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 information is extracted from the
Particulars
Rs.
Particulars
Rs.
Advertising expenses
65,000
Amount earned on sale of goods
121,000
Carriage/Transportation paid on sale of goods
160,000
Amount earned by rendering services
840,000
Purchases
550,000
Total Liabilities
10,30,000
Carriage/Transportation paid on purchases
50,000
Copy rights
250,000
Rent of office building
278,222
Goodwill
150,000
Taxes paid
20,364
Furniture and Fixtures
170,000
Mark up on loan
15,228
Plant & Machinery
750,000
Salaries paid to employees
16,369
Land and Building
777,000
Bank charges
29,367
Cash in hand
150,000
Other financial charges
17,268
Total Assets
2,240,000
Note: There is no opening and closing stock of inventory
Required:
Based on the above information of ABC Business, you are required to calculate the amount of:
Intangible Assets
Equity
Total Income/Revenue
Selling Expenses
Cost of goods sold
IMPORTANT:
Grace period of extra 24 hours after the due date is usually available to overcome uploading difficulties. 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.
IMPORTANT INSTRUCTIONS
Take help from internet for collecting the information.
Carefully watch relevant lectures and consult the relevant material
from handouts along with recommended books.
Attempt the assignment by yourself and it will be entertained positively.
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Make sure to upload the solution file before the due date on VULMS.
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accepted.
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You may also compose your assignment in Open Office format.
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RULES FOR MARKING
Please note that your assignment will not be graded or graded as Zero (0), if:
It is submitted after the due date.
The file you uploaded does not open or is corrupt.
It is in any format other than MS-Word or Open Office; e.g. Excel, PowerPoint, PDF etc.
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Note related to load shedding: Please be proactive
Dear students!
As you know that Pre Mid-Term semester activities have been started and load shedding problem is also prevailing in our country now a days. Keeping in view the fact, you all are advised to post your activities as early as possible without waiting for the due date. For your convenience; activity schedule has already been uploaded on VULMS for the current semester, therefore no excuse will be entertained after due date of assignments, quizzes or GDBs.
Following information is extracted from the books of a manufacturing concern on 31st December 2019.
Particulars Rs. Particulars Rs.
Opening stock of raw material 13,000 Furniture and Fixtures 72,000
Plant and Machinery 98,000 Bank charges 5,453
Cash in hand 12,800 Cost of material available for use 62,000
Opening inventory of finished goods 8,000 Cost of direct material used 50,000
Sundry creditors 54,000 Direct labour cost 10,000
Sundry debtors 20,000 Factory overhead cost 5,000
Loan taken from bank 44,300 Sales 85,000
Cost of goods available for sale 75,000 Gross profit 21,000
Required:
Based on the above information, you are required to calculate the amount of:
Purchases
Prime cost
Cost of goods manufactured
Conversion cost
Cost of goods sold
Following information is extracted from the books of a manufacturing concern on 31st December 2019.
Particulars Rs. Particulars Rs.
Opening stock of raw material 13,000 Furniture and Fixtures 72,000
Plant and Machinery 98,000 Bank charges 5,453
Cash in hand 12,800 Cost of material available for use 62,000
Opening inventory of finished goods 8,000 Cost of direct material used 50,000
Sundry creditors 54,000 Direct labour cost 10,000
Sundry debtors 20,000 Factory overhead cost 5,000
Loan taken from bank 44,300 Sales 85,000
Cost of goods available for sale 75,000 Gross profit 21,000
Required:
Based on the above information, you are required to calculate the amount of:
Purchases
Prime cost
Cost of goods manufactured
Conversion cost
Cost of goods sold
Re: MGT101 GDB 1 Solution and Discussion
Total Marks 4
Starting Date Tuesday, June 02, 2020
Closing Date Monday, June 08, 2020
Status Open
Question Title GDB-01
Question Description
Topic to be tested:
Financial Statements
Learning Objectives:
To understand the presentation of Profit and loss account/Income statement.
GDB Question:
Mr. Waseem is working as an accountant in a business organization under the name of ABC Brothers. He has recently prepared financial statements by using the data available in Trial Balance of ABC Brothers and he has presented the financial statements to the Manager accounts of the organization. Manager accounts observed the following errors in the income statement prepared by Mr. Waseem, which produce inaccurate financial affairs of business.
Carriage inwards of Rs. 35,000 wrongly reported under the head of selling expenses.
Carriage outwards of Rs. 15,000 wrongly reported under the head cost of goods sold.
Selling expenses of Rs. 20,000 wrongly reported under the head of administration expenses.
Financial expenses of Rs. 13,000 wrongly reported under the head of selling expenses.
Required:
What will be correct amount of Gross profit, if Gross profit before correcting the given errors was Rs. 335,000?
What will be correct amount of Cost of goods sold, if the reported amount of sales was Rs. 400,000?
What will be the effect of error “A. Carriage inwards of Rs. 35,000 wrongly reported under the head of selling expenses” on Cost of goods sold? (Just mention whether the Cost of goods sold would be overstated, understated or remains unaffected)
What will be the effect of given errors on net profit? (Just mention whether the net profit would be overstated, understated or remains unaffected)
Note: Be concise and avoid unnecessary detail to attempt the given questions.
Important Instructions:
Your discussion must be based on logical facts.
Do not copy or exchange your answer with other students. Two identical / copied comments will be marked Zero (0) and may damage your grade in the course.
Obnoxious or ignoble answer should be strictly avoided.
Questions / queries related to the content of the GDB, which may be posted by the students on MDB or via e-mail, will not be replied till the due date of GDB is over.
Total Marks 5
Starting Date Tuesday, January 14, 2020
Closing Date Monday, January 20, 2020
Status Open
Question Title GDB-01
Question Description
Topic to be tested:
Rectification of errors
Learning Objectives:
To understand type of error and effects of identified error on financial statements
GDB Question:
Mr. Hamid is running his small retail business under the name of Hamid Store. He has recently hired Mr. Imran as a junior accountant to maintain the books of accounts of his business. Mr. Imran has little knowledge in accounting. Recently, it has been observed that Mr. Imran wrongly treated installation charges of plant and machinery worth Rs. 500,000 as revenue expenditure under the heading of administration expenses. As a result, financial statements failed to reflect true and fair business affairs.
Required:
Identify the “type of error” committed by Mr. Imran.
What will be the effect of given error on asset side of a balance sheet? (Just mention whether the assets would be overstated, understated or remains unaffected)
What will be correct amount of fixed assets, if current assets and fixed assets before correcting this error were Rs. 160,000 and Rs. 940,000 respectively?
What will be correct amount of operating profit, if operating loss before correcting this error was Rs. 300,000?
Note: Be concise and avoid unnecessary detail to attempt the given questions.
Important Instructions:
Your discussion must be based on logical facts.
Do not copy or exchange your answer with other students. Two identical / copied comments will be marked Zero (0) and may damage your grade in the course.
Obnoxious or ignoble answer should be strictly avoided.
Questions / queries related to the content of the GDB, which may be posted by the students on MDB or via e-mail, will not be replied till the due date of GDB is over.
LEARNING OBJECTIVES: • To develop understanding of the elements involved in the cost of goods sold statement of manufacturing concerns.
MGT101 - Financial Accounting
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Following information is extracted from the books of a manufacturing concern on 31st December 2019.
Particulars Rs. Particulars Rs.
Opening stock of raw material 13,000 Furniture and Fixtures 72,000
Plant and Machinery 98,000 Bank charges 5,453
Cash in hand 12,800 Cost of material available for use 62,000
Opening inventory of finished goods 8,000 Cost of direct material used 50,000
Sundry creditors 54,000 Direct labour cost 10,000
Sundry debtors 20,000 Factory overhead cost 5,000
Loan taken from bank 44,300 Sales 85,000
Cost of goods available for sale 75,000 Gross profit 21,000Required:
Based on the above information, you are required to calculate the amount of:- Purchases
- Prime cost
- Cost of goods manufactured
- Conversion cost
- Cost of goods sold
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