MGT101 - Financial Accounting Assignment # 2 Solution and Discussion Spring 2013
Page 1 of 1 • Share
MGT101 - Financial Accounting Assignment # 2 Solution and Discussion Spring 2013
A company, whose accounting year is calendar year, purchased machinery inclusive of installation charges amounting to Rs. 250,000 on 1st January 2008.
On 1
st October 2012, the machinery has become obsolete and is sold for Rs. 60,140.
Company charged the deprecation @20% per annum on plant and machinery. It is the policy of the company to charge the deprecation of all fixed assets on the basis of use under diminishing balance method.
Required:
1. Prepare depreciation schedule for five years showing the four columns i.e. Years, Depreciation expense, Accumulated depreciation and Book value.
2. Calculate the profit or loss on disposal of machinery.
QUESTION-02
Required:
Based on the above information, you are required to calculate the following for the period ended on 31
st December 2012:
1. Net sales
2. Gross purchases
3. Administration expenses
4. Financial expenses
5. Current assets
6. Current liabilities
Following information is available of a business concern for the yearof 2012.
On 1
st October 2012, the machinery has become obsolete and is sold for Rs. 60,140.
Company charged the deprecation @20% per annum on plant and machinery. It is the policy of the company to charge the deprecation of all fixed assets on the basis of use under diminishing balance method.
Required:
1. Prepare depreciation schedule for five years showing the four columns i.e. Years, Depreciation expense, Accumulated depreciation and Book value.
2. Calculate the profit or loss on disposal of machinery.
QUESTION-02
Required:
Based on the above information, you are required to calculate the following for the period ended on 31
st December 2012:
1. Net sales
2. Gross purchases
3. Administration expenses
4. Financial expenses
5. Current assets
6. Current liabilities
Following information is available of a business concern for the yearof 2012.
Items | Rs. |
Gross sales | 900,000 |
Return inwards | 50,000 |
Return outwards | 40,000 |
Net purchases | 950,000 |
Gross loss | 200,000 |
Advertising expenses | 200,000 |
Distribution expenses | 100,000 |
Salaries of clerical staff | 300,000 |
Office rent | 250,000 |
Bank charges | 50,000 |
Long term loan taken from bank on 1 st January @ 12% per annum | 500,000 |
Cash | 90,000 |
Accounts receivable | 60,000 |
Plant and machinery | 300,000 |
Building | 900,000 |
Accounts payable | 35,000 |
Short term borrowings | 25,000 |
Victoria333- Monstars
-
Posts : 267
Join date : 2013-05-12
Age : 34
Location : Victoria
Re: MGT101 - Financial Accounting Assignment # 2 Solution and Discussion Spring 2013
Solution Q # 1
250000
1st 50000 50000 200000
2nd 40000 90000 160000
3rd 32000 122000 128000
4th 25600 147600 102400
5th 15360 162960 87040
note = 5ht year dep caculated in 9/12 like that
102400*9/12*20/100=15360
book value = 87040
sale price = 60140
loss = 26900 (87040-60140)
Q.2
(1) Net sale
net sale=gross sale -return inward
=900000-50000
=850000
(2)gross purchases
gross purchases=net purchases return outward
=950000+40000
=990000
(3)administration expenses
admin expense=salaries of clerical staff + office rent
=300000+250000
=550000
(4)financial expense
interest on bank loan 12%+bank charges
=50000+60000
=110000
(5)current assets
cash +account receivable
=90000+60000
=150000
(6)current liabilities
account payable +short term borrowing+interst on bank loan
=35000+25000+60000
=120000
SEMESTER SPRING 2013 QUESTION-1
Book value after five years Rs. 87,040
Sale price Rs. 60,140
Profit on sale Rs. 26,900(87,040– 60,140)
QUESTION-2
=Sales-Sales Return
=900,000 - 50,000
=850,000
=Net Purchase + Purchase Return
=950,000 + 40,000
=990,000
=Salaries of clerical staff+ Office rent
=300,000 + 250,000
=550,000
= Long term loan taken from bank on 1st January @ 12% per annum + Bank charges
=60,000 + 50,000
=110,000
=Cash + Accounts Receivable
=90,000 + 60,000
=150,000
=Loan (Long Term + Short Term) + Accounts Payable
= 465,000(440,000+25,000) +35,000
=500,000
Q.2
(1) Net sale
net sale=gross sale -return inward
=900000-50000
=850000
(2)gross purchases
gross purchases=net purchases return outward
=950000+40000
=990000
(3)administration expenses
admin expense=salaries of clerical staff + office rent
=300000+250000
=550000
(4)financial expense
interest on bank loan 12%+bank charges
=50000+60000
=110000
(5)current assets
cash +account receivable
=90000+60000
=150000
(6)current liabilities
account payable +short term borrowing+interst on bank loan
=35000+25000+60000
=120000
Year Cost | depreciation | acc depreciation | book value | |
50000 | 50000 | 200000 | ||
40000 | 90000 | 160000 | ||
32000 | 122000 | 128000 | ||
25600 | 147600 | 102400 | ||
15360 | 162960 | 87040 |
250000
1st 50000 50000 200000
2nd 40000 90000 160000
3rd 32000 122000 128000
4th 25600 147600 102400
5th 15360 162960 87040
note = 5ht year dep caculated in 9/12 like that
102400*9/12*20/100=15360
book value = 87040
sale price = 60140
loss = 26900 (87040-60140)
Q.2
(1) Net sale
net sale=gross sale -return inward
=900000-50000
=850000
(2)gross purchases
gross purchases=net purchases return outward
=950000+40000
=990000
(3)administration expenses
admin expense=salaries of clerical staff + office rent
=300000+250000
=550000
(4)financial expense
interest on bank loan 12%+bank charges
=50000+60000
=110000
(5)current assets
cash +account receivable
=90000+60000
=150000
(6)current liabilities
account payable +short term borrowing+interst on bank loan
=35000+25000+60000
=120000
SEMESTER SPRING 2013
FINANCIAL ACCOUNTING (MGT101)
ASSIGNMENT NO – 02
Asad Azeem (mc130200467)
- Prepare depreciation schedule for five years showing the four columns i.e. Years, Depreciation expense, Accumulated depreciation and Book value.
