ACCOUNTING FOR FIXED ASSETRS (A CASE STUDY OF COCA-COCA BOTTLING COMPANY PLC 9TH MILE CORNER)

  • Type: Project
  • Department: Accounting
  • Project ID: ACC0322
  • Access Fee: ₦5,000 ($14)
  • Chapters: 5 Chapters
  • Pages: 99 Pages
  • Methodology: Simple Percentage and chi square
  • Reference: YES
  • Format: Microsoft Word
  • Views: 3.6K
  • Report This work

For more Info, call us on
+234 8130 686 500
or
+234 8093 423 853
ACCOUNTING FOR FIXED ASSETRS (A CASE STUDY OF COCA-COCA BOTTLING COMPANY PLC 9TH MILE CORNER)
TABLE OF CONTENTS
CHAPTER ONE
1.0              INTRODUCITON
1.1       BACKGROUND
1.2              STATEMENT OF PROBLEMS
1.3              THE OBJECTIVE OF THE STUDY
1.4              SIGNIFICANCE OF  THE STUDY
1.5              SCOPE AND LIMITATIONS OF THE STUDY
1.6              TIME
1.7              DEFINITION OF TERMS
1.8              HYPOTHESIS
CHAPTER TWO
2.0       LITERATURE REVIEW
2.1              COMPONENTS OF ACQUISTITION OF COST
2.2              RECOGNITIONOF INTEREST ON DEFERED PAYMENT CONTRACTS
2.3              COMPONENTS OF COST OF SELF CONSTRUCTED PROPERTY
2.4              CONSIDERATION OTHER THAN CASH
2.5              AMOUNT SUBSTITUTED FOR HISTORICAL COST
2.6              REQUIREMENT AND DISPOSAL
2.7              DEPRECIATION OF FIXED ASSETS
2.8              CAUSES OF DEPRECIATION
2.9              PROVISION FOR DEPRECIATION AS ALLOCATION OF COST.
2.10          MAIN METHOD OF CALCULATING PROVISION FOR DEPRECIATION
2.11          ACCOUNTING TREATMENT OF DEPRECIATION
CHAPTER THREE
3.0       RESEARCH METHOD AND METHODOLOGY
3.1              RESEARCH METHODS USED
3.2              DESCRIPTIONS OF RESPONDENTS
3.3              DETERMINATION OF SAMPLE SIZE
CHAPTER FOUR
4.0              PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA
CHAPTER FIVE
5.0              SUMMARY OF FINDINGS CONCLUSIONS AND RECOMMENDATION
5.1       SUMMARY OF FINDING
5.2              CONCLUSION
5.3              RECOMMENDATION
BIBLIOGRAPHY
APPENDIX
CHAPTER I
1.0              INTRODUCTION
1.1       Background of the study
            Fixed Assets are those assets of a business which are of material value, like property, plant and equipment and other assets with relatively permanent life acquired by the enterprise for use in production or supply of goods or instructed with intention of being used on a continuing  basis or for administrative purpose and many include items held for the resale or for conversion into cash in the ordinary source of business.
            However, there are other long lived assets which we cannot see such ones are classified as in tangible assets.
            They are: Goodwill, trademark.  Be it tangible or intangible all fixed assets represent a bundle of future services which are paid for in advance and used subsequently in the process of generating revenue.
            Basically, in a bottling company, there are only three important stages to note down in records of the company as it relates to the fixed assets in liquidation.  They are:
-                      the stage of acquisition of the fixed assets
-                      the stage of provision for depreciation of fixed assets
-                      The third stage is the time of the period when the assets must have been useless for the company, then the management can then decide to sell if off and make replacement.
For better understanding of the accounting treatment of fixed assets, its acquisition, depreciation and disposal the researcher has chosen the traditional “T” account to illustrate this point.
Whenever an assets is acquired by a firm, the cost of the assets is always debited to that asset account in the firm’s books and the corresponding entry, will be to credit the cash or bank account.
At the same time, when the asset must have been deemed useless, then it can be sold out as scrap.  The cost of the disposal will be credited to the asset account while the cash or bank account of the firm will be debited.  The assets depreciation account is equally created. On this, the cost of disposal is debited and the totaldepreciation by the assets as at the date of disposal credited.
The third account is thedisposal account.  On this the cost of the assets is debited while the total amount relaized from the depreciationwill be credited. Also to be credited is the profit and loss on the disposal.
At this point, a typical example of purchase depreciation and final disposal of an asset (machine) use din production will  be illustrated using  a ‘T’ account.
MACHINE ACCOUNT
Jan.  2000  cost    xxx      Balance  c/d                                    xx
                                                                                               xx
MACHINERY DEPRECIATION
To machinery
Disposal A/C   xx
                               xx                Balance b/d                   xx
                                                                                                      xx
            MACHINERY DISPOSAL A/C
Machine cost   xx  bank (Disposal)                          xx
                                           Machine Dep (D/C)                  xx
 Gain on disposal   xx  loss on disposal                           xx
                               xx                                                        xx
this ‘T’ account to a part from producing the correct figure is also extremely easy to follow.
PROPERTY, PLNT AND EQUIPMENT
            The cost of an item, property, plant and equipment comprises to purchase price, including import duties and non-refundable purchase, taxes and any directly attributable costs of bringing the assets to working condition for its intended use.  Usually trade discounts and rebates deducted in arising at such purchase price when a fixed assets in purchased and non-cash consideration is also given, the cost of the asset is the cash and plus the fair market value of the non-cash consideration.
