marks)
|
(1) Guided writing I: paragraph, description of tables/charts/diagrams, a set of instructions, recipe, advertisement, notice and a set of rules and regulations. (5 marks) Number of words: about 100 words |
|
(2) Reading 2: One short reading text from the textbook with two types of comprehension questions (10 marks)
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(2) Guided writing II: news story, skeleton story, message of condolence, message of congratulations, invitation letter, thank you letter, biography. (5 marks) Number of words: about 100 words |
|
(3) Reading 3: One short reading text not given in the textbook with two types of comprehension questions (10 marks) Text Length: about 200 words |
(3) Free writing I: paragraph (presenting views, opinion, experience, feeling), leave application, job application, dialogue (6 marks) Number of words: about 150 words |
|
(4) Reading 4: One short reading text not given in the textbook with three types of comprehension questions (15 marks) Text length: about 300 words |
(4) Free writing II: personal/official letter, letter to the editor, email, short essay (narrative, argumentative, descriptive), diary, newspaper article, book review/film review (8 marks) Number of words: about 200 words |
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Notes: |
Notes: |
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Text type for reading 3: story, notice, advertisement, product guide, letters, news story, brochure, instruction/ manual, diary entry, interview, letter, recipe |
Organisation, coherence and cohesion, subject matter, appropriateness and correctness of language, range of vocabulary and layout will be assessed in the writing section. The type of writing task should not be similar to any of the reading text given in the test paper. |
|
Text types for Reading 4: biography, autobiography, essay, newspaper/magazine article, science article, book/film review, travelogue, editorial, report, BlogSpot |
(5) Grammar (11 marks) The grammar section should contain the following areas: articles, prepositions, tense, connectives, question tags, reported speech, voice, conditional sentences, subject-verb agreement, interrogation and negation, causatives, modals, relative pronouns, adjectives and adverbs |
|
Types of questions: |
Types of questions: |
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True/False, Fill in the Gaps, Multiple Choice*, Matching, Ordering and Short Answer Questions |
(a) Reproduction/Transformation: This should cover tense, question tag, reported speech, voice, and interrogation (‘wh’ question) and negation (6×1=6 marks) |
|
Except for short answer questions, the same types of questions should not be repeated in the two seen passages. This applies to the two unseen passages as well. |
(b) Multiple choice (in a contextual passage): This can contain the following areas of grammar: articles, prepositions, tense, question tag, voice, reported speech, connectives, conditional sentence, subject verb agreement, causative verbs, modals, adjectives and adverbs, and relative pronouns(10×0.5=5) |
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Only Reading 4 should contain a test type for testing vocabulary. |
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The comprehension questions (except questions for vocabulary) should cover Literal Comprehension (LC), Reorganization (R), Inference (I) and Evaluation (E). |
|
|
The distribution of comprehension questions should be based on the following table: |
|
|
Types of comprehensive |
Number of Questions |
|
Literal comprehensive |
16 |
|
Reorganisation |
8 |
|
Inference |
8 |
|
Evaluation and reflection |
3 |
|
Note: Multiple choice* items should contain four alternative choices
######
Click on the link for YouTube videos |
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Accounting Equation |
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Journal Entries in Nepali |
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Journal Entries |
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Journal Entry and Ledger |
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Ledger |
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Subsidiary Book |
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Cashbook |
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Trial Balance and Adjusted Trial Balance |
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Bank Reconciliation Statement (BRS) |
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Depreciation |
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Click on the link for YouTube videos chapter wise |
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Financial Accounting and Analysis (All videos) |
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Accounting Process |
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Accounting for Long Lived Assets |
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Analysis of Financial Statement |
######
Reading and Writing
(Written Test)
Grade: 10
Full Marks: 75
Time: 3 hours
Candidates are required to give answer according to the given instructions.
Q1: Read the text given below and do the tasks:
The Voice of the Rain
And who art thou? said I to the soft-falling shower,
Which, strange to tell, gave me an answer, as here translated:
I am the Poem of Earth, said the voice of the rain,
Eternal I rise impalpable out of the land and the bottomless sea,
Upward to heaven, whence, vaguely formed, altogether changed, and
yet the same,
I descend to leave the droughts, atomies, dust-layers of the globe,
And all that in them without me were seeds only, latent, unborn;
And forever, by day and night, I give back life to my own origin,
and make pure and beautify it;
(For the song, issuing from its birth-place, after fulfillment, wandering,
Reck’dorunreck’d, duly with love returns.)
– Walt Whitman
(A) Choose the correct answer. [5×1 = 5]
(a) The poem is a conversation between…………
i. the speaker and the rain.
ii. the rain and nature.
iii. the speaker and the Earth.
iv. the Earth and the road.
(b) Mother Earth is given happiness by…………
i. the sea.
ii. the rain.
iii. the music.
iv. atomies.
(c) The speaker says that like nature, the rain is……….
i. difficult to understand.
ii. easy to understand.
iii. always the same.
iv. not changing its shape.
(d) The raindrops pour down to wash away……………
i. the land.
ii. the globe.
iii. the dust layer.
iv. the seeds.
(e) The rain and a song are similar because…………..
i. both produce a melodious sound.
ii. both give happiness to the Earth.
iii. the rain can change its form and so does a song.
iv. the rain has a power to heal the Earth; and a song can heal human heart.
Answer (correct choose):
a. The poem is a conversation between:
i. the speaker and the rain.
b. Mother Earth is given happiness by:
ii. the rain.
c. The speaker says that like nature, the rain is:
iv. not changing its shape.
d. The raindrops pour down to wash away:
iii. the dust layer.
e. The rain and a song are similar because:
iii. the rain can change its form and so does a song.
Q2: Read the text given below and do the tasks.
Thanksgiving around the World
Festivals are not just the means of entertainment or rejoice. They also reflect our heritage, culture and traditions. Thanksgiving is celebrated around the world to extend thanks for the harvest, enjoying bountiful food, and spending time with family and friends. Even though Thanksgiving seems to be uniquely American, the tradition is followed in different countries in various forms.
Thanksgiving, USA
Celebrated on the fourth Thursday of November, Thanksgiving in the USA is a national holiday that commemorates the feast the Pilgrims held after the first harvest in 1621. The first celebration was attended by 90 Native Americans and 53 pilgrims. Thanksgiving has been celebrated intermittently ever since.
Thanksgiving dinner with family plays a central role in the celebrations, with Americans eating more food on Thanksgiving Day than any other day of the year, including Christmas. Roast turkey is essential – approximately 45 million of them are consumed every year – as well as mashed potatoes, sweet potatoes, sweet corn and assorted fall vegetables, all food that is native to the Americans.
Parades are a big part of the celebrations too. They range from small-town affairs featuring the local marching band to Macy‘s Thanksgiving parade through the streets of New York. Billed as the world‘s largest parade, it features parade floats and huge balloons, usually based on cartoon characters, current Broadway shows and other topical themes.
(A) Match the information that begins in Column A with its correct ending in Column B.
There is one extra ending that you may not use. [5×1 =5]
Column A |
Column B |
a. Extending thanks for the harvest |
i. is about 45 million in number. |
b. Thanksgiving |
ii. is one of the largest parade in the world. |
c. Consumption of roast turkey |
iii. is a main reason of celebrating Thanksgiving. |
d. Food items like sweet potatoes |
iv. is celebrated in different ways. |
e. Macy’s Thanksgiving parade |
v. will be performed by 53 pilgrims. |
|
vi. are truly American origin |
Answer, Matching:
a → iii. Extending thanks for the harvest is a main reason for celebrating Thanksgiving.
b → iv. Thanksgiving is celebrated in different ways.
c → i. Consumption of roast turkey is about 45 million in number.
d → v. Food items like sweet potatoes are truly American origin
e → ii. Macy’s Thanksgiving parade is one of the largest parades in the world.
(B) Answer the following questions:
a. What do festivals show about people?
Festivals show the heritage, culture and traditions of people.
b. When is Thanksgiving celebrated in the USA?
Thanksgiving is celebrated on the fourth Thursday of November in the USA.
c. What is the main part of the celebration?
The main part of the Thanksgiving celebration is the Thanksgiving dinner with family.
It includes roast turkey and various traditional American food items.
d. Mention the two variations in the parades.
Two variations in the parades:
(i) Small-town parades featuring local marching bands.
(ii) Macy’s Thanksgiving parade in New York City is known as the world’s largest parade.
e. Why do you think Americans celebrate this festival with rejoice even today?
Americans celebrate Thanksgiving with joy and gratitude because it has deep historical roots, commemorating the Pilgrims’ first harvest in 1621.
It is a time to express thanks for the blessings of the year, enjoy a bountiful meal with loved ones,
It reflects the importance of family and togetherness.
Q3: Read the text given below and do the tasks.
Dodhara Chandani dry port gets environmental approval
Kathmandu, May 23
The proposed Dodhara Chandani dry port and check post in far western Nepal has moved a step forward with the government‘s approving the environmental impact assessment (EIA) report.
The Rs 15 billion construction project is located in Dodhara Chandani Municipality, Kanchanpur district, and is listed as a national priority project by the government. The construction site is spread over 250 bighas (189 hectares). On April 30, the cabinet cleared the use of 63 hectares inside Gaurishankar community forest, a buffer zone of Suklaphanta National Park, for the dry port.
According to the EIA, 15,057 trees need to be felled and; as per the Forest Clearance Guidelines, 10 compensatory trees must be planted for every tree cut for development projects. Project officials say that 150,525 compensatory trees need to be planted. “The dry port will be built under an Indian grant. A memorandum of understanding will be signed soon between the two neighbours,” said Anish KC, a civil engineer at the Nepal Intermodal Transport Development Board. “Discussions are at an advanced stage,” he said.
Dodhara Chandani dry port will be the first business gateway to India from Nepal’s far west. The site is 245 km from India‘s capital New Delhi and 1,200 km from Gujarat state. The dry port will facilitate trade with other Indian states like Rajasthan, Uttarakhanda, Punjab and Haryana. The project is expected to lower transportation costs and the time taken to import goods from India.
The World Bank conducted a feasibility study for a dry port at Kanjabhoj in Dodhara Chandani Municipality a decade ago, and the Nepal Intermodal Transport Development Board prepared another report in 2016.
(A) Fill in the blanks with the correct words from the text above. [5×1= 5]
(a) Dodhara Chadani dry port will occupy ……….. of area in Kanchanpur.
(b) The Forest Clearance Guidelines directs the government to plant ………….trees to replace a felled tree.
(c) The project will go ahead with ………… funding.
(d) New Delhi is ………… far from Dodhara Chadani dry port site.
(e) From the text above, it is seen that Nepal ………… necessary things and materials from India.
Answer:
(a) Dodhara Chandani dry port will occupy 250 bighas of area in Kanchanpur.
(b) The Forest Clearance Guidelines direct the government to plant 10 compensatory trees to replace a felled tree.
(c) The project will go ahead with Indian funding.
(d) New Delhi is 245 km far from the Dodhara Chandani dry port site.
(e) From the text above, it is seen that Nepal imports necessary things and materials from India.
(B) Answer the following questions. [5×1= 5]
a. What is the estimated construction cost of Dodhara Chandani dry port?
The estimated construction cost of Dodhara Chandani dry port is Rs 15 billion.
b. When was it approved to utilize 63 hectares area of Gaurishankar community forest?
The approval to utilize the 63 hectares area of Gaurishankar community forest was given on April 30.
c. What does “the two neighbours” in paragraph 3 refer to?
“The two neighbours” in paragraph 3 refers to Nepal and India.
d. Do you think this project will affect positively in the nation’s economic growth? Why?
Yes, this project is expected to have a positive impact on the nation’s economic growth.
Because, the dry port will serve as a business gateway to India from Nepal’s far west, facilitating trade with other Indian states.
It is expected to lower transportation costs and reduce the time taken to import goods from India.
e. Is this the first attempt of the Nepal Government to set up a dry port in the far-western Nepal?
No, this is not the first attempt of the Nepal Government to set up a dry port in the far-western Nepal.
The World Bank conducted a feasibility study for a dry port in Dodhara Chandani Municipality a decade ago.
The Nepal Intermodal Transport Development Board prepared another report in 2016.
The current project seems to be a continuation of these earlier efforts.
Q4: Read the book review given below and do the tasks:
Seto Dharti
Amar Neupane’s Seto Dharti is a fantastic piece of artwork. Tara, Pabitra, and other child widows are central characters in this book.
The main plot revolves around Tara’s life. She married when she was seven years old. She had no idea what love was then. Her own parents lied to her and forced her to remain in the Jaggya (wedding pavilion) claiming that they were worshipping God at home. She was taken to her home and told that she needed to go to the temple. She didn’t find out until the day after her wedding that she was marrying to someone she had never met before. She was sound asleep when it came time to execute the marriage rites. It was as if she were in a dream. She cried a lot as she thought of her mother. Her mother advised her on the dos and don’ts of becoming a daughter-in-law. She had to stay in her husband’s house for a year. It was very painful for her to stay there. After a year, she moved into her maternal home. She lost her husband when she was nine years old. She was invited to her home without being informed of her husband’s demise. She learned that her husband had died as soon as she arrived home. Despite the fact that he was a stranger in her life, she had to observe all the funeral rites. That was the first time she’d seen her husband’s face on his deathbed. Then she was taken to the ghat that was on fire. Her jewelry as well as her clothing was taken away. Her head was shaved and she had to remain in mourning for thirteen days.
Towards the end of her life, she arrived in Devghat where she dedicated her life to God. She saw Govind’s image in the Swamiji there. Gobind was one of her childhood friends. He had taught her how to read and write.
Once a lady called Gangeswari visited Devghat Ashram. She became popular as a result of her experience and the wealth she took with her. Gangeswari visited Tara’s hut one night and unveiled her identity. She was Pabitra, Tara’s childhood friend. Pabitra told her how she went through various stages of life before becoming Gangeswari. The novel depicts the difficulties Tara faced in her life.
The novel tells her life from the time she was born till she turned 87. My throat choked several times while reading this book. It portrays an image of social evil and its negative effects on the lives of many Taras and Pabitras in Nepali society.
(A) Match the words from the text in Column A with their meanings in Column B. [5×1= 5]
Column A |
Column B |
(a) execute |
i. a person’s death |
(b) demise |
ii. reveal or uncover something |
(c) rites |
iii. put completely into effect |
(d) mourning |
iv. the feeling or expression of reverence for a deity |
(e) unveil |
v. social customs or conventional acts |
|
vi. the expression of sorrow for someone’s death |
Matching answer:
(a) execute iii. put completely into effect
(b) demise i. a person’s death
(c) rites v. social customs or conventional acts
(d) mourning vi. the expression of sorrow for someone’s death
(e) unveil ii. reveal or uncover something
(B) Write ‘True’ for the true statements and ‘False’ for the false ones. [5×1= 5]
(a) Tara is a main character in the novel Seto Dharti.
(b) Tara had learnt that she was married when Tara went to her husband‘s home.
(c) Tara first saw her husband a year after her marriage.
(d) Tara started teaching people the meaning of life in Debghat.
(e) Gangeswori was the false name of Pabitra.
True or False answer:
a. True
b. False
c. True
d. False
e. Fals
(C) Answer the following questions. [5×1= 5]
(a) Write the names of characters in Seto Dharti as mentioned in the review.
The names of characters mentioned in the review are Tara, Pabitra, Gobind, and Gangeswari.
(c) How long did Tara have to stay in her husband‘s house?
Tara had to stay in her husband’s house for a year.
(c) What rituals did Tara have to follow after her husband‘s death?
After her husband’s death, Tara had to observe mourning rituals.
It included her head being shaved, remaining in mourning for thirteen days, and participating in funeral rites.
(d) Why do you think Tara saw the image of Gobind in Swamiji?
Tara saw the image of Gobind in Swamiji because Gobind was one of her childhood friends who had taught her how to read and write.
Seeing his image in Swamiji likely brought back memories and a sense of familiarity for Tara.
(e) Why did the writer feel choked while reading the novel?
The writer felt choked while reading the novel because it portrayed the difficulties and social evils.
The main character Tara faced difficulties throughout her life.
There were the negative effects on the lives of many people like Tara and Pabitra in Nepali society.
Q5: Write a set of rules and regulations for the visitors of a park. Write it in about 100 words by using the clues given below: [5]
opening time: 9am-5pm
no glass containers
littering prohibited
no alcohol
pet animals not allowed
Rules and Regulations for Park Visitors
The park is open from 9 am to 5 pm.
Please follow to these timings and plan your visit accordingly.
Glass containers are strictly prohibited within the park premises.
It is to ensure the safety of all visitors.
Littering is strictly prohibited.
Help us keep the park clean and beautiful by disposing of your trash in dustbins.
Alcohol consumption is not allowed within the park.
It helps us to maintain a family-friendly and safe environment.
Pet animals are not allowed within the park.
It is for the safety and comfort of all visitors.
Thank you for your cooperation in following these rules and regulations.
Q6: Write a formal message of congratulations to your friend who has won the title of ‘Best Player’ in an inter-school volleyball tournament organized by your municipality/rural municipality. Write the message in about 100 words using the clues given below. [5]
Sanskriti Chaudhary
the best volleyball player
hardworking and disciplined
happy and proud
congratulations
best wishes for future endeavour
Formal Message
Dear Sanskriti Chaudhary,
I am pleased to extend my warmest congratulations to you on winning the title of ‘the Best Volleyball Player’ in the inter-school volleyball tournament organized by our municipality. Your remarkable achievement is a testament to your exceptional talent and dedication to the sport.
Your hardworking and disciplined practice contributed to this well-deserved recognition. We are truly proud of your accomplishments and the honor you have brought to our community.
Congratulations once again and may this success be a stepping stone for your sports career and best wishes for future endeavor.
With best regards,
Monika
Q7: Nowadays many young people are found increasingly involved in various video games on their mobile phones. Write a paragraph in around 150 words expressing your views about the mental and social impacts of excessively playing such games. [6]
Nowadays, most of school and college level students are excessive involved in mobile video games. Most of them are addicted on PubG, Free Fire, Terra Nil, Call of Dragons, Pokémon Sleep, Ace Racer, Star Wars: Hunters etc. Playing video may have entertainment and recreational benefits, but negative mental and social impacts should not be overlooked. Spending excessive time on playing these games can lead to detrimental effects on mental health. It can increase levels of stress, anxiety, depression, physical health issues, obesity and poor posture. Moreover, the excessive use of mobile video games can have a deep impact on social interactions. It can hamper the development of essential social skills and face-to-face interactions. It may lead to a lack of communication, reduced empathy and difficulty in building real-life relationships. It can result in feelings of loneliness and social isolation. It is important for parents to engage their children in a variety of skill development activities, both online and offline.
Q8: Write an essay describing one of your favourite food items. Write it in about 200 words mentioning its look, smell, taste, feel, etc. (8)
Momo is my all-time favourite food items. It is the mouth-watering Nepali delicious food. It is a dumpling food item with aromatic mixture inside white flour ball. There are different types of momos like chicken, mutton, buff, pork, veg etc.
There are different shapes of momos like half-moon shape, circular shape, open-top shape and leaf shape. They look attractive. Skilled and artistry person makes momos is attractive look. Its visually appearance is eyes captivating with tasty smell; spicy and tangy chatni adds more taste.
As I come near to steaming hot momos, the aroma blowing from them is pleasing. The inviting fragrance of spices, herbs and the juicy filling fills the air. The mixture of delicious ingredients such as minced meat, vegetables and aromatic seasonings is simply mouthwatering.
Beyond its taste and texture, momo holds a special place in Nepali culture. It is a beloved dish enjoyed during festivals, family gatherings and everyday meals. Sharing a plate of momos with loved ones raises a sense of togetherness and joy.
In conclusion, momo is a culinary delight that engages multiple senses. Its enticing appearance, good aroma, explosive flavours and pleasant texture make it a truly exceptional food item. Whether enjoyed as a street food or main meal, momo never fails to leave a lasting impression.
Q9: Reproduce the following sentences as instructed in the brackets. (6×1=6)
(a) The accident cost Krishna a lot, ……………? (Add a question tag.)
The accident cost Krishna a lot, didn’t it?
(b) Does Garima study in this school? (Change into an affirmative sentence.)
Garima studies in this school.
(c) Yamuna danced beautifully in the party. (Change into ‘how’ question)
How did Yamuna dance in the party?
(d) Raima …………. (finish) all her homework before her teacher asked her to do it. (Use correct tense of the verb ‘finish’)
Raima had finished all her homework before her teacher asked her to do it.
(e) Everybody should follow the rules sincerely. (Change into passive voice.)
The rules should be followed sincerely by everybody.
(f) Bhim inquired, “How will you make the payment?” (Change into indirect speech)
Bhim inquired how I would make the payment.
Q10: Choose and copy the best answer for the numbered blanks below. Rewriting is not compulsory.
A man came into (a)……….. (a, an, the, no article) Woods one day with an axe in his hand. He (b)……… (begs, begged, was begging, had begged) a tree, (c) ……….(please give me, to give him, that give him, whether give him) a small branch. He wanted the branch (d)…….. (because, so that, although, since) he could make a walking stick from it. The tree was (e)…… (with, of, by, on) kind nature. He thought the man (f)…… (will, may, might, must) make good use of the branch. Hence, he gave the man one of his branches, (g)………… (did he, didn’t he, hadn’t he, wouldn’t he)? The woodcutter had the branch (h)….. (fix, to fix, fixed, fixing) into his axe head. Soon the woodcutter was set to work. He cut down branch after branch. The tree had never been (i)………. (foolish, as foolish as, more foolish, the most foolish) this in giving his enemy the means of destroying himself. Had the tree not permitted the man to cut a branch, he (j)………..(doesn’t probably fell, won’t probably fell, wouldn’t probably fell, wouldn’t have probably felled) so many branches
The best answer for the numbered blanks are as follows:
(a) the
(b) begged
(c) to give him
(d) so that
(e) of
(f) might
(g) didn’t he
(h) fixed
(i) as foolish as
(j) wouldn’t have probably felled
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An income statement shows the net result of the business operations during an accounting period.
It may include manufacturing account, trading account, profit and loss account.
Income statement presents the summary of revenues, expenses and net income or net loss of a firm.
It serves as a profitability measure of the firm.
The amount received from operating activities is known as revenue income.
It is the income earned from goods selling or services provide.
It also includes received of discount, commission, interest, transfer fees etc.
Expenditure is incurred for the running productivity or earning capacity of a business.
Such expenditure yields benefits in current accounting period.
Balance sheet is a statement of assets and liabilities of a business organization.
It shows financial position in an accounting period.
It is a statement summarizing the financial position of firm.
The balance sheet is prepared at the end or accounting period.
It is prepared after preparation income statement (manufacturing account, trading, profit and loss account).
It is the statement of balances of ledger account, which are not included in income statement.
Therefore, it is called the balance sheet.
The balance sheet contains assets and liabilities.
Liabilities refer to the financial obligation of an enterprise.
Assets refer to tangible or intangible rights owned by an enterprise.
