FIN621 assignment solution

FIN621 assignment solution

Solution no.1

HAMZA INVIRONMENTAL SOLUTIONS

BALANCE SHEET

AS AT DEC 31, 2010

EQUITY AND LIABILITIES	NOTE	2  0  1  0 RUPEES	ASSETS	NOTE	2  0  1  0 RUPEES
Capital And Reserves			Non Current Assets
Capital Drawings Profit		460,600 (140,000)   278,920	Fixed Assets	2	617,120
Current Liabilities	1	599,520        269,360	Current Assets	3	251,760
		868,880			868,880

HAMZA INVIRONMENTAL SOLUTIONS

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED DEC 31, 2010

1. Current Liabilties

Note payables                                                                                                             224,000

Account payables                                                                                                          45,360

                                                                                                                                                269,360

2. Fixed Assets

Particulars	Cost	Accumulated Depreciation			WDV
		Opening	For the year	Closing
Land	392,000	-	-	-	392,000
Building	252,000	58,800	8,400	67,200	184,800
Office equipment	67,200	20,160	6,720	26,880	40,320
Total	711,200	78,960	15,120	94,080	617,120

3. Current Assets

Suppliers                                                                                                                     10,600

            Note receivables                                                                                                          25,480

            Account receivables                                                                                                  130,180

            Cash                                                                                                                            85,500

                                                                                                                                              251,760

Solution no.2

Hence

Depreciation                                       = (Cost – Residual Value) / Expected Useful Life Of The Asset

So,

Expected Useful Life of The Asset    =          (Cost – Residual Value) / Depreciation per year                   

Then

Expected Useful Life of The Asset    =          (252,000 – 0) / 8,400  

Expected Useful Life of The Asset    =          30 year

           

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