            Lost represents the net sacrifice made or be made whether the sacrifice is parting with cash or parting with any other things of value in acquiring the fixed asset and getting it to a condition it can be used.
            The acquisition of a fixed asset in recorded simply by debiting the related fixed assets at cost account and crediting either bank or the suppliers account.
            However, certain costs associated with fixed assets should be written off immediately through the profit and loss account and should never be shown as part of  the cost of the fixed assets.
            In the experience of the researcher, the warning sign as adopted by the Coca-Cola bottling company is the letter’s re’ 4.   In other words, replacement.  Repairs and renewal to fixed assets are expenses.
            Thus the cost of the machine is debited to fixed assets but the cost of replacing the engine of an existing vehicle is an expense that is debited to profit and loss account of the Coca-Cola bottling company plc 9th mile corner Enugu
1.2              STATEMENT OF PROBLEMS
This study is carried out in order to ascertain and appraise the accounting methods, used in accounting for fixed assets with respect to Coca-Cola bottling company plc 9th mile corner: Bottlers of seven different flavour of soft drinks.
They are coke, fanta orange, sprite, Ginger ale, Quinine tonic, krest soda.
Some of the problems answered in this study includes:
1.                  what is fixed asset and what constitutes the fixed assets of a bottling company
2.                  how is cost of fixed assets determined
3.                  how should the cost of fixed assets be allocated to revenue
4.                  how should expenditure for repairs and maintenance be treated.
5.                  What problems do they encounter in accounting for fixed assets
6.                  What accounting method do they adopt.
7.                  Should financial statement include disclosure of depreciation computed on the basis of replacement costs.
8.                  How should disposal of fixed assets be treated
9.                  Could these problems be over come land be improved
1.3              OBJECTIVES OF THE STUDY
This case study is being conducted in order together relevant useful information regarding the accountancy for fixed assets in Coca-Cola bottling company plc, 9th mile corner, Enugu.
The main purpose of this study is to study:
1.                  The accounting treatment of fixed assets of the bottling company.
2.                  Ascertain what constitute other fixed assets of a bottling company.
3.                  Treatment of assets disposal
Ratio of fixed assets to capital
To identify the major problems and problem areas in accounting for fixed assets.
To make recommendations on how to improve it.
14.       SIGNIFICANCE OF THE STUDY
            This research is under taken to identify the problems encountered in accounting for fixed assets which constitutes a reasonable percentage of the total assets of a company and of course how these problems can be overcome.
            The study will be of immense value to accounts department o the Cola-Cola bottling company land the entire bottling concern in Enugu state.
            The result will help to improve the qualify of their financial statements it will also be useful to future students of accountancy or nay person who may use it as a reference while making a study on the
1.7       DEFINITION OF TERMS
Assets: may be defined as anything owned by a business or by an individual which has a commercial or exchange value. They are classified according to their nature and are of various kinds.
Fixed Assets: William Pickles refers to fixed assets as those assets of a business which are of a permanent nature and are definitely held for the purpose of earning revenue and not with as view to resale e.g. plant and machinery buildings.
It could still be sub-divided into tangible and intangible
Current Assets: pickles also refers to this as “Those assets which are made oar acquired and merely held for a short period of item with a view to selling at a profit in the ordinary course of business” that is to say, they are easily converted into cash.
CASH:  According to international accounting standard No 16, the cost of an asset comprises its purchase price and any directly attributable costs of bringing the asset to working conditionfor its intended use.
DEPRECIATION: Expiration in the service life of a fixed assets.  Other than wasting asets, attributable to wear and tear through use and lapse of time, obsolescence, inadequacy,sor other physical or funcitonal cause, the proportion of the cost of a fixed assets other than a wasting asset charged as an expense during a particular period.
GOODWILL: This represents the original cost of the assets.
HISTORICAL COST: The is the usual basis for valuing assets it is measured by the cash or cash equivalent place of containing the asset and bring to the location and condition necessary for its.
NEW VALUE OR NETBOOK VALUE
            This is the gross value of he asset less the accumulated depreciation to date.  It is the written down value.
OBSOLENSCENCE:  The process of becoming obsolete or out of date and use.
RESIDUAL VALVE: Residual value is the realizable value of the asset at the end of its economic life.
USEFUL LIFE:  estimated number of years which the asset is expected to be useful in generating income.
HYPOTHESIS
In attempting to reach decisions, it is sometimes, useful to make conjectural statements of the relationships between variables or other. Such statements cannot be taken as statement of fact until they are tested.
            In this regard, some hypothesis environmental below were made in course of this research in other to help the researcher achieve his objectives.

1.         Hi:       Adequate provision for depreciation is necessary for the replacement of fixed assets
Ho:      Adequate provision for deprecations not necessary for the    replacement of fixed assets.
II.                Hi: proper accounting for fixed assets will help management in decision making as regards fixed management.
Ho:      Proper accounting for fixed assets will not help management in decision making as regards fixed assets management.

 
ACCOUNTING FOR FIXED ASSETRS (A CASE STUDY OF COCA-COCA BOTTLING COMPANY PLC 9TH MILE CORNER)
For more Info, call us on
+234 8130 686 500
or
+234 8093 423 853

Share This
  • Type: Project
  • Department: Accounting
  • Project ID: ACC0322
  • Access Fee: ₦5,000 ($14)
  • Chapters: 5 Chapters
  • Pages: 99 Pages
  • Methodology: Simple Percentage and chi square
  • Reference: YES
  • Format: Microsoft Word
  • Views: 3.6K
Payment Instruction
Bank payment for Nigerians, Make a payment of ₦ 5,000 to

Bank GTBANK
gtbank
Account Name Obiaks Business Venture
Account Number 0211074565

Bitcoin: Make a payment of 0.0005 to

Bitcoin(Btc)

btc wallet
Copy to clipboard Copy text

500
Leave a comment...

    Details

    Type Project
    Department Accounting
    Project ID ACC0322
    Fee ₦5,000 ($14)
    Chapters 5 Chapters
    No of Pages 99 Pages
    Methodology Simple Percentage and chi square
    Reference YES
    Format Microsoft Word

    Related Works

    1.0 INTRODUCTION 1.1 BACKGROUND OF THE STUDY Fixed Assets are those assets of a business which are of material value, like property, plant and equipment and other assets with relatively permanent life acquired by the enterprise for use in production or supply of goods or instructed with intention of being used on a continuing basis or for... Continue Reading
    ACCOUNTING FOR FIXED ASSETRS (A CASE STUDY OF COCA-COCA BOTTLING COMPANY PLC 9TH MILE CORNER) TABLE OF CONTENTS CHAPTER ONE 1.0 INTRODUCITON 1.1 BACKGROUND 1.2 STATEMENT OF PROBLEMS 1.3 THE OBJECTIVE OF THE STUDY 1.4 SIGNIFICANCE OF THE STUDY 1.5 SCOPE AND LIMITATIONS OF THE STUDY 1.6 TIME 1.7 DEFINITION OF TERMS 1.8 HYPOTHESIS CHAPTER TWO 2.0... Continue Reading
    1.0INTRODUCTION 1.1BACKGROUND OF THE STUDY Fixed Assets are those assets of a business which are of material value, like property, plant and equipment and other assets with relatively permanent life acquired by the enterprise for use in production or supply of goods or instructed with intention of being used on a continuing  basis or for... Continue Reading
    ABSTRACT Political stability in Nigeria has led to a marked improvement in the general operating environment in the country. Hence capital maintenance is looked into in the period of inflation as the only way out. The word inflation is not a new phenomenon; it has been experienced by most countries in the world at some stages in their history.... Continue Reading
    ABSTRACT Political stability in Nigeria has led to a marked improvement in the general operating environment in the country.  Hence capital maintenance is looked into in the period of inflation as the only way out. The word inflation is not a new phenomenon; it has been experienced by most countries in the world at some stages in their history. ... Continue Reading
    CAPITAL MAINTENANCE IN A PERIOD OF INFLATION (A CASE STUDY OF NIGERIAN BOTTLING COMPANY – COCA COLA 9TH MILE CORNER ENUGU). ABSTRACT Political stability in Nigeria has led to a marked improvement in the general operating environment in the country. Hence capital maintenance is looked into in the period of inflation as the only way out.The word... Continue Reading
    ABSTRACT This is an empirical research work for which the purpose is to find out how internal and external environmental affect business operation in Nigeria.(A case study of coca- cola company Nigeria plc  9th mile corner Ngwo). There are some other problems of business operation for the external environment factors which constituted a major... Continue Reading
    ABSTRACT This is an empirical research work for which the purpose is to find out how internal and external environmental affect business operation in Nigeria.(A case study of coca- cola company Nigeria plc 9th mile corner Ngwo). There are some other problems of business operation for the external environment factors which constituted a major part... Continue Reading
    ABSTRACT This research is on the challenges of cost benefit analysis in a computerized Accounting System. The purpose of this study is to enquire into the viability or other wise of computerized accounting Systems, with particularly reference to coca-cola Bottling Company, Enugu. The objective of the study is to ascertain if the introduction... Continue Reading
    This research is on the challenges of cost benefit analysis in a computerized Accounting System. The purpose of this study is to enquire into the viability or other wise of computerized accounting Systems, with particularly reference to coca-cola Bottling Company, Enugu. The objective of the study is to ascertain if the introduction computer... Continue Reading
    Call Us
    Get this work
    whatsappWhatsApp Us