FIN711 Advance Financial Accounting GDB.. Help Needed

[mb130400025]

Answer the following:



(1) Determine net change in the fixed assets account using the following information. Also recommend the most appropriate reason for the change:

a) Balance of fixed assets at start of the year – Rs. 1,105M.

b) Sales proceeds of a plant costing Rs. 40M received during the year at a loss of Rs. 1.0M.

c) Yearly depreciation charged in the accounts Rs. 275M.

d) Office equipment purchased at Rs. 0.75M charged to revenue.

e) Additions during the year – Rs. 1,456M.

f) Balance of fixed assets at end of the year – Rs. 3,105.50M.

Note: there is no purchase or sale of fixed assets other than the above.



(2) Determine using the following information the amount of interest on capital earned by Mr. Entrepreneur on his capital used his business during the year 20X3:

a) He brought a car having market value of Rs. 425,000 in his business house to be used for business purposes only. This car had gifted him his wife on their 3rd marriage anniversary.

b) He has estimated an amount of Rs. 1,725,000 as opening capital and Rs. 2,374,000 as closing capital.

c) During the year, his business generated an amount of Rs. 86,500 as net profit before tax.

d) Goods worth Rs. 35,000 gifted to Mr. New – one of his friend who has started his own business.



(3) Differentiate “capital” of a limited company from “capital fund” of a non-profit organization. Your answer should not exceed 25 words.



(4) Give two examples of any business transactions or set of transactions in any non-profit organization, where “matching principle” can be applied on each set of transactions.

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