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MGT101 Assignment Sample Solution

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443 views3 pages

MGT101 Assignment Sample Solution

Uploaded by

tallalaziz74
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MGT101

ABC Brothers showed balances of Cash in hand Rs. 800,000, Cash at bank Rs. 700,000,
Debtors Rs. 35,000 and Creditors Rs. 45,000 as on 1st July 2024. Some transactions of
Rahim Brothers for the month of July 2024 are given below.

Date Transactions

4th July Machinery purchased from ABC Machine Corporation for Rs. 250,000 and
payment is made through cheque.

7th July Goods purchased amounting to Rs. 30,000 on account.

9th July Goods for Rs. 15,000 have been stolen during the period.

15th July Rs. 10,000 paid to creditors.

24th July Sold goods to a customer for Rs. 20,000 on credit basis

28th July Cash collected from a customer Rs. 5,000.

29th July A cheque of Rs. 150,000 received against the sale of spoiled part of
machinery.

NEXT PAGE
Required:
Based on the transactions given in the previous page, calculate the amount/balance
of the following accounts at the end of July 2024.

1- Debtors
2- Creditors

3- Cash in hand
4- Cash at bank

To calculate the balances of Debtors, Creditors, Cash in hand, and Cash at bank at the end of
July 2024, let’s analyze each transaction and see how it affects the initial balances.

Initial Balances as on 1st July 2024:

 Cash in hand = Rs. 800,000


 Cash at bank = Rs. 700,000
 Debtors = Rs. 35,000
 Creditors = Rs. 45,000

Transactions and Their Impact

1. 4th July: Machinery purchased for Rs. 250,000, payment made by cheque.
o Cash at bank decreases by Rs. 250,000.
o New Cash at bank = 700,000 - 250,000 = Rs. 450,000.
2. 7th July: Goods purchased on account for Rs. 30,000.
o Creditors increase by Rs. 30,000.
o New Creditors = 45,000 + 30,000 = Rs. 75,000.
3. 9th July: Goods worth Rs. 15,000 were stolen.
o No effect on Cash in hand, Cash at bank, Debtors, or Creditors.
4. 15th July: Rs. 10,000 paid to creditors.
o Cash in hand decreases by Rs. 10,000.
o Creditors decrease by Rs. 10,000.
o New Cash in hand = 800,000 - 10,000 = Rs. 790,000.
o New Creditors = 75,000 - 10,000 = Rs. 65,000.
5. 24th July: Goods sold on credit for Rs. 20,000.
o Debtors increase by Rs. 20,000.
o New Debtors = 35,000 + 20,000 = Rs. 55,000.
6. 28th July: Cash collected from a customer Rs. 5,000.
o Cash in hand increases by Rs. 5,000.
o Debtors decrease by Rs. 5,000.
o New Cash in hand = 790,000 + 5,000 = Rs. 795,000.
o New Debtors = 55,000 - 5,000 = Rs. 50,000.
7. 29th July: A cheque of Rs. 150,000 received from the sale of spoiled machinery.
o Cash at bank increases by Rs. 150,000.
o New Cash at bank = 450,000 + 150,000 = Rs. 600,000.
Final Balances at the End of July 2024:

1. Debtors = Rs. 50,000


2. Creditors = Rs. 65,000
3. Cash in hand = Rs. 795,000
4. Cash at bank = Rs. 600,000

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