Financial Accounting MGT101 Assignment No. 1 Solution
Saturday, October 22, 2011 Posted In MGT Edit ThisSemester “Fall 2011”
“Financial Accounting (MGT101)”
Assignment No. 01 Marks: 15
Question Number 01:
Recall the accounting equation and answer the following:
1. Total Assets of a business are Rs. 100,000/- and Total Liabilities are Rs. 40,000/-. What will be the amount of Owners’ Equity? (1 mark)
2. Total Assets of a business are Rs. 500,000/- and Owners’ Equity is Rs. 300,000/-. What will be the amount of Total Liabilities? (1 mark)
3. Total Liabilities of a business are Rs. 400,000/- and Owners’ Equity is Rs. 500,000/-. What will be the amount of Total Assets? (1 mark)
Question Number 02:
‘Waqas Rentals started a business on January 01 2011; the selected transactions related to the organization were as follows:
1- Waqas invested total capital of Rs. 1,200,000/- in the business on January 01, 2011 out of which he deposited Rs. 600,000/- in the bank account of the business
2- Purchased two cars worth Rs. 100,000/- on cash on February 01, 2011
3- Bought office furniture costing Rs.70,000/- on February 01, 2011 and made payment through cheque
4- Collected Rs. 4,000/- on accounts receivable on June 05, 2011
5- Paid accounts payable of Rs 3,200/- on July 11, 2011 by issuing cheque
6- Borrowed Rs. 10,000/- from Mr. Ali on August 01, 2011 and signed a note payable for the amount.
Required:
1- Record the Journal entries for the above transactions. (6 marks)
2- Prepare the cash account and bank account for the above given transactions (3+3)
Important Tips
1. This Assignment can be best attempted from the knowledge acquired after
watching video lecture no. 1 to lecture no 13 and reading handouts as well as
recommended text book).
2. Video lectures can be downloaded for free from vu's Channel - YouTube.
Schedule
Opening Date Oct. 21, 2011
Due Date Oct. 28, 2011
Note: Only in the case of Assignment, 24 Hrs extra / grace period after the above mentioned due date is usually available to overcome uploading difficulties which may be faced by the students on last date. This extra time should only be used to meet the emergencies and above mentioned due dates should always be treated as final to avoid any inconvenience.
Solution:
Question No. 01:
Recall the accounting equation and answer the following:
1. Total Assets of a business are Rs. 100,000/- and Total Liabilities are Rs. 40,000/-.
What will be the amount of Owners’ Equity? (1 mark)
Answer:
Owner’s Equity= Total Assests – Total Liabilities
Owner’s Equity= Rs. 100,000 – Rs. 40,000
Owner’s Equity= Rs. 60000
2. Total Assets of a business are Rs. 500,000/- and Owners’ Equity is Rs. 300,000/-.
What will be the amount of Total Liabilities? (1 mark)
Answer:
Total Liabilities= Total Assets – Owner Equity
Total Liabilities= Rs.500,000 – Rs. 300,000
Total Liabilities=Rs. 200,000
3. Total Liabilities of a business are Rs. 400,000/- and Owners’ Equity is Rs. 500,000/-
.What will be the amount of Total Assets? (1 mark)
Answer:
Total Assets= Total Liabilities + Owner Equity
Total Assets=Rs. 400,000 + Rs. 500,000
Total Assets=Rs.900, 000
Question No. 02:
Waqas Rentals started a business on January 01 2011; the selected transactions related to the organization were as follows:
Answer
Another Solution:
