MGT101 Current Final Term Fall 2013 Shared by Hassan File 3

Question No: 53      ( Marks: 3 )

Why an organization is needed to prepare a cash flow statement.

Question No: 54      ( Marks: 3 )

Calculate Net Profit from the information given below:

Sales                                            Rs. 350,000

Gross profit                                        150,000

Financial expenses                           20,000

Operating expenses                          10,000

Question No: 55      ( Marks: 3 )

Accounting record of a partnership business having two partners “X” and “Y” shows that distributable profit for the year is Rs. 250,000, salaries of partner – “X” and “Y” are Rs. 10,000 Rs. 20,000 respectively. Profit and loss distribution ratio among “X” and “Y” is 2:3 respectively.

Required:

Calculate the profit share of partners “X” and “Y”.

Question No: 56      ( Marks: 5 )

What is bank overdraft? Mention an example for this. Why companies have to pay mark up on it. Under which head mark up paid on overdraft is shown in financial statement. 

Question No: 57      ( Marks: 5 )

Define cash flow from operating activities with some examples.

Question No: 58      ( Marks: 5 )

Mr.Shahbaz bought the desired machine on 1st January, 2010 for Rs. 65,000 and the erection charges associated to erect the units are Rs. 5,000. The machine was depreciated @ 10% per annum at end of each year on the original cost basis. On 1st July, 2011, a single unit which cost Rs. 10,000 originally was sold for a cash price of Rs. 7,000. Calculate the depreciation expense for the year 2010 and 2011.

Question No: 59      ( Marks: 5 )

Following information is available for ABC Co. Ltd on 31st December, 2010:

Wages of Rs. 40,000 earned by the employees but not paid till the end December, 2010.

Rent due was Rs. 10,000 out of which Rs. 2,000 is paid at the end of December, 2010

The accounts are closed at the end of December each year.

Required:

Pass necessary journal entries in the books of ABC Co. Ltd on December, 2010

Question No: 60      ( Marks: 5 )

Following information is available of a sole trader Mr. Shahbaz.

Particulars	Rs.
Capital balance at the start of the year	35,000
Capital balance at the end of the year	37,500
Withdrawals	?
Profit for the period	5,000

Required:

Calculate the amount of Withdrawals for the year with the help of capital account.

Capital Account of Mr.Shahbaz
Date	Particulars	Debit Amount               Rs.	Credit Amount               Rs.	Balance Amount Rs.
	Capital balance in the beginning of year Profit Capital balance at the end of year	35,000 5000	37,500 Balance 2500	35,000 40000 2500
		40,000	40,000

So Withdrawls during years are Rs.2500