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In this post we are providing you MGT101 GDB Solutions fall 2022 100% correct or right solution.You’ll Download assignment Solution File From below download (Click Here For Download File)link interface.
Open date feb 08, 2022
Close date feb 14, 2022
GDB Question:
A
machine was bought on 1st April 2021 for Rs. 120,000 by the XYZ
Company. The estimated useful life of this machine was determined by an expert
valuer as 5 years. At the end of year, customer invoice of Rs. 18,000
is confirmed to be uncollectible. The company closes the books of
accounts on 31st December each year. It is the policy of
company to charge the depreciation on all non-current assets on “the
basis of use”. The accountant of business ignored to account for the
provision for depreciation in the financial statements at the end of year 2021
which produce misleading results. As a result, profit shown in the Income
Statement at the end of year 2021 is Rs. 560,000.
Required:
1.
Which amount of provision for depreciation should be
presented as an expense in the Income statement for the period ended on 2021?
Depreciation= cost- salvage
value/estimated life x 9/12
Depreciation= 120000 x 9/12
Depreciation= 24000 x 9/ 12
Depreciation= 18000
2.
Which amount of Net Book Value of Machine should be
presented as an asset in the Balance Sheet as on 31st December
2021?
Net book value= cost - accumulated
depreciation
Net book value= 120000-18000
Net book value= 102000
3.
Which fundamental accounting principle was violated due to
the non-reporting of provision for depreciation in the Income
Statement?
Accounting conservation principle that requires organization records to be ready with alert
and serious level of confirmation.
4. What will be the correct amount of profit after incorporating the non-reporting of above mentioned fact?
Correct profit= incorrect profit- depreciation expenses
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