MGT101 Assignment 1 Solution Fall 2024 PDF

In this solution, we’ll will help Virtual University students complete their ENG201 Assignment 1 for Fall 2024.

 MGT101 Assignment 1 Solution

Fall 2024

Required: 
                 Based on the transactions given in the question file, 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

Solution:

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

1. 4th July: Machinery purchased for Rs. 250,000, payment made through cheque.

   • Cash at bank decreases by Rs. 250,000.
   • New Cash at bank balance = 700,000 - 250,000 = Rs. 450,000.

2. 7th July: Goods purchased on account, Rs. 30,000.

   • Creditors increase by Rs. 30,000.
   • New Creditors balance = 45,000 + 30,000 = Rs. 75,000.

3. 9th July: Goods worth Rs. 15,000 were stolen.

   • This affects neither Cash nor Bank balances but reduces inventory. No effect on the required balances.

4. 15th July: Paid Rs. 10,000 to creditors.

   • Cash in hand decreases by Rs. 10,000.
   • New Cash in hand balance = 800,000 - 10,000 = Rs. 790,000.
   • Creditors decrease by Rs. 10,000.
   • New Creditors balance = 75,000 - 10,000 = Rs. 65,000.

5. 24th July: Sold goods to a customer on credit for Rs. 20,000.

   • Debtors increase by Rs. 20,000.
   • New Debtors balance = 35,000 + 20,000 = Rs. 55,000.

6. 28th July: Cash collected from a customer, Rs. 5,000.

   • Cash in hand increases by Rs. 5,000.
   • New Cash in hand balance = 790,000 + 5,000 = Rs. 795,000.
   • Debtors decrease by Rs. 5,000.
   • New Debtors balance = 55,000 - 5,000 = Rs. 50,000.

7. 29th July: Cheque received for Rs. 150,000 from the sale of spoiled machinery.

   • Cash at bank increases by Rs. 150,000.
   • New Cash at bank balance = 450,000 + 150,000 = Rs. 600,000.

Final Balances as of 31st July 2024

1. Debtors = 35,000+20,000-5,000 = Rs. 50,000 
2. Creditors = 45,000+30,000-10,000 = Rs. 65,000 
3. Cash in hand = 800,000-10,000+5,000 = Rs. 795,000 
4. Cash at bank = 700,000-250,000+150,000 = Rs. 600,000

Assignment Explanation

This solution covers the MGT101 Assignment 1 requirements.

MGT101 Assignment 1 Solution 2024

MGT101 Assignment 1 Solution Fall 2024

MGT101 Assignment Solution 2024

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