## Mgt101 VU Midterm Current Papers Spring May 2012 of Virtual University of Pakistan

subjective
Calculate the rate of depreciation used for reducing balance method of depreciation with the help of given data.
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Cost of the asset Rs. 200,000
Residual Value Rs. 80,000
Expected Life 4 years
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Calculate amount of sales with the help of data given below:
Ø Cost of sales = Rs. 5,000
Ø Assets = Rs. 200,000
Ø Closing stock = Rs. 7,000
Gross profit = Rs. 40,000
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How the cost of goods sold of a manufacturing concern is data copied from vu solutions dot com different from the cost of goods sold of a trading concern?
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Ahmad Limited acquires an asset costing Rs. 30,000. The company estimates its useful life for 5 years with a residual value of Rs. 5,000. The company charges depreciation using straight-line method. In second year, the company estimates its residual value Rs. 7,000 and remaining useful life of 3 years.
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Required:
Compute the amount of depreciation charges for first and second year