Years | Depreciation expense | Accumulated depreciation | Book value. |
01-January-2008 | 250,000 | ||
31-December-2008 | 50,000 | 50,000 | 200,000 |
31-December-2009 | 40,000 | 90,000 | 160,000 |
31-December-2010 | 32,000 | 122,000 | 128,000 |
31-December-2011 | 25,600 | 147,600 | 102,400 |
31-December-2012 | 15,360 | 162,960 | 87,040 |
- Calculate the profit or loss on disposal of machinery.
Book value after five years Rs. 87,040
Sale price Rs. 60,140
Profit on sale Rs. 26,900(87,040– 60,140)
QUESTION-2
- 1. Net sales:
=Sales-Sales Return
=900,000 - 50,000
=850,000
- 2. Gross purchases:
=Net Purchase + Purchase Return
=950,000 + 40,000
=990,000
- 3. Administration expenses:
=Salaries of clerical staff+ Office rent
=300,000 + 250,000
=550,000
- 4. Financial expenses:
= Long term loan taken from bank on 1st January @ 12% per annum + Bank charges
=60,000 + 50,000
=110,000
- 5. Current Assets:
=Cash + Accounts Receivable
=90,000 + 60,000
=150,000
- 6. Current liabilities:
=Loan (Long Term + Short Term) + Accounts Payable
= 465,000(440,000+25,000) +35,000
=500,000
Q.2
(1) Net sale
net sale=gross sale -return inward
=900000-50000
=850000
(2)gross purchases
gross purchases=net purchases return outward
=950000+40000
=990000
(3)administration expenses
admin expense=salaries of clerical staff + office rent
=300000+250000
=550000
(4)financial expense
interest on bank loan 12%+bank charges
=50000+60000
=110000
(5)current assets
cash +account receivable
=90000+60000
=150000
(6)current liabilities
account payable +short term borrowing+interst on bank loan
=35000+25000+60000
=120000
Victoria333- Monstars
-
Posts : 267
Join date : 2013-05-12
Age : 34
Location : Victoria
Similar topics
» MGT501 - Human Resource Management Assignment # 2 Solution and Discussion Spring 2013
» CS614 Assignment # 3 Solution Spring 2013
» CS301 Assignment # 3 Solution Spring 2013
» CS504 Assignment # 2 Solution Spring 2013
» PSY101 Assignment # 1 Solution Spring 2013
» CS614 Assignment # 3 Solution Spring 2013
» CS301 Assignment # 3 Solution Spring 2013
» CS504 Assignment # 2 Solution Spring 2013
» PSY101 Assignment # 1 Solution Spring 2013
Page 1 of 1
Permissions in this forum:
You cannot reply to topics in this forum
|
|
Yesterday at 10:48 am by ali001
» Storybook Magic App
Tue Apr 30, 2024 7:06 pm by ali001
» Flower Book Match3 Puzzle Game
Tue Apr 30, 2024 12:17 pm by ali001
» Avian Influenza Symptom in Chickens "Bird Flu H5N1 Virus" Vet learning materials, Poultry Farming
Sat Apr 27, 2024 9:57 am by Ibad Khan Buledi
» house disrepair claims
Mon Apr 22, 2024 11:23 am by Joshuaadam
» Aloha Planner - Note-Taker
Thu Apr 11, 2024 4:52 pm by ali001
» Streaming Guide Film TV Series
Tue Apr 09, 2024 9:39 pm by ali001
» Apricot Tree Problems & Solutions ????|خوبانی کے پھل کو کیڑا لگنےسے بچانے کا طریقہ ????
Sun Apr 07, 2024 6:28 am by Zamaan Khan
» خوبانی کے پودے کی کاشت گرم علاقوں میں کرنی چاہیے یا نہی
Sun Apr 07, 2024 6:24 am by Zamaan Khan