Answer Posted / amarjeet kaur
yes trial balance is not a conclusive proof because there r
certain errors which r not disclosed by trail like posting
in wrong accounts or wrong figures on both sides debit and
credit...........
| Is This Answer Correct ? | 2 Yes | 1 No |
Post New Answer View All Answers
Define scrap value in accounting?
What is peach tree accounting?
What GP resew of balance sheet taking.
What is bond ? What is capital market?
sir, I wanted to know what is the difference between cash and cheque payment in terms of tax.
SIR HOW MANY FORM USE FOR COMMERCIAL TAX & WHAT IS THEIR USES. PLEASE GIVE YOUR SUGGEST
Define dual aspect term in accounting?
What is a business transaction in accounting?
correction of sundry creotors
IF SALES BILL PREPARED BY CHARGING CST 4 WHEN THERE IS CST 4 TO BE CHARGED. BUT NOT 2010-2011 CST IS 2%. NOW WE HAVE TO PREPARED CREDIT NOTE AGAINST THAT BILLS WHICH CHARGED CST4 AT THAT TIME. THEN I HAVE TO ASK THAT HOW TO MAKE CREDIT NOTE NOW I.E 2010-2011 BY CHARGING 4% OR 2% ?
Define retail banking?
what is the method deposit of wct in Delhi
What are the four classifications of bad and doubtful debts as per the context of the bank?
HELLO FRIENDS I WANTED TO THAT IS DUPLICATE KEY MAKING CHARGE IS UNDER THE HEAD OF GENERAL EXPENSES
Case Study: Deepak Hand tools Private Limited DHPL is a small sized firm manufacturing hand tools. It manufacturing plan is situated in Haryana. The company’s sales in the year ending on 31st March 2007 were Rs.1000 million (Rs.100 crore) on an asset base of Rs.650 million. The net profit of the company was Rs.76 million. The management of the company wants to improve profitability further. The required rate of return of the company is 14 percent. The company is currently considering an investment proposal. One is to expand its manufacturing capacity. The estimated cost of the new equipment is Rs.250 million. It is expected to have an economic life of 10 years. The accountant forecasts that net cash inflows would be Rs.45 million per annum for the first three years, Rs.68 million per annum from year four to year eight and for the remaining two years Rs.30million per annum. The plant can be sold for Rs.55 million at the end of its economic life. The company would need to raise debt to the extent of Rs.200 million. The company has the following options of borrowing Rs.200 million: a. The company can borrow funds from a nationalized bank at the interest rate of 14 percent for 10 years. It will be required to pay equal annual installment of interest and repayment of principal. b. A financial institution has offered to lend money to DHPL at 13.5 per annum but it needs to pay equated quarterly installment of interest and repayment of principal. Questions: 1. Should the company expand its capacity? Show the computation of NPV 2. What is the annual installment of bank loan? 3. Calculate the quarterly installments of the Financial Institution loan 4. Should the company borrow from the bank or from the financial institution?
