[Rubaisha(Moody Girl)]

Mgt-101

Fall Semester 2016

Assignment No 1

Question no 1
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

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