November 29, 2018 at 2:56 pm #97888Aqsa TariqParticipant
hassan habib added a discussion to the group FIN611 Advanced Financial Accounting
Fin611 Assignment Due Date Dec 04, 2018Branch Accounting (Stock & Debtor System)Mr. Imran was working as a sales executive with “The Toy Shop” – aprominent wholesale in Shah Alam market since 2012 and a Chinese toysimporter. Being a business graduate, Imran had been given additionalresponsibility of looking after import related matters with the bank. At thebeginning of 2017, after serving 5 years in the toys market, he had decidedto start his own business of toys marking. He brought in an amount of Rs.350,000 including loans of Rs. 50,000 and Rs. 100,000 from his wife and afriend respectively. With this amount, he set up a small manufacturing plantand started his own manufactured plastic toys at Rs. 40 each in the local toysmarket. At the end of his first year of operations, he has produced followingfinancial:Total number of toys sold in cash 4,000Cash payments for:SalariesRaw materialRentSundry expensesRs.35,00032,00018,00020,000He has also provided the following additional information:1. A batch of 300 toys sold during the year has not yet paid till the yearend.2. There are creditors of Rs. 25,000 for plastic material purchased duringthe year.3. Unused stock of raw material was Rs. 10,000 at the year-end.4. The rent had been paid for 18 month in cash at the beginning of 2017.5. Sundry expenses include Rs. 2,000 for his personal trip to other cities.6. The loan from his friend was used to purchase machinery having life of5 years and an anticipated residual value of Rs. 15,000.7. The salaries include Rs. 5,000 for installing the machinery.8. Half of the loan from wife was repaid during the year.9. Carriage inward was payable Rs. 3,000See More
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