11-16-2016, 10:39 AM
Mgt-101
Mr. “A” starts a new business. Before to start the business operation, he has purchased vehicle Rs. 1,500,000, office premises Rs. 3,000,000, stock of goods Rs. 1,000,000 for his business. He has paid in full for vehicle and office premises but did not pay in full for stock of goods and owes Rs. 300,000 for goods. He had taken loan Rs. 1,400,000 from his friend Mr. “B” in order to meet the business needs. After the above mentioned transactions, he has Rs. 200,000 cash in hand and Rs. 800,000 cash at bank for the business. Required 1. Write
Solution:-
Accounting Equation
Asset = Liabilities + owner equity
i)
Debit Vehicle 1500000
Credit Mr. A 1500000
Debit Office Premises 3000000
Credit Mr. A 3000000
Debit Stock of Goods 1000000
Credit Mr. A 300000
Credit Cash (Liabilities) 700000
Debit
Vehicle 1500000
Office premises 3000000
Stock of goods 1000000
Credit
Mr. A 4800000
Cash (Liabilities) 700000
So
Office Premises
Stock of Goods
Capital
+
Liabilities
Question no 2
Solution:-
Debit Vehicle 1500000
Credit Mr. A 1500000
Debit Office Premises 3000000
Credit Mr. A 3000000
Debit Stock of Goods 1000000
Credit Mr. A 300000
Credit Cash (Liabilities) 700000
Debit Cash .Mr A 1400000
Credit Mr. B 1400000
Debit
Vehicle 1500000
Office premises 3000000
Stock of goods 1000000
Cash (Mr. A) 1400000
Credit
Mr.A 6200000
Liabilities’ 700000
Mr B. 1400000
Office Premises
Stock of Goods
Cash
Capital
+
Liabilities
Fall Semester 2016
Assignment No 1
Question no 1Mr. “A” starts a new business. Before to start the business operation, he has purchased vehicle Rs. 1,500,000, office premises Rs. 3,000,000, stock of goods Rs. 1,000,000 for his business. He has paid in full for vehicle and office premises but did not pay in full for stock of goods and owes Rs. 300,000 for goods. He had taken loan Rs. 1,400,000 from his friend Mr. “B” in order to meet the business needs. After the above mentioned transactions, he has Rs. 200,000 cash in hand and Rs. 800,000 cash at bank for the business. Required 1. Write
Solution:-
Accounting Equation
Asset = Liabilities + owner equity
i)
Debit Vehicle 1500000
Credit Mr. A 1500000
Debit Office Premises 3000000
Credit Mr. A 3000000
Debit Stock of Goods 1000000
Credit Mr. A 300000
Credit Cash (Liabilities) 700000
Debit
Vehicle 1500000
Office premises 3000000
Stock of goods 1000000
Credit
Mr. A 4800000
Cash (Liabilities) 700000
So
Assets
Capital + Liabilities
Vehicle Office Premises
Stock of Goods
Capital
+
Liabilities
1,500,000
3,000,000
1,000,000
4,500,000
+1,000,000
5,500,000
5,500,000
Question no 2
Solution:-
Debit Vehicle 1500000
Credit Mr. A 1500000
Debit Office Premises 3000000
Credit Mr. A 3000000
Debit Stock of Goods 1000000
Credit Mr. A 300000
Credit Cash (Liabilities) 700000
Debit Cash .Mr A 1400000
Credit Mr. B 1400000
Debit
Vehicle 1500000
Office premises 3000000
Stock of goods 1000000
Cash (Mr. A) 1400000
Credit
Mr.A 6200000
Liabilities’ 700000
Mr B. 1400000
Assets
Capital + Liabilities
Vehicle Office Premises
Stock of Goods
Cash
Capital
+
Liabilities
1,500,000
3,000,000
1,000,000
1,400,000
4,500,000
+2,400,000
6,900,000
6,900,000