Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Financial Management Expert

problem 1)a) Transactions of the business for March 2010 are given below:

Year 2010          Particulars                                                  Amount(Rs.)
March 01          Commenced business                                      10, 000
March 03      Paid two months rent in advance for a shop            1, 000
March 05      Purchased supplies on credit                                      700
March 07       Purchased machineries                                          5, 000

You are required to:

• Prepare journal entries for the above transactions

• Post the entries from the journal to the following ledger accounts

I. Supplies account

II. Prepaid rent account

III. Cash account

IV. Machinery account

problem 2)a) A man arranges to repay Rs. 1,00,000 bank loan in 10 equal annual instalments at 12% per year compounded quarterly. Immediately after the 3rd payment, he borrows another Rs. 50,000 also at the same interest rate. When he borrows Rs. 50,000 he talks to the banker into letting him repay the remaining debt of the first loan and the entire amount of the second loan in 12 equal annual payments. The first of 12 payments would be made one year after he receives Rs. 50,000. find out the amount of each of 12 payments?

b) Using following information complete balance sheet given below:

Total debt to Net worth                                                                                      0.5:1
Total assets turnover ratio                                                                                    2:1
Gross profit                                                                                                        30%
Average collection period (based on 360 days a year)                                          40 days
Acid test ratio                                                                                                  0.75:1
Inventory turnover ratio (based on cost of goods sold and year end inventory)      3 times

Balance sheet

Liabilities                        Amount(Rs)           Assets                     Amount(Rs)    
Accounts payable            ------------             Cash                      --------------       
Share capital                   2, 00, 000         Accounts receivables      --------------
Retained earnings            3, 00, 000             Inventory                   ---------------
-------------------          -------------        Plant and equipment       --------------
Total                             -------------              Total                        -------------

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M96595

Have any Question? 


Related Questions in Financial Management

How is the value of a bond determined what is the value of

How is the value of a bond determined? What is the value of a 10-year, $1,000 par value bond with a 10 percent annual coupon if its required rate of return is 10 percent? Are there any instances in which companies should ...

A portfolio contains 25 in panera bread and the remainder

A portfolio contains 25% in Panera Bread and the remainder in Valero.  Panera Bread and Valero had the following realized returns: Date Panera Bread Return                                Valero Return July 2016           ...

You have been asked to develop a pro forma statement of

You have been asked to develop a pro forma statement of cash flow for Betts Distribution Center, an Internet-based order fulfillment/distribution/office/warehouse property. In addition to recoverable operating expenses, ...

1 are portfolio managers willing to pay a premium for

1. Are portfolio managers willing to pay a premium for securities that reduce the systematic (market) risk of their portfolios? If so, why pay a premium? 2. What makes a beta coefficient important when constructing a por ...

The common shares of almond beach ltd have a beta of 075

The common shares of Almond Beach Ltd., have a beta of 0.75, offer an expected return of 9%, and have an historical standard deviation of return of 17%, alternatively, the common shares of Palm Beach Inc. have a beta of ...

With all of the readings videos and discussion that

With all of the readings, videos and discussion that occurred within this course, discuss how the technological convergence, the Internet, and global customer expectations have changed the task of the global marketer. Ex ...

Terry shevlin recently opened terryrsquos pub in the

Terry Shevlin recently opened Terry’s Pub in the University District. Because of licensing restrictions, the only liquor he can sell is beer. The average price of beer at Terry’s Pub is $5.00 per glass, and each glass co ...

Required rate of returnsuppose rrf 4 rm 13 and bi 13what

Required rate of return Suppose rRF = 4%, rM = 13%, and bi = 1.3. What is ri, the required rate of return on Stock i? Round your answer to two decimal places. ........% 1. Now assume that rRF remains at 4% but rM increas ...

The beta coefficient for stock c is bc 04 while that for

The beta coefficient for Stock C is bc = 0.4, while that for Stock D is bD = -0.5. (Stock D's beta is negative, indicating that its rate of return rises whenever returns on most other stocks fall. There are very few nega ...

Harrison co issued 15-year bonds one year ago at a coupon

Harrison Co. issued 15-year bonds one year ago at a coupon rate of 6.6 percent. The bonds make semiannual payments. If the YTM on these bonds is 5.5 percent, what is the current dollar price assuming a $1,000 par value?

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro