Journalize the Following: 1. The following were purchased on account: a. Materials $ 10,000 b. Office supplies $ 2,000 c. Small tools $ 1,000

1860

Explain me is any difference between inactive and dormant accounts?

1104

suppose we received goods from H.O.The sisterconcern received it.wat will be the entries if tge S.C.sells it from here.

2366

what is the nature of profit and loss approprition account.which entity prepare this.

1978

under which head should be the p & l appropriation a/c should be opened in tally 9? and how to preapare and display it?

2125

What do you think is a bank reconciliation statement?

1106

please send me banking question on my email ID as I have been selected for state bank of india .my email ID is sawant.supriya51@gmail.com

1998

Tell us what is a cpa?

1138

Hi.. I am pursuing my MBA II year thrgh distance frm O.U HYD., Pls let me know any jobs...in Bank jobssssss

2459

What is Debit Note and Credit Note? Subsidory Books? Minority Interest? Stock recording in P&L? Outstanding Expenses, Prepaid Expenses and Examples?

3523

what is inter-company transaction? what is Inter-Branch transaction?

8872

Follow up ageing balances of Debtors & Creditors and also Inventory

2081

Do you know what is icai?

1195

adjustment entry showing in tally such as outstanding salary prepaid salary etc.

3398

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 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.30 million per annum. The plant can be sold for 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 annum 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 installment of the financial institution loan. (4) should the company borrow from the bank of from the financial institution?

3167