We have been working very hard since 2009 to facilitate in your learning Read More. We can't keep up without your support. Donate Now.

www.vustudents.ning.com

 www.bit.ly/vucodes + Link For Assignments, GDBs & Online Quizzes Solution www.bit.ly/papersvu + Link For Past Papers, Solved MCQs, Short Notes & More

# mgt401solution

plz check it

+ http://bit.ly/vucodes (Link for Assignments, GDBs & Online Quizzes Solution)

+ http://bit.ly/papersvu (Link for Past Papers, Solved MCQs, Short Notes & More)

Views: 369

Attachments:

### Replies to This Discussion

Assignment No: 1

Financial Accounting ll

Solution file

Requirement No: 1,

Cost = Purchase cost + delivery cost + Installation cost + net cost of testing (w-1) + discounted present value

Cost = 149,340 + 4221 + 6,579 + 4500 + 1,700

Note;

W-1:  net cost of testing = cost of testing – dale price of samples

= 5000 – 500

= 4500

Requirement 2:

Depreciation = cost of the asset – residual value / useful life

= 166340-7000 / 8

= 159340 / 8

= 19917.5

So Depreciation will be approximately = 19918

Per year because we are using straight line method of depreciation.

Depreciation Schedule:

 year Cost (Rs.) Depreciation Accumulated Depreciation Book value 2003 166340 19918 19918 146422 2004 166340 19918 39836 126504 2005 166340 19918 59754 106586 2006 166340 19918 79672 86668 2007 166340 19918 99590 66750 2008 166340 19918 119508 46832 2009 166340 19918 139426 26914 2010 166340 19918 159344 6996

Requirement 3:

Profit or loss on sale of plant =?

Profit or loss on sale of plant = sale price – book value

Profit or loss on sale of plant = 10000-6996

Profit on sale of plant = 3004

MGT401_Assignment#01_Solution

Attachments:

Solution:

1. Determine the plant’s cost to be recognized in MPL’s books as per IAS 16.

Cost of plant As per IAS 16 =

Purchase price + delivery cost + installation cost+ testing + sold proceed + present discount

Cost of plant As per IAS 16= 149,340 +4,221 +6,579 + (5,000 -500) +1700

Cost of plant As per IAS 16= 166340

1. Prepare a depreciation schedule of plant for 8 years by following the format given below.

Cost of assets= 166340
Life of assets= 8 year

Residual Value= 7000

Sale value = 10000

Depreciation Method= straight line

Carrying values = Cost of assets- Accumulated Depreciation

Carrying values = 166340 - 146422

Carrying values= 19918

 Year Cost (Rs.) Depreciation Accumulated Depreciation Carrying values 2003 166340 19918 146422 2004 146422 19918 126504 2005 126504 19918 106586 2006 106586 19918 86668 2007 66750 19918 66750 2008 66750 19918 46832 2009 46832 19918 26914 2010 26914 19918 6996

1. Calculate the amount of profit or loss on disposal of the plant.

Book value after 8 year= 6996

Sale price = 10000

Profit = Sale price- Book value

Profit= 10000-6996

Profit= 3004

+♥✰Anaya✰♥+ gud & thanks & keep it up

Note @ All: You don’t need to go any other site for this assignment/GDB/Online Quiz solution, Because All discussed data of our members in this discussion are going from here to other sites. You can judge this at other sites yourself. So don’t waste your precious time with different links.

1. Determine the plant's cost to be recognized in MPL’s books as per IAS 16.
plant's cast = Purchase price +Delivery cost +Installation cost +Cost of testing
= 149340 +4221 +6579 +5000
=165140
2. Prepare a depreciation schedule of plant for 8 years by following the format given below.
Depreciation cost = 165140 - 7000/8
=19767.5
this is deprecation cost and Dep cost is same in each year because straight-line method.
3. Calculate the amount of profit or loss on disposal of the plant.
profit or loss on disposal of the plant = Sold price of plant – Accumulated depriciation
= 10,000 – 6996
= 3004 (Profit)

MGT401 Assignment solution

Plant cost as per IAS 16
Cost = Purchase cost + delivery cost + Installation cost + (cost of testing-net proceed) + discounted present value
Cost = 149,340 + 4221 + 6,579 + (5000-500)+ 1,700 = 166340

1.Prepare a depreciation schedule of plant for 8 years by following the format given below.

