Principles of Accounting Guess paper B.

com part 1

Principles of Accounting Q.1. Work Sheet Following is the pre-closing Trial Balance of Fozia & Company on December 31, 1998: Cash Accounts Receivable Allowance for Doubtful Debts Merchandise Inventory Prepaid Advertising Equipment Allowance for Depreciation (Equipment) Accounts Payable Fozia Capital Commission Income Sales Cost of Goods Sold Salaries Expense Office Supplies Expense Rent Expense Insurance Expense DEBIT | CREDIT 20,000 30,000 .................| 500 20,000 10,000 40,000 .................| 2,500 .................| 10,000 .................| 50,000 .................| 10,000 .................| 2,00,000

1,23,000 15,000 5,000 6,400 3,600 2,73,000 | 2,73,000

Data for Adjustments on December 31, 1998 1. Office Supplies used Rs. 2,000. 2. Salaries Expense for the year amounted to Rs. 12,000. 3. Commission earned during the year amounted to Rs. 8,000. 4. Prepaid Advertising Rs. 4,000. 5. Rent Expense for the year amounted to Rs. 8,000 6. Insurance Expense represents a three year Insurance Policy paid on August 01, 1998. 7. Depreciation on Equipment was estimated Rs. 1,000. 8. Doubtful debts on accounts Receivable was estimated at Rs. 1,000.
Required Prepare a Ten Column Worksheet for the year ended December 31, 1998 from the above balances and data for adjustments and complete in all respect. Q.2. Adjusting, Closing, Reversing and Opening Journal Entries Given Take the data given under Question No. 1 of this paper. Required 1. Give the necessary Adjusting, Closing Journal Entries as on December 31, 1998 in proper form. 2. Give the necessary Reversing Journal Entries as on January 01, 1999 in proper form 3. Give the necessary Opening Journal Entry in proper form as on January 01, 1999 Q.3. Company-Issuance of Shares and Debentures Given Karim Company Limited completed the following transactions: a. The company issued 70,000 share of Rs. 10 each at Rs. 12 but

received applications for 80,000 shares. The company finalized the allotment and refunded the excess amount. b. The company purchased a running business business and acquired the following assets and liabilities: (Merchandise Inventory Rs. 15,000), (Office Equipment Rs. 50,000), Machinery Rs. 40,000), (Accounts Payable Rs. 5,000). Purchase consideration of the above business was paid by issue of 9,000 shares of Rs. 10 each fully paid up. c. Purchased a machine worth Rs. 2,00,000 and in consideration issued shares of Rs. 10 each. Each share had a market value of Rs. 12.50. d. Purchased Office equipment and in consideration issued 10,000 share of Rs. 10 each the market value of the share Rs. 13. e. Issued 2,000 10% debenture of Rs. 100 each at Rs. 95 redeemable after five years at Rs. 105. f. The company declared stock dividend Rs. 50,000 and issued 4,500 shares of Rs. 10 each. Required Give Journal entries in proper form of the above transactions on the books of Karim Company Limited. @import "/extensions/GoogleAdSense/GoogleAdSense.css"; Q.4. Accounts Receivable Iqbal & Sons provide allowance for uncollectible at 5% of Accounts Receivable at end: Account Receivable Balance Rs. 10,500 and Allowance for Uncollectible Rs. 2,000 on Jan 01, 1997. During 1997 the following transactions were performed: 1. Credit Salaries Rs. 45,000 2. Cash Collected from Customer Rs. 20,000 3. A Customer's Account written off Rs. 1,000 4. Over payment by a customer Rs. 8,000 which was included in the collection of Account Receivable. 5. Sales Discount Rs. 600 Required 1. Give Journal Entries to record transactions. 2. Adjusting entry for providing allowance for uncollectible.

3. Prepare partial Balance Sheet. Q.5. Voucher System A Voucher System is used by Mehran Corporation. A few of the transactions are presented below: 1993 October 01: Recorded Voucher No. 721 for Rs. 2,000 payable to Shan Office Equipment Company for Office Equipment purchased on terms n/30. October 03: Recorded Voucher No. 726 for Rs. 1,000 payable to Wali Company for merchandise purchased on terms 2/10, n/30. October 10: Issued Cheque No. 880 in payment of voucher No. 726. October 15: Recorded Voucher No. 745 for Rs. 100 payable to Indus Time for advertising. October 20: Recorded Voucher No. 750 for 131.15 to replenish the petty cash fund for the following disbursement: (Stores Supplies Rs. 45.55), (Office Supplies Rs. 37.47), (Mis.Gen Expense Rs. 48.13). October 25: Issued Cheque No. 899 in payment of Voucher No. 750. October 27: Issued Cheque No. 907 in payment of Voucher No. 745. October 31: Issued Cheque No. 919 in payment of Voucher No. 721. Required Using the Two Column Journal from record the above transactions in Voucher Register and Cheque Register. Q.6. Depreciation On April 01, 1998, Adil Company purchased an Office Equipment at a cost of Rs. 74,000. Its scrap value was estimated at Rs. 10,000 and its useful life 4 years. The company uses Straight Line Method of depreciation. The company's accounting year ends on December 31 each year. On January 05, 1991 the company paid Rs. 22,000 cash for a major overhaul of the equipment. As a result of the overhaul, the Equipment has an expected useful life of three years from the date of the overhaul. Its scrape value remains the same i.e. Rs. 10,000/=. Required 1. Prepare dated General Journal Entries for all transactions from 1988

to 1991. 2. Prepare partial Balance Sheet on December 31, 1991. Q.7. Accounting For Companies Given Najeeb & Company Limited made the following issuance: 1. The company allotted 35,000 ordinary shares of Rs. 10 each in consideration of acquiring the Assets and Liabilities of a running Business. The agreed value of assets and liabilities acquired is as follows: Accounts Receivable Rs. 70,000 ......... | Furniture Rs. 40,000 Building Rs. 2,30,000 ....................... | Machinery Rs. 1,00,000 Accounts Payable Rs. 50,000 2. The company allotted 8,500 ordinary shares of Rs. 10 each in full settlement of Debentures payable Rs. 90,000. 3. The company allotted ordinary shares of Rs. 10 each in consideration of Stock Dividend of Rs. 60,000. The shares had a market value of Rs. 12 per share. 4. The promoters of the Company were allotted 15,000 ordinary shares of Rs. 10 each in consideration of the services rendered to the Company. 5. Purchase Equipment by issuing 6,000 ordinary shares of Rs. 10 each. The market value of the shares was Rs. 14/- per share. 6. Received cash Rs. 1,10,000 by issue of 12,000 10% Debentures of Rs. 10 each redeemable after 5 years at Rs. 13/- each. Required Record the above transactions in the General Journal of the company. Q.8. Bank Reconciliation Statement Nawaz Traders reports the following balances at October 31, 1998 Balance as per Bank Statement: Rs. 12,000 Balance as per Cash Book: Rs. 8,000 Following are the differences between the balance as per Cash Book and Bank Statement: 1. Cheque issued but not paid Rs. 2,000. 2. Cheque deposited but not yet cleared Rs. 3,000. 3. Bank Collected a Note Receivable for Rs. 4,000 but not recorded in

Cash Book. 4. Cheques issued and paid by Bank but not recorded in Cash Book Rs. 2,000. 5. Cheques deposited by a customer directly into the bank but not recorded in cash book as for Rs. 2,000. 6. Deposited a cheque into the Bank for Rs. 2,000 but mistakenly recorded in Cash Book for Rs. 1,000. Required 1. Prepare a Bank Reconciliation Statement for the month ended October 31, 1998. 2. Give also the necessary adjusting entries.