MGT 101 GDB#2 , Solution required, l ast date is 27/01/2011

[rehman]

“Would the use of accelerated method – Diminishing balance method of deprecation in the financial statements (Income statement and Balance sheet) be more conservative or less conservative than the current practice of using the straight-line method?” Briefly explain.

[Xpert]

yah bhi ani thi chalen kartray han kuch is ka bhi

[jannat noor]

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[Xpert]

Here's the idea solution please download
Its just for idea
Use of accelerated depreciation methods in the financial statements would be more “conservative” than the current practice of straight-line depreciation. Accelerated methods more quickly transfer the costs of plant assets to expense. Thus, in the immediate future, accelerated depreciation methods produce more conservative (lower) balance sheet valuations of plant assets and more conservative (lower) measurements of net income.

[Xpert]

one more idea please find it

[rehman]

Thax ..........!

[Xpert]

You are welcome dear.

[AqsaMalik]

MGT101 GDB ? izz:

“The following Accounting Equation has been derived from the balances extracted from the accounting records of Mr. Entrepreneur as on January 1st, 2011:


Cash + Debtors + Stock + Building + Furniture + Other Fixed Assets = Creditors + Owner’s Equity
Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.
5,000 7,500 15,500 75,000 3,500 18,500 50,000 75,000

On the same day, he borrowed Rs. 30,000 from his wife and brought that money into the business. You are required to show the effect of this transaction upon the above equation by following the format.

[Vuhelper]

wat is problem

[AqsaMalik]

I hav p0std thy pr0blm...