B.Com Unsolved Exam Paper. Time: 3Hours Max. Marks: 100 Instruction: Attempt any FIVE questions.

ACCOUNTING 2011 REGULAR Time: 3Hours Max. Marks: 100 Instruction: Attempt any FIVE questions. Q. 1 WORKSHEET Following is the pre closing trail balance of Mehfooz & Company on December 31st, 2010 Debit Credit Cash 70,000 Accounts Receivable 24,000 Aircraft 1,200,000 Allowance for Depreciation-Aircraft 12,000 Accounts Payable 18,000 Bank Loan 25,000 Capital 1,000,000 Revenue from Passengers 260,000 Revenue from Cargo 85,000 Maintenance & Overhaul 33,000 Passenger Services 15,000 Aircraft Fuel 26,000 Salaries Expense 32,000 Total 1,400,000 1,400,000 Additional Information: 1. Salaries Accrued Rs. 3,000 and Prepaid Salaries for Rs. 5,000 2. Bad Debts estimated at 10% of Accounts Receivable. 3. Interest on Bank Loan Rs. 5,000 outstanding. 4. Unearned Revenue from cargo Rs. 10,000 and Earned Receivable Rs. 7,000 5. Proprietor withdrew cash from the business Rs. 5,000 for private use. 6. Book value of aircraft was estimated at Rs. 1,176,000 Prepare a Ten- coloumn Work Sheet from the above data. Q.2 ADJUSTING & OPENING ENTRIES Take the balance & adjustments data given in Question No. 1 (a) (b) Adjusting & opening journal entries in General Journal Name any THREE basic Principles of Accounting observed necessarily for making periodic adjustment. 1

Q.3 (a) ACCOUNTS RECEIVABLE The following information is related to Saleem & Company Accounts Receivable January 01, 2010 Rs. 1,000,000 Allowance for Bad Debts (Cr.) January 01, 2010 Rs. 5,000 Credit Sale & Collection during the year Rs. 800,000 Accounts Receivable written off during the Year Rs. 20,000 Bad Debts estimated 5% on Accounts Receivable, ending balance Compute the amount of Bad Debts and give an Adjusting Entry at December 31st,2010 Q.3 (b) The following ledgers accounts are extracted from Naeem & Company: Accounts Receivable January 2010 Balance 150,000 January 2010 Sales Return 15,000 Sales 600,000 Cash 400,000 Sales Discount 10,000 Notes Receivable 25,000 Allowance for B/D 10,000 Allowance for Bad Debts Jan. 2010 Accounts Receivable 10,000 January 2010 Balance 15,000 Prepare entries in General Journal from the above postings. Q.4 (a) INVENTORY VALUATION: The following data relates to the business of Aamir & Company: Date Units Unit Cost /Price Nov. 01 Beginning 6000 Rs.100 Nov. 05 Purchased 3000 Rs.150 Nov. 15 Sold 4000 Rs.250 Nov. 25 Purchased 7000 Rs.180 Nov. 30 Sold 6000 Rs.300 (a) Prepare inventory card under FIFO method. (b) Assume that Co. uses Periodic Inventory System. (c) Compute cost of goods sold and merchandise inventory (ending) under LIFO Method. 4 (b) Saad Co. sells merchandise. At December 31 2010 the Company inventory amounted to Rs. 50,000. During the 1st week of Jan. 2011 the company made only one purchase and one sale. These transactions were as follows: Jan 03 Sold merchandise for Rs. 20,000 on credit. The total cost of merchandise amounted to Rs. 11,200. Jan. 07 Purchased merchandise amounted to Rs. 10,000; terms 2/10, n/30. Prepare Journal entries to record above transactions under Perpetual Inventory System. 2

