|
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.
- 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.
We also recommend you to read:
MGT501 Quiz No 1 Solution Spring 2021
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.
We also recommend you to read:
MGT501 Quiz No 1 Solution Spring 2021
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.
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.
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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