MGT101 GDB Solution Fall 2019 - Year 2020

MGT101 GDB Solution Fall 2019 - 2020

Dear Students, Here you can read or download MGT101 - Financial Accounting GDB Solution of Semester Fall 2019 but Year 2020. Previously we shared ENG201 GDB No 1 Solution Fall 2019 - Year 2020.

MGT101 GDB Solution Fall 2019 - Year 2020

MGT101 GDB Topic:

The topic of MGT101 - Financial Accounting GDB is:

• Rectification of errors

MGT101 GDB Learning Objectives:

• To understand type of error and effects of identified error on financial statements

MGT101 GDB Question

Mr. Hamid is running his small retail business under the name of Hamid Store. He has recently hired Mr. Imran as a junior accountant to maintain the books of accounts of his business. Mr. Imran has little knowledge in accounting. Recently, it has been observed that Mr. Imran wrongly treated installation charges of plant and machinery worth Rs. 500,000 as revenue expenditure under the heading of administration expenses. As a result, financial statements failed to reflect true and fair business affairs.

Required Task:

• Identify the “type of error” committed by Mr. Imran.
• What will be the effect of given error on asset side of a balance sheet? (Just mention whether the assets would be overstated, understated or remains unaffected)
• What will be correct amount of fixed assets, if current assets and fixed assets before correcting this error were Rs. 160,000 and Rs. 940,000 respectively?
• What will be correct amount of operating profit, if operating loss before correcting this error was Rs. 300,000?

MGT101  Final Term Past Papers Collection

File Name	Download Link
MGT101 Final Term Papers Collection.zip	Download

Please Note:

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Fall 2019 - 2020 GDB Solution:

MCM401 GDB No 1 Solution Fall 2019 - the Year 2020

PAK301 GDB No 1 Solution Fall 2019 - the Year 2020

MGT101 GDB Idea Solution Fall 2019

Solution idea:

The error of Principle.
Assets understated
Corresct amount of Fix assets is 1440000/-
Operating Profit = (300000) + 500000 = 200000
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