Q.5. VOUCHER SYSTEM: Nazim & Company uses Voucher System by net price method. Following are the vouchers prepared and cheques issued during December, 2010. Prepare Journal entries to record above transactions under Perpetual Inventory System. Dec. 01 Prepared voucher No. 348 for Rs. 40,000 payable to Amjad & Co. for machinery purchased on terms 3/10, n/30. Dec.05 Prepared voucher No. 349 for Rs. 35,000 payable to Samsam & Co. for purchase of merchandise on terms 2/10, n/30. Dec.07 Issued cheque No. 203 in payment of Voucher No. 348. Dec.10 Prepared voucher No. 350 for Rs. 4,800 to replenish the petty cash fund for the following disbursement: Supplies Rs. 2,200, entertainment Rs. 1,300, postage Rs. 300, miscellaneous general expense Rs. 1,000. Dec.20 Issued cheque No. 204 in payment of Voucher No. 349 because the discount period had elapsed. Dec.25 Prepared voucher No. 351 for Rs. 5,000 as drawing by owner. Dec.27 Issued cheque No. 205 in payment of Voucher No. 351. Dec.28 Prepared voucher No. 352 for Rs.10,000 payable to employees for December, 2010 salaries. Dec.31 Issued cheque No. 206 in payment of Voucher No. 352. Record the above transaction in general journal form. Q.6 (a) DEPRECIATION Yasir & Company provides the following information: Rate of Per Unit Cost Salvage Value Estimated Production Units 2 80,000 20,000? 4 100,000? 20,000? 150,000 30,000 30,000 3? 50,000 150,000 Compute the missing amounts from the above table Q.6 (b) On October 1, 2008, Qasim & Company purchased a machine for Rs. 600,000 on account. The machine had an estimated salvage life of 10 Years and estimated residual value of Rs. 50,000. The company used Sum of Year Digit Method for depreciation. On September 30th, 2010 the company traded the machine for a new machine having an invoice price of Rs. 500,000. The trade in allowance for the old machine on the date of the exchange was Rs. 400,000. Prepare dated entries in General journal to record purchase of machine, and the exchange of machine on September 30, 2010. Show all computations. 3

Q.7 PARTNERSHIP 1. Salary Payable to a partner 2. Drawings made by a partner 3. Fresh capital introduced by a partner 4. Share of profit earned by a partner 5. Commission payable to a partner 6. Interest on capital of a partner 7. Interest on drawings of a partner Assuming the partner s capital accounts are fixed, record the above events in relevant accounts. Q.7 (b) Ansari and Wilayat were partners sharing profits in the ratio 3:2. On the date of dissolution, their capitals: Ansari Rs.76,500. Wilayat Rs.43,000. The amount payable to creditors was Rs.275,000. The balance of cash was Rs 7,600. The other assets realized Rs. 254,300. The expenses on dissolution were Rs. 15,400. All partners were solvent. Prepare General journal Entries for above transactions. Q. 8 (a) CORRECTION OF ERRORS The following errors were made during the current year and were discovered before closing of books of accounting: 1. Accrued advertising expense of Rs. 5,000 was overlooked. 2. Return of goods of Rs. 1,500 by Shakeel was entered in error in Raheel s Account. 3. Cash drawing of Rs. 4,000 was credited to the bank of the cashbook. 4. Repair to machinery of Rs. 3,000 was charged to machinery account. Prepare rectifying entries in General Journal Q. 8 (b) The following errors were made during the year 2009 and were discovered during 2010: 1. Ending inventory was overstated by Rs. 10,000 2. Credit purchase of Rs. 8,000 was not recorded in 2009 although goods were received and included in the inventory of 2009 3. Additional investment by owner of Rs. 100,000 was credited to Sales Account. 4. Goods taken out for owner s use Rs. 7,000 was debited to General Expenses. Prepare rectifying entries in General Journal 4

ACCOUNTING Time: 3Hours Max. Marks: 100 Instruction: Attempt any FIVE questions. Q.1 The following is the pre - closing trial balance of Yasir & Co. on December 31, 2010. Accounts Titles Debit Credit Cash Rs.300,000 Accounts Receivable 200,000 Merchandise Inventory 100,000 Prepaid advertising 90,000 Cost of goods sold 700,000 Salaries Expense 55,000 Supplies expense 15,000 Rent expense 40,000 Accounts Payable Rs.100,000 Unearned Commission 50,000 Yasir Capital 250,000 Sales 11,00,000 15,00,000 15,00,000 Additional Information for Adjustments: i) Commission Income is unearned to the extent Rs. 15,000. ii) Supplies used during the year Rs.3,000 iii) Commission receivable for the year Rs.14,000 iv) Prepaid Rent Rs.25,000 v) Salaries Payable for the year amounted to Rs.5,000 vi) Advertising prepaid Rs.43,000. 2011 PRIVATE 1) Prepare Income Statement for the year ended on Dec. 31,2010: 2) Prepare Balance Sheet as on Dec. 31, 2010. 5

