MGT 101 Assignment #1 Solution

Semester “Spring 2011”

“FINANCIAL ACCOUNTING – 1 (MGT101)”

Assignment No. 01 Marks: 20

Question No. 1

Determine the missing amount on each of the following options with the help of Accounting Equation.

Serial #	Assets	=Liabilities	+ Capital
1	Rs. 35,000	=Rs. 12,000	+ Rs. 33,000
2	Rs. 40,000	= Rs. 27,000	+ Rs. 13,600
3	Rs. 54, 000	= Rs. 9,000	+ Rs. 45,000
Total	Rs. 129000	= Rs. 138,000	+ Rs. 91600

Question No. 2

From the following transactions, identify the nature of expenditure whether Capital Expenditure or Revenue Expenditure by filling up the appropriate boxes given below

S. No. Transactions Nature of expenditure

1 Merchandise purchase for cash is                Revenue Expenditure

2 Paid rent of the building is                                      Capital Expenditure

3 Commission paid to the workers is              Revenue Expenditure

4 Cost of acquiring the patent rights is                       Revenue Expenditure

5 Installation cost of the machinery is            Capital Expenditure

Question No. 3

a) Briefly describe the difference between Tangible and Intangible Assets.

b) Write down the type of Asset (Tangible / Intangible) in the appropriate boxes given below.

S. No. Transactions Type of Asset

1 Raw Material / Stores is                                           Tangible Asset

2The Technology of information and database is                   Intangible Asset

3 Abilities and innovations of the employers is          Intangible Asset

4 The money – Cash at Bank is                                              Tangible Asset