FIN621 Financial Statement Analysis Assignment # 2 Solution Spring 2013

by plhr60 Sun Jun 16, 2013 4:43 am

FIN621

Assignment # 02

Total marks: 25

Learning objectives:
After solving this assignment, students will be able to:

· Understand the nature of depreciation
· Calculate the written down value of the assets
Learning Outcome:
After going through this assignment, the learner would be able to
· Prepare the machinery account
Assignment Question:
A company purchased a second hand machine purchased a second hand machine on 1st January 2008 for Rs. 37,000 and immediately spent Rs. 2,000 on its repair and Rs. 1,000 on its erection.
On 1st July, 2009 it purchased another machine for Rs. 10,000 and on 1st July 2010 it sold off the first machine for Rs. 28,000 and bought another machine for Rs. 25,000.
On 1st July 2011 the second machine was also sold off for Rs. 2,000.
Depreciation was provided on machinery @ 10% p.a. on the original cost annually on 31st December. In 2009, however, the company changed the method of providing depreciation and adopted written down value method, rate of depreciation being 15% p.a.

Requirement:
Give the machinery account for four years commenting from the acquisition of first machine.
Compute the nearest rupee.
DEADLINE:
· Make sure to upload the solution file before the due date on VULMS.
· Any submission made via email after the due date will not be accepted.
FORMATTING GUIDELINES:
· Use the font style “Times New Roman” or “Arial” and font size “12”.
· It is advised to compose your document in MS-Word format.
· You may also compose your assignment in Open Office format.
· Use black and blue font colors only.
RULES FOR MARKING
Please note that your assignment will not be graded or graded as Zero (0), if:
· It is submitted after the due date.
· The file you uploaded does not open or is corrupt.
· It is in any format other than MS-Word or Open Office; e.g. Excel, PowerPoint, PDF etc.
· It is cheated or copied from other students, internet, books, journals etc.

by plhr60 Sun Jun 16, 2013 4:44 am

consult the lectures depriciation method lecture 21-22. Complete solution hai udhar is assignment ko solve karne ke liyah.

yes the year ended 31 december which means that january-december is accounting year but i have confussion that is the 10% strate line line and 15% WDV method is directly get %age or it having given formulla use to getexact %age which is given in the handout.,

FIN621 Financial Statement Analysis Assignment # 2 Solution Spring 2013

FIN621 Financial Statement Analysis Assignment # 2 Solution Spring 2013

Re: FIN621 Financial Statement Analysis Assignment # 2 Solution Spring 2013