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
PROBLEM: 3A
EP LLC has following accounts balance on 31 December 2020:
Ledgers |
Amount $ |
Ledgers |
Amount $ |
Account receivable |
58,151 |
Accrued expenses |
22,000 |
Inventories |
46,000 |
8%Bank loan |
74,000 |
Cost of goods sold |
150,000 |
Account payable |
13,000 |
Cash balance |
670 |
Opening retained earnings |
13,000 |
Advertisement expenses |
18,000 |
Sales revenue |
254,000 |
9% Investment |
65,000 |
Common stock |
90,000 |
Patents |
7,000 |
Accumulated depreciation |
7,800 |
Income tax expenses |
6,009 |
Interest income |
5,850 |
Notes receivable |
9,000 |
|
|
Salaries expenses |
13,000 |
|
|
Land and building |
39,000 |
|
|
Depreciation expenses |
3,900 |
|
|
Dividend paid |
9,000 |
|
|
Rent expenses-office |
30,000 |
|
|
Rent expenses-warehouse |
19,000 |
|
|
Interest expenses |
5,920 |
|
|
|
479,650 |
|
479,650 |
Required: (a) Multiple step income statement under NFRS; (b) Statement of retained earnings;
(c) Classified balance sheet under NFRS
[Answer: (a) NIAF = $14,021; (b) R/E = $18,021; (c) B/S = $217,021]
SOLUTION
Profit or Loss Statement under NFRS
EP LLC
For the year ended 31st March 2021
Particulars |
Notes |
Amount |
Amount |
|
Net sales revenue |
|
|
254,000 |
|
Less: |
Cost of goods sold* |
|
|
(150,000) |
|
Gross profit |
|
|
104,000 |
Add: |
Other income (interest income) |
|
|
5,850 |
Less: |
Operating expenses: |
|
|
|
|
Salaries expenses |
|
13,000 |
|
|
Depreciation expenses |
|
3,900 |
|
|
Rent expenses-office |
|
30,000 |
|
|
Advertisement expenses |
|
18,000 |
|
|
Rent expenses-warehouse |
|
19,000 |
(83,900) |
|
Profit from operation |
|
|
25,950 |
Less: |
Financial expenses: |
|
|
|
|
Interest expenses |
|
|
(5,920) |
|
Profit before tax |
|
|
20,030 |
Less: |
Income tax expenses |
|
|
(6,009) |
|
Profit from continuing operations |
|
|
14,021 |
Add: |
Profit from discontinued operation after tax |
|
|
Nil |
|
Net profit after tax |
|
|
14,021 |
Retained Earnings Statement
EP LLC
As on 31st March 20XX
Particulars |
Amount $ |
Amount $ |
|
|
Beginning balance |
|
13,000 |
Add: |
Net income after tax |
|
14,021 |
|
Total income available |
|
27,021 |
Less: |
Dividend paid |
|
(9,000) |
|
Ending balance |
|
18,021 |
Statement of Financial Position as per NFRS
EP LLC
As on 31st March 2021
Particulars |
Notes |
Year 2021 |
|
ASSETS |
|
|
|
Non-Current Assets: |
|
|
|
|
Land and building Accumulated depreciation-L&B |
1 |
39,000 (7,800) |
|
9% Investment |
|
65,000 |
|
Patents |
|
7,000 |
|
Total non-current assets (A) |
|
103,200 |
Current Assets: |
|
|
|
|
Cash and bank |
|
670 |
|
Account receivable |
|
58,151 |
|
Notes receivable |
|
9,000 |
|
Inventories |
|
46,000 |
|
Total current assets (B) |
|
113,821 |
|
TOTAL ASSETS (A+B) |
|
217,021 |
EQUITY |
|
|
|
|
Common stock |
|
90,000 |
|
Additional paid in capital |
|
Nil |
|
Retained earnings |
|
18,021 |
|
Total Equity |
|
108,021 |
LIABILITIES |
|
|
|
Non-Current Liabilities: |
|
|
|
|
8% Bank loan |
|
74,000 |
|
Other non-current liabilities |
|
Nil |
|
Total non-current liabilities (a) |
|
74,000 |
Current Liabilities: |
|
|
|
|
Accrued expenses |
|
22,000 |
|
Account payable |
|
13,000 |
|
Total current liabilities (b) |
|
35,000 |
|
Total Liabilities (a+b) |
|
109,000 |
|
TOTAL EQUITY AND LIABILITIES |
|
217,021 |
alternatively:
1. Land and building |
39,000 |
|
|
|
Less: Accumulated depreciation |
(7,800) |
|
|
|
|
31,200 |
|
|
|
Click on book cover for Free eBooks
#####
Click on link for YouTube videos |
|
Accounting for Share |
|
Share in Nepali |
|
Debentures |
|
Final Accounts: Class 12 |
|
Final Accounts in Nepali |
|
Work Sheet |
|
Ratio Analysis (Accounting Ratio) |
|
Fund Flow Statement |
|
Cash Flow Statement |
|
Theory Accounting Xii |
|
Theory: Cost Accounting |
|
Cost Accounting |
|
LIFO−FIFO |
|
Cost Sheet, Unit Costing |
|
Cost Reconciliation Statement |
#####
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
PROBLEM: 3B
AM Company Ltd has following trial balance on 31 March 2021:
Debit |
Amount $ |
Credit |
Amount $ |
Cash |
4,469 |
Accumulated depreciation on PPE |
3,000 |
Account receivable |
2,000 |
Notes payable |
3,200 |
Inventory |
3,000 |
Account payable |
5,800 |
Prepaid expenses |
1,500 |
Accrued payroll |
2,750 |
Property, plant and equipment (PPE) |
30,000 |
Advance on sales (deferred revenue) |
6,250 |
Brands and trademark |
20,000 |
Other current liabilities |
5,000 |
Investment in government bond |
5,000 |
Long-term debt |
10,500 |
Cost of goods sold |
15,000 |
Other non-current liabilities |
9,500 |
Selling expenses |
1,125 |
10% Preferred stock |
5,000 |
Interest expenses |
2,000 |
Common stock |
10,000 |
Income tax expenses |
201 |
Retained earnings (1 April 2020) |
6,000 |
Cash dividend on preferred stocks |
500 |
Additional paid in capital |
1,000 |
Cash dividend on common stocks |
20% |
Net sales |
21,000 |
Salaries expenses |
2,540 |
Gain on sales of machine |
1,000 |
Phone and internet expenses |
665 |
|
|
|
90,000 |
|
90,000 |
Required: (a) Multiple step income statement under NFRS; (b) Statement of retained earnings;
(c) Classified balance sheet under NFRS
[Answer: (a) NIAT = $469; (b) R/E = $3.969; (c) B/S = $62.969]
SOLUTION
Profit or Loss Statement under NFRS
AM Company Ltd
As on 31st March 2021
Particulars |
Notes |
Amount $ |
Amount $ |
|
Net sales revenue |
|
|
21,000 |
|
Less: |
Cost of goods sold* |
|
|
(15,000) |
|
Gross profit |
|
|
6,000 |
Add: |
Other income (gain on machinery) |
|
|
1,000 |
Less: |
Operating expenses: |
|
|
|
|
Salaries expenses |
|
2,540 |
|
|
Phone and internet expenses |
|
665 |
|
|
Selling expenses |
|
1,125 |
(4,330) |
|
Profit from operation |
|
|
2,670 |
Less: |
Financial expenses: |
|
|
|
|
Interest expenses |
|
|
(2,000) |
|
Profit before tax |
|
|
670 |
Less: |
Income tax expenses |
|
|
(201) |
|
Profit from continuing operations |
|
|
469 |
Add: |
Profit from discontinued operation after tax |
|
|
Nil |
|
Net profit after tax |
|
|
469 |
Retained Earnings Statement
AM Company Ltd
As on 31st March 2021
Particulars |
Notes |
Amount $ |
Amount $ |
|
|
Beginning balance |
|
|
6,000 |
Add: |
Net income after tax |
|
|
469 |
|
Total income available |
|
|
6,469 |
Less: |
Cash dividend on preferred stocks |
1 |
500 |
|
|
Cash dividend on common stocks (10,000 @ 20%) |
1 |
2,000 |
(2,500) |
|
Ending balance |
|
|
3,969 |
Statement of Financial Position as per NFRS
AM Company Ltd
As on 31st March 2021
Particulars |
Notes |
Year 2021 |
|
ASSETS |
|
|
|
Non-Current Assets: |
|
|
|
|
Property, plant and equipment Accumulated Depreciation-PPE |
2 |
30,000 (3,000) |
|
Investment in government bond |
|
5,000 |
|
Brands and TM |
|
20,000 |
|
Total non-current assets (A) |
|
52,000 |
Current Assets: |
|
|
|
|
Cash and bank |
|
4,469 |
|
Account receivable |
|
2,000 |
|
Inventories |
|
3,000 |
|
Prepaid expenses |
|
1,500 |
|
Total current assets (B) |
|
10,969 |
|
TOTAL ASSETS (A+B) |
|
62,969 |
EQUITY |
|
|
|
|
Common stock |
|
10,000 |
|
Additional paid in capital |
|
1,000 |
|
Preferred stocks |
|
5,000 |
|
Retained earnings |
|
3,969 |
|
Total Equity |
|
19,969 |
LIABILITIES |
|
|
|
Non-Current Liabilities: |
|
|
|
|
Long-term debt |
|
10,500 |
|
Other non-current liabilities |
|
9,500 |
|
Total non-current liabilities (a) |
|
20,000 |
Current Liabilities: |
|
|
|
|
Notes payable |
|
3,200 |
|
Account payable |
|
5,800 |
|
Accrued payroll |
|
2,750 |
|
Advance on sales |
|
6,250 |
|
Other current liabilities |
|
5,000 |
|
Total current liabilities (b) |
|
23,000 |
|
Total Liabilities (a+b) |
|
43,000 |
|
TOTAL EQUITY AND LIABILITIES |
|
62,969 |
Given and working note:
1. Dividend on: |
|
|
2. Property, plant and equipment |
30,000 |
Common stocks $10,000 @ 20% |
2,000 |
|
Less: Accumulated depreciation |
(3,000) |
Preferred stocks $5,000 @ 10% |
500 |
|
|
27,000 |
###########
Click on link for YouTube videos: |
|
Accounting Equation |
|
Basic Journal Entries in Nepali |
|
Basic Journal Entries |
|
Journal Entry and Ledger |
|
Ledger |
|
Subsidiary Book |
|
Cash Book |
|
Trial Balance & Adjusted Trial Balance |
|
Bank Reconciliation Statement (BRS) |
|
Depreciation |
|
Final Accounts: Class 11 |
|
Adjustment in Final Accounts |
|
Capital and Revenue |
|
Single Entry System |
|
Non-Trading Concern |
|
Government Accounting |
|
Goswara Voucher (Journal Voucher) |
###########
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PROBLEMS AND ANSWERS OF FINANCIAL STATEMENT UNDER NFRS |
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
PROBLEM: 3A
NTR Company Ltd has following trial balance on 31st March 2021:
Debit |
Amount $ |
Credit |
Amount $ |
Cash and cash equivalent |
6,500 |
Accumulated depn on equipment |
60,000 |
Account receivable |
30,115 |
Notes payable (due on April 2021) |
40,000 |
Inventories of merchandise |
35,000 |
Account payable |
39,575 |
Prepaid expenses |
15,000 |
Accrued payroll |
8,250 |
Equipment |
300,000 |
Advance on sales (deferred on revenue) |
61,750 |
Trademark and copyrights |
50,000 |
Other current liabilities |
21,000 |
Other current asset |
25,000 |
6% Long-term debt |
100,000 |
Land |
100,000 |
Other non-current liabilities |
15,000 |
Cost of goods sold |
150,000 |
Preferred stock |
90,000 |
Sales commission |
9,350 |
Common stock ($100 each) |
140,000 |
Salaries of office staff |
41,000 |
Retained earnings (1 April 2020) |
60,000 |
Depreciation expenses |
30,000 |
Additional paid in capital |
15,000 |
Interest expenses |
6,000 |
Net sales |
250,000 |
Advertisement expenses |
4,650 |
Interest on investment |
5,425 |
Income tax |
2,885 |
|
|
Cash dividend |
23,000 |
|
|
7% Investment |
77,500 |
|
|
|
906,000 |
|
906,000 |
Required: (a) Multiple step income statement under NFRS; (b) Statement of retained earnings;
(c) Classified balance sheet under NFRS
Answer: (a) NIAT = $11,540; (b) R/E = $48,540; (c) B/S = $579,115]
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]]>4. Balance Sheet under NFRS | Statement of Financial Position under NFRS | Solution
Final Accounts Prescribed by Company Act and Accounting Standard
All the limited company or LLC business organizations need to prepare financial statements on prescribed format of the company account and accounting standard.
Nepal Accounting Standard (NAS) has prescribed the formats for financial statements.
Nepal Financial Reporting Standards (NFRS) follows rules and regulation of NAS.
All the business organizations need to consider the prescribed format of the accounting standard for preparation and submission of final accounts.
Final accounts involve the following statements:
· Income Statement (Profit or Loss Statement)
· Balance sheet (Statement of Financial Position)
Balance sheet is a statement of assets and liabilities of a business organization.
It shows financial position in an accounting period.
It is a statement summarizing the financial position of firm.
The balance sheet is prepared at the end or accounting period.
It is prepared after preparation income statement (manufacturing account, trading, profit and loss account).
It is the statement of balances of ledger account, which are not included in income statement.
Therefore, it is called the balance sheet.
The balance sheet contains assets and liabilities.
Liabilities refer to the financial obligation of an enterprise.
Assets refer to tangible or intangible rights owned by an enterprise.
Statement of Financial Position under NFRS
ABC Company Ltd
For the year ended …………………
Particulars |
Notes |
Amount CY |
Amount LY |
|
ASSETS |
|
|
|
|
Non-Current Assets: |
|
|
|
|
|
Property, plant and equipment |
|
xxxx |
xxxx |
|
Intangible assets |
|
xxxx |
xxxx |
|
Biological assets (long-term) |
|
xxxx |
xxxx |
|
Investment property |
|
xxxx |
xxxx |
|
Investment in associates* |
|
xxxx |
xxxx |
|
Other investment |
|
xxxx |
xxxx |
|
Long-term receivable (notes receivable) |
|
xxxx |
xxxx |
|
Deferred tax assets |
|
xxxx |
xxxx |
|
Total non-current assets (A) |
|
xxxx |
xxxx |
Current Assets: |
|
|
|
|
|
Inventories |
|
xxxx |
xxxx |
|
Trade receivable (debtor, B/R, A/R) |
|
xxxx |
xxxx |
|
Cash and cash equivalent |
|
xxxx |
xxxx |
|
Marketable securities |
|
xxxx |
xxxx |
|
Income tax receivable (refund of tax) |
|
xxxx |
xxxx |
|
Other receivables |
|
xxxx |
xxxx |
|
Asset held for sale (sell this year) |
|
xxxx |
xxxx |
|
Total current assets (B) |
|
xxxx |
xxxx |
|
TOTAL ASSETS (A+B) |
|
xxxxx |
xxxxx |
EQUITY |
|
|
|
|
|
Equity share capital (common stocks) |
|
xxxx |
xxxx |
|
Additional paid in capital (share premium, security premium) |
|
xxxx |
xxxx |
|
Preference share capital (preferred stock) |
|
xxxx |
xxxx |
|
Capital reserve |
|
xxxx |
xxxx |
|
General reserve |
|
xxxx |
xxxx |
|
Retained earnings |
|
xxxx |
xxxx |
|
Debenture redemption fund (loan repayment fund) |
|
xxxx |
xxxx |
|
Non-controlling interest (minority interest) |
|
xxxx |
xxxx |
|
Total Equity |
|
xxxxx |
xxxxx |
LIABILITIES |
|
|
|
|
Non-Current Liabilities: |
|
|
|
|
|
Loan and borrowings (long-term) |
|
xxxx |
xxxx |
|
Employees benefits |
|
xxxx |
xxxx |
|
Government grants |
|
xxxx |
xxxx |
|
Derivative financial liabilities |
|
xxxx |
xxxx |
|
Provisions (long-term) |
|
xxxx |
xxxx |
|
Deferred tax liabilities |
|
xxxx |
xxxx |
|
Total non-current liabilities (a) |
|
xxxxx |
xxxxx |
Current Liabilities: |
|
|
|
|
|
Loan and borrowings (short term) |
|
xxxx |
xxxx |
|
Trade payables (creditor, B/P, A/P) |
|
xxxx |
xxxx |
|
Income tax liability |
|
xxxx |
xxxx |
|
Employees benefits |
|
xxxx |
xxxx |
|
Provisions (short-term) |
|
xxxx |
xxxx |
|
Other payables |
|
xxxx |
xxxx |
|
Liability of asset held for sale |
|
xxxx |
xxxx |
|
Total current liabilities (b) |
|
xxxxx |
xxxxx |
|
Total Liabilities (a+b) |
|
xxxxx |
xxxxx |
|
TOTAL EQUITY AND LIABILITIES |
|
xxxxx |
xxxxx |
The assets side of the balance sheet contents different types of assets; they are explained below:
ASSETS
Non-current assets
Non-current assets are also known as fixed assets or tangible assets.
These assets have life more than one year and higher value.
These assets are depreciated according to their working life or value.
Non-current assets include:
Property, plant and equipment |
Intellectual assets (patents, copyrights, trademark) |
Land and building |
Biological assets (plants, trees, animals, birds) |
Plant and machinery |
Investment property |
Vehicles |
Investment in associates* |
Furniture and fitting |
Other investment |
Equipment |
Long-term receivable (notes receivable) |
Intangible assets (goodwill) |
Deferred tax assets |
|
|
Keep in Mind
Depreciation is deducted from related tangible asset. |
Accumulated depreciation is shown in bracket or minus symbol below the tangible asset; or can be shown in liabilities side of balance sheet. |
Amortization or written off is deducted from related intangible asset. |
*When a company acquires 20% to 50% equity shares of other company, it is known as investment in associates |
Current assets
Current asset means asset can be converted into cash within one year.
Cash is receivable within one year.
Expense limit expires within one year.
Current assets include:
Cash and cash equivalent |
Account receivable, bills receivable |
Bank balance |
Notes receivable |
Advance expenses |
Debtors and customers |
Prepaid expenses |
Inventories, Closing stock, Merchandise |
Short-term investment |
Other current assets |
|
|
Click on the photo for FREE eBooks
#####
Click on link for YouTube videos |
|
Accounting Equation |
|
Journal Entries in Nepali |
|
Journal Entries |
|
Journal Entry and Ledger |
|
Ledger |
|
Subsidiary Book |
|
Cashbook |
|
Trial Balance and Adjusted Trial Balance |
|
Bank Reconciliation Statement (BRS) |
|
Depreciation |
|
|
|
Click on link for YouTube videos chapter wise |
|
Financial Accounting and Analysis (All videos) |
|
Accounting Process |
|
Accounting for Long Lived Assets |
|
Analysis of Financial Statement |
#####
Equity or shareholders’ equity
Shareholders’ equity or stockholders’ equity is one of the major sections of a corporation’s balance sheet.
It is the difference between the reported amounts of an organization’s assets and liabilities.
Stockholders’ equity includes:
Common stocks (equity shares, ordinary shares) |
Capital reserve |
Preferred stocks (preference shares) |
General reserve |
Additional paid-in capital (share premium or security premium) |
Reserve and funds |
Retained earnings (surplus, net profit after tax) |
Treasury stock, if any |
Non-current liabilities (long-term liabilities)
Non-current liabilities are the long-term debt.
These liabilities are paid in more than one year.
Sometime, this time may be thirty years.
Non-current liabilities include:
Debentures |
Deferred tax liabilities |
Bonds |
Long-term lease and obligations |
Bonds payable |
Pension benefits obligations |
Long-term loans |
Other non-current assets |
Long-term debt |
|
Note: if the portion of a bond payable matures within an accounting period, that portion becomes current liability.
Current liabilities
Current liabilities mean a liability should be paid or settled within one year.
Current liabilities include:
Account payable, bills payable |
Advance incomes, advance received |
Creditors, suppliers, vendors |
Advance on sales |
Notes payable |
Income tax payable |
Bank overdraft |
Dividend payable |
Short-term loan |
Interest payable |
Outstanding expenses |
Calls in advance |
Expenses payable, expenses due |
Unclaimed dividend |
|
Other current liabilities |
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
PROBLEM: 2A
LQ Company Ltd has following extracted information on 31st March 2023:
Ledger balances |
Amount $ |
Ledger balances |
Amount $ |
Plant and machinery |
4,56,000 |
Accumulated depreciation-plant |
260,000 |
Land |
8,44,000 |
Inventories |
2,78,160 |
Investment in government securities |
36,745 |
Account receivable |
87,500 |
Notes receivable-long-term |
1,34,700 |
Cash and cash equivalent |
13,650 |
Common stocks of $10 par value |
3,75,000 |
Asset held for sale this year |
1,64,200 |
Additional paid in capital |
75,000 |
Notes payable (long-term) |
3,52,500 |
Preferred stocks |
2,50,000 |
Pension fund |
2,74,230 |
Retained earnings |
1,12,725 |
Bank loan |
45,500 |
Bank overdraft |
70,450 |
Dividend payable |
37,500 |
Account payable |
1,25,000 |
Other payables |
11,530 |
Income tax payable |
25,520 |
|
|
Required: Statement of Financial Position as per NFRS
[Answer: TA = $17,54,955; Equity = $8,12,725; Liabilities = $9,42,230]
SOLUTION
Statement of Financial Position as per NFRS
LQ Company Ltd
As on 31st March 2023
Particulars |
Notes |
Amount |
|
ASSETS |
|
|
|
Non-Current Assets: |
|
|
|
|
Plant and machinery |
1 |
1,96,000 |
|
Land |
|
8,44,000 |
|
Investment in government securities |
|
36,745 |
|
Notes receivable-long-term |
|
1,34,700 |
|
Total non-current assets (A) |
|
12,11,445 |
Current Assets: |
|
|
|
|
Inventories |
|
2,78,160 |
|
Account receivable |
|
87,500 |
|
Cash and cash equivalent |
|
13,650 |
|
Asset held for sale* |
|
1,64,200 |
|
Total current assets (B) |
|
5,43,510 |
|
TOTAL ASSETS (A+B) |
|
17,54,955 |
EQUITY |
|
|
|
|
Common stocks |
|
3,75,000 |
|
Additional paid in capital |
|
75,000 |
|
Preferred stocks |
|
2,50,000 |
|
Retained earnings |
|
1,12,725 |
|
Total Equity |
|
8,12,725 |
LIABILITIES |
|
|
|
Non-Current Liabilities: |
|
|
|
|
Notes payable (long-term) |
|
3,52,500 |
|
Pension fund |
|
2,74,230 |
|
Bank loan |
|
45,500 |
|
Total non-current liabilities (a) |
|
6,72,230 |
Current Liabilities: |
|
|
|
|
Bank overdraft |
|
70,450 |
|
Account payable |
|
1,25,000 |
|
Income tax payable |
|
25,520 |
|
Dividend payable |
|
37,500 |
|
Other payables |
|
11,530 |
|
Total current liabilities (b) |
|
2,70,000 |
|
Total Liabilities (a+b) |
|
9,42,230 |
|
TOTAL EQUITY AND LIABILITIES |
|
17,54,955 |
Given and working note:
1. Net plant and machinery |
4,56,000 |
|
|
|
Less: Accumulated depreciation |
(260,000) |
|
|
|
|
196,000 |
|
|
|
###########
Click on link for YouTube videos: |
|
Accounting Equation |
|
Basic Journal Entries in Nepali |
|
Basic Journal Entries |
|
Journal Entry and Ledger |
|
Ledger |
|
Subsidiary Book |
|
Cash Book |
|
Trial Balance & Adjusted Trial Balance |
|
Bank Reconciliation Statement (BRS) |
|
Depreciation |
|
Final Accounts: Class 11 |
|
Adjustment in Final Accounts |
|
Capital and Revenue |
|
Single Entry System |
|
Non-Trading Concern |
|
Government Accounting |
|
Goswara Voucher (Journal Voucher) |
###########
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
PROBLEM: 2B
EP Agro Farm Ltd has following extracted information on 31st March 2023:
Ledger balances |
Amount $ |
Ledger balances |
Amount $ |
Property, plant and equipment |
18,00,000 |
Accumulated depreciation-PPE |
2,74,700 |
Land |
20,00,000 |
Accumulated depreciation-vehicle |
57,000 |
Vehicles |
2,80,000 |
Amortization of Franchise and TM |
24,750 |
Franchise and TM |
99,000 |
Inventories of animal feed |
4,32,775 |
Biological assets (long-term) |
3,79,640 |
Account receivable |
1,50,930 |
Accrued incomes |
7,68,455 |
Prepaid insurance expenses |
25,780 |
Office supplies in hand |
4,755 |
Common stocks |
10,50,000 |
General reserve |
87,960 |
Additional paid in capital |
1,05,000 |
Capital reserve |
3,26,475 |
Preferred stocks |
3,50,000 |
Retained earnings |
2,88,540 |
Bank overdraft |
56,478 |
Long-term secured debt |
12,34,285 |
Account payable |
1,75,453 |
Pension fund |
3,47,325 |
Income tax payable |
23,179 |
Bank loan |
17,56,450 |
Advance income received |
33,740 |
Additional information:
a. Land is appreciated by $250,000
Required: Statement of financial position (balance sheet) as per NFRS
[Answer: TA = $58,34,885; Equity = $20,07,975; Liabilities = $36,26,910]
SOLUTION
Statement of Financial Position as per NFRS
EP Agro Farm Ltd
As on 31st March 2023
Particulars |
Notes |
Year 2021 |
|
ASSETS |
|
|
|
Non-Current Assets: |
|
|
|
|
Property, plant and equipment |
|
15,25,300 |
|
Land |
1 |
22,50,000 |
|
Franchise and trademark |
|
75,250 |
|
Vehicles |
|
2,23,000 |
|
Biological assets (long-term) |
|
3,79,640 |
|
Total non-current assets (A) |
|
44,52,190 |
Current Assets: |
|
|
|
|
Inventories of animal feed |
|
4,32,775 |
|
Account receivable |
|
1,50,930 |
|
Prepaid insurance expenses |
|
25,780 |
|
Accrued incomes |
|
7,68,455 |
|
Office supplies in hand |
|
4,755 |
|
Total current assets (B) |
|
13,82,695 |
|
TOTAL ASSETS (A+B) |
|
58,34,885 |
EQUITY |
|
|
|
|
Common stocks |
|
10,50,000 |
|
Additional paid in capital |
|
1,05,000 |
|
Preferred stocks |
|
3,50,000 |
|
General reserve |
|
87,960 |
|
Capital reserve |
|
3,26,475 |
|
Retained earnings |
|
2,88,540 |
|
Total Equity |
|
22,07,975 |
LIABILITIES |
|
|
|
Non-Current Liabilities: |
|
|
|
|
Long-term secured debt |
|
12,34,285 |
|
Pension fund |
|
3,47,325 |
|
Bank loan |
|
17,56,450 |
|
Total non-current liabilities (a) |
|
33,38,060 |
Current Liabilities: |
|
|
|
|
Bank overdraft |
|
56,478 |
|
Account payable |
|
1,75,453 |
|
Income tax payable |
|
23,179 |
|
Advance income received |
|
33,740 |
|
Total current liabilities (b) |
|
2,88,850 |
|
Total Liabilities (a+b) |
|
36,26,910 |
|
TOTAL EQUITY AND LIABILITIES |
|
58,34,885 |
Given and working note:
1. Land |
20,00,000 |
|
|
|
Add: Appreciation |
2,50,000 |
|
|
|
|
20,00,000 |
|
|
|
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|
Accounting for Share |
|
Share in Nepali |
|
Debentures |
|
Final Accounts: Class 12 |
|
Final Accounts in Nepali |
|
Work Sheet |
|
Ratio Analysis (Accounting Ratio) |
|
Fund Flow Statement |
|
Cash Flow Statement |
|
Theory Accounting Xii |
|
Theory: Cost Accounting |
|
Cost Accounting |
|
LIFO−FIFO |
|
Cost Sheet, Unit Costing |
|
Cost Reconciliation Statement |
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
PROBLEM: 2C
BR Company Ltd has authority capital $10,00,000 dividing into 10,000 equity shares of $100 each. The company issued 8,000 equity shares and called up $90 per share. Public applied for 6,000 shares and paid $80 per shares.
Debit balance |
Amount Dr |
Credit balance |
Amount Cr |
Account receivable |
6,000 |
6,000 Common stock @ $80 |
4,80,000 |
Advance given to KL Traders |
40,000 |
8% Redeemable bond |
6,00,000 |
Advance tax paid |
3,000 |
Outstanding bond interest |
24,000 |
Calls in arrears |
10,000 |
General reserve |
10,365 |
Cash at bank |
9,000 |
Bond redemption fund |
54,635 |
Cash in hand |
3,126 |
Sinking fund |
5,000 |
Closing stock |
120,300 |
Additional paid in capital |
30,000 |
Discount on issue of debenture |
5,000 |
Calls in advance |
2,000 |
Discount on issue of shares |
3,000 |
Capital funds |
35,480 |
Furniture and equipment |
80,000 |
Long-term deposit from employees |
43,000 |
Goodwill |
58,530 |
Account payable |
13,875 |
Investment in debenture |
1,00,000 |
Sundry creditors |
10,125 |
Investment in government bond |
49,300 |
Expenses payable |
50,230 |
Investment in shares |
20,700 |
Advance income received |
17,770 |
Patent and trade mark |
49,470 |
Unclaimed dividend |
2,200 |
Plant and machinery |
3,00,000 |
Assets replacement fund |
15,320 |
Preliminary expenses |
12,390 |
Provision for taxation (current year) |
7,000 |
Prepayment insurance |
8,000 |
Dividend payable |
60,000 |
Retained loss (Deficit) |
38,000 |
Employees’ provident fund |
15,000 |
Spare parts (loose tools) |
1,500 |
|
|
Store consume in hand |
5,000 |
|
|
Sundry debtors |
96,574 |
|
|
Underwriting commission |
7,110 |
|
|
Vehicles |
4,50,000 |
|
|
Required: Balance sheet
[Answer: Balance sheet = $14,66,000]
SOLUTION:
Given and working note:
1. Authorized capital: |
|
|
|
10,000 Equity shares @ $100 |
|
10,00,000 |
|
|
|
|
|
Issued capital: |
|
|
|
8,000 equity shares @ $100 |
|
8,00,000 |
|
|
|
|
|
Called-up capital: |
|
|
|
8,000 equity shares @ $90 |
|
7,20,000 |
|
|
|
|
|
Applied and paid up capital: |
|
|
|
6,000 Common stock @ $80 |
480,000 |
|
|
Less: calls in arrear |
(10,000) |
4,70,000 |
|
|
|
|
|
|
|
|
|
Balance Sheet
Statement of Financial Position
BR Company Ltd
As on 31st March 2023
Particulars |
Notes |
Amount |
|
ASSETS |
|
|
|
Non-Current Assets: |
|
|
|
|
Plant and machinery |
|
3,00,000 |
|
Vehicles |
|
4,50,000 |
|
Furniture and equipment |
|
80,000 |
|
Discount on issue of debenture |
|
5,000 |
|
Discount on issue of shares |
|
3,000 |
|
Goodwill |
|
58,530 |
|
P&L Appropriation A/c (Deficit) |
|
38,000 |
|
Patent and trade mark |
|
49,470 |
|
Preliminary expenses |
|
12,390 |
|
Underwriting commission |
|
7,110 |
|
Investment in shares |
|
20,700 |
|
Investment in debenture |
|
1,00,000 |
|
Investment in government bond |
|
49,300 |
|
Total non-current assets (A) |
|
11,73,500 |
Current Assets: |
|
|
|
|
Account receivable |
|
6,000 |
|
Advance given to KL Traders |
|
40,000 |
|
Advance tax paid |
|
3,000 |
|
Cash at bank |
|
9,000 |
|
Cash in hand |
|
3,126 |
|
Closing stock |
|
1,20,300 |
|
Prepayment insurance |
|
8,000 |
|
Spare parts (loose tools) |
|
1,500 |
|
Store consume in hand |
|
5,000 |
|
Sundry debtors |
|
96,574 |
|
Total current assets (B) |
|
2,92,500 |
|
TOTAL ASSETS (A+B) |
|
14,66,000 |
|
|
|
|
EQUITY |
|
|
|
|
Common stock @$80 |
1 |
4,70,000 |
|
General reserve |
|
10,365 |
|
Bond redemption fund |
|
54,635 |
|
Sinking fund |
|
5,000 |
|
Additional paid in capital |
|
30,000 |
|
Capital funds |
|
35,480 |
|
Assets replacement fund |
|
15,320 |
|
Total Equity |
|
6,20,800 |
|
|
|
|
LIABILITIES |
|
|
|
Non-Current Liabilities: |
|
|
|
|
8% Debenture |
|
6,00,000 |
|
Long-term deposit from employees |
|
43,000 |
|
Employees’ provident fund |
|
15,000 |
|
Total non-current liabilities (a) |
|
6,58,000 |
Current Liabilities: |
|
|
|
|
Calls in advance |
|
2,000 |
|
Account payable |
|
13,875 |
|
Sundry creditors |
|
10,125 |
|
Interest payable on debentures |
|
24,000 |
|
Expenses payable |
|
50,230 |
|
Advance income received |
|
17,770 |
|
Unclaimed dividend |
|
2,200 |
|
Tax payable (current year) |
|
7,000 |
|
Dividend payable |
|
60,000 |
|
Total current liabilities (b) |
|
187,200 |
|
Total Liabilities (a+b) |
|
8,45,200 |
|
TOTAL EQUITY AND LIABILITIES |
|
14,66,000 |
#####
PROBLEMS AND ANSWERS OF BALANCE SHEET UNDER NFRS |
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
PROBLEM: 2A
LR Company Ltd has following extracted information on 31st March 2023:
Ledger balances |
Amount $ |
Ledger balances |
Amount $ |
Land and building |
3,00,000 |
Sundry debtors |
75,000 |
Plant and machinery |
2,70,000 |
Accrued income |
5,000 |
Patent and trade mark |
96,000 |
Closing stock |
5,69,783 |
Equity shares |
2,17,500 |
Cash at bank |
25,789 |
Share premium |
63,500 |
Cash in hand |
6,206 |
Preference shares |
75,000 |
Long-term debt |
3,65,500 |
Retained earnings |
3,18,453 |
Pension fund |
1,42,780 |
Bank overdraft |
45,320 |
Bank loan |
89,785 |
Bills payable |
1,47,560 |
Dividend payable |
63,500 |
Income tax payable |
25,895 |
Other payables |
14,985 |
Additional information:
a. Land is appreciated by $100,000
b. Accumulated depreciation on plant and machinery is $54,000
c. Patents and trademark are written off by $24,000
Required: Statement of financial position (balance sheet) as per NFRS
[Answer: TA = $13,69,778; Equity = $6,74,453; Liabilities = $6,95,325]
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
PROBLEM: 2B
BCN Company Ltd has authority capital $15,00,000 dividing into 9,000 equity shares and 6,000; 6% preference shares of $100 each. The company issued 5,000 equity shares and 3,000 preference shares.
