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

Suppose that you buy an interest rate cap on three-month

Suppose that you buy an interest rate cap on three-month LIBOR with a two-year maturity and somutaneously sell a floor on three-month LIBOR with a two-year maturity. Ignore the premiums. Draw a profit diagram that indica ...

Please show work and excel formulas if applicable1 your

Please show work and excel formulas if applicable. 1. Your first job pays your $45,000 first year, $48,000 second year and $49,000 third year. Then you switch to another job and make $53,000 in the first year. Your pay i ...

Hedge with derivativesa chinese company located in shanghai

Hedge with derivatives A Chinese company located in Shanghai is due to pay 7,754,300 HKD onDecember 31st. 2016 (Now October 1st.) they want to use a derivative to hedge the risk they are exposed to. Please enlighten them ...

Bruce moneybags owns several restaurants and hotels near a

Bruce Moneybags owns several restaurants and hotels near a local interstate. One restaurant, Beef and More, originally cost $1.8 million, is currently fully paid for, but needs modernized. Bruce is trying to decide wheth ...

Having graduated from ucf with a degree in finance you can

Having graduated from UCF with a degree in finance, you can now afford to buy a $120,000 house. Suppose you pay 20% as a down payment and finance the rest for 30 years at 8%. Assuming house payments occur at the end of e ...

A firm manufactures and sells high quality printers and

A firm manufactures and sells high quality printers and toners. Each printer sells for $790 and each toner for $70. The average user keeps the printer for 5 years and consumes 4 toners every year. The typical user prints ...

1 farley inc has perpetual preferred stock outstanding that

1. Farley Inc. has perpetual preferred stock outstanding that sells for $30 a share and pays dividend of $2.75 at the end of each year. What is the required rate of return? 2. If Treasury bills are currently paying 6 per ...

Bond a has a coupon rate of 449 percent a yield-to-maturity

Bond A has a coupon rate of 4.49 percent, a yield-to-maturity of 4.06 percent, and a face value of 1,000 dollars; matures in 16 years; and pays coupons annually with the next coupon expected in 1 year. What is (X + Y + Z ...

Jerry who is age 56 was just called into the

Jerry, who is age 56, was just called into the President’s office at Napa Sunrise, Inc. He just learned that his position has been eliminated in the recent reorganization. While he is devastated, he thinks he may attempt ...

C-spec inc is attempting to determine whether an existing

C-Spec, Inc., is attempting to determine whether an existing machine is capable of milling an engine part that has a key specification of 3 ± 0.003 inches. After a trial run on this machine, C-Spec has determined that th ...

  • 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