SEMESTER FALL 2019

FINANCIAL ACCOUNTING (MGT101)

ASSIGNMENT # 01
DUE DATE: 13th November 2019 MARKS: 10
TOPIC TO BE TESTED:
 Basic understanding required for the preparation of financial statements.

LEARNING OBJECTIVES:
 To understand the heads/terminologies used in the preparation of financial statements.

QUESTION
Following Rs. Particulars Rs.
information is
extracted from the
books of ABC
Business on 30th
June 2019.
Particulars
Advertising expenses 65,000 Amount earned on 121,000
sale of goods
Carriage/Transportat 160,000 Amount earned by 840,000
ion paid on sale of rendering services
goods
Purchases 550,000 Total Liabilities 10,30,000
Carriage/Transportat 50,000 Copy rights 250,000
ion paid on
purchases
Rent of office 278,222 Goodwill 150,000
building
Taxes paid 20,364 Furniture and 170,000
Fixtures
Mark up on loan 15,228 Plant & Machinery 750,000
Salaries paid to 16,369 Land and Building 770,000
employees
Bank charges 29,367 Cash in hand 150,000
Other financial 17,268 Total Assets 2,240,000
charges

SOLUTION: #1st ASSIGNMENT MGT101

1. Intangible Assets

= Copyrights + Goodwill
= 250000+150000

=400000

2. Equity

=Total Asset – Total Liabilities

=2240000-1030000

=1210000

3. Total Income/Revenue

=Amount earned on sale of good + Amount earned by rendering services

=121000+840000

=961000

4. Selling Expenses

=Advertising expenses + Carriage

=65000+160000

=225000

5. Cost of goods sold

=Purchase + Carriage /Transportation paid on

=550000+50000

=600000