Q.2 GIVEN: Following is the unadjusted trial balance of mansoor Trading Co. at December 31, 2010 Accounts Titles Debit Credit Cash Accounts Receivable Merchandise Inventory (1-1-2010) Office Supplied Furniture Allowance for depreciation furniture Accounts Payable Mansoor Capital Mansoor Drawing Sales Rent Revenue Purchase Salaries Expense Insurance Expense Rs.20,000 180,000 50,000 4,000 100,000 15,000 180,000 51,000 40,000 640,000 Rs.38,000 50,000 205,000 267,000 80,000 640,000 Supplementary Data for Adjustments: (i) Merchandise Inventory on December 31, 2010 was valued at Rs.60,000. (ii) Salaries Expense for the year amounted to Rs.45,000. (iii) Unexpired insurance Rs.3,500. (iv) Depreciation on Furniture for the year Rs.15,000 (v) Office Supplies on hand on December 31,2010 Rs. 1,000 (vi) Rent Revenue includes an amount received in advance Rs.2,000. (vii) Goods costing Rs.2000 were taken by Mansoor for private use was not recorded. Prepare 10 columns Worksheet. 6

Q.3 During the process of completing the bank reconciliation of Rahim Co. on July 31, 2011 the following facts were discovered: Cash Book Balance Rs.560,000 Bank Statement Balance (DR) Rs.430,000 (i) A Cheque for Rs.51,000 deposited into bank was wrongly entered into bank statement for Rs.15,000. (ii) L/c documents retired but not recorded in cash book Rs.,450,000. (iii) Bank charged markup on Running Finance Rs.3,600 (iv) Cash Withdrew Rs.500,000 was recorded in cash Book but withholding Tax Rs.1,000 not recorded. (v) Bank Credited excess L/c margin charged Rs.9,200. (vi) M/s Asim Co. paid Rs.50,00 through online. (vii) Cheque of Zulfiqar Co. Returned Rs.80,000 by bank. And bank charged Rs.450. (viii)rahim Co. paid to Irfan Co. Rs. 50,000 through online but not recorded in cash book. (ix) Bank Charged commission Rs.650. (x) Bank Debited Rs.92,500 against L/c Margin but not recorded in cash book. (xi) Uncleared Cheques Rs.850,000 (xii) Unpresented cheques Rs.430,000. Prepare Bank Reconciliation Statement and also adjusting entries in the Journal. Q.4 Following transactions relate to the business of Babar Traders: Nov 1: Balance in Merchandise inventory 7,000 units @ Rs.7.00. Nov 2: Purchased merchandise for cash Rs.21,000 at a unit price of Rs.4.00. Nov 5: Purchased merchandise on account Rs.2,500 at a unit price of Rs.5.00. Nov 7: Sold 4,100 units on account at Rs.10.00 per unit. Nov 10: Purchased 5,000 units at Rs.5.00 per unit. Nov 12: Sold 10,100 units at Rs.10.00 per unit Nov 15: Purchased 4,500 units at Rs.8.00 per unit Nov 20: Sold 5,000 units at Rs.10.00 per unit Nov 25: paid carriage outwards on sales Rs.2,500 (a) Prepare dated journal entries, assuming that company uses FIFO Method under perpetual Inventory system. (b) Show necessary computation for cost of ending inventory, cost of goods sold and sales of the merchandise. (c) Compute the amount of Gross profit under FIFO method. 7

Q.5 Asim Company purchased the following machines under one head i.e. machinery: Machine Date of Purchase Cost(Rs.) Residual Value Life / Rate Method A June 30,2008 500,000 20% of Cost 20 Years Straight Line B Nov. 1, 2009 400,000 Rs.80,000 15% Reducing Balance C July 4, 2010 300,000 Rs.20,000 70,000 hours Working hours Company s year end on December 31 each year. (1) Prepare adjusting journal entries for 2008, 2009 and 2010 to record depreciation for machine. The company has operated machine C 3,000 hours in 2010. (2) Show allowance for depreciation account for Machinery for the year 2010. (3) Prepare a partial Balance Sheet on December 31, 2009, Q. 6 (a) Rafiq & Co. has the following balances on Jan. 1, 2010: Accounts Receivable - control Rs.450,000. Allowance for Bad Debts Rs.7,500 During The year Company completed the following transactions: (1) Total Sales including 60% cash sales of Rs.500,000 (2) Sales Discount Rs.10,000 (3) Collected cash from customer Rs.240,000 (4) One of the customer accounts Receivable subsidiary ledger showed a credit balance of Rs.5,000. (1) Prepare adjusting journal entries if bad debts estimated @ ½ of 5% of Net Credit Sales. (2) Prepare Partial Balance sheet. Q 6 (b) The following account balance appears on the Balance Sheet of Zafar & Sons as on December 31, 2010. Accounts Receivable - control Rs.96,000. Allowance for doubtful Debts Rs.1,920 During January 2011, the following events took place: (i) Accounts Receivable of Rs.3,500 are written off as uncollectible. (ii) An Account Receivable for Rs.1,500 was written off in 2010 is recovered (iii) Aging of Accounts Receivable at the end of month indicated that Rs.2,000 to be uncollectible. Give the necessary journal Entries to give effects to the above transactions: i) Give the necessary journal Entries to give effects to the above transactions. ii) Prepare a Partial Balance Sheet after giving effect to the above events. 8