Trial Balance
For the year ended 31st December 2022
Debit balance |
Amount Dr |
Credit balance |
Amount Cr |
Land and building |
4,12,300 |
5,000 Equity shares @ $100 |
5,00,000 |
Plant and machinery |
2,12,000 |
3,000; 6% Preference shares @ $100 |
3,00,000 |
Vehicle |
80,000 |
Calls in advance |
3,000 |
Furniture and fixture |
37,700 |
General reserve |
25,350 |
Patent and trade mark |
20,000 |
Sinking fund |
11,650 |
Fixed deposit into bank |
70,000 |
Surplus |
55,745 |
Goodwill |
30,460 |
Share premium on equity shares |
4,255 |
Investment in shares |
50,000 |
Capital funds |
39,700 |
Investment in government bond |
60,000 |
Debenture (bonds) |
50,000 |
Sundry debtors |
75,385 |
Unsecured loan |
35,000 |
Accrued income |
4,615 |
Bills payable |
65,450 |
Spare parts (loose tools) |
1,500 |
Sundry creditors |
29,550 |
Closing stock |
69,495 |
Outstanding expenses |
16,225 |
Cash at bank |
24,505 |
Advance received incomes |
1,775 |
Cash in hand |
5,315 |
Unclaimed dividend |
7,360 |
Bills receivable |
45,685 |
Bank overdraft |
12,640 |
Prepaid expenses |
8,145 |
Provision for taxation |
11,300 |
Advance tax paid |
2,855 |
Proposed dividend on equity shares |
50,000 |
Preliminary expenses |
11,540 |
Pension fund of employees |
18,000 |
Underwriting commission |
7,500 |
|
|
Discount on issue of preference shares |
3,000 |
|
|
Calls in arrears |
5,000 |
|
|
Required: Balance sheet
[Answer: Balance sheet = $12,32,000]
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Final Accounts Prescribed by Company Act and Accounting Standard
All the limited company or LLC business organizations need to prepare financial statements on prescribed format of the company account and accounting standard.
Nepal Accounting Standard (NAS) has prescribed the formats for financial statements.
Nepal Financial Reporting Standards (NFRS) follows rules and regulation of NAS.
All the business organizations need to consider the prescribed format of the accounting standard for preparation and submission of final accounts.
Final accounts involve the following statements:
· Income Statement (Profit or Loss Statement)
· Balance sheet (Statement of Financial Position)
An income statement shows the net result of the business operations during an accounting period.
It may include manufacturing account, trading account, profit and loss account.
Income statement presents the summary of revenues, expenses and net income or net loss of a firm.
It serves as a profitability measure of the firm.
The amount received from operating activities is known as revenue income.
It is the income earned from goods selling or services provide.
It also includes received of discount, commission, interest, transfer fees etc.
Expenditure is incurred for the running productivity or earning capacity of a business.
Such expenditure yields benefits in current accounting period.
It involves all the accounting transactions of trading account, profit and loss account and profit and loss appropriation account.
It considers a vertical format of income statement (profit or loss statement) the specimen of which is shown below:
Profit or Loss Statement under NFRS
ABC Company Ltd
For the year ended 31st March 20XX
Particulars |
Notes |
Amount (CY) |
Amount (LY) |
|
Sales revenue (net) |
|
×××× |
×××× |
|
Less: |
Cost of goods sold |
|
(×××) |
(×××) |
|
Gross profit |
|
×××× |
×××× |
Add: |
Other income |
|
×××× |
xxxx |
Less: |
Operating expenses: |
|
|
|
|
Office, general and administrative expenses |
|
×××× |
xxxx |
|
Selling and distribution expenses |
|
×××× |
xxxx |
|
Depreciation expenses |
|
×××× |
xxxx |
|
Amortization |
|
×××× |
xxxx |
|
Profit from operation |
|
×××× |
×××× |
Less: |
Financial expenses: |
|
|
|
|
Interest expenses |
|
(×××) |
(×××) |
|
Profit before tax |
|
×××× |
×××× |
Less: |
Income tax |
|
(×××) |
(×××) |
|
Profit from continuing operations |
|
×××× |
×××× |
|
Profit or loss from discontinued operation (net after tax) |
|
± ××× |
± ××× |
|
Net profit after tax |
|
×××× |
×××× |
|
Basic earnings per share |
|
|
|
|
Diluted Earnings per share |
|
|
|
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|
Accounting Equation |
|
Basic Journal Entries in Nepali |
|
Basic Journal Entries |
|
Journal Entry and Ledger |
|
Ledger |
|
Subsidiary Book |
|
Cash Book |
|
Trial Balance & Adjusted Trial Balance |
|
Bank Reconciliation Statement (BRS) |
|
Depreciation |
|
Final Accounts: Class 11 |
|
Adjustment in Final Accounts |
|
Capital and Revenue |
|
Single Entry System |
|
Non-Trading Concern |
|
Government Accounting |
|
Goswara Voucher (Journal Voucher) |
#####
Sales revenue, turnover or service revenue
Sales revenue is the major incomes of the goods selling company.
The sales amount must include only sale of goods not sales of fixed assets.
Sales include both the cash and credit sales made during an accounting period.
Sales returns or return inward is deducted from sales.
Service revenue is the major incomes of the service providing company.
Both sales and service revenues include cash and credit sales and service.
Some electronics manufacturing companies sell the goods and provide the services.
Other incomes and gains
Company earns some incomes other than sales revenue or service revenue.
Company can sell tangible assets and investment at profit; this profit is also other income.
Some incomes and gains are given below:
Rent received |
Appreciation on assets |
Commission received |
Apprentice/trainee premium |
Interest received |
Profit on assets |
Discount received |
Unearned commission earned |
Dividend received |
Profit on sales of asset |
Compensation received |
Profit on sales of investment |
Bad debts recovered |
|
Cost of goods sold
Cost of goods sold includes the direct costs of producing the goods sold by a company.
This amount includes direct materials and direct labour directly used to produce the good.
It excludes indirect expenses, distribution expenses and sales commission.
Cost of goods sold = Beginning inventory + Net purchase – Ending inventory
Or
Cost of goods sold (COGS):
Opening stock |
×××× |
|
Purchase |
×××× |
|
Less: Purchase return |
(×××) |
|
Add: Carriage or freight on purchase |
×××× |
|
Add: Wages for loading and unloading |
×××× |
|
Less: Closing stock |
(×××) |
|
Cost of goods sold* |
×××× |
|
Operating expenses
Operating expenses mean daily, weekly, fortnightly, monthly, quarterly, half-yearly and annually expenses.
These expenses are recurring in nature.
These expenses are related to general office, administrative and selling expenses.
Non-cash expenses like depreciation and amortization are also included in operating expenses.
Some operating incomes are given below:
General and administrative expenses: |
Selling and distribution expenses: |
Salary and wages |
Carriage or freight outward |
Director’s fees |
Carriage or freight on sales |
Office rent, rates and tax |
Travelling expenses |
Printing and stationery of office |
Advertisement and publicity |
Postage and courier expenses |
Free sample |
Insurance |
Sales expenses |
Phone, mobile, internet expenses |
Packing expenses |
Bank charge |
Salary to sales girl/man/woman/agent |
Legal charge |
Commission to sales agent |
License fees |
Rent of warehouse or godown |
Audit fee |
Stationery, postage expenses of warehouse |
Staff benefits |
Phone, mobile, internet expenses |
Bonus to staff |
Insurance of warehouse |
Office lighting and power |
Trade or trading expenses |
Entertainment expenses |
Delivery expenses |
General expenses |
Bad debts |
Establishment expenses |
Discount allowed |
Commission paid |
Depreciation on warehouse assets etc. |
Manager’s commission |
|
Depreciation on office assets |
|
Written-off or amortization etc. |
|
Financial expenses
Financial expenses are related to loan obligation or borrowings.
Generally, the company takes loan from outsiders.
These outsiders are investors or creditors.
The company takes loan in the forms of debentures, bonds, bank loan, long-term debt, short-term loan etc.
The company has to pay interest on these loans according to their nature and terms.
Some financial expenses are given below:
Interest on loan |
Loss on sales of investment |
Interest on debentures or bonds |
Amortization of bonds redemption premium |
Loss on foreign exchange |
Commission and fees related to loan |
Expenses on disposal of marketable security |
Expenses related to letter of credit |
Income tax expenses
Every business firm has to pay tax to the state and central government.
Some taxes are given below:
Sales tax |
Value added tax (VAT) |
Income tax |
Goods and service tax (GST) |
Profit or loss from discontinued operation segment
Sometimes a company can stop the business of the one of its segment.
There may be different reasons for discontinued the business but major reason is bearing losses.
The company sells entire assets and settles liabilities of that discontinued segment.
While selling, there may be profit or loss.
Profit or loss from discontinued operations is distinguished from income from continuing operations.
The company has to adjust taxes on discontinued segment of the business.
It is shown after tax on income statement (profit or loss statement)
Example
ABC Company has following extracted data:
Net profit before tax from continuing operations $325,650
Net profit before tax from discontinuing operations $28,000
Book value of the discontinued segment of the business $125,000
Disposal value of the discontinued segment $132,350
Tax rate applicable 30%
Required: (1) Net profit or loss from discontinued operation after tax; (2) Net profit after tax
[Answer: NPAT = $252,700]
SOLUTION
Net profit or loss from discontinued operation after tax
Here, 30% tax means 70% profit
Net profit after tax from discontinuing operations |
$28,000 × 70% |
19,600 |
Profit on discontinuing operations |
($132,350 CSV – $125,000 BSV) × 70% |
5,145 |
Net profit from discontinued operation after tax |
$24,745 |
Extracted Income Statement
|
Particulars |
Notes |
Amount |
Amount |
|
Profit before tax |
|
|
325,650 |
Less: |
Income tax expenses (325,650 @ 30%) |
|
|
(97,695) |
|
Profit from continuing operations |
|
|
227,955 |
Add: |
Profit from discontinued operation after net tax |
|
|
24,745 |
|
Net profit after tax |
|
|
252,700 |
Basic Earnings Per Share
It measures the profit available to common stockholders on per share basis.
This ratio expresses the earning power of the company based equity shareholder viz how much amount can be paid as dividend.
More value per share is better for company.
Formula of basic earnings per share (Basic EPS)
= [(NPAT – Preference dividend) ÷ No. of outstanding common stocks]
Or
= (Earnings available to common stockholders ÷ No. of outstanding common stocks)
Diluted Earnings Per Share
Here, diluted means reduce the value of stock or share.
Diluted EPS shows the quality of earnings per share.
While calculating earnings per share, we ignore the diluted securities.
This ignorance increases the value of earnings per share.
Diluted securities are not common stocks but they can be converted to common stocks.
Diluted securities are convertible preferred stocks, convertible debentures, stock option and warrants.
By converting these securities into common stocks, they increase number of outstanding common stocks but decrease the value of basic EPS.
Thus, diluted EPS is generally lower than basic EPS.
Keep in Mind
Dilutive EPS is considered a conservative metric because it indicates a worst-case scenario in terms of EPS. |
In the rare case if there are anti-dilutive securities viz the value of diluted EPS may be higher than EPS. |
Formula of Diluted EPS
= (NPAT – PD ÷ (No. of outstanding common stocks + No. of conversion of dilutive securities)
Example
ABC Company Ltd has following extracted information:
50,000 outstanding common stocks of $10 par value at the market value of $12.
Net income after tax of the current year $200,000
30,000 convertible debentures; they can be converted into common stocks of $10 each.
Required: (a) Basic earnings per share; (b) Number of new common stocks; (c) Diluted earnings per share
[Answer: (a) $4; (b) $300,000; (c) $2.67]
SOLUTION:
(a) Basic earnings per share
= NIAT ÷ No. of common stocks
= $200,000 ÷ 50,000
= $4
(b) Number of new common stocks
Value of convertible debentures
= 30,000 x $10 face value
= $300,000
No. of new common stocks
= $300,000 ÷ $12 market value
= 25,000
(c) Diluted earnings per share
= (NPAT – PD) ÷ (No. of outstanding common stocks + No. of conversion of dilutive securities)
= ($200,000 – Nil) ÷ (50,000 + 25,000)
= $200,000 ÷ 75,000
= $2.67
#####
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|
Accounting for Share |
http://tiny.cc/889jkz |
Share in Nepali |
|
Debentures |
|
Final Accounts: Class 12 |
|
Final Accounts in Nepali |
|
Work Sheet |
|
Ratio Analysis (Accounting Ratio) |
|
Fund Flow Statement |
|
Cash Flow Statement |
|
Theory Accounting Xii |
|
Theory: Cost Accounting |
|
Cost Accounting |
|
LIFO−FIFO |
|
Cost Sheet, Unit Costing |
|
Cost Reconciliation Statement |
#####
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
PROBLEM: 1A
ABC Traders has following extracted information:
Ledger balances |
Amount $ |
Ledger balances |
Amount $ |
Opening stock |
75,800 |
Purchase |
500,000 |
Closing stock |
142,600 |
Purchase expenses |
22,080 |
Required: Cost of goods sold
[Answer: $455,280]
SOLUTION
Cost of goods sold
|
Amount $ |
Amount $ |
Opening stock |
|
75,800 |
Add: Purchase |
500,000 |
|
Add: Purchase expenses |
22,080 |
522,080 |
Less: Closing stock |
|
(142,600) |
COGS |
|
455,280 |
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
PROBLEM: 1B
KL Enterprises has following extracted information:
Ledger balances |
Amount $ |
Ledger balances |
Amount $ |
Beginning inventories |
36,500 |
Carriage inward |
18,750 |
Ending inventories |
56,780 |
Purchase return |
6,340 |
Purchase of goods |
157,870 |
|
|
Required: Cost of goods sold
[Answer: $150,000]
SOLUTION
Cost of goods sold
|
Amount $ |
Amount $ |
Beginning inventories |
|
36,500 |
Add: Purchase |
157,870 |
|
Add: Carriage inward |
18,750 |
|
Less: Purchase return |
(6,340) |
170,280 |
Less: Ending inventories |
|
(56,780) |
COGS |
|
150,000 |
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
PROBLEM: 1C
JE Enterprises has following information on 31st March 2023:
Ledger balances |
Amount $ |
Ledger balances |
Amount $ |
Sales revenue |
254,300 |
Interest income |
41,700 |
Administrative expenses |
49,540 |
Cost of goods sold |
150,000 |
Selling and distribution expenses |
17,060 |
Rent expenses |
49,300 |
Depreciation expenses |
7,850 |
Interest expenses of debenture |
54,000 |
Loss from discontinued operation |
1,170 |
Goodwill written off |
5,500 |
Income tax expenses |
30% |
No. of outstanding common stocks |
3,500 |
Required: (a) Income statement as per NFRS; (b) Basic EPS if outstanding stocks are 3,500
[Answer: GP = Rs 104,300; NPBT = Rs 12,000; NPAT = $7,320; Basic EPS = $2.09]
SOLUTION
Profit or Loss Statement under NFRS
JC Enterprises
For the year ended 31st March 2023
Particulars |
Notes |
Amount |
Amount |
|
Sales revenue (net) |
|
|
254,300 |
|
Less: |
Cost of goods sold* |
|
|
(150,000) |
|
Gross profit |
|
|
104,300 |
Add: |
Other income (interest income) |
|
|
41,700 |
Less: |
Operating expenses: |
|
|
|
|
Office and administrative expenses |
|
49,540 |
|
|
Selling and distribution expenses |
|
17,060 |
|
|
Depreciation expenses |
|
7,850 |
|
|
Goodwill written off |
|
5,500 |
(80,000) |
|
Profit from operation |
|
|
66,000 |
Less: |
Financial expenses: |
|
|
|
|
Interest on loan/debentures/bonds |
|
|
(54,000) |
|
Profit before tax |
|
|
12,000 |
Less: |
Income tax expenses ($12,000 @ 30%) |
|
|
(3,600) |
|
Profit from continuing operations |
|
|
8,400 |
Less: |
Loss from discontinued operation after tax |
|
|
(1,170) |
|
Net profit after tax |
|
|
7,320 |
|
Basic EPS ($7,320 ÷ 3,500 stocks) |
|
|
$2.09 |
|
Diluted earnings per share |
|
|
|
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Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
PROBLEM: 1D
MN Company Ltd has following information on 31st March 2023:
Ledger balances |
Amount $ |
Ledger balances |
Amount $ |
Sales return |
14,560 |
Sales revenue |
956,300 |
Cost of goods sold |
455,280 |
Dividend received |
14,320 |
Salaries to office staffs |
94,174 |
Compensation received |
56,895 |
Legal charge |
5,670 |
Profit from discontinued operation (net) |
23,980 |
License fees |
1,750 |
Selling expenses |
24,500 |
Audit fee |
15,260 |
Warehouse lighting and power |
2,786 |
Commission and fees for loan process |
3,564 |
Depreciation expenses |
27,850 |
Expenses related to letter of credit |
856 |
Goodwill amortization |
13,000 |
Other information:
The company pays income tax 30%
No. of outstanding common stocks are 48,000
No. of outstanding common stocks with diluted stocks are 50,000
Required: (a) Income statement as per NFRS; (b) Basic EPS; (c) Diluted EPS
[Answer: NPAT = $281,765; Basic EPS = $5.87; Diluted EPS = $5.63]
SOLUTION
Profit or Loss Statement under NFRS
MN Company Ltd
For the year ended 31st March 2023
Particulars |
Notes |
Amount |
Amount |
||
Net sales revenue |
1 |
|
941,740 |
||
Less: |
Cost of goods sold* |
|
|
(455,280) |
|
|
Gross profit |
|
|
4,86,460 |
|
Add: |
Other incomes |
2 |
|
71,215 |
|
Less: |
Operating expenses: |
|
|
|
|
|
Office and administrative expenses |
3 |
116,854 |
|
|
|
Selling and distribution expenses |
4 |
27,286 |
|
|
|
Depreciation expenses |
|
27,850 |
|
|
|
Goodwill amortization |
|
13,000 |
(184,990) |
|
|
Profit from operation |
|
|
372,685 |
|
Less: |
Financial expenses: |
|
|
|
|
|
Commission and fees for loan process |
|
3,564 |
|
|
|
Expenses related to letter of credit |
|
856 |
(4,420) |
|
|
Profit before tax |
|
|
368,265 |
|
Less: |
Income tax expenses (368,265 × 30%) |
|
|
(110,480) |
|
|
Profit from continuing operations |
|
|
257,785 |
|
Add: |
Profit from discontinued operation after tax |
|
|
23,980 |
|
|
Net profit after tax |
|
|
281,765 |
|
|
Basic EPS |
|
5 |
|
$5.87 |
|
Diluted EPS |
|
6 |
|
$5.63 |
Given and working note:
(1) Net sales |
|
(5) Basic EPS |
Sales revenue |
956,300 |
= NPAT ÷ No. of outstanding stocks |
Less: Sales return |
(14,560) |
= $281,765 ÷ 48,000 stocks |
|
941,740 |
= $5.87 |
|
|
|
(2) Other incomes |
|
(6) Diluted EPS |
Dividend received |
14,320 |
= NPAT ÷ No. of outstanding diluted stocks |
Compensation received |
56,895 |
= $281,765 ÷ 50,000 stocks |
|
71,215 |
= $5.63 |
|
|
|
(3) Office and administrative expenses: |
|
|
Salaries to office staffs |
94,174 |
|
Legal charge |
5,670 |
|
License fees |
1,750 |
|
Audit fee |
15,260 |
|
|
116,854 |
|
|
|
|
(4) Selling and distribution expenses: |
|
|
Selling expenses |
24,500 |
|
Warehouse lighting and power |
2,786 |
|
|
27,286 |
|
#####
PROBLEMS AND ANSWERS OF INCOME STATEMENT UNDER NFRS |
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
PROBLEM: 1A
EP Traders has following extracted information:
Ledger balances |
Amount $ |
Ledger balances |
Amount $ |
Beginning inventories |
1,75,850 |
Carriage inward |
65,450 |
Ending inventories |
2,36,840 |
Purchase return |
42,775 |
Purchase of goods |
13,00,000 |
Import duty |
48,055 |
Required: Cost of goods sold
[Answer: $13,09,740]
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
PROBLEM: 1B
SLR Company Ltd has following information on 31st March 2023:
Ledger balances |
Amount $ |
Ledger balances |
Amount $ |
Commission received |
2,430 |
Sales revenue |
745,320 |
Interest on loan |
14,785 |
Administrative expenses |
45,230 |
Distribution expenses |
7,840 |
Selling expenses |
74,320 |
Depreciation expenses |
12,475 |
Profit from discontinued operation |
8,373 |
Tax rate |
30% |
Cost of goods sold |
356,740 |
No. common stocks basic |
5,000 |
No. of common stocks diluted |
5,600 |
Required: (a) Income statement as per NFRS; (b) Basic EPS; (c) Diluted EPS
[Answer: (a) NPAT = $173,825;
(b) Basic ESP = $34.77; (c) Diluted EPS = $31.04]
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
PROBLEM: 1C
MTR Company Ltd has following information on 31st March 2023:
Ledger balances |
Amount $ |
Ledger balances |
Amount $ |
Sales revenue |
26,36,500 |
Sales return |
18,360 |
Salaries to office staffs |
251,810 |
Dividend received |
5,785 |
Director’s fees |
75,300 |
Cost of goods sold |
13,09,740 |
Office rent and rates |
36,000 |
Postage and courier expenses |
2,230 |
Printing and stationery expenses |
3,550 |
Insurance expenses |
12,400 |
Interest on loan |
125,685 |
Phone, mobile, internet expenses |
18,500 |
Loss from discontinued operation (net) |
14,786 |
Bank service charge |
820 |
Loss on sales of investment |
2,185 |
Depreciation of fixed assets |
47,630 |
Other information:
No. of outstanding common stocks are 50,000
The company pays income tax 25%
Required: (a) Income statement as per NFRS; (b) Basic EPS
[Answer: (a) NPAT = $461,770; (b) Basic ESP = $9.24]
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
PROBLEM: 1D
Buds Company Ltd has following information on 31st March 2023:
Ledger balances |
Amount $ |
Ledger balances |
Amount $ |
Sales revenue |
632,745 |
Sales return |
14,680 |
Commission to sales agent |
16,970 |
Bad debts recovered |
3,452 |
Rent of warehouse |
12,000 |
Appreciation on land |
52,300 |
Stationery and postage expenses |
366 |
Cost of goods sold |
354,145 |
Insurance of warehouse |
1,850 |
Administrative expenses |
61,825 |
Depreciation expenses |
37,455 |
Sundry office expenses |
3,740 |
Interest on loan |
9,432 |
Sales expenses |
8,224 |
Loss on sales of investment |
4,620 |
Packing expenses |
680 |
Loss from discontinued operation (net) |
14,780 |
Salary to sales girl |
6,830 |
Other information:
The company pays income tax 30%
No. of outstanding common stocks are 4,500
No. of outstanding common stocks with diluted stocks are 5,000
Required: (a) Income statement as per NFRS; (b) Basic EPS; (c) Diluted EPS
[Answer: (a) NPAT = $89,980; (b) Basic ESP = $20; Diluted EPS = $18]
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]]>Final Accounts Prescribed by Company Act and Accounting Standard
All the limited company or LLC business organizations need to prepare financial statements on prescribed format of the company account and accounting standard.
Nepal Accounting Standard (NAS) has prescribed the formats for financial statements.
Nepal Financial Reporting Standards (NFRS) follows rules and regulation of NAS.
All the business organizations need to consider the prescribed format of the accounting standard for preparation and submission of final accounts.
Final accounts involve the following statements:
· Income Statement (Profit or Loss Statement)
· Balance sheet (Statement of Financial Position)
An income statement shows the net result of the business operations during an accounting period.
It may include manufacturing account, trading account, profit and loss account, profit and loss appropriation account.
Income statement presents the summary of revenues, expenses and net income or net loss of a firm.
It serves as a profitability measure of the firm.
The amount received from operating activities is known as revenue income.
It is the income earned from goods selling or services provide.
It also includes received of discount, commission, interest, transfer fees etc.
Expenditure is incurred for the running productivity or earning capacity of a business.
Such expenditure yields benefits in current accounting period.
It involves all the accounting transactions of trading account, profit and loss account and profit and loss appropriation account.
It considers a vertical format of income statement (profit or loss statement) the specimen of which is shown below:
Profit or Loss Statement under NFRS
For the year ended 31st March 20XX
Particulars |
Notes |
Amount CY |
Amount LY |
|
Sales revenue (net) |
|
xxxx |
xxxx |
|
Less: |
Cost of goods sold* |
|
(xxx) |
(xxx) |
|
Gross profit |
|
xxxx |
xxxx |
Add: |
Other income |
|
xxxx |
xxxx |
Less: |
Operating expenses: |
|
|
|
|
Office, general and administrative expenses |
|
xxxx |
xxxx |
|
Selling and distribution expenses |
|
xxxx |
xxxx |
|
Depreciation expenses |
|
xxxx |
xxxx |
|
Written off or amortization |
|
xxxx |
xxxx |
|
Profit from operation |
|
xxxx |
xxxx |
Less: |
Financial expenses: |
|
|
|
|
Interest |
|
(xxx) |
(xxx) |
|
Profit before tax |
|
xxxx |
xxxx |
Less: |
Income tax |
|
(xxx) |
(xxx) |
|
Profit from continuing operations |
|
xxxx |
xxxx |
|
Profit or loss from discontinued operation (net after tax) |
|
± xxx |
± xxx |
|
Net profit after tax |
|
xxxx |
xxxx |
|
Basic earnings per share |
|
|
|
|
Diluted Earnings per share |
|
|
|
Click on the photo for FREE eBooks
#####
Click on link for YouTube videos: |
|
Accounting Equation |
|
Basic Journal Entries in Nepali |
|
Basic Journal Entries |
|
Journal Entry and Ledger |
|
Ledger |
|
Subsidiary Book |
|
Cash Book |
|
Trial Balance & Adjusted Trial Balance |
|
Bank Reconciliation Statement (BRS) |
|
Depreciation |
|
Final Accounts: Class 11 |
|
Adjustment in Final Accounts |
|
Capital and Revenue |
|
Single Entry System |
|
Non-Trading Concern |
|
Government Accounting |
|
Goswara Voucher (Journal Voucher) |
#####
Sales revenue, turnover or service revenue
Sales revenue is the major incomes of the goods selling company.
The sales amount must include only sale of goods not sales of fixed assets.
Sales include both the cash and credit sales made during an accounting period.
Sales returns or return inward is deducted from sales.
Service revenue is the major incomes of the service providing company.
Both sales and service revenues include cash and credit sales and service.
Some electronics manufacturing companies sell the goods and provide the services.
Other incomes and gains
Company earns some incomes other than sales revenue or service revenue.
Company can sell tangible assets and investment at profit; this profit is also other income.
Some incomes and gains are given below:
Rent received |
Appreciation on assets |
Commission received |
Apprentice/trainee premium |
Interest received |
Profit on assets |
Discount received |
Unearned commission earned |
Dividend received |
Profit on sales of asset |
Compensation received |
Profit on sales of investment |
Bad debts recovered |
|
Cost of goods sold
Cost of goods sold includes the direct costs of producing the goods sold by a company.
This amount includes direct materials and direct labour directly used to produce the good.
It excludes indirect expenses, distribution expenses and sales commission.
Cost of goods sold = Beginning inventory + Net purchase – Ending inventory
Or
Cost of goods sold (COGS):
Opening stock |
×××× |
|
Purchase |
×××× |
|
Less: Purchase return |
(×××) |
|
Add: Carriage or freight on purchase |
×××× |
|
Add: Wages for loading and unloading |
×××× |
|
Less: Closing stock |
(×××) |
|
Cost of goods sold* |
×××× |
|
Operating expenses
Operating expenses mean daily, weekly, fortnightly, monthly, quarterly, half-yearly and annually expenses.
These expenses are recurring in nature.
These expenses are related to general office, administrative and selling expenses.
Non-cash expenses like depreciation and amortization are also included in operating expenses.
