MGT101 Assignment No.

1
Username: Sajawal hussain

VU-ID: bc190411043

TOPIC TO BE TESTED:  Basic understanding required for the preparation of financial statements.
LEARNING OBJECTIVES:  To understand the heads/terminologies used in the preparation of
financial statements.

Requirements:

Following Information is extracted from the books of ABC Traders on 30th June 1019

Particulars Rs. Particular Rs

Advertising expenses 65,000 Amount earned on 121,000
sale of goods
Carriage/Transportation 160,000 Amount earned by 840,000
paid on sale of goods rendering services
Purchases 550,000 Total Liabilities 10,30,000
Carriage/Transportation 50,000 paid on purchases 250,000
Copy rights
Rent of office building 278,222 Goodwill 150,000
Taxes paid 20,364 Furniture and Fixtures 170,000
Mark up on loan 15,228 Plant & Machinery 750,000
Salaries paid to 16,369 Land and Building 770,000
employees
Bank charges 29,367 Cash in hand 150,000
Other financial charges 17,268 Total Assets 2,240,000
Note: There is no opening and closing stock of inventory
Required: Based on the above information of ABC Business, you are required to calculate the
amount of:

1. Intangible Assets
2. Equity
3. Total Income/Revenue
4. Selling Expenses
5. Cost of goods sold
 Answer:
Solution:
1) Intangible Assets
Goodwill 150,000
Copy rights 250,000
Total 400,000

2) Equity
Total liabilities 10,30000
Total assets 2,240,000
Total 12,10,000

3) Total income/Revenue
Sale of goods 121,000
Services 840,000
Total 961,000

4) Selling expenses
Advertisement expenses 65,000
carriage 160,000
Total 225,000

5) Cost Of Goods Sale

Purchases 550,000
Carriage 50,000
Total 600,000