SEMESTER SPRING 2021 ADVANCED FINANCIAL ACCOUNTING (FIN611) ASSIGNMENT NO. 01 DUE DATE: JUNE 09, 2021 MARKS: 10 Question Decent Garments has been running a branch in Multan since for the last three years. On the first day of January 2020, the books of accounts of the branch revealed inventory of Rs. 12,000. Due to the recent lockdown and non-availability of transport, the goods sent from head office during the year was just Rs. 38,000. Therefore, the branch had to manage the stock by purchasing of Rs. 195,600 from the local market. Sales were made by the branch of Rs. 288,000 which included sales of Rs. 12,000 to the head office. Closing stock was recorded Rs. 15,400. Goods sent to branch worth Rs. 7,400 in the last week of December 2020 were received by branch on 10th of January 2021, entry of which is yet to be recorded. Following is the additional information in this regard: Particular Rs. Particular Rs. Salaries 9,000 Creditor 3,700 Closing Debtors 7,400 Cash at bank closing 3,560 Sunday expenses 2,940 Furniture 12,800 Head office (debit balance) 6,480 Rent paid 3,920 You are required to prepare an income statement and balance sheet of Multan branch, on 31st December 2020. Show working as well. (Hint: there would be a head office cr. Balance in the books of branch) IMPORTANT: 24 hours extra grace period after the due date is usually available to overcome uploading difficulties. This extra time should only be used to meet the emergencies and above mentioned due dates should always be treated as final to avoid any inconvenience. IMPORTANT INSTRUCTIONS: Complete calculations are required for every part of the problem. All the students are recommended to attempt the assignment their own. OTHER IMPORTANT INSTRUCTIONS: DEADLINE: Make sure to upload the solution file before the due date on VULMS. Any submission made via email after the due date will not be accepted. FORMATTING GUIDELINES: Use the font style “Times New Roman” or “Arial” and font size “12”. It is advised to compose your document in MS-Word format. You may also compose your assignment in Open Office format. Use black and blue font colors only. Note related to load shedding: Please be proactive Dear students! As you know that Pre Mid-Term semester activities have started and load shedding problem is also prevailing in our country. Keeping in view the fact, you all are advised to your activities as early as possible without waiting for the due date. For your convenience; activity schedule has already been uploaded on VULMS for the current semester, therefore no excuse will be entertained after due date of assignments, quizzes or GDBs.
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