Some operating incomes are given below:
General and administrative expenses: |
Selling and distribution expenses: |
Salary and wages |
Carriage or freight outward |
Director’s fees |
Carriage or freight on sales |
Office rent, rates and tax |
Travelling expenses |
Printing and stationery of office |
Advertisement and publicity |
Postage and courier expenses |
Free sample |
Insurance |
Sales expenses |
Phone, mobile, internet expenses |
Packing expenses |
Bank charge |
Salary to sales girl/man/woman/agent |
Legal charge |
Commission to sales agent |
License fees |
Rent of warehouse or godown |
Audit fee |
Stationery, postage expenses of warehouse |
Staff benefits |
Phone, mobile, internet expenses |
Bonus to staff |
Insurance of warehouse |
Office lighting and power |
Trade or trading expenses |
Entertainment expenses |
Delivery expenses |
General expenses |
Bad debts |
Establishment expenses |
Discount allowed |
Commission paid |
Depreciation on warehouse assets etc. |
Manager’s commission |
|
Depreciation on office assets |
|
Written-off or amortization etc. |
|
Financial expenses
Financial expenses are related to loan obligation or borrowings.
Generally, the company takes loan from outsiders.
These outsiders are investors or creditors.
The company takes loan in the forms of debentures, bonds, bank loan, long-term debt, short-term loan etc.
The company has to pay interest on these loans according to their nature and terms.
Some financial expenses are given below:
Interest on loan |
Loss on sales of investment |
Interest on debentures or bonds |
Amortization of bonds redemption premium |
Loss on foreign exchange |
Commission and fees related to loan |
Expenses on disposal of marketable security |
Expenses related to letter of credit |
Income tax expenses
Every business firm has to pay tax to the state and central government.
Some taxes are given below:
Sales tax |
Value added tax (VAT) |
Income tax |
Goods and service tax (GST) |
Profit or loss from discontinued operation segment
Sometimes a company can stop the business of the one of its segment.
There may be different reasons for discontinued the business but major reason is bearing losses.
The company sells entire assets and settles liabilities of that discontinued segment.
While selling, there may be profit or loss.
Profit or loss from discontinued operations is distinguished from income from continuing operations.
The company has to adjust taxes on discontinued segment of the business.
It is shown after tax on income statement (profit or loss statement)
Example
ABC Company has following extracted data:
Net profit before tax from continuing operations $325,650
Net profit before tax from discontinuing operations $28,000
Book value of the discontinued segment of the business $125,000
Disposal value of the discontinued segment $132,350
Tax rate applicable 30%
Required: (1) Net profit or loss from discontinued operation after tax; (2) Net profit after tax
[Answer: NPAT = $252,700]
SOLUTION
Net profit or loss from discontinued operation after tax
Here, 30% tax means 70% profit
Net profit after tax from discontinuing operations |
$28,000 × 70% |
19,600 |
Profit on discontinuing operations |
($132,350 CSV – $125,000 BSV) × 70% |
5,145 |
Net profit from discontinued operation after tax |
$24,745 |
Extracted Income Statement
|
Particulars |
Notes |
Amount |
Amount |
|
Profit before tax |
|
|
325,650 |
Less: |
Income tax expenses (325,650 @ 30%) |
|
|
(97,695) |
|
Profit from continuing operations |
|
|
227,955 |
Add: |
Profit from discontinued operation after net tax |
|
|
24,745 |
|
Net profit after tax |
|
|
252,700 |
Basic Earnings Per Share
It measures the profit available to common stockholders on per share basis.
This ratio expresses the earning power of the company based equity shareholder viz how much amount can be paid as dividend.
More value per share is better for company.
Formula of basic earnings per share (Basic EPS)
= [(NPAT – Preference dividend) ÷ No. of outstanding common stocks]
Or
= (Earnings available to common stockholders ÷ No. of outstanding common stocks)
Diluted Earnings Per Share
Here, diluted means reduce the value of stock or share.
Diluted EPS shows the quality of earnings per share.
While calculating earnings per share, we ignore the diluted securities.
This ignorance increases the value of earnings per share.
Diluted securities are not common stocks but they can be converted to common stocks.
Diluted securities are convertible preferred stocks, convertible debentures, stock option and warrants.
By converting these securities into common stocks, they increase number of outstanding common stocks but decrease the value of basic EPS.
Thus, diluted EPS is generally lower than basic EPS.
Keep in Mind
Dilutive EPS is considered a conservative metric because it indicates a worst-case scenario in terms of EPS. |
In the rare case if there are anti-dilutive securities viz the value of diluted EPS may be higher than EPS. |
Formula of Diluted EPS
= (NPAT – PD ÷ (No. of outstanding common stocks + No. of conversion of dilutive securities)
Example
ABC Company Ltd has following extracted information:
50,000 outstanding common stocks of $10 par value at the market value of $12.
Net income after tax of the current year $200,000
30,000 convertible debentures; they can be converted into common stocks of $10 each.
Required: (a) Basic earnings per share; (b) Number of new common stocks; (c) Diluted earnings per share
[Answer: (a) $4; (b) $300,000; (c) $2.67]
SOLUTION:
(a) Basic earnings per share
= NIAT ÷ No. of common stocks
= $200,000 ÷ 50,000
= $4
(b) Number of new common stocks
Value of convertible debentures
= 30,000 x $10 face value
= $300,000
No. of new common stocks
= $300,000 ÷ $12 market value
= 25,000
(c) Diluted earnings per share
= (NPAT – PD) ÷ (No. of outstanding common stocks + No. of conversion of dilutive securities)
= ($200,000 – Nil) ÷ (50,000 + 25,000)
= $200,000 ÷ 75,000
= $2.67
Retained earnings statement is similar to profit and loss adjustment account.
Statement of retained earnings is prepared after preparation of income statement.
It is prepared for distribution of net profit amount into different purposes.
This statement is prepared to show the decision made by the board of directors regarding distribution of dividend to stockholders, stock dividend issued to stockholders.
Board of directors keeps certain part of net profit amount to different reserve funds.
This statement is also prepared to adjust provisions and expenses of previous accounting year.
These expenses are readjustment of reserve fund amount, proposed dividend etc.
Company Act does NOT specify for the preparation of retained earnings statement
Statement of Retained Earrings
Particulars |
Notes |
Year 2023 |
Year 2022 |
|
Opening retained earnings |
|
×××× |
×××× |
|
Add: |
Net profit after tax |
|
×××× |
×××× |
|
Total profit available |
|
×××× |
×××× |
Less: |
Interim dividend paid |
|
(×××) |
(×××) |
|
Dividend paid or payable on common stocks |
|
(×××) |
(×××) |
|
Dividend paid or payable on preferred stocks |
|
(×××) |
(×××) |
|
General reserve |
|
(×××) |
(×××) |
|
Capital reserve |
|
(×××) |
(×××) |
|
Dividend equalization fund |
|
(×××) |
(×××) |
|
Sinking fund |
|
(×××) |
(×××) |
|
Assets replacement fund |
|
(×××) |
(×××) |
|
Bonus shares |
|
(×××) |
(×××) |
Closing retaining earnings |
|
×××× |
×××× |
Balance sheet is not an account; it is a statement of assets and liabilities of a business organization.
It is a statement summarizing the financial position of an organization.
The balance sheet is prepared at the end or accounting period.
It is prepared after preparation income statement (manufacturing account, trading, profit and loss account).
It is the statement of balances of ledger account, which are not included in income statement.
Therefore, it is called the balance sheet.
The balance sheet contains assets and liabilities.
Liabilities refer to the financial obligation of an organisation.
Assets refer to tangible or intangible rights owned by an organisation.
Here, organisation is a firm, traders, enterprises, company etc.
Statement of Financial Position under NFRS
ABC Company Ltd
For the year ended ………………………..
Particulars |
Notes |
Year 2023 |
Year 2022 |
|
ASSETS |
|
|
|
|
Non-Current Assets: |
|
|
|
|
|
Property, plant and equipment |
|
×××× |
×××× |
|
Intangible assets |
|
×××× |
×××× |
|
Biological assets (long-term) |
|
×××× |
×××× |
|
Investment property |
|
×××× |
×××× |
|
Investment in associates* |
|
×××× |
×××× |
|
Other investment |
|
×××× |
×××× |
|
Long-term receivable (notes receivable) |
|
×××× |
×××× |
|
Deferred tax assets |
|
×××× |
×××× |
|
Total non-current assets (A) |
|
×××× |
×××× |
Current Assets: |
|
|
|
|
|
Inventories |
|
×××× |
×××× |
|
Trade receivable (debtor, B/R, A/R) |
|
×××× |
×××× |
|
Cash and cash equivalent |
|
×××× |
×××× |
|
Marketable securities |
|
×××× |
×××× |
|
Income tax receivable (refund of tax) |
|
×××× |
×××× |
|
Other receivables |
|
×××× |
×××× |
|
Asset held for sale (sell this year) |
|
×××× |
×××× |
|
Total current assets (B) |
|
×××× |
×××× |
|
TOTAL ASSETS (A+B) |
|
××××× |
××××× |
|
|
|
|
|
EQUITY |
|
|
|
|
|
Equity share capital |
|
×××× |
×××× |
|
Reserve and funds |
|
×××× |
×××× |
|
Retained earnings |
|
×××× |
×××× |
|
Preference share capital |
|
×××× |
×××× |
|
Non-controlling interest (minority interest) |
|
×××× |
×××× |
|
Total Equity |
|
×××× |
×××× |
|
|
|
|
|
LIABILITIES |
|
|
|
|
Non-Current Liabilities: |
|
|
|
|
|
Loan and borrowings (long-term) |
|
×××× |
×××× |
|
Employees benefits |
|
×××× |
×××× |
|
Government grants |
|
×××× |
×××× |
|
Derivative financial liabilities |
|
×××× |
×××× |
|
Provisions (long-term) |
|
×××× |
×××× |
|
Deferred tax liabilities |
|
×××× |
×××× |
|
Total non-current liabilities (a) |
|
×××× |
×××× |
Current Liabilities: |
|
|
|
|
|
Loan and borrowings (short term) |
|
×××× |
×××× |
|
Trade payables (creditor, B/P, A/P) |
|
×××× |
×××× |
|
Income tax liability |
|
×××× |
×××× |
|
Employees benefits |
|
×××× |
×××× |
|
Provisions (short-term) |
|
×××× |
×××× |
|
Other payables |
|
×××× |
×××× |
|
Liability of asset held for sale |
|
×××× |
×××× |
|
Total current liabilities (b) |
|
×××× |
×××× |
|
Total Liabilities (a+b) |
|
×××× |
×××× |
|
TOTAL EQUITY AND LIABILITIES |
|
××××× |
××××× |
The assets side of the balance sheet contents different types of assets; they are explained below:
ASSETS
Non-current assets
Non-current assets are also known as fixed assets or tangible assets.
These assets have life more than one year and higher value.
These assets are depreciated according to their working life or value.
Non-current assets include:
Property, plant and equipment |
Intellectual assets (patents, copyrights, trademark) |
Land and building |
Biological assets (plants, trees, animals) |
Plant and machinery |
Investment property |
Vehicles |
Investment in associates* |
Furniture and fitting |
Other investment |
Equipment |
Long-term receivable (notes receivable) |
Intangible assets (goodwill) |
Deferred tax assets |
Keep in Mind
Depreciation or accumulated depreciation is deducted from related tangible asset. |
Amortization or written off is deducted from related intangible asset. |
When a company takes 20% to 50% equity shares of other company, it is known as investment in associates* |
Current assets
Current asset means asset can be converted into cash within one year.
Cash is receivable within one year.
Expense limit expires within one year.
Current assets include:
Cash and cash equivalent |
Account receivable |
Inventories |
Bank balance |
Bills receivable |
Merchandise |
Advance expenses |
Notes receivable |
Closing stock |
Prepaid expenses |
Debtors and customers |
Other current assets |
Short-term investment |
|
|
Click on the photo for FREE eBooks
#####
Click on link for YouTube videos |
|
Accounting Equation |
|
Journal Entries in Nepali |
|
Journal Entries |
|
Journal Entry and Ledger |
|
Ledger |
|
Subsidiary Book |
|
Cashbook |
|
Trial Balance and Adjusted Trial Balance |
|
Bank Reconciliation Statement (BRS) |
|
Depreciation |
|
|
|
Click on link for YouTube videos chapter wise |
|
Financial Accounting and Analysis (All videos) |
|
Accounting Process |
|
Accounting for Long Lived Assets |
|
Analysis of Financial Statement |
#####
Equity or shareholders’ equity
Shareholders’ equity or stockholders’ equity is one of the major sections of a corporation’s balance sheet.
It is the difference between the reported amounts of an organization’s assets and liabilities.
Stockholders’ equity includes:
Common stocks |
Capital reserve |
Preferred stocks |
General reserve |
Additional paid-in capital (share premium or security premium) |
Treasury stock, if any |
Retained earnings |
|
Non-current liabilities (long-term liabilities)
Non-current liabilities are the long-term debt.
These liabilities are paid in more than one year.
Sometime, this time may be thirty years.
Non-current liabilities include:
Debentures |
Deferred tax liabilities |
Bonds |
Long-term lease and obligations |
Bonds payable |
Pension benefits obligations |
Long-term loans |
Other non-current assets |
Long-term debt |
|
Note: if the portion of a bond payable matures within an accounting period, that portion becomes current liability.
Current liabilities
Current liabilities mean a liability should be paid or settled within one year.
Current liabilities include:
Account payable, bills payable |
Advance incomes, advance received |
Creditors, suppliers, vendors |
Advance on sales |
Notes payable |
Income tax payable |
Bank overdraft |
Dividend payable |
Short-term loan |
Interest payable |
Outstanding expenses |
Calls in advance |
Expenses payable, expenses due |
Unclaimed dividend |
|
Other current liabilities |
Arjun EP
EP Online Study
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Please comment on the article.
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The post Income Statement under NFRS | Balance Sheet under NFRS | EXPLANATION appeared first on EP Online Study.
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Classification of Accounting Standards
(1) Nepal Accounting Standards (NAS)
Accounting Standards Board Nepal has developed Nepal Accounting Standards (NAS) under the Nepal Chartered Accountants Act 1997 (ICAN).
Accounting Standards Board Nepal (ASB Nepal) has developed NAS on the basis of International Financial Reporting Standards (IFRS).
The Government of Nepal established Accounting Standards Board (ASB) in March 2003.
Since 2007, ASB has also entrusted by Nepal Government with the responsibility to develop accounting standards for public sector in line with the International Public Sector Accounting Standards (IPASs).
ASB has developed a number of NAS which were based on equivalent IFRS.
It is responsible to set accounting standards for preparation and presentation of financial statements in Nepal.
It is an independent statutory body.
It is sets of accounting and financial reporting standards for business enterprises in Nepal.
NAS does so in line with the Interactional Financial Reporting Standards (IFRS) and International Accounting Standard Board (IASB).
Recently, ASB Nepal has prepared the Exposure Draft of Nepal Public Sector Accounting Standards (NPSAS) for public sector in line with IPSAS 2017 cash basis as per the request of Financial Comptroller of General Office (FCGO).
Objectives of NAS
(a) To formulate accounting standards in line with IFRS issued by IASB.
(b) Full discretion in developing and pursuing the technical agenda for setting Accounting Standards in Nepal
Keep in mind
The list of NAS contains: |
NAS 1: Presentation of Financial Statements |
NAS 2: Inventories |
NAS 7: Statement of Cash Flows |
NAS 8: Accounting Policies, Changes in Accounting Estimates and Error |
NAS10: Events after the Reporting Period |
NAS 11: Construction Contracts |
NAS 12: Income Taxes |
NAS 16: Property, Plant & Equipment |
NAS 17: Leases |
NAS 18: Revenue |
NAS 19: Employee Benefits |
NAS 20: Accounting for Government Grants and Disclosure of Government Assistance |
NAS 21: The Effects of Changes in Foreign Exchange Rates |
NAS 23: Borrowing Cost |
NAS 24: Related Party Disclosures |
NAS 26: Accounting & Reporting by Retirement Benefit Plans |
NAS 27: Consolidated & Separate Financial Statements |
NAS 28: Investments in Associates |
NAS 32: Financial Instruments: Presentation |
NAS 33: Earnings Per Share |
NAS 34: Interim Financial Reporting |
NAS 36: Impairment of Assets |
NAS 37: Provisions, Contingent Liabilities & Contingent Assets |
NAS 38: Intangible Assets |
NAS 39: Financial Instruments: Recognition & Measurements |
NAS 40: Investment Property |
NAS 41: Agriculture |
Click on book cover for Free eBooks
#####
Click on link for YouTube videos: |
|
Accounting Equation |
|
Basic Journal Entries in Nepali |
|
Basic Journal Entries |
|
Journal Entry and Ledger |
|
Ledger |
|
Subsidiary Book |
|
Cash Book |
|
Trial Balance & Adjusted Trial Balance |
|
Bank Reconciliation Statement (BRS) |
|
Depreciation |
|
Final Accounts: Class 11 |
|
Adjustment in Final Accounts |
|
Capital and Revenue |
|
Single Entry System |
|
Non-Trading Concern |
|
Government Accounting |
|
Goswara Voucher (Journal Voucher) |
#####
(2) International Accounting Standards (IAS)
IAS was the first international accounting standards.
The International Accounting Standards Committee (IASC) issued them in 1973.
It is an independent international standard-setting body based in London.
The goal of IAS is to make easier to compare businesses around the world, increase transparency and trust in financial reporting, and foster (raise) global trade and investment.
This remains today also.
IAS enables investors and other market participants to make economic decisions about their investment opportunities.
IAS reduces reporting and regulatory costs, especially for companies with international operations and subsidiaries in multiple countries.
The International Financial Reporting Standards (IFRS) replaced IAS in 2001.
At present more than 166 nations adopted IFRS for their domestic companies which are listed on stock exchange; the United States, Japan, and China are the only major capital markets without an IFRS mandate.
The U.S. accounting standards body has been collaborating with the Financial Accounting Standards Board (FASB) since 2002 to improve and coverage American GAAP and IFRS.
Keep in mind
The list of IAS contains: |
IAS 1: Presentation of Financial Statements |
IAS 2: Valuation of Inventories |
IAS 7: Cash Flow Statement |
IAS 8: Accounting Policies, Changes in Accounting Estimates and Errors |
IAS 10: Events after Reporting Period |
IAS 11: Construction Contracts |
IAS 12: Income Taxes |
IAS 14: Reporting Financial Information by Segments |
IAS 15: Information reflecting the effects of Changing Prices |
IAS 16: Property, Plant and Equipment |
IAS 17: Leases |
IAS 18: Revenue |
IAS 19: Employees Benefits |
IAS 20: Accounting for Government Grants and Disclosure of Government Assistance |
IAS 21: The Effects of Changes in Foreign Exchange Rates |
IAS 22: Business Combinations |
IAS 23: Borrowing Costs |
IAS 24: Related Party Disclosure |
IAS 26: Accounting and Reporting by Retirement Benefits Plans |
IAS 27: Separate Financial Statements |
IAS 28: Investments in Associates and Joint Ventures |
IAS 29: Financial Reporting in Hyperinflationary Economics |
IAS 30: Disclosure of Financial Statement and Banks and Similar Financial Institutions |
IAS 31: Financial Reporting of Interests in Joint Ventures |
IAS 32: Financial Instruments: Presentations |
IAS 33: Earning per Share |
IAS 34: Interim Financials Reporting |
IAS 35: Discontinuing Operations |
IAS 36: Impairment of Assets |
IAS 37: Provisions, Contingent Liabilities and Contingent Assets |
IAS 38: Intangible Assets |
IAS 39: Financial Instruments: Recognition and Measurement |
IAS 40: Investment Property |
IAS 41: Agriculture. |
#####
Click on link for YouTube videos |
|
Accounting for Share |
|
Share in Nepali |
|
Debentures |
|
Final Accounts: Class 12 |
|
Final Accounts in Nepali |
|
Work Sheet |
|
Ratio Analysis (Accounting Ratio) |
|
Fund Flow Statement |
|
Cash Flow Statement |
|
Theory Accounting Xii |
|
Theory: Cost Accounting |
|
Cost Accounting |
|
LIFO−FIFO |
|
Cost Sheet, Unit Costing |
|
Cost Reconciliation Statement |
#####
(3) Nepal Financial Reporting Standards (NFRS)
NFRS is a common set of accounting standards and reporting language.
Nepal Accounting Standard Board issued NFRS in 2013.
NFRS is prepared in the line of IFRS.
It aims to bring a common base for presentation, measurement, treatments and disclosure of financial events.
NABS published NFRS subjecting the diversity of business scenario and accounting complexity.
There are 40 standards issued by Accounting Standard Board and implemented by Institute of Chartered Accountant of Nepal (ICAN).
ICAN has made it mandatory (compulsory) for listed multinational companies.
ICAN has also made it mandatory for all financial institutions and Nepali listed companies who have minimum paid up capital of Rs 5 crore from fiscal year 2016/17.
Keep in mind
The list of NFRS contains: |
NFRS 1: First Time Adoption of Nepal Financial Reporting Standards |
NFRS 2: Share-based payment |
NFRS 3: Business Combination |
NFRS 4: Insurance Contracts |
NFRS 5: Non-Current Assets Held for Sale & Discontinued Operation |
NFRS 6: Exploration for and Evaluation of Mineral Resource |
NFRS 7: Financial Instruments: Disclosures |
NFRS 8: Operation Segments |
NFRS 9: Financial Instrument |
NFRS 10: Consolidated Financial Statements |
NFRS 11: Joint Arrangements |
NFRS 12: Disclosure of Interest in Other Entities |
NFRS 13: Fair Value Measurement |
Click on book cover for Free eBooks
#####
Click on link for YouTube videos |
|
Accounting Equation |
|
Journal Entries in Nepali |
|
Journal Entries |
|
Journal Entry and Ledger |
|
Ledger |
|
Subsidiary Book |
|
Cashbook |
|
Trial Balance and Adjusted Trial Balance |
|
Bank Reconciliation Statement (BRS) |
|
Depreciation |
|
|
|
Click on link for YouTube videos chapter wise |
|
Financial Accounting and Analysis (All videos) |
|
Accounting Process |
|
Accounting for Long Lived Assets |
|
Analysis of Financial Statement |
#####
(4) International Financial Reporting Standards (IFRS)
International Financial Reporting Standards (IFRS) are practically principle-based standards interpretations
International Accounting Standard Boards adopts framework of IFRS.
The International Accounting Standards Board (IASB) took the responsibility to set the various International Accounting Standards from the IASC.
IASB will continue to develop various needed standards which are popularly known as IFRS.
In short, IFRS are the sets of accounting standards which are developed by the IASB.
These standards are global standards in order to prepare the financial statement of Joint Stock Company.
At present more than 166 nations adopted IFRS for their domestic companies which are listed on stock exchange.
Of them, 140 countries have totally conformed to IFRS which are promulgated by IASB.
IFRS includes a statement acknowledging such conformity in their audit reports.
Nepal has adopted IFRS in March 2014.
As such Nepali listed companies are trying to achieve the important milestones while adopting various clauses of the regulations of IFRSs.
Advantage for the conversion from IAS to IFAS:
(a) IFRS helps to raise foreign capital since both the countries use IFRS for their allocating standards i.e. the basis is same.
(b) IFRS helps to present its financial statements in international basis; it becomes easy to comparison.
(c) Subsidiary of a foreign company must use IFRS if its parent company using IFRS.
(d) It helps the foreign investors to invest who are using IFRS.
(e) IFRS uses only English language for its work; it becomes easy to work in case of a foreign company having subsidiary in other countries.
Disadvantages of IFRS
The IFRS is not free from difficulties; some problems are:
(a) Some IFRS issuers resist IFRS because there is not any market incentive for the preparation of IFRS financial statements.
(b) Adopting IFRS is very costly.
(c) IFRS charges cost to conversation.
(e) There is potential impact on banking agreements.
(d) There are hidden dangers compliance with IFRS such as data capture, embedded derivatives, burden on resources, possible system changes etc.
Keep in mind
The difference between International Accounting Standard (IAS) and International Financial Reporting Standard (IFRS) |
IAS and IRRS are the same. |
The difference between them is that IAS represents old accounting standard, IFRS represents new accounting standard. |
Such as IAS 17 Leases while IFRS 16 Leases. |
IFRS 16 replaces IAS 17 effective from 1 January 2019. |
Arjun EP
EP Online Study
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Please comment on the article.
You can help us by sharing this post on your social media platform.
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The post Financial Statement under NFRS| Classification of Accounting Standards appeared first on EP Online Study.
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]]>
In Devanagari (Hindi and Nepali), we study swar, vyanjak, a aa i ee, ka kha ga gha, ka kaa ki kee, barahkhadi, kra khra gra
ABCD in Devanagari
देवनागरी एबीसीडी
A |
B |
C |
D |
E |
F |
G |
H |
I |
J |
K |
a |
b |
c |
d |
e |
f |
g |
h |
i |
j |
k |
ए |
बी |
सी |
डी |
इ |
एफ |
जी |
एच |
आय, आइ |
जे |
के |
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L |
M |
N |
O |
P |
Q |
R |
S |
T |
U |
V |
l |
m |
n |
o |
p |
q |
r |
s |
t |
u |
v |
एल |
एम |
एन |
ओ |
पी |
क्यु |
आर |
एस |
टी |
यु |
वी |
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W |
X |
Y |
Z |
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w |
x |
y |
z |
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डब्ल्यु |
एक्स |
वाई |
जेड |
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Click on the photo for FREE eBooks
Vowel वाउ-अल (वोवेल) = स्वर
अ |
आ |
इ |
ई |
उ |
ऊ |
ए |
ऐ |
ओ |
औ |
अं |
अ: |
a |
aa |
i |
ee |
u |
oo |
e |
ai |
o |
au |
an |
anh |
|
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Consonant कॅन्-स-नन्ट (कन्सो-नेंट) = व्यंजक
क |
ख |
ग |
घ |
ङ |
ka |
kha |
ga |
gha |
nga |
|
|
|
|
|
च |
छ |
ज |
झ |
ञ |
cha |
chha |
ja |
jha |
nya |
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ट |
ठ |
ड |
ध |
न |
ta |
tha |
da |
dha |
na |
|
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प |
फ |
ब |
भ |
म |
pa |
fa, pha |
ba |
bha |
ma |
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य |
र |
ल |
व |
श |
ya |
ra |
la |
va, wa |
sha |
|
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ष |
स |
ह |
क्ष |
त्र |
sha |
sa |
ha |
ksha |
tra |
|
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ज्ञ |
|
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|
gya |
|
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|
Keep in mind
क = ka, qua, ch |
Ch = क, च, छ, श [cha च, chha छ, chemistry केमिस्ट्री, chef शेफ |
कंचन Kanchan, कंपन kampan, कंपनी company |
#####
Click on link for YouTube videos |
|
Accounting for Share |
|
Share in Nepali |
|
Debentures |
|
Final Accounts: Class 12 |
|
Final Accounts in Nepali |
|
Work Sheet |
|
Ratio Analysis (Accounting Ratio) |
|
Fund Flow Statement |
|
Cash Flow Statement |
|
Theory Accounting Xii |
|
Theory: Cost Accounting |
|
Cost Accounting |
|
LIFO−FIFO |
|
Cost Sheet, Unit Costing |
|
Cost Reconciliation Statement |
#####
बारहखड़ी (Barahkhadi)
क |
का |
कि |
की |
कु |
कू |
के |
कै |
को |
कौ |
कं |
क: |
ka |
kaa |
ki |
kee |
ku |
koo |
ke |
kai |
ko |
kau |
kan |
kah |
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ख |
खा |
खि |
खी |
खु |
खू |
खे |
खै |
खो |
खौ |
खं |
ख: |
kha |
khaa |
khi |
kee |
khu |
koo |
khe |
khai |
kho |
khau |
khan |
khah |
|
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ग |
गा |
गि |
गी |
गु |
गू |
गे |
गै |
गो |
गौ |
गं |
ग: |
ga |
gaa |
gi |
gee |
gu |
goo |
ge |
gai |
go |
gau |
gan |
gah |
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|
|
घ |
घा |
घि |
घी |
घु |
घू |
घे |
घै |
घो |
घौ |
घं |
घः |
gha |
ghaa |
ghi |
ghee |
ghu |
ghoo |
ghe |
ghai |
gho |
ghau |
ghan |
ghah |
|
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|
ङ |
ङा |
ङि |
ङी |
ङु |
ङू |
ङे |
ङै |
ङो |
ङौ |
ङं |
ङ: |
nga |
ngaa |
ngi |
ngee |
ngu |
ngoo |
nge |
ngai |
ngo |
ngau |
ngan |
ngah |
|
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|
च |
चा |
चि |
ची |
चु |
चू |
चे |
चै |
चो |
चौ |
चं |
च: |
cha |
chaa |
chi |
chee |
chu |
choo |
che |
chai |
cho |
chau |
chan |
chah |
|
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छ |
छा |
छि |
छी |
छु |
छू |
छे |
छै |
छो |
छौ |
छं |
छ: |
chha |
chhaa |
chhi |
chhee |
chhu |
chhoo |
chhe |
chhai |
chho |
chhau |
chhan |
chhah |
|
|
|
|
|
|
|
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|
|
|
ज |
जा |
जि |
जी |
जु |
जू |
जे |
जै |
जो |
जौ |
जं |
ज: |
ja |
jaa |
ji |
jee |
ju |
joo |
je |
jai |
jo |
jau |
jan |
jah |
|
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|
|
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झ |
झा |
झि |
झी |
झु |
झू |
झे |
झै |
झो |
झौ |
झं |
झ: |
jha |
jhaa |
jhi |
jhee |
jhu |
jhoo |
jhe |
jhai |
jho |
jhau |
jhan |
jhah |
|
|
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|
|
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|
|
|
|
ञ |
ञा |
ञि |
ञी |
ञु |
ञू |
ञे |
ञै |
ञो |
ञौ |
ञं |
ञ: |
na |
naa |
ni |
nee |
nu |
noo |
ne |
nai |
no |
nau |
nan |
nah |
|
|
|
|
|
|
|
|
|
|
|
|
ट |
टा |
टि |
टी |
टु |
टू |
टे |
टै |
टो |
टौ |
टं |
ट: |
ta |
taa |
ti |
tee |
tu |
too |
te |
tai |
to |
tau |
tan |
tah |
|
|
|
|
|
|
|
|
|
|
|
|
ठ |
ठा |
ठि |
ठी |
ठु |
ठू |
ठे |
ठै |
ठो |
ठौ |
ठं |
ठ: |
tha |
thaa |
thi |
thee |
thu |
thoo |
the |
thai |
tho |
thau |
than |
thah |
|
|
|
|
|
|
|
|
|
|
|
|
ड |
डा |
डि |
डी |
डु |
डू |
डे |
डै |
डो |
डौ |
डं |
ड: |
da |
daa |
di |
dee |
du |
doo |
de |
dai |
do |
dau |
dan |
dah |
|
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|
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|
|
|
|
ढ |
ढा |
ढि |
ढी |
ढु |
ढू |
ढे |
ढै |
ढो |
ढौ |
ढं |
ढ: |
dha |
dhaa |
dhi |
dhee |
dhu |
dhoo |
dhe |
dhai |
dho |
dhau |
dhan |
dhah |
|
|
|
|
|
|
|
|
|
|
|
|
ण |
णा |
णि |
णी |
णु |
णू |
णे |
णै |
णो |
णौ |
णं |
ण: |
na |
naa |
ni |
nee |
nu |
noo |
ne |
nai |
no |
nau |
nan |
nah |
|
|
|
|
|
|
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|
|
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|
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त |
ता |
ति |
ती |
तु |
तू |
ते |
तै |
तो |
तौ |
तं |
त: |
ta |
taa |
ti |
tee |
tu |
too |
te |
tai |
to |
tau |
tan |
tah |
|
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|
|
|
|
थ |
था |
थि |
थी |
थु |
थू |
थे |
थै |
थो |
थौ |
थं |
थ: |
tha |
thaa |
thi |
thee |
thu |
thoo |
the |
thai |
tho |
thau |
than |
thah |
|
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|
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|
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|
|
|
द |
दा |
दि |
दी |
दु |
दू |
दे |
दै |
दो |
दौ |
दं |
द: |
da |
daa |
di |
dee |
du |
doo |
de |
dai |
do |
dau |
dan |
dah |
|
|
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|
|
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|
|
|
|
ध |
धा |
धि |
धी |
धु |
धू |
धे |
धै |
धो |
धौ |
धं |
ध: |
dha |
dhaa |
dhi |
dhee |
dhu |
dhoo |
dhe |
dhai |
dho |
dhau |
dhan |
dhah |
|
|
|
|
|
|
|
|
|
|
|
|
न |
ना |
नि |
नी |
नु |
नू |
ने |
नै |
नो |
नौ |
नं |
न: |
na |
naa |
ni |
nee |
nu |
noo |
ne |
nai |
no |
nau |
nan |
nah |
|
|
|
|
|
|
|
|
|
|
|
|
प |
पा |
पि |
पी |
पु |
पू |
पे |
पै |
पो |
पौ |
पं |
प: |
pa |
paa |
pi |
pee |
pu |
poo |
pe |
pai |
po |
pau |
pan |
pah |
|
|
|
|
|
|
|
|
|
|
|
|
फ |
फा |
फि |
फी |
फु |
फू |
फे |
फै |
फो |
फौ |
फं |
फ: |
fa |
faa |
fi |
fee |
fu |
foo |
fe |
fai |
fo |
fau |
fan |
fah |
pha |
phaa |
phi |
phee |
phu |
phoo |
phe |
phai |
pho |
phau |
phan |
phah |
|
|
|
|
|
|
|
|
|
|
|
|
ब |
बा |
बि |
बी |
बु |
बू |
बे |
बै |
बो |
बौ |
बं |
ब: |
ba |
baa |
bi |
bee |
bu |
boo |
be |
bai |
bo |
bau |
ban |
bah |
|
|
|
|
|
|
|
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|
|
|
भ |
भा |
भि |
भी |
भु |
भू |
भे |
भै |
भो |
भौ |
भं |
भ: |
bha |
bhaa |
bhi |
bhee |
bhu |
bhoo |
bhe |
bhai |
bho |
bhau |
bhan |
bhah |
|
|
|
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|
|
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|
|
म |
मा |
मि |
मी |
मु |
मू |
मे |
मै |
मो |
मौ |
मं |
म: |
ma |
maa |
mi |
mee |
mu |
moo |
me |
mai |
mo |
mau |
man |
mah |
य |
या |
यि |
यी |
यु |
यू |
ये |
यै |
यो |
यौ |
यं |
य: |
ya |
yaa |
yi |
yee |
yu |
yoo |
ye |
yai |
yo |
yau |
yan |
yah |
|
|
|
|
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|
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|
|
र |
रा |
रि |
री |
रु |
रू |
रे |
रै |
रो |
रौ |
रं |
र: |
ra |
raa |
ri |
ree |
ru |
roo |
re |
rai |
ro |
rau |
ran |
rah |
|
|
|
|
|
|
|
|
|
|
|
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ल |
ला |
लि |
ली |
लु |
लू |
ले |
लै |
लो |
लौ |
लं |
ल: |
la |
laa |
li |
lee |
lu |
loo |
le |
lai |
lo |
lau |
lan |
lah |
|
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|
|
|
|
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|
|
|
|
व |
वा |
वि |
वी |
वु |
वू |
वे |
वै |
वो |
वौ |
वं |
व: |
va |
vaa |
vi |
vee |
vu |
voo |
ve |
vai |
vo |
vau |
van |
vah |
wa |
waa |
wi |
wee |
wu |
woo |
we |
wai |
wo |
wau |
wan |
wah |
|
|
|
|
|
|
|
|
|
|
|
|
श |
शा |
शि |
शी |
शु |
शू |
शे |
शै |
शो |
शौ |
शं |
श: |
sha |
shaa |
shi |
shee |
shu |
shoo |
she |
shai |
sho |
shau |
shan |
shah |
ष |
षा |
षि |
षी |
षु |
षू |
षे |
षै |
षो |
षौ |
षं |
ष: |
sha |
shaa |
shi |
shee |
shu |
shoo |
she |
shai |
sho |
shau |
shan |
shah |
|
|
|
|
|
|
|
|
|
|
|
|
स |
सा |
सि |
सी |
सु |
सू |
से |
सै |
सो |
सौ |
सं |
स: |
sa |
saa |
si |
see |
su |
soo |
he |
sai |
so |
sau |
san |
sah |
|
|
|
|
|
|
|
|
|
|
|
|
ह |
हा |
हि |
ही |
हु |
हू |
हे |
है |
हो |
हौ |
हं |
ह: |
ha |
haa |
hi |
hee |
hu |
hoo |
he |
hai |
ho |
hau |
han |
hah |
|
|
|
|
|
|
|
|
|
|
|
|
क्ष |
क्षा |
क्षि |
क्षी |
क्षु |
क्षू |
क्षे |
क्षै |
क्षो |
क्षौ |
क्षं |
क्ष: |
ksha |
kshaa |
kshi |
skhee |
kshu |
kshoo |
kshe |
kshai |
ksho |
kshau |
kshan |
kshah |
|
|
|
|
|
|
|
|
|
|
|
|
त्र |
त्रा |
त्रि |
त्री |
त्रु |
त्रू |
त्रे |
त्रै |
त्रो |
त्रौ |
त्रं |
त्र: |
tra |
Traa |
tri |
tree |
tru |
troo |
tre |
trai |
tro |
trau |
tran |
trah |
|
|
|
|
|
|
|
|
|
|
|
|
ज्ञ |
ज्ञा |
ज्ञि |
ज्ञी |
ज्ञु |
ज्ञू |
ज्ञे |
ज्ञै |
ज्ञो |
ज्ञौ |
ज्ञं |
ज्ञ: |
gya |
gyaa |
gyi |
gyee |
gyu |
gyoo |
gye |
gyai |
gyo |
gyau |
gyan |
gyah |
|
|
|
|
|
|
|
|
|
|
|
|
#####
Click on the link for YouTube videos: |
|
Accounting Equation |
|
Basic Journal Entries in Nepali |
|
Basic Journal Entries |
|
Journal Entry and Ledger |
|
Ledger |
|
Subsidiary Book |
|
Cash Book |
|
Trial Balance & Adjusted Trial Balance |
|
Bank Reconciliation Statement (BRS) |
|
Depreciation |
|
Final Accounts: Class 11 |
|
Adjustment in Final Accounts |
|
Capital and Revenue |
|
Single Entry System |
|
Non-Trading Concern |
|
Government Accounting |
|
Goswara Voucher (Journal Voucher) |
######
क्र, ख्र, ग्र (Kra, Khra, Gra)
क्र |
ख्र |
ग्र |
घ्र |
च्र |
छ्र |
ज्र |
झ्र |
ट्र |
ड्र |
थ्र |
द्र |
kra |
khra |
gra |
ghra |
chra |
chhra |
jra |
jhra |
tra |
dra |
thra |
dra |
|
|
|
|
|
|
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|
|
|
|
|
ध्र |
न्र |
प्र |
फ्र |
ब्र |
भ्र |
म्र |
य्र |
ल्र |
व्र |
ह्र |
त्र |
dha |
nra |
pra |
fra |
bra |
bhra |
mra |
yra |
lra |
vra |
hra |
tra |
|
|
|
|
|
|
|
|
|
|
|
|
कृ |
गृ |
घृ |
तृ |
दृ |
नृ |
पृ |
मृ |
वृ |
सृ |
श्री |
|
kri |
gri |
ghri |
tri |
dri |
nri |
pri |
mri |
vri |
sri |
shree |
|
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|
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|
|
EP Online Study
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Jay Google, Jay YouTube, Jay Social Media
जय गूगल. जय युट्युब, जय सोशल मीडिया
The post Swar | Vyanjak | A Aa I Ee | Ka Kha Ga Gha | Ka Kaa Ki Kee | Barahkhadi | Kra Khra Gra appeared first on EP Online Study.
]]>The post ABCD | British Phonetic ABCD | American Phonetic ABCD | ABCD in Devanagari appeared first on EP Online Study.
]]>
In ABCD, we will study Normal ABCD in capital letters and small letters, Phonetic ABCD, New Phonetic ABCD and ABCD in Devanagari.
A |
B |
C |
D |
E |
F |
G |
H |
I |
J |
K |
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L |
M |
N |
O |
P |
Q |
R |
S |
T |
U |
V |
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W |
X |
Y |
Z |
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a |
b |
c |
d |
e |
f |
g |
h |
i |
j |
k |
|
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|
|
|
|
|
|
|
|
|
l |
m |
n |
o |
p |
q |
r |
s |
t |
u |
v |
|
|
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w |
x |
y |
z |
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Click on the photo for FREE eBooks
ब्रिटिश फनेटिक (फोनेटिक) एबीसीडी
eɪ |
biː |
siː |
diː |
iː |
ef |
dʒiː |
eɪtʃ |
aɪ |
dʒeɪ |
keɪ |
A |
B |
C |
D |
E |
F |
G |
H |
I |
J |
K |
|
|
|
|
|
|
|
|
|
|
|
el |
em |
en |
əʊ |
piː |
kjuː |
ɑː(r) |
es |
tiː |
juː |
viː |
L |
M |
N |
O |
P |
Q |
R |
S |
T |
U |
V |
|
|
|
|
|
|
|
|
|
|
|
ˈdʌbljuː |
eks |
waɪ |
zed |
|
|
|
|
|
|
|
W |
X |
Y |
Z |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
#####
Click on the link for YouTube videos: |
|
Accounting Equation |
|
Basic Journal Entries in Nepali |
|
Basic Journal Entries |
|
Journal Entry and Ledger |
|
Ledger |
|
Subsidiary Book |
|
Cash Book |
|
Trial Balance & Adjusted Trial Balance |
|
Bank Reconciliation Statement (BRS) |
|
Depreciation |
|
Final Accounts: Class 11 |
|
Adjustment in Final Accounts |
|
Capital and Revenue |
|
Single Entry System |
|
Non-Trading Concern |
|
Government Accounting |
|
Goswara Voucher (Journal Voucher) |
######
अमेरिकन फनेटिक (फोनेटिक) एबीसीडी
eɪ |
biː |
siː |
diː |
iː |
ef |
dʒiː |
eɪtʃ |
aɪ |
dʒeɪ |
keɪ |
A |
B |
C |
D |
E |
F |
G |
H |
I |
J |
K |
|
|
|
|
|
|
|
|
|
|
|
el |
em |
en |
oʊ |
piː |
kjuː |
ɑːr |
es |
tiː |
juː |
viː |
L |
M |
N |
O |
P |
Q |
R |
S |
T |
U |
V |
|
|
|
|
|
|
|
|
|
|
|
ˈdʌbljuː |
eks |
waɪ |
ziː |
|
|
|
|
|
|
|
W |
X |
Y |
Z |
|
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|
Keep in Mind (KIM)
Normal |
British |
American |
|
O |
əʊ |
oʊ |
|
R |
ɑː(r) |
ɑːr |
Note: all the others alphabets are same in British and American |
Z |
zed |
ziː |
|
न्यु फनेटिक (फोनेटिक) एबीसीडी
ay |
bee |
see |
dee |
ee |
ef |
jee |
aych |
ī |
jay |
kay |
A |
B |
C |
D |
E |
F |
G |
H |
I |
J |
K |
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The Half-closed Eyes of the Buddha and the Slowly Sinking Sun | All Solution | NEB English Class 12 | Short Story Q&A
(In Alphabetical order)
Adinath (n): name of the Lord Shiva
adrift (adj): a boat moving on the water uncontrolled
adrift (v): cut off from something
alleyway (n): street, footpath
alms (n): money or goods given to the poor as charity
appetite (n): hunger; desire
arid (adj): too dry or barren to support vegetation
atmosphere (n): environment
bestowed (v): provided; given; granted
blister (n) a small bubble on the skin filled with serum and caused by friction and burning
chisel (n): wood, stone or metal shaping tool made of iron
Chobhar (n): a village in Kathmandu
cleft (n): fracture or split on the rock
cling (v): grip, hold
coexistence (n): living or existing at the same time or in the same place
confine (n): edge, brim
congealed (adj): having become semisolid
contamination (n): impurity; adulteration
courtyard (n): verandah; square
deities (n): god and goddess
devoid (adj): empty; free from
dizzy (adj): faint; giddy
embrace (v, n): cuddle, hug
emulate (v): imitate; copy; mimic
enchantment (n): charm, magic
enclosure (n): act of enclosing.
endeavor (v): try hard to do
endure (v): suffer pain or difficulty patiently
every nook and cranny (idiom): every place; everywhere
extinguish (v): cease to burn or shine
Four Passes (n.): Chaar Bhanjyang (Older name of the Kathmandu Valley)
garble (v): manipulate; misrepresent
gaze (v, n): look steadily and intently, especially in admiration, surprise or thought; stare
gleam (v): shine brightly
heed (v): pay attention to; take notice of
incarnation (n): avatar; person who embodies in the flesh a deity, spirit or abstract quality
indebted (adj): grateful, obliging
indulgence (n): addiction; fascination
inscribed (adj): engraved; marked with characters and letters
inscriptions (n) record
insignificance (v): seem unimportant
lattice (n, adj): web structure; jaalo
multifarious (adj): many and of various types
multifarious (adj.): many and of various types
obscure (v): unclear; darken
peasant (n): farmer
perceive (v): observe; notice
perception (n): judgment; ability to see through sense
perhaps (adv): may be; probably
preach (n): moral lecture; religion lecture
preordain (v): predetermine
prosperous (adj): rich, successful
ribald (adj): rude; impolite; ribald (n)
shrine of Shiva (n): temple of Shiva
sight (n): power of seeing
smear (v): spread
strike (v): hit
unabashed (adj): immovable; calm; stable
virtue (n): morality, good behavior
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The tourist
A Westerner guest who holds aesthetic vision regarding Nepal based on her study in history, culture and religion.
The guide
A Nepalese tourist guide having good knowledge about the Nepalese art, culture, geography and religion but has a feeling of inferiority in comparison to the westerners.
A farmer family
A farmer family is living in a remote village; they have high faith, intimacy, kindliness and gratitude in themselves.
A paralyzed child
A boy who suffers from Polio disorder; neither he can speak properly nor he can move his body parts except his eyes.
The Half-closed Eyes of the Buddha and the Slowly Sinking Sun
Oh guide, you do not, you cannot understand the joy we Westerners feel when we first, set foot upon the soil of your country!
As the Dakota crosses the Four Passes, we see this green valley with its geometric fields, its earthen houses of red, yellow, and white. The scent of soil and mountains is in the air, arid there’s an age-old peacefulness in the atmosphere. You were born amongst all of this, and so perhaps you feel that the embrace of these blue hills’ outspread arms confines you. But we live in the plains or beside the sea. Our vision founders on a horizon of land or sea, and so we know the affection with which the breast of these hills forever clings to your sight. You have never had to suffer the feeling of insignificance that is caused by a vast distance. Perhaps we are always adrift in vastness, my friend; perhaps that is why this, your enclosure, appeals to us! Has it ever occurred to you that the half-closed eyes of the Buddha seem to welcome you, even at the airport? It is as if one acquires a calmness, as if one is returning once more to a resting place.
You have always known only how to give to the West. You’ve given us religion arid the Puranas, images of brass and ornaments of ivory, manuscripts of palm leaves and inscriptions on copperplate. You gave us a civilization and its wisdom and garlands of jasmine flowers around our necks. You have continued in your giving, ignorant of what others call “taking,” innocent of the notion of ownership. The very word indulgence is unknown to you. My friend, I know your history. Before I came here, I spent several years in our libraries, leafing through the pages of your priceless volumes. You are a guide who will lead me down the streets and alleyways of the present, but I could take you along your ancient ways. Even now I can see it clearly: the valley is filled with water, and a lotus flower blooms where Swyambhunath now stands. Manjushri strikes with his sword at Chobhar. I see monks and nuns receiving alms and spreading the law in the nooks and crannies of the Kasthamandap. Behold the eyes of these shavenheaded monks. You cannot meet their gaze! It is called the samyak gaze. Do you know what that means? It is perception, pure and without contamination; sight that perceives everything in its true form. I’ll have just one more drink before dinner….
You live in a house like a temple, but you are unaware of its beauty, its enchantment. In these wooden images, these multifarious ornamentations, these many styles, there is the flowing music of a chisel in the hands of an artist. Do you not feel it? Tell me about those happy, prosperous young artists working in the fields all day and creating beautiful images of their personal deities in their spare time, who are now covered by the dusts of the past.
Once, an artist was adding the finishing touches to a wooden image when his fair, tiny wife came by, carrying her baby on her back, and poured him Raksi from a jug. The foam bubbled over and congealed. Is it true that it was that foam that inspired the artist to construct a roof of tiles? Oh, your land is truly great, this country where so many different cultures found their home. Aryans, non-Aryans, Hindus, and Buddhists all came and obtained a rebirth here. It must be the effect of your country’s soil, my friend; it was the soil that enabled all these races to flourish together here. Come, I’ll drink one more small one, it’s not dinner time yet…
I am greatly indebted to you for you have served me both Nepali and Newari food. Ah, momos… Just picture the scene: it is winter and an old man sits in the upper story of his house, lit only by the fire. Perhaps the smoke is filling the room like fog from floor to ceiling. Perhaps he is telling his grandson about each and every Nepali item that Princess Bhrikuti took with her when King Amshu Varma sent her off to Tibet. The old lady smokes tobacco from a bamboo hookah, and, mindful of the old man, she carries on making fresh mo-mos. The son’s wife puts some of them onto a brass plate, and the old man’s words are garbled and obscured by his mouthful. The grandson laughs, and the old man tries to swallow quickly, so he burns his tongue and, unabashed, pours out a stream of ribald curses. . . .
These are scenes that cannot be read in an old book in a library, and that is why I’ve had to come to Kathmandu and soak myself in its atmosphere, for which I’m greatly obliged to you. . . . Now, cheers once again, to your great country, and to mine!
Oh, and another thing that is not to be found in any book is the smile on the faces of these people. It is a smile of welcome, as if our meeting were neither accidental nor our first. It’s as if I was the farmer’s eldest son, coming home after a long day’s work in the fields, as if my labors had been fruitful and I was content and at ease with my father. It’s as if I have taken the world’s most beautiful woman for my wife and have brought her along behind me, and my mother is smiling a welcome from the door. It’s as if my sister’s husband and I were the closest of friends and we, her brother and her husband, were coming along with our arms around one another, singing songs of drunkenness. It’s as if—I cannot explain; however much I try, I cannot describe it fully. That smile is full of wisdom; it is a smile from the soul, a smile peculiar to this place. . . . One more drink, to your Nepalese smile, that sweet smile!
And then there are the eyes. The eyes of the carved lattice windows, the eyes painted on the door panels. The eyes on the stupas, the eyes of the people. And the eyes of the Himalaya, which peep out from the gaps between the hills like those of a neighbor’s boy when he jumps up to see the peach tree in your garden. This is a land of eyes, a land guarded by the half-closed eyes of the Lord Buddha.
Even if all of the world’s history books were destroyed today, your eyes would build a new culture; they would reassemble a civilization. My appetite for eyes is still not satiated. Tomorrow I shall go to a lonely place where there is a stupa with eyes that are clear. There I want to see the pleasant light of sunset reflected in the eyes of the Buddha. Show me beautiful, full eyes, eyes without equal, eyes whose memory will make this journey of mine unforgettable…. Come, let’s go to eat dinner.
Come, my guest; today I am to show you some eyes.
This is Chobhar Hill, where you people come to see the cleft that was made by Manjushri’s sword and the outflow of the Bagmati River. Today I’ll take you up the hill where few of our guests ever go and no tourist’s car can proceed. There (in your words) the dust of time has not yet covered the culture of the past. Do you see this worn old rock? A young village artist has drawn some birds on it. Nearby, he has sketched a temple, leaving out any mention of the religion to which it belongs. Further up the hill, in the middle of the village, stands the temple of Adinath. In the temple courtyard there is a shrine of Shiva, several Buddha images, and many prayer wheels, inscribed Om mani padme hu.” You say it is a living example of Nepalese tolerance and coexistence. Children play happily there, unconcerned by the variety of their gods, religions, and philosophies. But my guest, I will not take you there.
You have already seen much of such things, and you have understood them and even preached them. Today I’ll take you to a house where I feel sure you will find the pulse of our reality. They are a farmer’s family, probably owning a few fields here and there, where they work and sweat to pay off half the proceeds to someone in the city. There is no smoke to fill their upstairs room, they cook no mo-mos in their hearth, nor do they discuss Bhrikuti’s dowry in their winters. There is a child in the home, who is certainly no divine incarnation, either. Attacked by polio and born into a poor farmer’s household, the child is surely incapable of spreading the law or of making any contribution to this earth. He has taken birth here in one of his maker’s strangest forms of creation.
And moreover, my friend—oh, the climb has tired you; would you like some filtered water from the thermos flask?—my intention is not to show him to you as any kind of symbol. Yesterday you were swept along by waves of emotion, inspired by your “Black and White” whisky, and you urged me to show you eyes that would forever remind you of your visit to Nepal. So I have brought you here to show you eyes like that.
The child’s whole body is useless; he cannot speak, move his hands, chew his food, or even spit. His eyes are the only living parts of his body and it is only his eyes that indicate that he is actually alive. I don’t know whether his eyes have the samyak gaze or not. I don’t even understand the term, but his face is certainly devoid of all emotion. His gaze is uninterested, without resolution or expression; it is inactive and listless, unexercised and lacking any measure of contemplation. (Perhaps I have begun to speak unwittingly in the terms of the Aryan eightfold path, which will either be your influence or a virtue bestowed upon me by the child.)
My guest, these are the eyes you wanted. A living being accumulates many capabilities in one lifetime. It feels happy and it smiles; it feels sad and it weeps. If it feels cold, it seeks warmth, and if it is hungry, it prepares food to eat. It seeks to learn what it doesn’t already know, and it succeeds or it fails. It has many experiences, some bitter, some sweet, and these it relates when company, occasion, and mood seem suited. How commonplace all of these actions are! My guest, yesterday you said that we Eastern peoples were always making contributions to the West, did you not? (Shall I give you some water? Are you out of breath?) Here is a child who can neither give nor take anything at all. Just put yourself in his position for a moment. You want your finger to do something, but your finger refuses. You want to speak, but speech will not come to you. Every vein, nerve, and bone is powerless to heed the commands of your brain, and yet . . . you are alive. I know that this disease occurs in your country, too. But the ability to endure it and to maintain a total indifference in the eyes, even, perhaps, to foster the samyak gaze, this capacity for remaining speechless, inactive, powerless, and immobile, and yet to survive without complaint . . . this can surely only be found in an Easterner!
Come, come closer. I have lied to his parents; I have told them that you are a doctor. Look . . . their faith in you shows in their eyes. There is intimacy, kindliness, and gratitude in their eyes, as if your coming here were preordained. That smile you described is on their faces, as if you were their eldest son who has brought a liferestoring remedy across the seven seas for your brother. The old peasant woman is smiling, isn’t she? It’s as if she’s rejoicing at the birth of her first grandchild from your wife, the beauty of the world. I know that this same smile will remain on their faces as long as you are here. I know that it will be extinguished when you turn to go. Once you’ve gone they’ll sink back into the same old darkness.
The child has a sister whose body functions properly. He watches her as she crawls around, picking up everything she comes across and putting it into her mouth, knocking over the beer, overturning the cooking stone. Just for an instant, the ambition to emulate her is reflected in his eyes, but then it is reabsorbed into the same old indifference. Once his mother was scolding his sister, and a light gleamed in his eyes. I couldn’t tell you to which era its vision belonged, but I realized that he wanted to speak. With a gaze devoid of language, gesture, or voice, he wanted to say, “Mother, how can you appreciate what fun it is to fall over? To crawl through the green dub grass and rub the skin off your knees, to shed a couple of drops of blood like smeared tears, and graze your flesh a little. To feel pain and to cry, to call out for help. That pain would be such a sweet experience. She can rub her snot or spittle into her own grazes, or pull out the thorn that has pricked her, and throw it away. Or she could pull off a scab that has healed over a buried splinter of glass or spend a few days resting under her quilt. She can climb up onto the storage jar to try to pull a picture down from the wall, and when the peg slips out and the picture falls and the glass smashes with a wonderful noise, she feels a wave of fear as she realizes her guilt. She has grown up, learning from experience the facts that fire can burn her and water makes her wet, that nettles cause blisters and beer makes her dizzy. That if she falls she might be hurt or break a bone that if something else falls it will probably break. That if someone dies, she is able to weep, and if someone laughs, she can laugh right back; if someone makes fun of her, she can strike them, and if someone steals from her, she can steal from them. My sister, who learns arid remembers each and every new word she hears, is the result of the self-sacrificing practice of thousands of years of human language. She embodies a history, a tradition, and a culture, and it is in her very ability to speak that the future is born. But not in one like me, who cannot even move his lips. In my body, in its strength and gestures, an unbroken cycle of historical and human development has come to its conclusion. A long labor, a chain of events, a lengthy endeavor, and an endlessness are all at an end. The future ends and is broken abruptly.”
And these are the eyes, my guest, that look at you but see nothing; this is the gaze that is incapable of self-manifestation. This is beauty that is complete and has no other expression.
These are eyes surrounded by mountains; their lashes are rows of fields where rice ripens in the rains and wheat ripens in the winter.
These are the eyes that welcome you, and these are eyes that build. And in these eyes hides the end of life. Look! They are just as beautiful as the setting sun’s reflection in the eyes of the Buddha!
Shankar Lamichhane
Courtesy: Himalayan Voices: An Introduction to Nepali Literature
Shankar Lamichhane (1928-1975) was born in Kathmandu but lived in Banaras with his uncle at a young age.
He completed his college education at Tri-Chandra College in Kathmandu.
He worked for several governmental and cultural institutions in Kathmandu.
Later, he became the manager of a handicrafts store.
Shankar Lamichhane was an admirer of modern American fiction and frequently mixed with foreign visitors to Nepal.
