Ask Question, Ask an Expert


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

Gven the following information sales growth rate 25 cogs

Given the following information: Sales Growth Rate 25% COGS / Sales 65% Operating Expense / Sales 20% Depreciation Expense (000) $40 Interest Expense (000) $10 Tax Rate 40% Dividends (000) $20 Calculate the following inf ...

The spartan technology company has a proposed contract with

The Spartan Technology Company has a proposed contract with the Digital Systems Company of Michigan. The initial investment in land and equipment will be $100,000. Of this amount, $80,000 is subject to five-year MACRS de ...

Suppose that in 2010 most investors accept bill tedfords

Suppose that in 2010 most investors accept Bill Tedford's forecast that inflation will be higher in future years. a. What will be the effect on bond prices and interest rates? b. Suppose that Tedford turns out to be wron ...

You are going to receive 80 at the end of each year for the

You are going to receive $80 at the end of each year for the next 12 years. If you invest each of those amounts at 12%, then what amount of money will you have at the end of the 12th year?

While you were visiting london you purchased a jaguar for

While you were visiting London, you purchased a Jaguar for £60,000, payable in three months. You have enough cash at your bank in New York City, which pays 0.35% interest per month, compounding monthly, to pay for the ca ...

Metallica bearings inc is a young start-up company no

Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next eight years, because the firm needs to plow back its earnings to fuel growth. The company will then pay a divide ...

The utah mining corporation is set to open a gold mine near

The Utah Mining Corporation is set to open a gold mine near Provo, Utah. According to the treasurer, Monty Goldstein, "This is a golden opportunity." The mine will cost $3, 500,000 to open and will have an economic life ...

1 a temporary life annuity is supposed to pay an annual

1. A temporary life annuity is supposed to pay an annual payment of $4,200 to a young man for a period of 10 years but would not start until 5 years from now. What is the single premium for this annuity? 2. A man wants t ...

Wheat inc has just paid its annual dividends of 210 the

Wheat Inc. has just paid its annual dividends of $2.10. The company is expected to pay the same $2.10 dividend for year 1 and 2. After that dividends is expected to grow at an annual rate of 18% for 3 years, then at 12% ...

Kay mart has purchased an annuity to begin payment at the

Kay Mart has purchased an annuity to begin payment at the end of 2013 (the date of the first payment). Assume it is now the beginning of 2011. The annuity is for $27,000 per year and is designed to last ten years. If the ...

  • 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

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

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen