http:www.fpair.

com
Semester “Spring 2011”

“FINANCIAL ACCOUNTING – 1 (MGT101)”

Assignment No. 01 Marks: 20

Question No. 1

Determine the missing amount on each of the following options

with the help of Accounting Equation.

Sr. No. Assets = Liabilities + Capital

1. Rs. 35,000 = Rs. 12,000 + Rs. 33,000

2. Rs. 40,000 = Rs. 27,000 + Rs. 13,600

3. Rs. 54, 000 = Rs. 9,000 + Rs. 45,000

Total Rs. 129000 = Rs. 138,000 + Rs. 91600

Question No. 2

From the following transactions, identify the nature of

expenditure whether Capital Expenditure or Revenue

Expenditure by filling up the appropriate boxes given below.

S. No. Transactions Nature of expenditure

1 Merchandise purchase for cash is Revenue Expenditure

2 Paid rent of the building is Capital Expenditure

3 Commission paid to the workers is Revenue Expenditure

4 Cost of acquiring the patent rights is Revenue Expenditure

5 Installation cost of the machinery is Capital Expenditure

Question No. 3

a) Briefly describe the difference between Tangible and

Intangible Assets.

b) Write down the type of Asset (Tangible / Intangible) in

the appropriate boxes given below.

http:www.fpair.com
 http:www.fpair.com
S. No. Transactions Type of Asset

1 Raw Material / Stores is Tangible Asset

2The Technology of information and database is Intangible Asset

3 Abilities and innovations of the employers is Intangible Asset

4 The money – Cash at Bank is Tangible Asset

http:www.fpair.com