# An Accounting Case

Submitted By pamlar
Words 599
Pages 3
SHEPPARD’S
Accounting game 1:

Deyonne’s assets: 1. 400 sheep 2. 20 acres of land 3. A one-room cabin 4. A plow 5. Two carts 6. An ox
Deyonne’s liabilities and deduction of assets: 1. 35 sheep 2. 3 sheep

Due to the information, 20 acres of land equal 80 sheep according to the exchange rate of last year, a one-room cabin equal 3 acres of land and equal 12 sheep finally, a plow equals 2 goat and equal 2/3 sheep according to last year’s exchange rate and 2 carts which were traded with a poor acre of land equals 8 sheep plus 400 sheep. So Deyonne’s total assets are 500(2/3) sheep. Deyonne’s liabilities and assets deduction are 35 sheep plus 3 sheep, which will come to 38 sheep, therefore, his total net assets are 462(2/3) sheep.

Batonne’s assets: 1. 360 sheep 2. 30 acres of land (which were trade with 35 sheep 10 years ago) 3. 10 acres of land (which were trade current year) 4. 10 goats ( 3 goat equals 1 sheep according to last year’s price) 5. An ox ( equals 3 sheep) 6. A two-room cabin (worth 3 acres of land) Explanations: 1. Although Batonne obtained 20 acres of land 10 years ago with 35 sheep, the worth of land increased to 4 sheep per acre of land. So all the land should be converted to sheep according to this later price. 2. There is no exchange price for the poor land, so it is assumed that the price for poor land is also 4 sheep per acre of land. 3. Because the order Batonne’s wife received cannot satisfy the requirement of revenue confirmation, the revenue of this order cannot be confirmed as income, therefore, cannot be confirmed as assets either. Based on the information, 40 acres of land equal 160 sheep, 10 goats equal 3(1/3) sheep, an ox equals 3 sheep, and a two-room cabin worth 12 sheep plus 360 sheep. Therefore, Batonne’s total assets...

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