He considered one of Nepal’s foremost essayists of all times.
He wrote with a lyrical, musical tempo, unrestrained by the ponderous language that often mars the essays of his elders, peers or followers.
He died an untimely death at the age of 48, but had stopped writing before that.
He was blamed for an anonymous accusation of plagiarism.
Later, he accepted an accusation.
However, his fresh and playful style greatly enriched Nepali literature is indisputable.
His collection ‘Abstract Chintan: Pyaz’ shows off his light touch in dealing with both intimate and metaphysical subjects.
His masterpiece ‘Abstract Chintan: Pyaz’ won him the Madan Puraskaar in 2024 Bikram Samwat.
‘Shankar Lamichhane Essay Society’ was established in his honour.
This story is taken from ‘Himalayan Voices: An Introduction to Nepali Literature’ translated by Michael Hutt.
The story deals with the monologues of two characters; a tourist guide and a foreign tourist.
Keep in mind
Madan Puraskar (Madan Award) is a literary honour in Nepal. It is considered the most prestigious literature award in Nepal. Madan Puraskar Guthi confers annually for an outstanding book in the Nepali language published within the calendar year. It is awarded on the day of Ghatasthapana every year alongside Jagadamba Shree Puraskar. |
“The Half-Closed Eyes of the Buddha and the Slowly Sinking Sun” by Shankar Lamichhane is a simple story.
It is a discussion between two characters; a tourist and a guide.
It is taken from the ‘Himalayan Voice: An Introduction to Modern Nepali Literature’
It was released in 1991.
The story is set in Nepal’s capital city Kathmandu.
In the story, both of the characters Nepali guide and foreign tourist act as narrators.
The story begins with a pleasant atmospheric description of the Kathmandu valley.
It describes visual beauty like colours of homes, blue hills and so on.
Then the guest remarks that the East has contributed so many things to the West.
They are the Purans, ancient tools, ivory ornaments, palm leaf manuscripts and copperplate inscriptions.
The guide also tells the stories of Manjushri and how he stroked with his sword at Chobhar.
Later, people are allowed to settle in Kathmandu Valley.
They discuss their passion for wooden figures, Nepalese folk music and various cultures.
They also discuss about Aryans, non-Aryans, Hindus and Buddhists..
The tourist expresses gratitude to the guide for supplying him with Nepali and Newari cuisine.
They examine the lives and histories of Princess Bhrikuti and King Amshuvarma.
Wherever the tourist goes, people welcome him with smile; the tourist is overjoyed with this act.
Nepalese people have good hospitable behaviour.
Then they explore other types of eyes, such as the eyes in the windows, the eyes on the door panels, the eyes on the stupas, the eyes of the people, the eyes of the Himalaya, and the half-closed eyes of the Lord Buddha, referring to the country as a land of eyes.
These eyes reveal a new culture, a diversity of religions, civilisation, vivid memories, and a long trip.
The guide tells about the temple of Adinath, the Shiva shrine encircled by several other pictures of Buddha- a living example of Nepalese tolerance and coexistence- but the guide takes the guest to a house where he discovers the pulse of reality.
It’s a farmer’s family with a paralysed youngster (polio-affected boy) whose entire body is worthless and he can’t speak, move his hands, chew his food, or even spit, except for his eyes, which are just opposite his sister’s.
As the guide introduces the visitor as a doctor, the parents are overjoyed.
In their eyes, there is a depth of faith, connection, kindness, and thankfulness.
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Answer the following questions:
(a) How does the tourist describe his initial impression of the Kathmandu valley?
The tourist describes his initial impression of the Kathmandu as green valley, geometric fields, colourful buildings, the aroma of soil and mountains in the air.
(b) According to the tourist, why is the West indebted to the East?
According to the tourist, the Western county is indebted to the Eastern county for the pleasant atmosphere, religious and cultural sculptures, the Purans, ivory ornaments, manuscripts of palm leaves, brass and copper images etc.
(c) How does the tourist interpret the gaze of the monks and nuns?
The tourist interprets the gaze of the monks and nuns as ‘the samyak gaze.’
He refers to monks as gaze and nuns as ‘samyak gaze.’
Samyak gaze denotes pure and uncontaminated perception.
(d) Why do the tourists think Nepali people are wonderful and exceptional?
The tourists think Nepali people are wonderful and exceptional because they create exceptional wooden images.
They create numerous ornamentations and images of deities.
They also create enchanting music from traditional musical instruments.
Nepalese have hospitable behaviour.
(e) What are the different kinds of communities in the Kathmandu valley and how do they co-exist with each other?
The different kinds of communities co-exist in the Kathmandu valley.
They are Aryans, non-Aryans, Hindus, and Buddhists.
They live in peaceful harmony with each other.
(f) What does the tourist feel about the temple of Adinath?
The tourist feels the Adinath temple is a live example of Nepalese tolerance and coexistence.
The tourist feels great about the Adinath temple (the temple of Shiva).
(g) Why does the guide take the tourist to the remote village?
The guide takes the tourist to a remote village to show different realities.
The guide wants to show the tourist about poverty, hard labour, miserable living and a clean environment.
(h) What does the innocent village couple think of the doctor?
The innocent village couple thinks the doctor is the ray of hope for life.
They are in a miserable state.
Their eyes seem quite optimistic after meeting the doctor.
(i) What are the differences between the paralyzed child and his sister?
The difference between the paralyzed child and his sister are as follow:
The child’s entire body is paralyzed but his sister is disease free.
He cannot speak but his sister can.
He cannot crawl and move his hand but his sister can.
(j) Why does the guide show the instances of poverty to the tourist?
The guide shows the instances (examples) of poverty to the tourist so that he understands the reality of the poverty of people living in remote locations.
The guide wants to show the tourist about poverty, hard labour, miserable living etc.
(a) Which narrative technique is used by the author to tell the story? How is this story different from other stories you have read?
The author uses the stream of consciousness technique to narrate the story “The Half-closed Eyes of the Buddha and the Slowly Sinking Sun.” by Shankar Lamichhane.
This story differs from others because I have read most other stories where first person describes.
The stream of consciousness technique is a style or technique of writing that tries to capture the natural flow of a characters extended thought process.
It is done by incorporating sensory impressions, incomplete ideas, recollections, unfinished thoughts, unusual syntax and rough grammar.
It is used primarily in fiction and poetry; but the term has also been used to describe plays and films that attempt to visually represent a character’s thoughts.
This story is told through the monologues of two characters; a tourist guide and a foreign tourist in Kathmandu Valley.
The story uses a stream of consciousness technique to capture what the two protagonists think rather than portraying actions and events.
I have not found the stream of consciousness technique in other stories which I have read.
(b) How is the author able to integrate two fragments of the narration into a unified whole?
The author of the story “The Half-Closed Eyes of the Buddha and the Slowly Sinking Sun” is able to integrates two fragments or pieces of narration into a unified whole by connecting them with instances of eyes.
He is able to associate them with two different examples in term of ‘eyes’.
The stream of consciousness technique is a style or technique of writing that tries to capture the natural flow of a characters extended thought process.
It is done by incorporating sensory impressions, incomplete ideas, recollections, unfinished thoughts, unusual syntax and rough grammar.
The author explains ii detailing events that are happening in the community.
Thus, he conveys the message by connecting two separate worlds of the East and the West,
(c) The author brings some historical and legendary references in the story. Collect these references and show their significance in the story.
The author of the story “The Half-Closed Eyes of the Buddha and the Slowly Sinking Sun” brings some historical and legendary references.
The references and their significance are as follows:
Manjushri and his sword stroke at Chobhar indicates the Bagmati River to overflow,
It represents her contribution to allowing people to live in the valley.
The Puranas, brass and ivory ornaments, palm leaf manuscripts, copperplate writings demonstrate culture and arts.
They show that the Nepalese people are rich in culture, traditions, religions and arts.
The eyes of the shaven-headed monks and nuns represent ‘the samyak gaze’.
‘The samyak gaze’ implies pure and unadulterated perception.
The mention of Princess Bhrikuti and King Amshu Varma is related to the relationship.
It illustrates historical relationships with neighbouring countries of Nepal.
The beautiful light of the sunset indicates the half closed eyes of Buddha.
It shows Nepal as a country of Buddha.
It represents hope, security, peace, harmony, sentiments, beauty etc.
The Adinath (God Shanker) is an example of tolerance.
It is an example of tolerance and togetherness of Nepalese.
(d) The author talks about the eyes in many places: the eyes of the shaven monks and nuns, eyes in the window and door panels, the eyes of the Himalayas, the eyes of the paralyzed boy, the eyes of the welcoming villagers and above all the half-closed eyes of the Buddha. Explain how all the instances of eyes contribute to the overall unity of the story.
In the story “The Half-closed Eyes of the Buddha and the Slowly Sinking Sun” the author talks about the eyes in many places.
They are connected as under:
The eyes of shaven monks and nuns
It indicates ‘the samyak gaze’ or gaze of purity.
It means the sight that perceives everything in its true form.
Eyes in the window and door panels
It indicates feature of traditional Nepalese architecture.
The decorative windows have been described as a symbol of Newar culture and artistry
The eyes of the Himalayas
The view the Himalayas is supremely sacred.
The eyes of the Himalayas indicate seeing of the god in every atom of the universe.
The eyes of the paralyzed boy
These eyes are as beautiful as the setting sun’s reflection.
They seem as the eyes of the Buddha.
The eyes of the paralyzed boy hide the end of life.
The eyes of the welcoming villagers
The guide introduces the visitor as a doctor.
The poor parents are overjoyed.
In their eyes, there is a depth of faith, connection, kindness and thankfulness.
The half-closed eyes of the Buddha
The half-closed eyes of Buddha indicate that Buddha is protecting Nepal.
Here, Nepalese people feel peace and warm through Buddha.
These all eyes represent Nepal as a rich in culture, religion, tradition and arts.
If the history books destroy, these eyes will again create a new culture, religion, tradition and arts.
Thus, the author connects all these eyes for the overall unity of the story.
****
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*****
(a) Write an essay on Living Proximity to Nature.
Living Proximity or Closeness to Nature
We see nature around us.
Nature includes trees, flowers, plants, animals, the sky, the sun, the moon, mountains, air, forests and so on.
It provides oxygen, food, water, shelter, medicines, clothing materials and much more to the living things.
It is so great and beyond human imagination.
It is the most powerful than any other.
Nature never demands anything from humans.
For living things, it is not possible to survive without nature.
We should respect all the natural things because life on this planet is possible due to incredible nature.
Nature nourishes life from all sides.
Sometimes, nature destroys by flood, land sliding, tsunami, cyclone, tornado, drought, volcano and so on.
Nature is a most precious gift provided by God to us.
We should to enjoy the nature but not to harm it.
Nature is the most beautiful part of our life.
It makes us happy and let us natural environment to live healthily.
We should always try to conserve nature for our healthy future as well as for the next generation.
(b) The story talks about ethnic/religious co-existence of different communities in Nepal, where the Buddhists and the Hindus and the Aryans and non-Aryans have lived in communal harmony for ages. In your view, how have the Nepali people been able to live in such harmony?
In the story “The Half-closed Eyes of the Buddha and the Slowly Sinking Sun” the author talks about the ethnic and religious co-existence of different communities in Nepal.
Nepal is a small and beautiful country.
There are historical, cultural, political and geographical factors.
The Buddhists, the Hindus, the Aryans and non-Aryans have lived in communal harmony for ages.
From ancient times to now, Nepali people are known for their unity and harmony.
At present, there are Khas-Aryan, Janajati, Newars, Madheshi, Muslims, Marwadi, Bengali, Punjabi etc.
They follow different religions.
They worship different deities, they celebrate different festivals but they live in communal harmony.
They are seen in each other’s celebrations.
We can find fine cooperation among Nepali people.
They are deeply connected both culturally and traditionally.
In my points view, the Nepali people have been able to live in communal harmony.
It is possible due to the long-term harmonious relationship between the Nepalese people.
Keep in mind
Religion % of the Nepalese population: |
|||
Census 2021 |
Census 2011 |
Census 2001 |
Census 1971 |
Hindu |
Hindu 81.3%, |
Hindu 80.62%, |
Hindu 89.4%, |
Buddhist |
Buddhist 9.0% |
Buddhist 10.74% |
Buddhist 7.5% |
Muslim |
Muslim 4.4% |
Muslim 4.20% |
Other 3.1% |
Kiratist |
Kiratist 3.0% |
Kiratist 3.60% |
|
Christian |
Christian 1.4% |
Christian 0.45% |
|
Sikhs |
Sikhs 0.1% |
Other 0.40% |
|
Jains |
Jains 0.1% |
|
|
Other |
Other 0.7% |
|
|
|
|
|
|
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जय गूगल. जय युट्युब, जय सोशल मीडिया
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]]>Transport Costing | Service Costing | Passenger Km | Ton Km
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There are two types of business firms; goods selling firms or service providing or rendered firms.
Service costing is a type of operation costing which is used in service providing organizations.
In this service cost accounting, all the costs incurred in the production of a service are added together.
These costs are fixed costs, semi-variable costs and variable costs.
The sum of these costs is known as total cost.
The total cost is divided by the total units to find out per unit cost..
Service costing is followed by the service industries.
Generally there are two types of services.
They are internal services and external services.
Internal services
Services provided by sections and departments to the production department are called internal service.
External services
Services provided to public utility are called external service; they are:
Transport services
Supply services
Welfare services
Municipal services
The service provided to public directly by undertaking is called service costing.
These services may be rendered by a company to the public or same for internal use of manufacturing.
There are different types of services; they are:
Transport services
bus, truck, taxi, auto rickshaws, cable car, tramways, trolley bus, railways, seaways, airways, steamer etc.
Supply service
Water, electricity (power house, boiler house), telephone/mobile/internet, gas etc
Welfare service
Hospital, nursing home, education institute (school, college, university), library, cinema, park, hospital, hotel, canteen etc.
Municipality service
Street light, road maintenance, sewage etc.
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Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
2054, Q: 9
Nepal Yatayat Company gives you the following information:
Transactions |
Amount (Rs) |
|
Amount (Rs) |
Cost of bus with expected 100,000 km run |
|
Driver’s salary per month |
Rs 14,000 |
Annual registration and renewal charge |
Rs 12,000 |
Conductor’s salary per month |
Rs 8,000 |
Garage charge per month |
Rs 5,000 |
Diesel and oil per km |
Rs 14 |
Annual repairs |
Rs 24,000 |
|
|
The bus will run 25 days in a month with 40 passengers in 10 round trips of 20 km long route.
Required: (a) Operating cost sheet by showing standing charge and running charge separately; (b) Cost per passenger km
[Answer: (a) TOC (30,000 + 200,000) = Rs 230,000;
(b) CPPKm = Re 0.58; *Depn = Rs 60,000; Diesel = Rs 140,000]
SOLUTION:
Given and working note:
Total running km in a month |
Depreciation per month |
= 25 days × 10 trips × 2 ways × 20 km |
= (Rs 600,000 ÷ 100,000 km) × 10,000 km per month |
= 10,000 km |
= Rs 60,000 |
|
|
|
|
Total passenger km |
Diesel and oil per month |
= 10,000 km × 40 passengers |
= 10,000 km × Rs 14 |
= 400,000 |
= Rs 140,000 |
|
|
Operating Cost Sheet
Nepal Yatayat Company
(For 1 month)
Particulars |
Amount |
Standing/fixed charges: |
|
Registration and renewal charge (Rs 12,000 ÷ 12 months) |
1,000 |
Garage rent |
5,000 |
Repairs (Rs 24,000 ÷ 12 months) |
2,000 |
Driver’s salary |
14,000 |
Conductor’s salary |
8,000 |
Total A |
30,000 |
Running/variable charges: |
|
Depreciation |
60,000 |
Diesel and oil |
140,000 |
Total B |
200,000 |
Total operating cost (A+B) |
Rs 230,000 |
Total passenger km |
400,000 km |
Cost per passenger km = Total operating cost ÷ Total passenger km |
Re 0.58 |
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
2055, Q: 15
National Transport Company gives you the following expenses:
Annual expenses:
Road license |
Rs 3,000 |
Insurance charge |
Rs 2,000 |
|
Garage rent |
Rs 24,000 |
Driver’s salary |
Rs 13,000 |
|
Other expenses |
Rs 23,000 |
|
|
|
|
||||
Additional information: |
||||
Cost of vehicle |
Rs 900,000 |
Estimated life |
300,000 km |
|
Estimated annual km |
20,000 km |
Cost of petrol per liter |
Rs 28 |
|
Kilometer mileage per liter |
10 km |
|
|
|
Required: Operating cost sheet showing annual total cost
[Answer: Total operating cost (65,000 + 116,000) = Rs 181,000]
SOLUTION:
Given and working note:
Depreciation per year
= (Rs 900,000 ÷ 300,000 km) × 20,000 km
= Rs 60,000
Petrol cost per year
= (20,000 km ÷ 10 km) × Rs 28
= Rs 56,000
Operating Cost Sheet
National Transport Company
(For 1 year)
Particulars |
Amount |
Standing/fixed charges: |
|
Road license |
3,000 |
Garage rent |
24,000 |
Other expenses |
23,000 |
Insurance charge |
2,000 |
Driver’s salary |
13,000 |
Total A |
65,000 |
Running/variable charges: |
|
Depreciation |
60,000 |
Petrol cost |
56,000 |
Total B |
116,000 |
Total operating cost (A+B) |
Rs 181,000 |
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
2058, Q: 15
Scrutiny of the daily log book rendered by ABC Transport Company that owned a 40 setter fleet of 5 buses provided the following particulars:
Normal passengers traveled 90%
Annual depreciation registration and insurance per bus Rs 54,000
Fuel, lubricating oil, repair and maintenance etc per 25 km Rs 450
Drivers and helpers’ salary for 5 fleets per month Rs 37,500
Profit expected by the company is 20% on freight.
Each bus operated 4 round trips daily of 10 km distance each way for 25 days in a month.
Required: (a) Monthly standing charge; (b) Monthly operating charges; (c) Monthly profit;
(d) Freight to be charged per passenger km
[Answer: (a) Standing = Rs 60,000; (b) Running = Rs 180,000; Total = Rs 240,000;
(c) Monthly profit = Rs 60,000; (d) Freight per passenger/km = Re 0.83;
* Running km = 10,000; passenger km = 360,000;
* Fuel cost = Rs 180,000;
SOLUTION:
Given and working note:
Total running km in a month |
Depreciation per month |
|
= 5 buses × 25 days × 4 trips × 2 ways × 10 km |
= (Rs 54,000 ÷ 12 months) × 5 buses |
|
= 10,000 km |
= Rs 22,500 |
|
|
|
|
|
|
|
Total passenger km |
Diesel and oil per month |
|
= 10,000 km × 40 passengers × 90% |
For 25 km |
= Rs 450 |
= 360,000 p/km |
For 10,000 km |
= 450 × 10,000 ÷ 25 |
|
|
= Rs 180,000 |
|
|
Operating Cost Sheet
ABC Transport Company
(For 5 buses, one month)
Particulars |
Amount |
Standing/fixed charges: |
|
Depreciation |
22,500 |
Drivers and helpers’ salary |
37,500 |
Total A |
60,000 |
Running/variable charges: |
|
Fuel, lubricating oil etc |
180,000 |
Other expenses |
Nil |
Total B |
180,000 |
Total operating cost (A+B) |
Rs 240,000 |
Add: Profit (240,000 × 20/80) |
60,000 |
Total freight |
Rs 300,000 |
Freight per passenger per km = Total freight ÷ Total passenger km = (Rs 300,000 ÷ 360,000 p/km) |
Re 0.83 |
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
TU: 2060/S Modified
Highway Cargo supplies the following information relating to a mini truck of 6 ton capacity that makes one trip daily covering distance of 30 km each way and carrying goods in full capacity on outward trip and on return only 20% of the capacity:
Capital cost of truck |
Rs 12,00,000 |
Yearly taxes and renewal |
Rs 10,800 |
Estimated life |
20 years |
Monthly wages of the driver |
Rs 12,000 |
Residual value at end of life |
Rs 200,000 |
Yearly insurance charges |
Rs 19,200 |
Repairs and maintenance cost per month |
Rs 4,000 |
Fixed general expenses yearly |
Rs 36,000 |
Monthly wages of the helper |
Rs 5,000 |
Fuel each or one way per trip |
Rs 440 |
In an average the truck run 26 days in a month
Required: (Operating cost sheet)
(1) Total tons km; (b) Fixed and variable cost and total cost; (c) Cost per month per ton km.
[Answers: Fixed = Rs 26,667; Variable = Rs 26,880; Total = Rs 53,547;
Cost per ton per km = Rs 9.53; *Depreciation = Rs 4,167]
SOLUTION
Given and working note:
Depreciation
= (Purchase value – Book salvage value) ÷ Life
= (12,00,000 – 2,00,000) ÷ 1/12
= Rs 4,167
Total tons km
Ton/km |
= (6 ton @ 100% × 30 km × 26 days) + (6 tone@ 20% × 30 km × 26 days) |
|
= 4,680 + 936 |
|
= 5,616 |
Operating Cost Sheet
A Highway Carriers
(for 1month)
Particulars |
Amount |
Standing/fixed charges: |
|
Wages to helper |
5,000 |
Taxes and renewal (Rs 10,800 ÷ 12 months) |
900 |
Wages to driver |
12,000 |
Insurance (Rs 19,200 ÷ 12 months) |
1,600 |
Fixed general expenses (Rs 36,000 ÷ 12 months) |
3,000 |
Depreciation |
4,167 |
Total A |
26,667 |
Running/variable charges: |
|
Fuel cost (Rs 440 per trip ×2 ways × 26 days) |
22,880 |
Repairs and maintenance |
4,000 |
Total B |
26,880 |
Total operating cost (A+B) |
Rs 53,547 |
Total ton-km |
5,616 |
Cost per ton per km = Total operating cost ÷ Total ton-km |
Rs 9.53 |
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
2061/Second, Q: 8
A microbus operates 8 round trips each day for 30 days a month between 20 km apart newly urbanized two cities.
The bus has 15 passenger sitting capacity.
The average seat occupancy is 80%.
The monthly operating expenses are given below:
Driver and helper’s salary |
Rs 19,200 |
Repairs and maintenance expenses |
Rs 11,520 |
Route license, insurance and garage rent per month |
Rs 9,600 |
Cost of the micro bus expecting to run for 10 years |
Rs 20,73,600 |
Average all fuel cost per km |
Rs 16.50 |
Required: (Operating cost statement showing)
(a) Total km and passenger km; (2) Total cost reporting showing standing charges and running expenses
(c) Bus fare per passenger per km expecting 20% profit on cost
[Answer: Total km = 9,600; Total passenger km = 115,200;
Standing = Rs 46,080; Running = Rs 169,920; Total cost = Rs 216,000;
Profit = Rs 43,200; Bus fare per passenger per km = Rs 2.25;
*Depreciation = Rs 17,280;
SOLUTION
Total km
= 20 km × 8 trips × 2 ways × 30 days
= 9,600 km
Total passenger km
= 9,600 km × 15 passengers × 80%
= 115,200 km
Depreciation per month
= Rs 20,73,600 ÷ 10 years × 1/12 month
= Rs 17,280
Operating Cost Sheet
(For 1 month)
Particulars |
Amount |
Standing/fixed charges: |
|
Driver and helper’s salary |
19,200 |
Route license, insurance and garage rent |
9,600 |
Depreciation |
17,280 |
Total A |
46,080 |
Running/variable charges: |
|
Repairs and maintenance |
11,520 |
Average fuel cost (9,600 km × Rs 16.50) |
158,400 |
Total B |
169,920 |
Total monthly charges (A+B) |
216,000 |
Add: profit [20% on cost viz 216,000 @ 20%] |
43,200 |
Total revenue |
Rs 259,200 |
Total passenger km |
115,200 |
Bus fare per passenger per km = Total revenue ÷ Total passenger km |
Rs 2.25 |
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
2063, Q: 7
ABC Transport Company which owned 10 buses supplied the following details:
Cost of each van |
Rs 24,00,000 |
Life of vans |
5 years |
Value of each van after 5 years |
Rs 6,00,000 |
Seating capacity of each van |
25 persons |
Normal passengers traveled of seating capacity |
80% |
Distance covered by each bus per day |
100 km |
Total running days per month |
26 days |
|
|
Operating costs for running 10 vans: |
|
|
Amount |
Salaries of office and supervision staffs per month |
65,000 |
Oils for one month |
1,60,000 |
Repairs and maintenance per month |
11,000 |
Taxation and insurance for one year |
1,20,000 |
Annual interest and other charges |
60,000 |
Rent of garage per month |
15,000 |
Wages of drivers, conductors and cleaners per month (Allocated on the basis of mileage run) |
1,20,000 |
Profit expected by the company is 25% on cost
Required: (Operating cost statement): (1) Total km and passenger km; (2) Monthly running charge, standing charge and total cost; (3) Monthly profit; (4) Fare to be charged per passenger per kilometer
[Answer: (1) Total km = 26,000; Passenger km = 520,000;
(2) Standing = Rs 395,000; running = Rs 291,000; Total = Rs 686,000;
(3) Profit = Rs 171,500 and (4) Charge per km = Rs 1.65;
* Depreciation = Rs 300,000]
SOLUTION
Total km
= 10 buses × 100 km per day × 26 days
= 26,000 km
Passenger km
= Total km × Normal Capacity
= 26,000 km × 25 persons@80%
= 520,000 km
Given and working note:
Depreciation
= (PV – BSV) ÷ Life
= (24,00,000 × 10 – 6,00,000 × 10) ÷ 5 years × 1/12
= 1,80,00,000 ÷ 5/12
= Rs 300,000
Operating Cost Sheet
ABC Transport Company
(For 10 vans, 1 month)
Particulars |
Amount Rs |
Standing/fixed charges: |
|
Salary of office and supervision staff per month |
65,000 |
Taxation and insurance (Rs 120,000 ÷ 12 months) |
10,000 |
Annual interest (Rs 60,000 ÷ 12 months) |
5,000 |
Rent for garage |
15,000 |
Depreciation |
300,000 |
Total A |
395,000 |
Running/variable charges: |
|
Oil for month |
160,000 |
Wages for driver, conductor and cleaner (mileage based) |
120,000 |
Repairs and maintenance |
11,000 |
Total B |
291,000 |
Total monthly charges (A+B) |
686,000 |
Add: Profit (25% on cost viz 686,000@ 25%) |
171,500 |
Total revenue |
Rs 857,500 |
Total passenger km |
520,000 km |
Fare per passenger per km = Total revenue ÷ Total passenger km |
Rs 1.65 |
######
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|
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|
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|
|
|
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######
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
TU: 2065 Modified
ABC Transport Company supplies the following information relating to a microbus with the capacity of carrying 20 passengers. It makes 5 round trips daily covering distance of 5 km. It carries the passenger with 80% capacity for 25 days in a month. Other relevant information is:
Particulars |
Amount in Rs |
Particulars |
Amount in Rs |
Cost of microbus |
15,00,000 |
Taxes and renewal charge |
12,000 per year |
Estimated life |
10 years |
Insurance charge |
18,000 per year |
Residual value at the end of life |
5,00,000 |
General fixed expenses |
20,000 per year |
Repairs and maintenance cost |
5,000 per month |
Fuel each way for 5 km |
Rs 100 |
Salary and wages of helper |
15,000 per month |
|
|
Required: (Operating cost statement):
(1) Total km and passenger km; (2) Standing charge, running charge and total cost; (3) Cost per passenger km
[Answer: Total km = 1,250; passenger km = 20,000;
(2) Standing = Rs 27,500; Running = Rs 30,000; Total = Rs 57,500;
(3) Cost per passenger km = Rs 2.88; *Depn = Rs 8,333; *Fuel = Rs 25,000;
SOLUTION
Given and working note:
Total km |
Depreciation |
|
= 1 bus × 5 trips × 2 ways × 5 km × 25 days |
= (PV – BSV) ÷ Life × 1/12 |
|
= 1,250 km |
= (15,00,000 – 5,00,000) ÷ 10 years × 1/12 |
|
|
= Rs 8,333 |
|
|
|
|
|
|
|
Passenger km |
Fuel charge |
|
= Total km × Normal Capacity |
For 5 km |
= Rs 100 |
= 1,250 km × 20 persons@80% |
For 1,250 km |
= Rs 100 × 1250 km ÷ 5 km |
= 20,000 km |
|
= Rs 25,000 |
Operating Cost Sheet
ABC Transport Company
(For 1 month)
Particulars |
Amount Rs |
Standing/fixed charges: |
|
Depreciation |
8,333 |
Salary and wages of helpers |
15,000 |
Taxation and renewal charge [Rs 12,000 ÷ 12 month] |
1,000 |
Insurance charge [Rs 18,000 ÷ 12 month] |
1,500 |
General fixed expenses [Rs 20,000 ÷ 12 month] |
1,667 |
Total A |
27,500 |
Running/variable charges: |
|
Repairs and maintenance |
5,000 |
Fuel [Rs 100 × 5 tips × 2 ways × 25 days] |
25,000 |
Total B |
30,000 |
Total cost (A+B) |
Rs 57,500 |
Total passenger km |
20,000 km |
Fare per passenger per km = Total cost ÷ Total passenger km |
Rs 2.88 |
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
2067, Q: 7
Mr Shrestha has provided the following Particulars of his tourist car:
Cost of car Rs 5,50,000 (life 10 years and scrap value Rs 50,000)
Distance of route 40 km one way.
