#MGT101 ASSIGNMENT

NO.1

FACULTY OF BUSINESS ADMINISTRATION

SUBMITTED TO:

MIAN AHMED FARHAN

SUBMITTED BY:

MUHAMMAD HUZAIFA JAVAID

SUBJECT:

FINANCIAL ACCOUNTING

SUBMISSION DATE:

24TH OF JANUARY 2021

QUESTION:

Following information is extracted from the books of a business concern on 31st December
2020.

Particulars Rs. Particular Rs.

Opening stock of material 13,000 Closing stock of material 12,000
Plant and Machinery 100,000 Bank charges 5,453
Cash in hand 12,800 Capital 300,000
Financial expenses 8,000 Gross purchases 50,000
Creditors 54,000 Return outwards 10,000
Debtors 20,000 Return inwards 5,000
Cost of goods sold. 35,000 Net sales. 85,000

SOLUTION:

Net Purchases:

Net purchases = Gross purchases – Return Outward

Net purchases = Rs. 50,000 – Rs. 10,000
Net purchases = Rs. 40,000

Gross Profit:

Gross profit = Net sales – Cost of goods sold

Gross profit = Rs. 85,000 – Rs. 35,000
Gross profit = Rs. 50,000

Net Book Value:

Net book value = Plant and Machinery – Depreciation

Net book value = Rs. 100,000 – RS. 15,000
Net book value = Rs. 85,000

Value of Debtors:

Value of Debtors = Debtors – Provision for b/c

Value of Debtors = Rs. 20,000 – 5,000
Value of Debtors = Rs. 15,000
Owners Equity:

Owners Equity = Capital – Net Loss

Owners Equity = Rs. 300,000 – Rs. 80,000
Owners Equity = Rs. 22,000

~THANKYOU