Q.7(a) Nuvaira and Khuba are partners with capital of Rs. 26,000 and Rs. 22,000 respectively. They admit Erma as partner with 1/4th share in the profit of the firm. Erma brings in Rs. 26,000 as his share of capital. Give journal entry to record the goodwill on Erma's admission. Q.7(b) Maham, Alvena and Zobia were partners in a firm sharing profits in a ratio of 3:2:1. Zobia retired and new profit sharing ratio in a firm between Maham and Alvena was 1:2. On Zobia's retirement the goodwill of the firm was valued at Rs. 30,000 Pass the necessary entry for the treatment of goodwill on Zobia's retirement without opening goodwill account. Q.8 Attempt any FOUR of the following: 1. Differentiate between the Books of Original Entry and Books of Final Entry. Explain each of them with three examples. 2. Define any TWO of the following accounting concepts: (a) Matching Concept (b) Cost Concept (c) Consistency Concept (d) Going Concern Concept 3. Why does a business prepare a Trail Balance, Income Statement, and Balance Sheet? Make comparisons between any TWO. 4. Describe the differences between Capital Expenditure and Revenue Expenditure. 5. (a) Why do businesses spend a lot of money on accounts department? (b) Who are possible stakeholders of business? 9

ACCOUNTING 2010 REGULAR Time: 3Hours Max. Marks: 100 Instructions: Attempt any FIVE questions. 1.(a) Each of the six horizontal line sin the following table represents a separate set: 1. 2. 3. 4. 5. 6. Beginning Inventory 10,000 12,000?? 20,000 22,000 Net Purchase 50,000? 72,000 50,000 70,000? Ending Inventory? 10,000 18,000 15,000? 18,000 Cost of Goods Sold 40,000?? 55,000 82,000 72,000 G. Profit (loss)? 20,000 20,000? (2,000) 28,000 Net Sales 65,000 70,000 95,000 50,000?? Copy the above table and fill in the missing amounts, showing computations. 1.(b) The Following are eight independent cases: No. 1 2 3 4 5 6 7 8 Salaries Rent Advertising Utilities Insurance Repair Interest Taxes Paid Accrued Prepaid Expense 33,000 40,000 78,000 20,000 77,000? 23,000? 7,000 NIL 15,000 5,500? 8,000 Nil Nil Nil 15,000 18,000? 12,000 11,000 Nil Nil??? 22,500 80,000 15,000? 22,000 Copy the above table and fill in the missing amounts, showing computations. 2. The following are pre - adjustments balances taken from the ledger of Amjad Company and month - end adjustment data on November 30,2010. Cash 75,000 Office Supplies 9,000 Prepaid Rent 36,000 Unearned Commission 27,000 Amjad Capital 76,000 Commission Earned 83,000 Salaries Expense 66,000 10

ADJUSTMENT DATA: a) Office Supplies used during the month Rs. 6,000. b) Unearned Commission was Nil c) Commission earned during the month Rs. 120,000 d) Prepaid Salaries amounted to Rs.10,000 e) Salaries Expense for the month Rs. 60,000 f) Rent Expense for the month Rs. 30,000 Prepare 10-column worksheet 3. Take the balances and the adjustment data given in Question No.2. Prepare: a. Adjusting Entries b. Reversing Entries 4. The cash in bank account for Imam Company at January 31, of the current year indicated a balance of Rs. 18,380. The bank statement indicated a balance of Rs.29,106. The comparison of the bank statement with the records revealed the following reconciling items: Cheques outstanding totaled Rs.13,442. A deposit of Rs.6,918 has been too late to appear on the bank statement. The bank had collected Rs.4,330 on notes receivable with face value of Rs.4,000. A Cheque for Rs.93 issued was erroneously recorded in cash book as Rs.39. The Cheque was for the payment to Aleem & Co. for the purchase of Office Equipment. A Cheque drawn for Rs. 505 had been erroneously charged by bank as Rs.550. Bank service charges for January amounted to Rs.29. (a) Prepare bank reconciliation statement. (b) Record necessary entries in general Journal form. 11

