MGT101 ASSIGNMENT SOLUTION

Subject: MGT101 ASSIGNMENT SOLUTION Thu Jun 24, 2010 8:55 pm

“Financial Accounting (MGT101)”

Assignment No. 2 Marks: 30

1:
Prepare a Bank Reconciliation Statement
of XYZ Company of Mr. A as on

31st March. 2010 from the particulars given below:

1. Balance as per pass book Rs.50,000

2. Insurance premium of Rs.1,500 was directly paid by the bank for which there is no record in the cash book.

3. Interest of Rs.700 is credited by the bank in the pass book which is not recorded in the cash book

4. Cheques for a total amount of Rs.20,000 were deposited into the bank in March but

a cheque for Rs.2,500 out of them was credited in April.

5. A cheque of Rs.6,500 was deposited
into the bank in March but in April the cheque was returned by the bank as dishonored.

6. A cheque or Rs.5,000
was issued in March but it was not presented to the bank in the same month.

7. A customer paid into the bank Rs.300 directly
as appeared in the pass book but not in the cash book.

8. Interest Rs.1000 credited by bank but not recorded in cash book.

As only the bank reconciliation statement is requested, it can be prepared directly as follows:

XYZ Company.

Balance as per Bank Statement

As on 31 March 2010

1.	Balance as per pass book	50,000
2.	Insurance Premium paid by Bank	(1,500)
3.	Interest credited by bank	700
4.	Uncredited cheque	(2,500)
5.	Cheque dishonored	(6,500)
6.	Unpresented cheques	5,000
7.	Customer directly paid amount	300

8. Interest credited by bank
1,000

Balance Statement as per Bank Cr 46,500

Question 2: ABC Limited Co. bought an asset costing Rs.10,000 on 1st January. The company depreciates fixed assets [You must be registered and logged in to see this link.] p.a. The asset is disposed off at the end of 4th year at Rs.6,100.

Required:

1. Prepare the fixed asset schedule showing the columns of Years, Cost, Depreciation charges, Accumulated depreciation and Written down value for four years by using Diminishing balance method.

2. Calculate the profit or loss on the disposal of fixed asset under Diminishing balance method.

Solution

Year	Cost of Asset (Rs)	Depreciation (Rs)	Accumulated Depreciation (Rs)	Written Down Value – WDV (Rs)
Year # 1	10,000	Rs 10,000 x 10% x 6/12 = Rs 500	Rs 500	Rs 9,500
Year # 2		Rs 9,500 x 10% = Rs 950	Rs 1,450	Rs 8,550
Year # 3		Rs 8,550 x 10% = Rs 855	Rs 2,305	Rs 7,695
Year # 4		Rs 7,695 x 10% = Rs 769.50	Rs 3074.50	Rs 6,925.50

Book Value after 4 Years = Rs 6,925.50

Sale Price = Rs 6,100

Profit / Loss = Loss of Rs 825.50

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