MGT101 Financial Accounting Assignment No. 1 solution october 2011

[saneha]

Solution:


Question No. 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)


Answer:
Owner’s Equity= Total Assests – Total Liabilities
Owner’s Equity= Rs. 100,000 – Rs. 40,000
Owner’s Equity= Rs. 60000


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)


Answer:
Total Liabilities= Total Assets – Owner Equity
Total Liabilities= Rs.500,000 – Rs. 300,000
Total Liabilities=Rs. 200,000


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)


Answer:
Total Assets= Total Liabilities + Owner Equity
Total Assets=Rs. 400,000 + Rs. 500,000
Total Assets=Rs.900, 000



Question No. 02:
Waqas Rentals started a business on January 01 2011; the selected transactions related to the organization were as follows:


Answer