MGT401 VU GDB Solution Spring 2012


Mr. Good after graduating from a Local Business University (LBU) has recently joined Saving Bank Limited (SBL) as a Management Trainee Officer (MTO). On one training day, his instructor gave him a task to identify current and long term assets from the following list:

a)   Gold reserves                                           b) Accrued mark-up

c) Investment in bonds                                d) Marketable securities

e) Operating fixed assets                             f) Investment in associates

g) Deferred tax (Dr. Balance)                      h) Deferred tax (Cr. Balance)

i) Lending to other financial institutes         j) Cash and balances with treasury banks

k) Assets subject to finance lease                 l) 8 years’ Subordinated Loans (Cr. Balance)

m) Provision for taxation                             n) Derivative financial liabilities

o) Capital work in progress


Current Assets

Accrued mark-up

Marketable securities

Deferred tax (Dr. Balance)

Lending to other financial institutes

Cash and balances with treasury banks

Long Term Assets

Investment in bonds

Operating fixed assets

Investment in associates

Assets subject to finance lease

Capital work in progress