MGT101 Financial Accounting Assignment No. 1 solution october 2011

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[B]Semester “Fall 2011”
“Financial Accounting (MGT101)”
Assignment No. 01 Marks: 15
Question Number 01:
Recall the accounting equation and answer the following:

1. Total Assets of a business are Rs. 100,000/- and Total Liabilities are Rs. 40,000/-. What will be the amount of Owners’ Equity? (1 mark)

2. Total Assets of a business are Rs. 500,000/- and Owners’ Equity is Rs. 300,000/-. What will be the amount of Total Liabilities? (1 mark)

3. Total Liabilities of a business are Rs. 400,000/- and Owners’ Equity is Rs. 500,000/-. What will be the amount of Total Assets? (1 mark)

Question Number 02:

‘Waqas Rentals started a business on January 01 2011; the selected transactions related to the organization were as follows:

1- Waqas invested total capital of Rs. 1,200,000/- in the business on January 01, 2011 out of which he deposited Rs. 600,000/- in the bank account of the business

2- Purchased two cars worth Rs. 100,000/- on cash on February 01, 2011

3- Bought office furniture costing Rs.70,000/- on February 01, 2011 and made payment through cheque

4- Collected Rs. 4,000/- on accounts receivable on June 05, 2011

5- Paid accounts payable of Rs 3,200/- on July 11, 2011 by issuing cheque

6- Borrowed Rs. 10,000/- from Mr. Ali on August 01, 2011 and signed a note payable for the amount.[/B]