Assignment GDB Solution: MGT401 Financial Accounting II

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MGT401 GDB 1 Solution Feb 2015

Topic: IAS-18 (Revenues) IAS-18 deals with revenue, revenues recognition process and what to recognize and when to recognize? Different hypothetical situations that are near to real time circumstances of corporate world are given below. Read them carefully and highlight the amount of revenue(s) that should be recognized as per IAS-18 for each case separately: Delux company’s […]

MGT401 Financial Accounting II Assignment 1 Solution Fall 2014

Case Assignment question is regarding formation and registration of company under companies’ ordinance 1984. Different scenarios are given and you are required to give proper treatment of these situations with respect to companies’ registration process devised by security and exchange commission of Pakistan (SECP). Mr. M. Gulzar is sole owner of a foundry business. With […]

MGT401 Financial Accounting II GDB 1 Solution Fall 2014

Question:   K&S (Pvt) Ltd. has recently established its business of readymade garments in Lahore. Mr. Aslam – owner of the company has tried to launch state of the art processes at every step from product design to manufacturing. K&S (Pvt) Ltd. needed funds aggregating to Rs. 2 Million, half of the amount was invested by […]

MGT401 Financial Accounting II Assignment 2 Solution Spring 2014

FINANCIAL ACCOUNTING II (MGT401)ASSIGNMENT NO. 02  MARKS: 10 ASSIGNMENT: 2 Learning Objective This activity aims to enable the students to understand that how to prepare the  amortization schedule and how to record the journal entries regarding leasing assets.  Case RS Company has entered into a contract to obtain the machinery on lease from Soneri  leasing Company on 1st July 2009. Fair value of the asset is Rs. 950,000;  Lease rentals are 5 annual […]

MGT401 Financial Accounting II Assignment 2 Solution Spring 2014

Case RS Company has entered into a contract to obtain the machinery on lease from Soneri leasing Company on 1st July 2009. Fair value of the asset is Rs. 950,000; Lease rentals are 5 annual installments of Rs. 219,450 starting from 30th June 2010. The implicit interest rate is approximately 5% per annum in this lease contract.  Depreciation is charged on written down method at 20%. Required: 1) Show how this lease […]

MGT401 Financial Accounting II GDB 2 Solution Spring 2014

Objective of this discussion is to enable students to get in depth knowledge of different types of leasing. Real time scenarios are developed to distinguish the differentiate types of leasing according to nature and types of agreement. Learning outcomes: After this valuable discussion students will be able to compare, distinguish and relate two major types […]

MGT401 Financial Accounting II Assignment 1 Solution Spring 2014

Case GEAR-UP Pvt. Ltd is a leading motorcycle spare parts manufacturer in Pakistan. Prices of auto spare parts have been changing from previous four years drastically, due to inflation prevails in the country thus the prices of spare parts are considered volatile. As per rule of IAS -2 there are two methods available one is ‘FIFO’ (first-in, first-out) and second is ‘weighted-average cost method’ to measure the cost […]

MGT401 Financial Accounting II GDB Solution Spring 2014

Scenario: HXN Ltd. – a textile manufacturing firm located in Karachi has the policy to recognize its fixed assets (tangible) initially at cost and subsequently at cost less accumulated depreciation and impairment losses. Depreciation on the fixed assets is charged appropriately to write off the cost over estimated useful life of the assets. In the […]

MGT401 Financial Accounting II Quiz 1 Solution Spring 2014

1.Which one of the following is TRUE with respect to “FIFO” in inventory valuation? First-In-First-Out 2. Which document contains the information about authorized share capital of a company? Memorandum of Association 3.In which situation, company ABC and XYZ can be interconnected? If they are associate to each other If one is subsidiary of other If […]

MGT401 Financial Accounting II Assignment 2 Solution Fall 2013

Learning Objective This activity aims to develop among the students an understanding as how to organize the amortization schedule through lease rentals and their presentations along with the calculation of depreciation after revaluation and amount of unrealized surplus at the end of lease term as per IAS 16 and IAS 17. Learning Outcomes After going through this activity, the students would be able to analyze […]