MGT101 - Financial Accounting-I Assignment No 1 Solution Spring 2021

 

Dear Students, Here you can read or download MGT101 – Financial Accounting-I Assignment No 1 Solution of Spring 2021. Previously we shared Solved Mid-Term Grand Quiz Fall 2020 – Year 2021. You can also see the File of MGT101 Assignment No 1 Solution 2021 provided by Raise For Success. Click on button to Download File and Must Follow our Website and subscribe our YouTube Channel for latest updates.



 

Case:

Following information is (Raise For Success) extracted from the books of a business concern on 30th June 2021.

Particulars

Rs

Particulars

Rs

Opening stock

15000

Net sales

65000

Plant and Machinery

100,000

Bank charges

5453

Accumulated depreciation – Plant and Machinery

20,000

Loan given to ABC Brothers.

40,000

Cash in hand

12,800

Capital

250,000

Cost of goods sold

25,000

Loan taken from bank

50,000

Creditors

54,000

Commission Received

10,000

Sundry debtors

20,000

Return Inwards

5000

Bad debts

1575

Carriage outwards

450

 

 

 

 


  • In addition to the value of plant and machinery given in the above information, (Raise For Success) one machine costing to Rs. 30,000 was bought on 1st April 2021. Basic/Policy of charging depreciation is Time Proportionate (on the basis o use.) Plant and Machinery is depreciated @10% per annum on straight line method.
  • Provision for (Raise For Success) doubtful debts is to be maintained @5%
  • Net loss for the period is Rs. 75000
  • There is no closing stock found at the end of the accounting period
  • Books of accounts (Raise For Success) are closed on 30th June each year.




Required:

Based on the above (Raise For Success) information, you are required to calculate the amount of:

1. Gross profit

2. Purchases

3. Net book value of Plant & Machinery.

4. Sundry debtors to (Raise For Success) be presented in Balance Sheet.

5. Owners’ equity to be presented in Balance Sheet.



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Solution:

1.Gross Profit:

Formula of (Raise For Success) finding Gross Profit:

Net sales – Cost of Goods sold = Gross Profit

65,000 – 25,000 = 40,000

2.Purchases:

Formula for (Raise For Success) finding Gross Profit:

Cost of Goods – Opening stock = Purchases

25,000 – 15,000 = 10,000

3.Net book value of Plant & Machinery:

Cost of assets – Accumulated (Raise For Success) depreciation

100,000 – 20,000 = 80,000

Calculation of Deprecation: 100,000*10/100 = 10,000

80,000 + 10,000 = 90,000 Book value of assets.





New Machine = 30,000
Calculation of (Raise For Success) depreciation: 30,000* 10/100*3/12 = 750
30,000 – 750 = 29,250 Book value of Machine
Total: Book value of Assets + Book value of Machine = Net book value of plant and machinery
80,000 + 29,250 = 109,250
4.Sundry debtors to be presented in Balance Sheet.
Debtor – New Provision = Sundry debtors to be presented in Balance sheet
20,000 – New provision
Calculation of New (Raise For Success) Provision (20,000*5/100) = 1000
20,000 – 1000 = 19,000
5.Owners’ equity to be presented in Balance Sheet.
Capital – Net loss = Owners Equity
250,000 – 75,000 = 175,000

 


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