MGT101 Final Term Subjective by A I

Q1. Define Fixed Assets and Depreciation?

Fixed Assets

Fixed Assets are also known as long life asset, tangible asset or property, plant and equipment. Fixed assets cannot easily converted into Cash.

Type of Fixed Assets

• Land

• Building · • Plant and Machinery · • Furniture and Fixtures · • Office Equipment · • Vehicles

Q2. Define Depreciation?

Answer: Depreciation is an accounting method of allocating the cast of tangible asset over it useful life. Depreciation represents how much of an assets value has been used. Calculating Method of Depreciation

Depreciation Amount + useful life = Depreciation · Residual Value ÷ cost × 100 = Depreciation % · Total Estimated hour + Depreciation Amount · = Depreciation Rate per Hour · Total Estimated output ÷ Depreciation Amount · = Depreciation Rate per Hour

We simply divided assets value on it’s useful life = Depreciation of year

Asset value ÷ useful life = Depreciation year

Q3. Define Trade of allowance?

Answer: When an old asset is exchange with a new asset the seller of new asset will offer an allowance while receiving payment for seller asset in consideration of the exchange of old asset. Such allowance is known as trade of allowance.

Module No 11

Control Account

Q1. Define Ledger Account?

Answer: Ledger is an account that used to store bookkeeping entries for balance sheet and income statement.

Q2. How many types of ledger?

There are Three types of ledger · General · Debtors · Creditors

Q3. Formats of Debtors and Creditors Control Account

Answer: While Preparing Debtors control Account it must be noticed that its debit side should show the item that will cause increase in debtors balance and items in credit side will cause a decrease in debtors balance. In the same way item that will cause increase in creditors balance are put in its credit side and items that will cause decrease in creditors balance are put in the debit side of creditors control Account.