SEMESTER SPRING 2013 FINANCIAL ACCOUNTING (MGT101) ASSIGNMENT NO – 02

SEMESTER SPRING 2013

FINANCIAL ACCOUNTING (MGT101)

ASSIGNMENT NO – 02

QUESTION-1

• 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. 1.      Net sales:

=Sales-Sales Return

=900,000 - 50,000

=850,000

1. 2.      Gross purchases:

=Net Purchase + Purchase Return

=950,000 + 40,000

=990,000

1. 3.      Administration expenses:

=Salaries of clerical staff+ Office rent

=300,000 + 250,000

=550,000

1. 4.      Financial expenses:

= Long term loan taken from bank on 1st January @ 12% per annum + Bank charges

=60,000 + 50,000

=110,000

1. 5.      Current Assets:

=Cash + Accounts Receivable

=90,000 + 60,000

=150,000

1. 6.      Current liabilities:

=Loan (Long Term + Short Term) + Accounts Payable

= 465,000(440,000+25,000) +35,000

=500,000