5. (a) Prior to the year - end adjustments Accounts Receivable account of Mansoor Corporation had a balance of Rs. 1, 40,000 and the Allowance for Doubtful Accounts showed a credit balance of Rs.2,000. net credit sales for the year amounted to Rs.9,00,000. Compute the amounts of: i. Bad debts expense for the year if 10% of the year -end accounts receivable is estimated to be uncollectible. ii. Allowance for doubtful accounts at year-end if 1% of net credit sales is estimated to be uncollectible. 5.(b) On October 31, 2010 prior to adjustment Accounts Receivable account of Samsam Enterprises had a balance of Rs. 180, 000 and the Allowance for Doubtful Accounts showed a credit balance of Rs. 1,000. During November worthless accounts written off amounted to Rs.17, 000 and the previously written off accounts recovered in the amount of Rs.7,000. On November 30 Accounts Receivable Control account showed a balance of Rs.170,000 and a customer's account in the subsidiary ledger revealed a credit balance of Rs.4,000. The Co. has a policy of estimating allowance for doubtful debts equal to 5% of the month end balance of accounts receivables. Prepare: 1. Adjusting and closing entries on October 31. 2. General Journal entries for November transaction. 3. Adjusting Entries and balance sheet on November 30. 6. (a) The following are selected transactions performed by Zenat Trading Company: a. purchased merchandise on account for Rs.27,000 b. Received allowance on supply of defective goods Rs. 2,000. c. Sold Merchandise costing Rs.16,000 on accounts for Rs. 20,000. d. Accepted the return of defective merchandise from customer (cost Rs. 4,000 sales price Rs. 5,000). Prepare general journal entries under: 1. Periodic System 2. Perpetual System. 12

6. (b) State the effects of understatement of ending inventory on: i) Cost of goods sold ii) Net income iii) Current assets iv) Total assets v) owner s Equity 7. (a) On March 31, 2007 Safeer Company purchased a machine at a cost of Rs. 4,00,000 which was expected to be sold for Rs. 40,000 after its estimated useful life of 4 years. Company follows calendar year as its accounting period. Compute annual depreciation expense from 2007 to 2010 under: i) Sum of the years' digit method ii) 50% diminishing balance method. Limit the accumulated depreciation to the amount of depreciable cost. 7. (b) The following are selected transaction performed by Sanaullah & Sons: Jan. 1.2007 Purchased equipment at invoice price of Rs.200,000 on credit terms 2/120, n/30. Jan. 9.2007 Paid invoice of January 01. Dec.31.2010 Sold the equipment for cash Rs.40,000 The equipment has estimated life of six year an salvage value of Rs.14,000, Straight line method is used and account are closed on December 31. Prepare general journal entries to record. i) Purchase of equipment and payment of invoice. ii) Sale of equipment supported by proper computations. 8. The following are balance sheet data and Lalani & Mohsin Partnership on June 30,2010. Cash 30,000 Lalani, Capital 120,000 Inventory 70,000 Mohsin, Capital 180,000 Land 200,000 On July 1, Sikandar is admitted as a partner after revaluing inventory & Land at Rs. 50,00 & Rs. 300,000 respectively, recognizing goodwill of Rs.50,000 and recording accrued taxes Rs.10,000. Sikandar is to purchase 25% of Mohsin's ownership interest for Rs.65,000 & to be contribute sufficient cash for acquiring 1/3 of the entire partnership equity. Lalani and Mohsin share profit/loss equally. Prepare: a. General journal entries. b. Balance sheet after admission. 13

