MGT101 Assignment 1 Solution Spring 2018

Following information is extracted from the books of ABC Traders on 31st December 2017.

Particulars Rs. Particulars Rs.
Cost of goods sold 55,000 Gross profit 40,000
Plant & Machinery 750,000 Land & Building 840,000
Furniture and Fixtures 170,000 Cash at bank 45,000
Income earned expected to be
received within 3 months
10,000 Office expenses incurred
expected to be paid within 3
Opening stock 24,000 Closing stock 20,000
Sundry creditors 25,000 Capital at the start of the period 500,000
Profit earned during the period 46,000 Salaries of marketing staff 150,000
Rent of office building 60,000 Advertising expenses 65,000
Wages paid to workers 33,000 Mark up on loan 14,000

Based on the above information of ABC Traders, you are required to calculate the amount of:
1. Sales Revenue
2. Fixed Assets
3. Current Assets
4. Current Liabilities
5. Selling expenses
6. Capital to be shown in balance sheet as on 31
st December 2017
Grace period of extra 24 hours after the due date is usually available to overcome uploading difficulties. This extra time should only be used to meet the emergencies and above mentioned due dates should always be treated as final to avoid any inconvenience.

SOlution :