Fin 621 Assignment No.1 Solution (Fall 2011)

Question # 1

  

Capital & Liabilities	Rs.	Assets	Rs.
Capital	460,600	cash	85,500
Notes Payable	224,000	Notes Receivable	25,480
Account Payable	45,360	Account Receivable	130,180
Net income      278,920 Less Drawings140,000	138,920	Land	392,000
		Supplies	10,600
		Office equipment               67,200 Less accumulated dep.       26,880 Net equipment	40,320
		Building                              252,000 Less accumulated dep.          67,200 Net building	184,800
Total	868880	Total	868880

Question # 2

Cost of building – salvage value / useful life = Depreciation expense

252,000 – 0 / useful life = 8400

Useful life = 252,000/8400

 = 30year

Accumulated Depreciation / depreciation

= 67,200/8400

= 8year