MGT401 Assignment No 2 Solution Spring 2018

MGT 401 Assignment No 2 Solution Spring 2018

Here, I am providing you "Solution of MGT401  Assignment No 2 due date is 24-05-2018" 

Note: Please don't make exact copy of this document and make Changes in this assignment, write it in your own words always correct any errors if you found. I am not responsible for zero Marking.

Update:  If you want  to source file in docx format then just visit the link given below to download Solution file of MGT401

Download  Solution  File docx 

How to Download the File :           Watch video below to see the steps to download file  

Instructions  Steps 1: Click at link given above    2:  Enter Captcha Code      3:  Wait for 8 Seconds    4:   Click at Link Generated below             the captcha box    5:   That's it. You have downloaded Note: We guarantee you that our site is 100% Malware and virus free so please Please Disabled your Ad-blocker to  Download the file from our site..

If you still facing any problem then please let me know about your problem regarding downloading file and leave a comment below because your feed back is very important to us to make our website more reliable and useful. 

MGT 401 Assignment No. 2 Solution explanation is given below;

Solution 

FMV is Rs. 1,500,000	FMV is Rs. 500,000
Step 1: Compare cost of the asset with the fair market value of the asset to understand the increase or decrease required in the asset’s account
FMV – Cost	FMV – Cost
15,00,000 – 10,00,000 = 500000 Increase	500000 – 1000000 = 500000 Decrease
Debit: Building a/c 500000	Credit: Building a/c 500000
Step 2: Any existing accumulated depreciation at the time of revaluation can be treated in two ways but the most followed option is to eliminate any accumulated depreciation.
FMV – NBV	FMV – NBV
1500000 – 700000 = 800000 Gain	500000 – 700000 = 200000 Loss
Credit: Revaluation Surplus a/c 800000	Debit: Revaluation loss a/c 200000
Step3 :Complete journal entries under both situations are:
Debit: Building a/c 500000	Debit: Building Accum. Depreciation a/c 300000
Debit: Building accum. depreciation a/c 300000	Debit: Revaluation loss a/c 200000
Credit: Revaluation surplus a/c 800000	Credit: Building a/c 500000

 NOTE:  IF YOU FOUND ANY MISTAKE THEN CORRECT IT PLEASE DON’T MAKE EXACT COPY OF THIS SOLUTION, MAKE CHANGES TO AVOID ZERO MARKING. IM NOT RESPONSIBLE FOR IT.