Solution:

Year Cost
Rs. Depreciation Accumulated depreciation Carrying value
2003 166340 19918 19918 146422
2004 166340 19918 39836 126504
2005 166340 19918 59754 106586
2006 166340 19918 79672 86668
2007 166340 19918 99590 66750
2008 166340 19918 119508 46832
2009 166340 19918 139426 26914
2010 166340 19918 159344 6996

1.Calculate the amount of profit or loss on disposal of the plant.

Profit /loss on disposal of plant = sold price of plant – carrying value (or book value)
=10000 – 6996
= 3004 (profit)

## MGT-401 Assignment 1 Solution (28/11/2012)

ssignment No. 01
Name : Safeer Nawaz
Student Id : Mc120202403
MGT-401 : Financial Accounting II
Course : MBA

Virtual University of Pakistan

1. Determine the Plant Cost of MPL’ books as per ISA 16.

 Plant Cost of MPL’ BooksAs per ISA 16. Particulars Amount Rs. Amount Rs. Amount Rs. Purchase Cost 149340 Delivery Cost 4221 Installation Cost 6579 Cost of Testing 5000 Less: Net Proceed -500 Net Testing Cost 4500 Discount P.Value 1700 Net Plant Cost 166340

02- Prepare Depreciation Schedule of Plant For 8 Years.

Depreciation Value: Cost – Residual Value 166340 – 7000= 19918
Use full Life 8

 Years Plant Cost Depreciation Accumulated Depreciation Carrying Cost 2003 166340 19918 19918 146422 2004 166340 19918 39836 126504 2005 166340 19918 59754 106586 2006 166340 19918 79672 86668 2007 166340 19918 99590 66750 2008 166340 19918 119508 46832 2009 166340 19918 139426 26914 2010 166340 19918 159344 6996

1. Calculate the Amount Rs. of Profit or Loss on Disposal of the Plant.

Profit or Loss on Disposal of Plant = Sale Price of Plant – Carrying Cost of Plant
= 10000 - 6996
Profit on Sale of Plant = Rs.3004

Plant cost as per IAS 16

Cost = Purchase cost + delivery cost + Installation cost + cost of testing

Cost = 149,340 + 4221 + 6,579 + 5000 = 165140

Depreciable amount= (cost – residual value)

Depreciable amount= (165140– 7000)=158140/8=19768

Year

Cost

Rs.

Depreciation

Accumulated depreciation

Carrying value

2003

158140

19768

19768

138372

2010

158140

19768

158144

-4

Profit /loss on disposal of plant = sold price of plant – carrying value (or book value)

Profit /loss on disposal of plant =10000 – 4

Profit /loss on disposal of plant = 6996 (profit)

enjoy dear according to my knowledge this is 1000% correct

1. Determine the Plant Cost of MPL’ books as per ISA 16.

 Plant Cost of MPL’ BooksAs per ISA 16. Particulars Amount Rs. Amount Rs. Amount Rs. Purchase Cost 149340 Delivery Cost 4221 Installation Cost 6579 Cost of Testing 5000 Less: Net Proceed -500 Net Testing Cost 4500 Discount P.Value 1700 Net Plant Cost 166340

02- Prepare Depreciation Schedule of Plant For 8 Years.

Depreciation Value: Cost – Residual Value 166340 – 7000= 19918
Use full Life 8

 Years Plant Cost Depreciation Accumulated Depreciation Carrying Cost 2003 166340 19918 19918 146422 2004 166340 19918 39836 126504 2005 166340 19918 59754 106586 2006 166340 19918 79672 86668 2007 166340 19918 99590 66750 2008 166340 19918 119508 46832 2009 166340 19918 139426 26914 2010 166340 19918 159344 6996

1. Calculate the Amount Rs. of Profit or Loss on Disposal of the Plant.

Profit or Loss on Disposal of Plant = Sale Price of Plant – Carrying Cost of Plant
= 10000 - 6996
Profit on Sale of Plant = Rs.3004

## Latest Activity

13 minutes ago
+++Shamp y RANA Girl++ posted a status
"سوچ اچھی ہونی چاہیے کیونکہ نظر کا علاج ممکن ہے لیک نظریے کا نہیں۔"
1 hour ago
+++Shamp y RANA Girl++ posted a status
"You will face many defeats in life. But never yourself be defeated."
1 hour ago
zohaib iftikhar liked zohaib iftikhar's discussion ....**** LA MARNAYN ....****
2 hours ago
zohaib iftikhar liked zohaib iftikhar's discussion ....""" HITLOR ...""""
2 hours ago
2 hours ago
zohaib iftikhar posted discussions
2 hours ago

1

2

3

## HELP SUPPORT

This is a member-supported website. Your contribution is greatly appreciated!