Blog: Mgt101 Assignment 1 solution

Question No. 1

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

Sr. No. 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
2            The 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
:::::::::::::::::::::::::::::::::::::::::::::::::
Question No. 1

Sr. No.

Assets = Liabilities + Capital

1

Rs. 35,000 = Rs. 12,000 + 23,000

2

Rs. 40,000 = Rs.26,400+ Rs. 13,600

3

Rs.54,000 = Rs. 9,000 + Rs. 45,000

Total

Rs. 129,000 = Rs. 47,400 + Rs. 81,000


Question No. 2 S. No. Transactions Nature of expenditure 1 Merchandise purchase for cash Capital Expenditure 2 Paid rent of the building Revenue Expenditure 3 Commission paid to the workers Revenue Expenditure 4Cost of acquiring the patent rights Capital Expenditure 5 Installation cost of the machinery Capital Expenditure Question No. 3 S. No. TransactionsType of Assets 1 Raw Material / Stores Tangible 2 The Technology of information and database Tangible 3 Abilities and innovations of the employers Non-Tangible 4 The money – Cash at Bank Non-Tangible
:::::::::::::::::::::::::::

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.

ANSWER:
1. Revenue Expenditure
2. Revenue Expenditure
3. Revenue Expenditure
4. Capital Expenditure
5. Capital Expenditure

Question No. 3
a) Briefly describe the difference between Tangible and Intangible Assets.
Answer:
Tangible Assets having a physical existence, such as cash, equipment, and real estate; accounts receivable are also usually considered tangible assets for accounting purposes.
Intangible assets are defined as identifiable non-monetary assets that cannot be seen, touched or physically measured, which are created through time and/or effort and that are identifiable as a separate asset.
b) Write down the type of Asset (Tangible / Intangible) in the appropriate boxes given below.

Answer:

1. Tangible
2. Intangible
3. Intangible
4. Tangible 
::::::::::::::::::::::::::::::::::::