Answer Posted / laxman
portfolio management means combination of assets.The main
intention of portfolio management is diversifying risk,that
means if you have a lumpsum amount that amount you invest
in differnt type of companies shares so here you
diversifying risk that means if you receive loss in one
company of shares at the same if you receive profit in one
company of shares the loss will coverd by this profit this
is called portfolio management.
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please answer this question.the following balances were extracted from the books of modern traders on 31st dec,2010.capital(85000)fixed assets(45000)stock1-1-2010(15000)sundry debtors(20600)productive exp(3300)reserves fund(6600)discount received(800)cash in hand(6200)drawing(5000)accomulated dep.(9000)purchases(82000)bad debts(400)unproductive exp.(27400)sundry creditors(9000)sales(120000)cash at bank(25500).adjustments.stock on 31-12-2010(15000).outstanding wages (5000) write-off (600)of further bad debts. create provision for bad & doubtful debts at {5%) on debtors.unproductive expenses includes anitem of prepaid insurance (100).provide depreciation on original cost of fixed assets @ (10%).
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