MGT101
correct the above solution
mistake 1 =patents is fixed asset not current asset
mistake 2 = bank loan is also a current liability
mistake 3 = wrong opening inventry figure
mistake 4 = wages ko add nhi kia apne
::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
ASSIGNMENT #2 SOLUTION
SPRING 2011
Answer #1:`
NET WORKING CAPITAL:
Current assets – current liabilities
So,
CURRENT ASSETS:
=cash in hand + sundry debtors + patents + prepaid insurance + closing stock
=63400 + 390000 + 150000 + 33000 + 136000
=772400
CURRENT LIABILITIES:
=outstanding salaries + creditors
=60000 + 126000
=186000
Now,
Net Working capital= 772400 – 186000
Net Working capital = 586400
ANSWER #2:
Trader
Income statement
As on 31st December 2005
mistake 1 =patents is fixed asset not current asset
mistake 2 = bank loan is also a current liability
mistake 3 = wrong opening inventry figure
mistake 4 = wages ko add nhi kia apne
::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
Answer #1:`
NET WORKING CAPITAL:
Current assets – current liabilities
So,
CURRENT ASSETS:
=cash in hand + sundry debtors + patents + prepaid insurance + closing stock
=63400 + 390000 + 150000 + 33000 + 136000
=772400
CURRENT LIABILITIES:
=outstanding salaries + creditors
=60000 + 126000
=186000
Now,
Net Working capital= 772400 – 186000
Net Working capital = 586400
ANSWER #2:
Trader
Income statement
As on 31st December 2005
Particulars | Amount Rs. |
Sales Less: Return inwards Less: Cost of sales(W-I) Gross Profit Administrative expenses(balancing figure) | 1975600 (13600) 1962000 918100 1043900 772900 |
Net Profit | 271000 |
WORKING (W-I):
COST OF SALES:
Particulars | Amount Rs. | Amount Rs. |
Opening inventory Add: purchases Carriage on purchases Less: Closing inventory | 803500 135400 | 15200 938900 1054100 136000 |
Cost of sales | 918100 |
:::::::::::::::::::::::
NET WORKING CAPITAL:
Current assets – current liabilities
CURRENT ASSETS:
=cash in hand + sundry debtors + prepaid insurance + closing stock
=63400 + 390000 + 33000 + 136000
=622400
CURRENT LIABILITIES:
=outstanding salaries + creditors + bank loan
=60000 + 126000 + 100000
=286000
Net Working capital= 622400– 286000
Net Working capital = 336400
NET WORKING CAPITAL:
Current assets – current liabilities
CURRENT ASSETS:
=cash in hand + sundry debtors + prepaid insurance + closing stock
=63400 + 390000 + 33000 + 136000
=622400
CURRENT LIABILITIES:
=outstanding salaries + creditors + bank loan
=60000 + 126000 + 100000
=286000
Net Working capital= 622400– 286000
Net Working capital = 336400
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