Answer / vasudevan

purchase made expenses so the rule applicable for debit the expenses so we can debit

sales made income so the applicable for credit the income so we can credit.

if any suggestion pls contact at my id vasudevanm.com@rediffmail.com

in tally how to enter cheque receipts and cheque payments

3 Answers  

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adams a debtor for R600 had been declared insolvent and part of his debts has to be written off. The attorneys informed you that an amount of 25c in the rand will be paid and the rest must be written off

0 Answers  

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how to posting tally esi employer contribution and pf employer contibution not included in salary

1 Answers  

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Please describe your experience in inventory reporting & valuation including reconciliation of inventory accounts.

0 Answers   Entero,

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Main sources have long-term finance ? Explain

1 Answers  

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What is the Corporate Tax, Minimum Alternate Tax, Professional Tax, Business Tax Describe Me

0 Answers   TATA,

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what diff. between huf and individual?

2 Answers  

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how to pass a rent paid a/c and tds payable a/c in tally

5 Answers  

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how we maintain account for a coaching institute?

2 Answers  

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What is the difference between issued capital and subscribed capital?

2 Answers  

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What is the definition of manual accounting?

0 Answers  

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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?

0 Answers   IIRM,

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