MGT101 Financial Accounting GDB no 1Semester FALL 2 November 2011

[Vuhelper]

“Financial Accounting (MGT101)”

This is to inform that Graded Discussion Board (GDB)

Has been opened according to the following schedule




Schedule




Opening Date


November 01, 2011




Closing Date and Time


November 03, 2011 At 11:59 P.M. (Mid-Night)




Note: No extra or bonus/grace period is available for attempting GBD.




Discussion Question

“Mr. Ali has started a new business in current year 2011. For his business, he has purchased a building, office furniture and fixtures. He has paid insurance premium of the building for the financial year 2011 and also incurred the advertisement expenses. Transportation charges have also been paid for the furniture he purchased. Salaries have also been paid during the year. Along with all these activities, Mr. Ali has purchased a car for his personal use only.



Required:

Identify at least two capital and two revenue expenditures from the above given scenario.”





Note: Your comments should not be more than 40 words.



Instructions:



Read the following instructions before giving your comments on GDB:



Use the font style “Times New Roman” and font size “12”.
Your answer should be relevant to the topic i.e. clear and concise.
Do not copy or exchange your answer with other students. Two identical / copied comments will be marked Zero (0) and may damage your grade in the course.
Books, websites and other reading material may be consulted before posting your comments but copying or reproducing the text from books, websites and other reading materials is strictly prohibited. Such comments will be marked as Zero (0).
Obnoxious or ignoble answer should be strictly avoided.

[Rashid Riaz A]

iss ka solution to bata daey?

[rabeel]

abhi tu kafi din paray howay han janab.

[rimjhim]

plz plz koi MGT101 and MGT211 k first GDB ka solution de de.. plz plz thx

[rimjhim]

03-11-2011 yani today is last date plz

[sanam]

g han. hai tu sahi.
lakin kuch soch len na khud b hi

[Vuhelper]

Solution:

Capital expenditures are:

1. Office furniture and fixtures
2. cost of car

Revenue expenditures are:

1. Salaries
2. Insurance premium
3. Transportation charges
4. Advertisement expenses

Another Solution:

Capital expenditure
1-building
2-office furniture and fixtures

Revenue expenditure
1-Transport charges which had paid for furniture
2-Salaries have also been paid during the year2011

Another:

Capital Expense
Building for Office because if is a fixed asset and fixed assets are counted as Capital Expenses, Furniture is also treated as asset of the business

Revenue Expense
Advertisement Expense because it will generate revenue for the company, Insurance Premium because it will also payback some larger amount of money