Insurance and taxes Rs 10,500 p.a.
Garage rent Rs 2,000 p.m.
Repair and maintenance Rs 12,000 p.a.
Driver’s salary Rs 6,000 p.m.
Other overhead charges Rs 500 p.m.
Petrol cost Rs 100 per 10 km
Car will make 4 round trips each day.
Car will operate 25 days in a month.
Profit is to be charged @ 15% on freight.
Required: (Operating cost sheet): (a) Calculation for depreciation, running km and fuel; (b) Showing proper division of cost;
(c) Profit; (d) Charge per passenger km
[Answer: (a) Depn = Rs 4,167; Running km = 8,000; Fuel cost = Rs 80,000;
(b) Standing = Rs 13,042; Running = Rs 81,500; Total = Rs 94,542;
(c) Profit = Rs 16,684; (d) Charge per km = Rs 13.90]
SOLUTION
Given and working note:
Depreciation per month |
|
= (PV – BSV) ÷ Life × 1/12 |
|
= (Rs 550,000 – Rs 50,000) ÷ 10 years × 1/12 |
|
= Rs 4,167 |
|
|
|
Running km |
|
= 1 car × 40 km × 4 trips × 2 ways × 25 days |
|
= 8,000 km |
|
|
|
Petrol per month |
|
10 km needs |
= Rs 100 |
8,000 km needs |
= 100 × 8,000 ÷ 10 |
|
= Rs 80,000 |
|
|
Operating Cost Sheet
Of Mr Shrestha
(For one month)
Particulars . |
Amount Rs |
Standing/fixed cost: |
|
Insurance and tax [Rs 10,500 ÷ 12 month] |
875 |
Garage rent |
2,000 |
Driver’s salary |
6,000 |
Depreciation |
4,167 |
Total [A] |
13,042 |
Running/variable cost: |
|
Repairs and maintenance [Rs 12,000 ÷ 12 month] |
1,000 |
Other charges |
500 |
Petrol |
80,000 |
Total [B] |
81,500 |
Total cost [A+B] |
Rs 94,542 |
Add: Profit [Rs 94,542 × 15/85] |
16,684 |
Net cost |
Rs 111,226 |
Running km |
8,000 km |
Cost per passenger km = Rs 111,226 ÷ 8,000 km |
Rs 13.90 |
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
2068, Q: 7
A Local Transport Company operates 8 mini buses between Ratnapark to Swoyambhu vis Kalimati (Kathmandu) which covered approximately 15 km.
The seating capacity of each mini bus is 30 passengers.
The following information was obtained from the company’s log book for the current month:
Cost of each mini bus Rs 20,00,000
Estimated life 8 years
Scrap value per mini bus Rs 80,000
Diesel, oil, grease Rs 125 per trip each way
Each mini bus is operated by 3 crew member from 6 am to 8 pm each day for the average 30 days in a month.
Wages and salary of operating crew per mini bus per month Rs 12,000
Repair and maintenance per month per bus Rs 2,000
Insurance per bus per month Rs 1,200
Depreciation per month per bus Rs 20,000
Interest and office charge per bus per month Rs 17,000
The passengers’ occupancy was 100% in each trip.
All the buses run all the days in the month making 6 round trips per day.
Required: Cost statement by showing cost per passenger per km
[Answer: (a) TC (Rs 401,600 + 376,000) = Rs 777,600;
(b) Passenger km = 12,96,000; (c) Cost per passenger per km = Re 0.60;
*Depn = Rs 160,000; Diesel = Rs 360,000]
SOLUTION:
Given and working note:
No. of trips |
Depreciation for 8 buses per month |
= 8 buses × 6 trips × 2 ways × 30 days |
= Rs 20,000 × 8 buses |
= 2,880 |
= Rs 160,000 |
|
|
|
|
Diesel, oil, grease |
Running km |
= 2,880 trips × Rs 125 |
= 8 buses × 15 km × 6 trips × 2 ways × 30 days |
= Rs 360,000 |
= 43,200 km |
|
|
|
|
Depreciation per bus per month |
Passenger km |
= (PV – BSV) ÷ Life × 1/12 |
= 43,200 km × 30 passengers |
= (Rs 20,00,000 – Rs 80,000) ÷ 8 years × 1/12 month |
= 12,96,000 km |
= Rs 20,000 (given in question also) |
|
|
|
Operating Cost Sheet
A Local Transport Company
(For 8 buses for one month)
Particulars . |
Amount Rs |
Standing/fixed cost: |
|
Wages and salary (Rs 12,000 × 8) |
96,000 |
Insurance (Rs 1,200 × 8) |
9,600 |
Interest and office charges (Rs 17,000 × 8) |
136,000 |
Depreciation |
160,000 |
Total [A] |
401,600 |
Running/variable cost: |
|
Repairs and maintenance [Rs 2,000 × 8] |
16,000 |
Diesel, oil, grease |
360,000 |
Total [B] |
376,000 |
Total cost [A+B] |
Rs 777,600 |
Passenger km |
12,96,000 km |
Cost per passenger km = Rs 777,600 ÷ 12,96,000 km |
Re 0.60 |
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Ratio Analysis (Accounting Ratio) |
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Fund Flow Statement |
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Cost Sheet, Unit Costing |
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Cost Reconciliation Statement |
#####
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2069, Q: 7
A taxi owner supplies the following particulars in respect of a taxi car:
Cost of taxi car Rs 800,000
Driver’s salary per month Rs 5,000
Rent of garage per month Rs 2,000
Insurance premium per year Rs 12,000
Road tax and repairs per year Rs 33,600
The life of a taxi is 200,000 km; at the end, it is estimated to be sold at Rs 200,000.
The taxi runs an average of 6,000 km per month of which 25% runs in empty.
Petrol consumption is 15 km per liter; the cost of petrol is Rs 100 per liter.
Mobil and other sundry expenses amount to Rs 20 per 100 km.
Required: (a) Operating cost statement by showing standing and running charges; (b) Effective cost of running taxi per km
[Answer: (a) Total cost (10,800 + 59,200) = Rs 70,000;
(b) Cost per passenger km = Rs 15.56; *Effective km = 4,500 km;
*Depn = Rs 18,000; Petrol = Rs 40,000; Mobil = Rs 1,200;
SOLUTION:
Given and working note:
Effective running km |
Petrol expenses |
||
Here, 25% empty means 75% capacity |
15 km needs |
= 1 liter |
|
= 6,000 km @ 75% |
6,000 km need |
= 1 × 6,000 ÷ 15 km |
|
= 4,500 km |
|
= 400 liters |
|
|
Now, |
||
|
= 400 liters × Rs 100 |
||
Depreciation per month |
= Rs 40,000 |
||
= (PV – BSV) ÷ Life × 6,000 km |
|
||
= (Rs 800,000 – Rs 200,000) ÷ 200,000 km × 6,000 km |
|
||
= Rs 18,000 |
Mobil expenses |
||
|
For 100 km |
= Rs 20 |
|
|
For 6,000 km |
= Rs 20 × 6,000 ÷ 100 |
|
|
|
= Rs 1,200 |
|
|
|
||
Operating Cost Sheet
Of A Taxi Owner
(For one month)
Particulars . |
Amount |
Standing/fixed cost: |
|
Driver’s salary |
5,000 |
Rent |
2,000 |
Insurance (Rs 12,000 ÷ 12 months) |
1,000 |
Road tax and repairs (Rs 33,600 ÷ 12 months) |
2,800 |
Total [A] |
10,800 |
Running/variable cost: |
|
Depreciation |
18,000 |
Petrol expenses |
40,000 |
Mobil expenses |
1,200 |
Total [B] |
59,200 |
Total cost [A+B] |
Rs 70,000 |
Effective running km |
4,500 km |
Cost per passenger km = Rs 70,000 ÷ 4,500 km |
Rs 15.56 |
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
2071, Q: 7
A Transport Company supplies you the following information for the current month:
Cost of truck Rs 24,00,000
Salary and wages Rs 18,000
Diesel per km Rs 10
Garage rent per month Rs 2,000
Kilometer runs in a month 10,000 km
Repair and maintenance per month Rs 6,000
Insurance per year Rs 48,000
Depreciation 10% per annum
Required: (a) Statement of total cost by showing standing and running charges; (b) Cost per km run
[Answer: (a) TC = (44,000 + 106,000) = Rs 150,000; (b) Rs 15;
*Depreciation = Rs 20,000
SOLUTION:
Given and working note:
Depreciation per month
= Rs 24,00,000 × 10% × 1/12 month
= Rs 20,000
Operating Cost Sheet
Of A Transport Company
(For one month)
Particulars . |
Amount |
Standing/fixed cost: |
|
Salary and wages |
18,000 |
Garage rent |
2,000 |
Insurance (Rs 48,000 ÷ 12 months) |
4,000 |
Depreciation |
20,000 |
Total [A] |
44,000 |
Running/variable cost: |
|
Repair and maintenance |
6,000 |
Diesel expenses (10,000 km × Rs 10) |
100,000 |
Total [B] |
106,000 |
Total cost [A+B] |
Rs 150,000 |
Effective running km |
10,000 km |
Cost per passenger km = Rs 106,000 ÷ 10,000 km |
Rs 15 |
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
2072, Q: 14a
A Transport Company supplies you the following information for the month of January:
Cost of car |
Rs 20,00,000 |
Kilometer runs in January |
12,000 km |
Salary and wages |
Rs 40,000 |
Diesel and lubricant per km |
Rs 5 |
Repairs |
Rs 7,000 |
Garage rent |
Rs 10,000 |
Insurance and road tax per annum |
Rs 96,000 |
Depreciation per year under SLM |
15% |
Required: (a) Total cost showing standing and running changes; (b) Profit if the company charges 20% profit on the cost
[Answer: (a) TC (83,000 + 67,000) = Rs 150,000; (b) Profit = Rs 30,000;
*Depreciation = Rs 25,000]
SOLUTION:
Given and working note:
Depreciation per month
= Rs 20,00,000 × 15% × 1/12 month
= Rs 25,000
Operating Cost Sheet
Of A Transport Company
(For one month)
Particulars . |
Amount |
Standing/fixed cost: |
|
Salary and wages |
40,000 |
Garage rent |
10,000 |
Insurance (Rs 96,000 ÷ 12 months) |
8,000 |
Depreciation |
25,000 |
Total [A] |
83,000 |
Running/variable cost: |
|
Repair and maintenance |
7,000 |
Diesel and lubricant (12,000 km × Rs 5) |
60,000 |
Total [B] |
67,000 |
Total cost [A+B] |
Rs 150,000 |
Add: Profit (150,000 × 20%) |
30,000 |
Total fare |
Rs 150,000 |
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
2073, Q: 14a
Suman Transport owns a truck with 10 ton capacity which carries goods between two cities having distance of 50 km.
The truck carries with full load operates one round trip each day for 20 days in a month. Other details are:
Cost of truck |
Rs 30,00,000 |
Life |
10 years |
Scrap value after 10 years |
Rs 6,00,000 |
Driver’s wages |
Rs 15,000 per month |
Cleaner’s wage |
Rs 2,500 per month |
Diesel, mobil oil, grease etc |
Rs 20 per km |
Garage rent |
Rs 5,000 per month |
Insurance and road tax |
Rs 6,000 per annum |
Repairs |
Rs 4,000 per month |
Required: (a) Cost per ton km by showing standing and running charges; (b) Fare to be charge per ton km if 25% profit on fare
[Answer: (a) TC (43,000 + 44,000) = Rs 87,000; (b) Fare to be charged = Rs 5.80;
*Profit per ton km = Rs 1.45; Depn = Rs 20,000; ton km (2,000 × 10) = 20,000
SOLUTION:
Given and working note:
Total running km
= 1 truck × 20 days × 1 trip × 2 ways × 50 km
= 2,000 km
Total ton km
= 2,000 ton/km × 10 ton
= 20,000 ton km
Depreciation
= (Rs 30,00,000 PV – Rs 6,00,000 Scrap) ÷ 10 years ÷ 1/12 month
= 240,000 ÷ 1/12 month
= Rs 20,000
Operating Cost Sheet
Of Suman Transport Company
(For one month)
Particulars . |
Amount |
Standing/fixed cost: |
|
Driver’s wages |
15,000 |
Cleaner’s wages |
2,500 |
Garage rent |
5,000 |
Insurance (Rs 6,000 ÷ 12 months) |
500 |
Depreciation |
20,000 |
Total [A] |
43,000 |
Running/variable cost: |
|
Repair and maintenance |
4,000 |
Diesel and lubricant (2,000 km × Rs 20) |
40,000 |
Total [B] |
44,000 |
Total cost [A+B] |
Rs 87,000 |
Cost per ton km (Rs 87,000 ÷ 20,000 ton km) |
Rs 4.35 |
Add: Profit (Rs 4.35 × 25/75) |
Rs 1.45 |
Fare to be charged |
Rs 5.80 |
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
2075, Q: 15a
A Transport Company provides the following particulars:
Particulars |
|
Cost of vehicle |
Rs 40,00,000 |
Estimated life |
10 years |
Estimated scrap value at the end of 10 years life |
Rs 5,00,000 |
The vehicle covers in a year |
20,000 km |
|
|
Other annual expenses are: |
|
Garage rent |
Rs 15,000 |
Road license |
Rs 20,000 |
Insurance charge |
Rs 25,000 |
Driver’s salary |
Rs 60,000 |
Other fixed expenses |
Rs 20,000 |
Fuel consumption |
10 km per liter |
Cost of fuel per liter |
Rs 90 |
Required: Operating cost sheet by showing standing and running charges
[Answer: TC (250,000 + 180,000) = Rs 670,000;
Depn = Rs 350,000; Fuel = Rs 180,000]
SOLUTION:
Given and working note:
Depreciation |
Fuel cost |
|
= (40,00,000 PV – 500,000 Scrap) ÷ 10 years |
10 km requires |
= Rs 90 |
= 35,00,000 ÷ 10 years |
20,000 km requires |
= Rs 90 × 20,000 km ÷ 10 km |
= Rs 350,000 |
|
= Rs 180,000 |
Operating Cost Sheet
Of A Transport Company
(For one year)
Particulars . |
Amount |
Standing/fixed cost: |
|
Garage rent |
15,000 |
Road license |
20,000 |
Insurance charge |
25,000 |
Driver’s salary |
60,000 |
Other fixed expenses |
20,000 |
Depreciation |
350,000 |
Total [A] |
490,000 |
Running/variable cost: |
|
Fuel expenses |
180,000 |
Total [B] |
180,000 |
Total cost [A+B] |
Rs 670,000 |
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
2077, Q: 14a
Harati Yatayat Sewa presents the following information to you:
Particulars |
|
Cost of bus |
Rs 660,000 |
Estimated scrap value at the end of 10 years life |
Rs 60,000 |
|
|
Other expenses are: |
|
Driver’s salary |
Rs 20,000 per month |
Helper’s salary |
Rs 10,000 per month |
Insurance and tax |
Rs 36,000 per month |
Other administrative expenses |
Rs 24,000 per month |
Diesel and lubricating cost |
Rs 20 per km |
Profit |
10% on freight |
The bus will run 25 days in a month with 6 round trips of 15 km a day.
Required: Operating cost sheet by showing standing and running charges
[Answer: TC (95,000 + 90,000) = Rs 185,000;
Depn = Rs 5,000; Diesel = Rs 90,000]
SOLUTION:
Given and working note:
Depreciation per year |
Total running km |
= (660,000 PV – 60,000 Scrap) ÷ 10 years |
= 1 bus × 25 days × 6 trip × 2 ways × 15 km |
= 600,000 ÷ 10 years |
= 4,500 km |
= Rs 60,000 |
|
|
|
Depreciation per month |
Diesel and lubricating cost |
= Rs 60,000 × 1/12 |
= 4,500 km × Rs 20 |
= Rs 5,000 |
= Rs 90,000 |
|
|
Operating Cost Sheet
Harati Yatayat Sewa
(For one month)
Particulars . |
Amount |
Standing/fixed cost: |
|
Driver’s salary |
20,000 |
Helper’s salary |
10,000 |
Insurance and tax |
36,000 |
Other administrative expenses |
24,000 |
Depreciation |
5,000 |
Total [A] |
95,000 |
Running/variable cost: |
|
Diesel and lubricating cost |
90,000 |
Total [B] |
90,000 |
Total cost [A+B] |
Rs 185,000 |
Cost per km (Rs 185,000 ÷ 4,500 km) |
Rs 41.11 |
Add: Profit (Rs 41.11× 10/90) |
Rs 4.57 |
Fare to be charged |
Rs 45.68 |
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Activity Based Costing, TU Solution contents numerical problems and solution with clear working notes.
Manufacturing company prepares cost statement as per traditional costing system and activity based costing.
Direct materials and direct labour are recorded for prime cost.
There are two methods to calculate cost per unit.
Machine hour rate or labour hour rate is used for traditional costing system.
Cost tools are used to find out cost driver rate.
Overheads are calculated on the basis of cost driver rate in activity based costing.
[Conventional costing system, absorption costing system, volume based costing system]
The tradition costing system was designed decades ago for costing.
There are two types of distribution under traditional costing system.
They are primary and secondary distribution of overhead.
Under primary costing, direct materials, direct labour and direct overhead are calculated.
Under secondary costing, labour hour based or machine hour based overhead are calculated.
Direct materials and direct labour are the major elements of traditional cost accounting system.
The traditional system is suitable for those companies who produce goods in narrow range.
If company produces wide range of goods, overhead cost will be relatively higher to the direct cost.
And it may be difficult to allocation (share) fixed cost.
Activity based cost (ABC) was introduced by Robin Cooper in 1980 to resolves the difficulties of assigning overhead amount under traditional costing.
Then Robert S. Kaplan recommended it in 1988; it is recommended for:
· A wide range of products
· Product costing and profitability
· Distribution and controlling overheads appropriately (properly)
ABC helps to better understanding about overhead cost.
It helps to allocation overheads in systematic and scientific way.
Activities are transaction, events, tasks or unit of work for producing goods.
ABC is also called transaction based costing.
SN |
Activities or Transactions |
Cost Drivers |
1. |
Material procurement, Order execution |
No. of order |
2. |
Material handling |
No. of order executed, No. of movement |
3. |
Store |
No. of batch, Requisition raised |
4. |
Materials handling and dispatch |
Order executed, No. materials component, volume |
5. |
Dispatch of goods |
No. of dispatches |
6. |
Schedule cost, set up cost |
Production runs |
7. |
Materials inspections |
No. of inspections |
8 |
Repair and maintenance, short term variable cost |
Machine hours |
9. |
Power |
Horse power |
10. |
Production scheduling |
No. of production scheduling |
11. |
Engineering cost |
No. of set up, No. of product change, No. of tool change |
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Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
2054, Q: 16
A Manufacturing Company manufactures three products A, B and C. The details regarding product and cost are summarized in the following table:
Products |
Output units |
Direct labour |
Machine |
Materials cost |
Production run |
|
|
Hour/unit |
Hour/unit |
Per unit |
Per product |
A |
2,000 |
2.5 |
2 |
Rs 10 |
10 |
B |
5,000 |
4.0 |
2 |
Rs 12 |
15 |
C |
10,000 |
5.0 |
2 |
Rs 15 |
20 |
Further information:
(i) Direct labour cost per hour is Rs 4 |
||
(ii) Overhead cost and cost driver: |
||
|
Amount |
Cost driver |
Repair and maintenance |
Rs 102,000 |
Machine hours |
Set up cost |
Rs 90,000 |
Production runs |
Scheduling cost |
Rs 45,000 |
Production runs |
Indirect labour |
Rs 138,000 |
DLH |
Total |
Rs 375,000 |
|
Required: (a) Cost per unit under traditional costing system by using direct labour
(b) Cost absorption statement under ABC system
(a) Total cost: A = Rs 65,000; B = Rs 240,000; C = Rs 600,000;
CPU: A = Rs 32.50; B = Rs 48; C = Rs 60;
(b) Total cost: A = Rs 91,000; B = Rs 251,000; C = Rs 562,000;
CPU: A = Rs 45.60; B = Rs 50.36; C = Rs 56.20;
*CDR = Rs 3; Rs 2,000; Rs 1,000; Rs 1.84]
SOLUTION
Given and working note:
Direct labour hour = Output × DLHPU |
Direct labour hour rate |
||
A |
= 2,000 units × 2.5 hours |
= 5,000 hours |
= Total overhead ÷ Direct labour hour |
B |
= 5,000 units × 4 hours |
= 20,000 hours |
= Rs 375,000 ÷ 75,000 hours |
C |
= 10,000 units × 5 hours |
= 50,000 hours |
= Rs 5 |
Total |
= 75,000 hours |
|
Statement of Cost under Traditional Costing System
Particulars |
Products |
||
|
A = 2,000 |
B = 5,000 |
C = 10,000 |
Materials [Output × MCPU] |
20,000 |
60,000 |
150,000 |
Labour [Output × DLHPU × Rs 4] |
20,000 |
80,000 |
200,000 |
Prime cost |
40,000 |
140,000 |
350,000 |
Add: Overhead based on LH (DLH × LH Rate) |
25,000 |
100,000 |
250,000 |
Total cost |
Rs 65,000 |
Rs 240,000 |
Rs 600,000 |
Output |
2,000 |
5,000 |
10,000 |
Cost per unit (CPU) = Total cost ÷ Output |
Rs 32.50 |
Rs 48.00 |
Rs 60.00 |
Calculation of Cost Driver Rate
Activities |
Cost |
Cost Driver |
Total CD |
CDR |
Repair and maintenance |
102,000 |
Machine hours |
34,000 |
3 |
Set up cost |
90,000 |
Production runs |
45 |
2,000 |
Scheduling cost |
45,000 |
Production runs |
45 |
1,000 |
Indirect labour |
138,000 |
DLH |
75,000 |
1.84 |
Given and working note for cost driver:
Production runs |
Machine hours = Output × MHPU |
||||
A |
|
= 10 |
A |
= 2,000 units × 2 h |
= 4,000 |
B |
|
= 15 |
B |
= 5,000 units × 2 h |
= 10,000 |
C |
|
= 20 |
C |
= 10,000 units × 2 h |
= 20,000 |
Total |
= 45 |
Total |
= 34,000 |
||
|
Statement of Cost under Activity Based Costing (ABC)
Particulars |
Products |
|||
|
A = 2,000 |
B = 5,000 |
C = 10,000 |
|
Materials [Output × MCPU] |
20,000 |
60,000 |
150,000 |
|
Labour [Output × DLHPU × Rs 4] |
20,000 |
80,000 |
200,000 |
|
Prime cost |
40,000 |
140,000 |
350,000 |
|
Add: Overheads: (based on ABC) |
|
|
|
|
Repair and maintenance |
[Machine hours × Rs 3] |
12,000 |
30,000 |
60,000 |
Set up cost |
[Production runs × Rs 2,000] |
20,000 |
30,000 |
40,000 |
Scheduling cost |
[Production runs × Rs 1,000] |
10,000 |
15,000 |
20,000 |
Indirect labour |
[DLH × Rs 1.84] |
9,200 |
36,800 |
92,0020 |
Total cost |
Rs 91,000 |
Rs 251,000 |
Rs 562,000 |
|
Output |
2,000 |
5,000 |
10,000 |
|
Cost per unit (CPU) = Total cost ÷ Output |
Rs 45.60 |
Rs 50.36 |
Rs 56.20 |
######
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Accounting Equation |
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Journal Entries |
|
Journal Entry and Ledger |
|
Ledger |
|
Subsidiary Book |
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Cashbook |
|
Trial Balance and Adjusted Trial Balance |
|
Bank Reconciliation Statement (BRS) |
|
Depreciation |
|
|
|
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Financial Accounting and Analysis (All videos) |
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Accounting Process |
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Accounting for Long Lived Assets |
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Analysis of Financial Statement |
######
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
2057, Q: 16
A Manufacturing Company manufactures three products X, Y and Z by using the same plant and process. The following information related to a particulars period:
Products |
Output units |
Materials |
Direct labour |
Machine hour |
Production run |
|
|
cost per unit |
cost per unit |
per unit |
Per product |
X |
100 |
Rs 100 |
Rs 6 |
2 hours |
4 |
Y |
200 |
Rs 50 |
Rs 3 |
1 hour |
8 |
Z |
500 |
Rs 40 |
Rs 5 |
1.2 hours |
20 |
The production overhead cost and cost driver:
Overheads |
Amount (Rs) |
Cost driver |
Set up cost |
64,000 |
No. of production runs |
Store receiving |
8,000 |
Requisition raised |
Inspection and control |
16,000 |
No. of production runs |
Material handling and dispatch |
16,000 |
Order executed |
Total |
Rs 104,000 |
|
Additional information:
(i) Three products were produced in a production run of 25 units each
(ii) The requisition raised for the period in the stores for product X, Y and Z were 10, 10 and 20 respectively
(iii) The number of order being in a batch of 20 units for each product and number of total order executed was 40
Required: Statement of total cost and cost per unit for each product by using:
(a) Conventional absorption costing on the basis machine hours; (b) An activity based costing by using suitable cost drivers
[Answer: (a) Total cost: X = Rs 31,400; Y = Rs 31,400; Z = Rs 84,900;
CPU: X = Rs 314; Y = Rs 157; Z = Rs 169.80;
(b) Total cost: X = Rs 24,600; Y = Rs 36,600; Z = Rs 86,500;
CPU: X = Rs 246; Y = Rs 183; Z = Rs 173;
*CDR = Rs 2,000; Rs 200; Rs 500; Rs 400]
SOLUTION
Given and working note:
Machine hours = Output × MHPU |
Machine hour rate (MHR) |
||
X |
= 100 units × 2 hours |
= 200 hours |
= Total overhead ÷ Machine hours |
Y |
= 200 units × 1 hour |
= 200 hours |
= Rs 104,000 ÷ 1,000 hours |
Z |
= 500 units × 1.2 hours |
= 600 hours |
= Rs 104 |
Total |
= 1,000 hours |
|
Statement of Cost under Traditional Costing System
Particulars |
Products |
||
|
X = 100 |
Y = 200 |
Z = 500 |
Materials [Output × MCPU] |
10,000 |
10,000 |
20,000 |
Labour [Output × DLHPU] |
600 |
600 |
2,500 |
Prime cost |
10,600 |
10,600 |
22,500 |
Add: Overhead based on MH (MH × MHR) |
20,800 |
20,800 |
62,400 |
Total cost |
Rs 31,400 |
Rs 31,400 |
Rs 84,900 |
Output |
100 |
200 |
500 |
Cost per unit (CPU) = Total cost ÷ Output |
Rs 314.00 |
Rs 157.00 |
Rs 169.80 |
Calculation of Cost Driver Rate
Activities |
Cost |
Cost Driver |
Total CD |
CDR |
Set up cost |
64,000 |
No. of production runs |
32 |
2,000 |
Store receiving |
8,000 |
Requisition raised |
40 |
200 |
Inspection and control |
16,000 |
No. of production runs |
32 |
500 |
Material handling and dispatch |
16,000 |
Order executed |
40 |
400 |
Given and working note for cost driver:
Production runs |
Requisition raised |
No. of order executed = Output ÷ 20 |
|
= X + Y + Z |
= X + Y + Z |
X = 100 ÷ 20 |
= 5 |
= 4 + 8 + 20 |
= 10 + 10 + 20 |
Y = 200 ÷ 20 |
= 10 |
= 32 |
= 40 |
Z = 500 ÷ 20 |
= 25 |
|
|
Total |
= 40 |
Statement of Cost under Activity Based Costing (ABC)
Particulars |
Products |
|||
|
X = 100 |
Y = 200 |
Z = 500 |
|
Materials [Output × MCPU] |
10,000 |
10,000 |
20,000 |
|
Labour [Output × MHPU] |
600 |
600 |
2,500 |
|
Prime cost |
10,600 |
10,600 |
22,500 |
|
Add: Overheads: (based on ABC) |
|
|
|
|
Set up cost |
[Production runs × Rs 2,000] |
8,000 |
16,000 |
40,000 |
Store receiving |
[Requisition raised × Rs 200] |
2,000 |
2,000 |
4,000 |
Inspection and control |
[Production runs × Rs 500] |
2,000 |
4,000 |
10,000 |
Material H&D |
[Order executed × Rs 400] |
2,000 |
4,000 |
10,000 |
Total cost |
Rs 24,600 |
Rs 36,600 |
Rs 86,500 |
|
Output |
100 |
200 |
500 |
|
Cost per unit (CPU) = Total cost ÷ Output |
Rs 246 |
Rs 183 |
Rs 173 |
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
2060/First, Q: 16
Three products A, B and C are produced by A Manufacturing Concern. The details of the particular are noted in the table:
Materials |
Output units |
DLH |
Machine hours |
Raw materials cost |
Raw materials usage |
|
|
per unit |
per unit |
per kg (Rs) |
per unit |
A |
5,000 |
1.0 |
4/5 |
2 |
1.5 |
B |
7,000 |
2.0 |
1.5 |
3 |
2.0 |
C |
8,000 |
2.5 |
2.0 |
5 |
2.5 |
Other details are:
(i) Direct labour cost per hour is Rs 6
(ii) 1,000 units batch of production run is effective in each product.
