Assignment – MAA – MGT402

1. Hari is a wholesale trader; record the following transactions as per the

Accounting Equation: –
Assets = Liabilities + Owners Equity

i. Commence business with cash Rs. 200,000.

ii. Bought goods for cash Rs. 80,000.
iii. Cash sales worth Rs. 25,000.
iv. Bought goods on credit from Salman worth Rs. 50,000.
v. Sales on credit to Ali Rs. 12,000.
vi. Purchased furniture of the value of Rs. 5,000 by cash.
vii. Received cash form Ali Rs. 10,000.
viii. Drew Rs. 8,000 for personal use.
xi. Paid wages Rs. 1,000, Rent 2,000 and Electricity Bill Payable Rs. 1,500.
------------------5 mks
 

2. On April 01, 2020 Aneesh started a business with Rs. 10,00,000; other
transactions for the month are:
April
2   Purchase Furniture for Cash Rs. 70,000.
8 Purchase Goods for Cash Rs. 20,000 and for Credit Rs. 40,000 from
Khalid Retail Store.
14  Sold Goods to Khan Brothers Rs. 82,000 and Cash Sales Rs. 55,000.
18  Owner withdrew of worth Rs. 20,000 for personal use.
22  Paid Khalid Retail Store Rs. 15,000.
26  Received Rs. 30,000 from Khan Brothers.
30. Paid Salaries Expense Rs. 62,000.

Journalise the above transactions, prepare Ledger accounts and post the
balances to a Trial Balance. -------------------10 mks

3. On July 01, 2018, Ashok Ltd. purchased a machine for ₹ 1,08,000 and
spent ₹ 12,000 on its installation. At the time of purchase it was
estimated that the effective commercial life of the machine will be 12
years and after 12 years its salvage value will be ₹ 10,000.
Prepare machinery account and depreciation Account in the books of
Ashok Ltd. for first three years, ending 31st Dec every year, if
depreciation is written off at 10% according to straight line method.
-------------------10 mks
 4. Berlia Ltd. purchased a second hand machine for ₹ 56,000 on October
01, 2018 and spent ₹ 24,000 on its repair and installation and ₹ 5,000 for
its carriage. Depreciation is provided on machinery @ 10% p.a on
Diminishing Balance Method on March 31 every year. Prepare
machinery account and depreciation account from year ended 31st March
2019 and 31st March 2020. ------------------10 mks

5. M/s Cube Textiles purchased a machinery for ₹2,00,000 on 1st January 2010. It

has an estimated useful life of 10 years and an estimated residual value of
₹20,000. The machine has an expected production of 15000 units during its useful
life. The production pattern is as follows:

Year Production

1-3 2000 units per year

4-7 1500 units per year

8-10 1000 units per year

Calculate the amount of depreciation using the Units of Production Method.

(Note: Machinery a/c and depreciation a/c not needed to be prepared)

-------------5 mks