Mgt101 Assignment No. 2

Semester "Fall 2010"

"FINANCIAL ACCOUNTING – 1 (MGT101)"

Assignment No. 02 Marks: 20

QUESTION – 01

The following are the information available from the Trial Balance of Mr. Ali & Sons for the

year ended on 31st December 2010.

Adjustments:

􀂾 Write off Rs. 5,000 bad debts from accounts receivable.

􀂾 Maintain provision for doubtful debts at 5%.

Required:

1. Calculate new provision.

2. Calculate the amount of Provision for doubtful debts to be appeared in Profit and

Loss Account.

3. Calculate the amount of Sundry debtors to be shown in Balance Sheet.

QUESTION – 02

The financial year of Mr. Ali & Sons is closed on June 30, 2010. Data regarding Mr. Ali &

Sons is given below:

Required:

Prepare Debtors control account for the month of June, 2010.

Particulars Debit

Rs.

Credit

Rs.

Accounts receivable

Bad debts

Provision for doubtful debts

205,000

8,000

6,000

Particulars Rs.

Opening balance of sundry debtors 25,000

Cash sales 100,000

Credit sales 50,000

Discount allowed 2,000

Discount received 6,000

Receipts from debtors 35,000

Bad debts written off 10,000

Sales returns (from credit sales) 5,000

Important Tips

1. This Assignment can be best attempted from the knowledge acquired after

watching video lecture no. 1 to lecture no. 27 and reading handouts as well as

recommended/reference books).

2. Video lectures can be downloaded for free from Online VU Lectures

Schedule

Opening Date and Time December 31, 2010 At 12:01 A.M. (Mid-Night)

Due Date and Time January 05, 2011 At 11:59 P.M. (Mid-Night)

Note: Only in the case of Assignment, 24 Hrs extra / grace period after the above mentioned

due date is usually available to overcome uploading difficulties which may be faced by the

students on last date. 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.