(iii) Raw materials purchase consists of 500 kg in each purchase.
Actual overhead incurred are:
Overhead |
Amount (Rs ) |
Cost tools |
|
Production scheduling cost |
30,000 |
Production run |
|
Maintenance expenses |
15,250 |
Machine hours |
|
Indirect labour |
62,400 |
DLH |
|
Set up costs |
28,430 |
Production run |
|
Order execution cost |
19,920 |
Order executed |
|
|
156,000 |
|
|
Required: (1) Traditional cost statement by using DLH for overhead to determine total cost and cost per unit
(2) ABC Statement showing total cost and cost per unit for each product, allocating cost by using cost drives
[Answer: (1) TC = Rs 65,000; Rs 182,000; Rs 300,000; CPU = Rs 13; Rs 26; Rs 37.50;
(2) TC = Rs 74,588; Rs 181,073; Rs 291,340; CPU = Rs 14.92; Rs 25.87; Rs 36.42;
*CDR = 1,500; 0.50; 1.60; 1,421.50; 498; other executed = Output ÷ 500 kg]
*Materials usage is applied for direct materials only]
SOLUTION
Given and working note:
Direct labour hour = Output × DLHPU |
Direct labour hour rate |
||
A |
= 5,000 units × 1 hours |
= 5,000 hours |
= Total overhead (given) ÷ Direct labour hour |
B |
= 7,000 units × 2 hours |
= 14,000 hours |
= Rs 156,000 ÷ 39,000 hours |
C |
= 8,000 units × 2.5 hours |
= 20,000 hours |
= Rs 4 |
Total |
= 39,000 hours |
|
Statement of Cost under Traditional Costing System
Particulars |
Products |
||
|
A = 5,000 |
B = 7,000 |
C = 8,000 |
Materials [Output × Usage @ MCPU] |
15,000 |
42,000 |
100,000 |
Labour [Output × DLHPU @ Rs 6] |
30,000 |
84,000 |
120,000 |
Prime cost |
45,000 |
126,000 |
220,000 |
Add: Overhead based on LH (DLH × LH Rate) |
20,000 |
56,000 |
80,000 |
Total cost |
Rs 65,000 |
Rs 182,000 |
Rs 300,000 |
Output |
5,000 |
7,000 |
8,000 |
Cost per unit (CPU) = Total cost ÷ Output |
Rs 13.00 |
Rs 26.00 |
Rs 37.50 |
Calculation of Cost Driver Rate
Activities |
Cost |
Cost Driver |
Total CD |
CDR |
Production schedule cost |
30,000 |
Production runs |
20 |
1,500.00 |
Maintenance expenses |
15,250 |
Machine hour |
30,500 |
0.50 |
Indirect labour |
62,400 |
Direct labour hour |
39,000* |
1.60 |
Set up |
28,430 |
Production runs |
20 |
1,421.50 |
Other execution |
19,920 |
Other execution |
40 |
498.00 |
Given and working note for cost driver:
Production runs = Output ÷ 1,000 units |
Machine hours = Output × MHPU |
||||||
A |
= 5,000 units ÷ 1,000 units |
= 5 |
A |
= 5,000 units × 4/5 h |
= 4,000 |
||
B |
= 7,000 units ÷ 1,000 units |
= 7 |
B |
= 7,000 units × 1.5 h |
= 10,500 |
||
C |
= 8,000 units ÷ 1,000 units |
= 8 |
C |
= 8,000 units × 2 h |
= 16,000 |
||
Tota |
= 20 |
Total |
30,500 |
||||
|
|
||||||
Other execution = Output ÷ 500 kg |
|
||||||
A |
= 5,000 ÷ 500 |
= 10 |
|
||||
B |
= 7,000 ÷ 500 |
= 14 |
|
||||
C |
= 8,000 ÷ 500 |
= 16 |
|
||||
Total |
= 40 |
|
|||||
Statement of Cost under Activity Based Costing (ABC)
Particulars |
Products |
|||
|
A = 5,000 |
B = 7,000 |
C = 8,000 |
|
Materials [Output × Usage × MCPU] |
15,000 |
42,000 |
100,000 |
|
Labour [Output × DLHPU × Rs 6] |
30,000 |
84,000 |
120,000 |
|
Prime cost |
45,000 |
126,000 |
220,000 |
|
Add: Overheads: (based on ABC) |
|
|
|
|
Production schedule cost |
[Production runs × Rs 1,500] |
7,500 |
10,500 |
12,000 |
Maintenance expenses |
[Machine hour × Re 0.50] |
2,000 |
5,250 |
8,000 |
Indirect labour |
[Direct labour hour × Rs 1.60] |
8,000 |
22,400 |
32,000 |
Set up |
[Production runs × Rs 1,421.5] |
7,108 |
9,951 |
11,372 |
Order execution |
[Order execution × Rs 498] |
4,980 |
6,972 |
7,968 |
Total cost |
74,588 |
181,073 |
291,340 |
|
Output |
5,000 |
7,000 |
8,000 |
|
Cost per unit (CPU) = Total cost ÷ Output |
14.92 |
25.87 |
36.42 |
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
2065, Q: 16
AE Manufacturing Company produces three products namely P, Q and R using the same plant and similar production process. The detail information of the products and cost are summarized below:
Production |
Output in units |
DLH per unit |
MH per unit |
Direct materials cost per unit |
Direct labour cost per unit |
Production runs per product |
P |
2,500 |
3 |
1.5 |
Rs 15 |
Rs 6 |
15 |
Q |
3,000 |
4 |
1.5 |
Rs 18 |
Rs 8 |
8 |
R |
4,000 |
4.5 |
2.0 |
Rs 20 |
Rs 9 |
12 |
Other information regarding overhead cost and suitable cost driver are given below:
Cost pool |
Amount |
Cost driver |
Schedule cost |
35,000 |
Production run |
Set up cost |
37,500 |
Production run |
Indirect labour cost |
75,000 |
Direct labour hours |
Repair and maintenance |
40,000 |
Machine hours |
Required: (1) Total cost and cost per unit under traditional costing system using labour hour
(2) Total cost and cost per unit under ABC using suitable cost driver
(3) Comparative statement of unit cost under two methods
[Answer: (1) TC = Rs 90,000; Rs 138,000; Rs 206,000;
CPU = Rs 36; Rs 46; Rs 51.50;
(2) TC = Rs 107,796; Rs 129,641; Rs 196,537;
CPU = Rs 43.12; Rs 43.21; Rs 49.13;
(3) Difference: P = -7.12; Q: = +2.79; R = + 2.37;
*CDR = Rs 1,000; Rs 1,071.43; Rs 2; Rs 2.46
CPU = Rs 79; Rs 74; Rs 70]
SOLUTION
Given and working note:
Total labour hours |
= Output × LHPU |
|
Labour hour rate |
P |
= 2,500 × 3 |
= 7,500 |
= Total cost ÷ Total labour hour |
Q |
= 3,000 × 4 |
= 12,000 |
= 187500 ÷ 37,500 |
R |
= 4,000 × 4.5 |
= 18,000 |
= Rs 5 per hour |
|
Total |
= 37,500 |
|
Cost Statement under Traditional Costing
Particulars |
P |
Q. |
R |
Direct materials [Output × MCPU] |
37,500 |
54,000 |
80,000 |
Direct labour [Output × LHPU] |
15,000 |
24,000 |
36,000 |
Prime cost |
52,500 |
78,000 |
116,000 |
Add: Overhead (based on labour hours) |
37,500 |
60,000 |
90,000 |
Total cost |
Rs 90,000 |
Rs 138,000 |
Rs 206,000 |
Output |
2,500 |
3,000 |
4,000 |
Cost per unit = Total cost ÷ Output |
Rs 36 |
Rs 46 |
Rs 51.5 |
Calculation of Cost Driver Rate
Activities |
Amount |
Cost driver |
Total cost driver |
CDR |
Schedule Costing |
35,000 |
Production Runs |
35 |
1,000.00 |
Set Up Cost |
37,500 |
Production Runs |
35 |
1,071.43 |
Indirect Labour |
75,000 |
Direct Labour |
37,500 |
2.00 |
Repairs and Maintenance |
40,000 |
Machine Hours |
16,250 |
2.46 |
Given and working note for cost driver:
Production runs |
|
Machine hours |
= Output × MHPU |
|
= P + Q + R |
|
P |
= 2,500 × 1.5 |
= 3,750 |
= 15 + 8 + 12 |
|
Q |
= 3,000 × 1.5 |
= 4,500 |
= 35 |
|
R |
= 4,000 × 2 |
= 8,000 |
|
|
|
Total |
= 16,250 |
Cost Statement under Activities Based Costing
|
P |
Q |
R |
|
Direct materials [Output × MCPU] |
37,500 |
54,000 |
80,000 |
|
Direct labour [Output × LHPU] |
15,000 |
24,000 |
36,000 |
|
Prime cost |
52,500 |
78,000 |
116,000 |
|
Add: Overhead (based on ABC) |
|
|
|
|
Schedule costing |
[Production runs × Rs 1,000] |
15,000 |
8,000 |
12,000 |
Set up cost |
[Production runs × Rs 1,071.43] |
16,071 |
8,571 |
12,857 |
Indirect labour |
[Direct labour × Rs 2] |
15,000 |
24,000 |
36,000 |
Repairs and maintenance |
[Machine hours × Rs 2.46] |
9,225 |
11,070 |
19,680 |
Total cost |
Rs 107,796 |
Rs 129,641 |
Rs 196,537 |
|
Output |
2,500 |
3,000 |
4,000 |
|
Cost per unit = Total cost ÷ Output |
Rs 43.12 |
Rs 43.21 |
Rs 49,13 |
Comparatives of cost per unit
|
P |
Q |
R |
Traditional costing |
Rs 36.00 |
Rs 46.00 |
51.50 |
Activity based costing |
Rs 43.12 |
Rs 43.21 |
49.13 |
Difference |
(Rs 7.12) |
Rs 2.79 |
Rs 2.37 |
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
2066, Q: 16
A Manufacturing Company manufactures three products namely M, N and O. The details regarding products and their overhead cost and related cost driver for a period are as follows:
Cost pool |
Cost (Rs ) |
Cost driver |
Repair cost |
16,000 |
Machine hours |
Schedule cost |
30,000 |
Production runs |
Materials handling |
32,000 |
Quantity of materials |
Set up cost |
30,000 |
No. of set up |
Data for the period are:
Production |
Output |
LH |
MH |
No. of set up |
Materials cost |
Materials |
Production |
|
|
Per unit |
Per unit |
|
per unit |
per unit |
runs |
M |
2,000 |
3 |
3 |
3 |
200 |
2 |
3 |
N |
4,000 |
2 |
5 |
6 |
150 |
2 |
4 |
O |
2,000 |
2 |
3 |
3 |
150 |
2 |
3 |
Further information:
· Direct labour cost per hour Rs 4
Required: statement of total cost and cost per unit for each product by using:
(1) Conventional absorption costing on the basis of labour hour
(2) An activity based costing using suitable cost drivers
[Answer: (1) TC: M = Rs 460,000; N = Rs 680,000; O = Rs 340,000;
CPU: M = Rs 230; N = Rs 170; O = Rs 170;
(2) TC: M = Rs 451,500; N = Rs 685,000; O = Rs 343,500;
CPU: M = Rs 225.75; N = Rs 171.25; O = Rs 171.75;
* Qty of materials = Output x MPU]
SOLUTION
Given and working note:
Labour hours |
= Output × LHPU |
|
Labour hours rate |
M |
= 2,000 × 3 |
= 6,000 |
= Total overhead ÷ Total labour hours |
N |
= 4,000 × 2 |
= 8,000 |
= Rs 108,000 ÷ 18,000 hours |
O |
= 2,000 × 2 |
= 4,000 |
= Rs 6 |
|
Total |
= 18,000 |
|
Cost Statement under Conventional Costing
Particulars |
Products |
||
|
M = 2,000 |
N = 4,000 |
O = 2,000 |
Direct materials [Output × RCPU] |
400,000 |
600,000 |
300,000 |
Direct labour [Output × LHPU × Rs 4] |
24,000 |
32,000 |
16,000 |
Prime cost |
424,000 |
632,000 |
316,000 |
Add: Overhead (based on labour hours): |
|
|
|
Labour expenses (LH × LHR) |
36,000 |
48,000 |
24,000 |
Total cost |
Rs 460,000 |
Rs 680,000 |
Rs 340,000 |
Output |
2,000 |
4,000 |
2,000 |
Cost per unit s = Total cost ÷ Output |
Rs 230 |
Rs 170 |
Rs 170 |
Calculation of Cost Driver Rate
Activities |
Amount |
Cost Driver (CD) |
Total CD |
CD Rate |
1 |
2 |
3 |
4 |
5 = 2 ÷ 4 |
Repair cost |
16,000 |
Machine hours |
32,000 |
0.50 |
Schedule cost |
30,000 |
Production runs |
10 |
3,000.00 |
Materials handling |
32,000 |
Quantity of materials |
16,000 |
2.00 |
Set up cost |
30,000 |
No. of set up |
12 |
2,500.00 |
Working note for total cost driver:
Machine hours |
= Output × MHPU |
|
Production runs |
M |
= 2,000 × 3 |
= 6,000 |
= M + N + O |
N |
= 4,000 × 5 |
= 20,000 |
= 3 + 4 + 3 |
O |
= 2,000 × 3 |
= 6,000 |
= 10 |
|
|
= 32,000 |
|
|
|
||
|
|
||
Quantity of materials |
= Output × MPU |
|
No. of set up |
M |
= 2,000 × 2 |
= 4,000 |
= M + N + O |
N |
= 4,000 × 2 |
= 8,000 |
= 3 + 6 + 3 |
O |
= 2,000 × 2 |
= 4,000 |
= 12 |
|
|
= 16,000 |
|
Cost Statement under ABC
Particulars |
Products |
|||
|
M |
N |
O |
|
Direct materials [Output × RCPU] |
400,000 |
600,000 |
300,000 |
|
Direct labour [Output × LHPU × Rs 4] |
24,000 |
32,000 |
16,000 |
|
Prime cost |
424,000 |
632,000 |
316,000 |
|
Add: Overhead (based on ABC): |
|
|
|
|
Repair cost |
[Machine hours × Re 0.50] |
3,000 |
10,000 |
3,000 |
Schedule cost |
[Production runs × Rs 3,000] |
9,000 |
12,000 |
9,000 |
Materials handling |
[Qty of materials × Rs 2] |
8,000 |
16,000 |
8,000 |
Set up cost |
[No. of set up × Rs 2,500] |
7,500 |
15,000 |
7,500 |
Total cost |
Rs 451,500 |
Rs 685,000 |
Rs 343,500 |
|
Output |
2,000 |
4,000 |
2,000 |
|
Cost per unit s = Total cost ÷ Output |
Rs 225.75 |
Rs 171.25 |
Rs 171.75 |
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
2068, Q: 16 Or
A Manufacturing Company provides following information regarding the products and cost relating to their production:
|
A |
B |
C |
Unit produced |
18,000 |
14,000 |
10.000 |
Production runs |
9 |
7 |
5 |
Machine hours per unit |
5 |
4 |
3 |
Sales order received |
18 |
14 |
10 |
DLHs used per unit |
7.5 |
6 |
4.5 |
Raw materials per unit |
Rs 55 |
Rs 60 |
Rs 48 |
Variable overhead per unit |
Rs 21.5 |
Rs 23 |
Rs 11.75 |
The total production overheads for the period with cost are given below:
Cost pools |
Overhead cost to cost pool (Rs) |
Materials handling and dispatches cost |
35,700 |
Machine handling cost |
110,000 |
Store receiving cost |
27,000 |
Inspection cost |
22,050 |
Machine set ups cost |
27,510 |
|
222,260 |
Other information:
The DLH rate is Rs 2.50 per hour.
The numbers of requisition raised on the store were 25 for each product.
The production overhead is presently is presently apportioned on the basis of machine hours.
Required: (a) Unit cost under traditional volume based costing system and unit selling price at 20% profit on cost.
(b) Unit cost under ABC system showing cost driver rate with cost product of each cost pool and unit selling price at 120% of cost.
[Answer: (1a) TC: A = Rs 18,28,156; B = Rs 14,42,719; C = Rs 7,47,885;
CPU: A = Rs 101.56; B = Rs 103.05; C = Rs 74.79;
Profit: A = Rs 20.31; B = Rs 20.61; C = Rs 14.96;
(b) TC: A = Rs 18,16,290; B = Rs 14,44,420; C = Rs 7,58,050;
CPU: A = Rs 100.91; B = Rs 103.17; C = Rs 75.81;
Profit: A = Rs 20.18; B = Rs 20.63; C = Rs 15.16]
*Requisition raised A = 25; B = 25; C =25
SOLUTION
Given and working note:
Machine hours |
= Output × MHPU |
|
Labour hours rate |
A |
= 18,000 × 5 |
= 90,000 |
= Total overhead ÷ Total labour hours |
B |
= 14,000 × 4 |
= 56,000 |
= Rs 222,260 ÷ 176,000 hours |
C |
= 10,000 × 3 |
= 30,000 |
= Rs 1.26284 |
|
Total |
= 176,000 |
|
Cost Statement under Conventional Costing
Particulars |
Products |
||
|
A = 18,000 |
B = 14,000 |
C = 10,000 |
Direct materials [Output × RCPU] |
9,90,000 |
8,40,000 |
4,80,000 |
Direct labour [Output × LHPU × Rs 2.5] |
3,37,500 |
2,10,000 |
1,12,500 |
Prime cost |
13,27,500 |
10,50,000 |
5,92,500 |
Add: Overhead (based on machine hours): |
|
|
|
Machine expenses (MH × MHR) |
1,13,656 |
70,719 |
37,885 |
Variable production overhead [Output × VOPU] |
3,87,000 |
3,22,000 |
1,17,500 |
Total cost |
Rs 18,28,156 |
Rs 14,42,719 |
7,47,885 |
Output |
18,000 |
14,000 |
10,000 |
Cost per unit s = Total cost ÷ Output |
Rs 101.56 |
Rs 103.05 |
Rs 74.79 |
Add: Profit |
20.31 |
20.61 |
14.96 |
Selling price per unit |
Rs 121.87 |
Rs 123.66 |
Rs 89.75 |
Calculation of Cost Driver Rate
Activities |
Amount |
Cost Driver (CD) |
Total CD |
CD Rate |
1 |
2 |
3 |
4 |
5 = 2 ÷ 4 |
Materials handling and dispatches cost |
35,700 |
Sales order received |
42 |
850 |
Machine handling cost |
110,000 |
Machine hours |
176,000 |
0.625 |
Store receiving cost |
27,000 |
Requisition raised |
75 |
360 |
Inspection cost |
22,050 |
Production run |
21 |
1,050 |
Machine set ups cost |
27,510 |
Production run |
21 |
1,310 |
Working note for total cost driver:
Sales order received |
Requisition raised |
Production run |
= A + B + C |
= A + B + C |
= A + B + C |
= 18 + 14 + 10 |
= 25 + 25 + 25 |
= 9 + 7 + 5 |
= 42 |
= 75 |
= 21 |
Cost Statement under ABC
Particulars |
Products |
|||
|
A = 18,000 |
B = 14,000 |
C = 10,000 |
|
Direct materials [Output × RCPU] |
9,90,000 |
8,40,000 |
4,80,000 |
|
Direct labour [Output × LHPU × Rs 2.5] |
3,37,500 |
2,10,000 |
1,12,500 |
|
Prime cost |
13,27,500 |
10,50,000 |
5,92,500 |
|
Add: Variable production overhead [Output × VOPU] |
3,87,000 |
3,22,000 |
1,17,500 |
|
Add: Overhead (based on ABC): |
|
|
|
|
Materials H&D |
[Sales order received × Rs 850] |
15,300 |
11,900 |
8,500 |
Machine handling cost |
[Machine hours × Re 0.625] |
56,250 |
35,000 |
18,750 |
Store receiving cost |
[Requisition raised × Rs 360] |
9,000 |
9,000 |
9,000 |
Inspection cost |
[Production run × Rs 1,050] |
9,450 |
7,350 |
5,250 |
Machine set ups cost |
[Production run × Rs 1,310] |
11,790 |
9,170 |
6,550 |
Total cost |
Rs 18,16,290 |
Rs 14,44,420 |
Rs 7,58,050 |
|
Output |
18,000 |
14,000 |
10,000 |
|
Cost per unit s = Total cost ÷ Output |
Rs 100.91 |
Rs 103.17 |
Rs 75.81 |
|
Add: Profit |
20.18 |
20.63 |
15.16 |
|
Selling price per unit |
Rs 121.09 |
Rs 123.80 |
Rs 90.97 |
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
2072, Q: 16
A Manufacturing Company produces two types of products A and B. The company recently decided to charge volume based costing system to activity based costing system. To assess the effect of the change, the following data have been gathered:
Products |
Units |
Machine hour |
Production runs |
Prime cost |
Materials component |
A |
3,000 |
9,000 |
10 |
Rs 10,000 |
6,000 |
B |
2,000 |
4,000 |
5 |
Rs 8,000 |
8,000 |
The overhead cost and cost drivers are as follows:
Cost |
Cost drivers |
Amount |
Machine related activities |
Machine hours |
39,000 |
Set up cost |
Production runs |
30,000 |
Material handing cost |
No. of material components |
28,000 |
|
|
97,000 |
Required: Unit production cost: (a) Using conventional costing system; (b) Using ABC system;
(c) Comment on the results of two methods
[Answer: (a) TC: A = Rs 77,154; B = Rs 37,546; CPU: A = Rs 25.72; B = Rs 18.92;
(b) TC: A = Rs 69,000; B = Rs 46,000; CPU: A = Rs 23; B = Rs 23;
*CDR = 3; 2,000; 2;
SOLUTION:
Given and working note:
Machine hours |
Machine hours rate |
Production runs |
Materials component |
= A + B |
= Total overhead ÷ Total machine hours |
= A + B |
= A + B |
= 9,000 + 4,000 |
= Rs 97,000 ÷ 13,000 hours |
= 10 + 5 |
= 6,000 + 8,000 |
= 13,000 |
= Rs 7.4615 |
= 15 |
= 14,000 |
|
|
|
|
Cost Statement under Traditional Costing
Particulars |
A = 3,000 |
B = 2,000 |
Materials |
×××× |
×××× |
Labour |
×××× |
×××× |
Prime cost (given) |
10,000 |
8,000 |
Add: Overheads: (based on MH) [MH × MHR] |
67,154 |
29,846 |
Total cost |
Rs 77,154 |
Rs 37,846 |
Output |
3,000 |
2,000 |
Cost per unit = Total overhead ÷ Output |
Rs 25.72 |
Rs 18.92 |
Calculation of Cost Driver Rate
Activities |
Cost |
Cost Driver |
Total CD |
CDR |
Machine related activities |
39,000 |
Machine hours |
13,000 |
3 |
Set up cost |
30,000 |
Production runs |
15 |
2,000 |
Material handing cost |
28,000 |
No. of material components |
14,000 |
2 |
Cost Statement under Activities Based Costing
Particulars |
A = 3,000 |
B = 2,000 |
|
Direct materials |
×××× |
×××× |
|
Direct labour |
×××× |
×××× |
|
Prime cost (given) |
10,000 |
8,000 |
|
Add: Overhead (based on ABC) |
|
|
|
Machine related activities |
[Machine hours × Rs 3] |
27,000 |
12,000 |
Set up cost |
[Production runs × Rs 2,000] |
20,000 |
10,000 |
Material handing cost |
[No. of material components × Rs 2] |
12,000 |
16,000 |
Total cost |
Rs 69,000 |
Rs 46,000 |
|
Output |
3,000 |
2,000 |
|
Cost per unit = Total overhead ÷ Output |
Rs 23 |
Rs 23 |
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
2075, Q: 17
A Manufacturing Company provided the following particulars for the period ended:
Items |
Cost drivers |
Products |
Overhead (Rs) |
||
|
|
P |
Q |
R |
|
Production runs |
– |
5,000 |
4,000 |
3,000 |
– |
Material purchasing cost |
Order executed |
7 |
8 |
3 |
36,000 |
Set up cost |
Production runs |
10 |
9 |
6 |
50,000 |
Maintenance cost |
Machine hours |
7,000 |
4,000 |
2,000 |
26,000 |
Materials handing cost |
Quantity of materials |
4,000 |
3,000 |
2,000 |
18,000 |
Direct materials cost per unit (Rs) |
– |
4 |
5 |
6 |
– |
Direct labour cost per unit (Rs) |
– |
6 |
5 |
4 |
– |
Required: Unit production cost: (a) Traditional costing system based on machine hours; (b) ABC system
[Answer: (a) TC: P = Rs 120,000; Q = Rs 80,000; R = Rs 50,000;
CPU: P = Rs 24; Q = Rs 20; R = Rs 16.67;
(b) TC: P = Rs 106,000; Q = Rs 88,000; R = Rs 56,000;
CPU: P = Rs 21.20; Q = Rs 22; R = Rs 18.57;
*CDR = 2,000; 2,000; 2; 2;
SOLUTION
Given and working note:
Total overhead |
Order executed |
= 36,000 + 50,000 + 26,000 + 18,000 |
= P + Q + R |
= 130,000 |
= 7 + 8 + 3 |
|
= 18 |
Machine hours |
|
= P + Q + R |
Production runs |
= 7,000 + 4,000 + 2,000 |
= P + Q + R |
= 13,000 |
= 10 + 9 + 6 |
|
= 25 |
Machine hours rate |
|
= Total overhead ÷ Total labour hours |
Quantity of materials |
= Rs 130,000 ÷ 13,000 hours |
= P + Q + R |
= Rs 10 |
= 4,000 + 3,000 + 2,000 |
|
= 9,000 |
Cost Statement under Conventional Costing
Particulars |
Products |
||
|
P = 5,000 |
Q = 4,000 |
R = 3,000 |
Direct materials [Output × RCPU] |
20,000 |
20,000 |
18,000 |
Direct labour [Output × LHPU] |
30,000 |
20,000 |
12,000 |
Prime cost |
50,000 |
40,000 |
30,000 |
Add: Overhead (based on machine hours): |
|
|
|
Machine expenses (MH × MHR) |
70,000 |
40,000 |
20,000 |
Total cost |
Rs 120,000 |
Rs 80,000 |
Rs 50,000 |
Output |
5,000 |
4,000 |
3,000 |
Cost per unit s = Total cost ÷ Output |
Rs 24 |
Rs 20 |
Rs 16.67 |
Calculation of Cost Driver Rate
Activities |
Cost |
Cost Driver |
Total CD |
CDR |
Material purchasing cost |
36,000 |
Order executed |
18 |
2,000 |
Set up cost |
50,000 |
Production runs |
25 |
2,000 |
Maintenance cost |
26,000 |
Machine hours |
13,000 |
2 |
Materials handing cost |
18,000 |
Quantity of materials |
9,000 |
2 |
Cost Statement under ABC
Particulars |
Products |
|||
|
P = 5,000 |
Q = 4,000 |
R = 3,000 |
|
Direct materials [Output × RCPU] |
20,000 |
20,000 |
18,000 |
|
Direct labour [Output × LHPU] |
30,000 |
20,000 |
12,000 |
|
Prime cost |
50,000 |
40,000 |
30,000 |
|
Add: Overhead (based on ABC): |
|
|
|
|
Material purchasing cost |
[Order executed × Rs 2,000] |
14,000 |
16,000 |
6,000 |
Set up cost |
[Production runs × Rs 2,000] |
20,000 |
18,000 |
12,000 |
Maintenance cost |
[Machine hours × Rs 2] |
14,000 |
8,000 |
4,000 |
Materials handing cost |
[Qty of materials × Rs 2] |
8,000 |
6,000 |
4,000 |
Total cost |
Rs 106,000 |
Rs 88,000 |
Rs 56,000 |
|
Output |
5,000 |
4,000 |
3,000 |
|
Cost per unit s = Total cost ÷ Output |
Rs 21.20 |
Rs 22.00 |
Rs 18.57 |
*****
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