ACCOUNTING 2010 PRIVATE Time: 3Hours Max. Marks: 100 Instructions: Attempt any FIVE questions. 1. The following are selected balances before adjustments and adjustments data for Qureshi Enterprises at end of annual accounting period, December 31, 2010. Allowance for Bad Debts Unexpired Insurance Prepaid Rent Prepaid Salaries Prepaid Taxes Rent Payable Advertising Payable Taxes payable Salaries Expense Rent Expense Advertising Expense Taxes Expenses ADJUSTMENT DATA: Debit 48,000 16,000 18,000 19,000 64,000 22,000 20,000 30,000 1. Allowance for bad debts was estimated at Rs 3,000. 2. Insurance policy was acquired on May 1,2010 for one year. 3. Rent was prepaid to the extent of Rs.12,000. 4. Rent Payable amounted to Rs.12,000. 5. Salaries were prepaid to the extent of Rs.6,000. 6. Actual Salaries expense for the year amounted to Rs.78,000. 7. Advertising payable amounted to Rs.14,000. 8. Actual advertising expense for the year amounted to Rs. 21,000. 9. Prepaid taxes were Rs.24,000. 10. Actual taxes for the year amounted to Rs.27,000. Prepare adjusting entries in general journal. Credit 4,000 8,000 10,000 6,000 14

2. The following are trial balance and adjustment data for Zaidi s Shop on December 31, 2010. Cash Account Receivable Merchandise inventory, Jan 1 Prepaid Rent Furniture Accumulated Depreciation Unearned Commission Capital Zaidi Sales Sales Discount Purchases Purchases Return Transportation in Salaries Expense Rent Expense Debit 9,200 21,400 3,200 1,800 12,000 300 32,000 500 3,300 1,200 Credit 2,400 3,600 48,400 30,000 500 Adjustment Data: (a) Accounts receivable were expected to realize Rs. 20,000. (b) Book value of furniture was estimated at Rs. 9,000. (c) Rent was prepaid to extent of Rs. 600. (d) Commission earned during the year amounted to Rs. 2,400. (e) Actual salaries expense for the year amounted Rs. 4,800. (f) Merchandise inventory on December 31st was valued at Rs. 8,800. Prepare 10 coloumns work sheet. 3. Take the trial balance and the adjustment data given in Question NO.2. Prepare: a. Multiple steps income statement b. Classified balance sheet. 15

4. The following transactions were completed during March, 2010 by Khan Company, which uses voucher system: 01. Issued CHEQUE No.74 FOR Rs.20,000 in payment of outstanding voucher no.99. 02. Issued Cheque no.75 for establishment of petty cash fund in the amount of Rs.5,000 (voucher no. 101) 03. Purchased merchandise for Rs.21,000 From Farooqui Ltd. On a/c. (Voucher no.102). Khan Co. follows perpetual system. 04. Returned merchandise worth Rs.1,000 to Farooqui Ltd. (voucher no.103) 05. Issued Cheque no.76 in payment of voucher no.103 after deducting 2% cash discount. 06. issued Cheque no.77 for travel advance to an employee (voucher no.104) 07. Signed a 60-day 10% note of Rs.12,000 in payment of outstanding voucher no.100. 08. Issued Cheque no.78 for Rs.15,600 in settlement of a note payable including interest Rs.600 (voucher no.105) 09. Issued cheque no.79 for Rs.2,000 to reimburse the travel expense incurred by the employee in excess of travel advance. (voucher no.106) 10. Issued cheque no.80 to reimburse petty cash fund for supplies expense Rs.1,600, conveyance expense Rs.1,100, and entertainment expense Rs.1,400. (Voucher no.107). Using two-column general journal form make entries as the case may be in: a) Voucher register b) Cheque register 5. Tariq Traders has the following selected information from its business records during 2009: a. Sold merchandise for Rs.2,20,000 on account and for cash Rs. 50,000 b. Collected cash form customers Rs. 60,000 c. Accepted a note from a customer on account Rs. 6,000. d. A customers A/c. Reveals a credit balance of Rs. 1,000. e. A Worthless account written off Rs. 7,000. f. Earlier written off account recovered Rs. 5,000 Balances at 01-01-2009 Accounts Receivable 150,000 Allowance for Bad Debts (Cr.) 7,500 Notes Receivable 3,000 16

a. Prepare journal entries b. Compute and prepare the adjusting entry assuming that bad debts are estimated at 5% of a/c. receivable at end. c. Prepare the Partial Balance Sheet as at Dec. 31, 2009. 6. Inam Company s beginning inventory and purchases during the fiscal year ended June 30, 2010 are as follows: Jul. 1, 09 Jul. 10,09 Aug. 30,09 Oct. 1,09 Dec. 15,09 Feb. 1,10 Mar. 20,10 May 21,10 Inventory Purchase Purchase Purchase Purchase Purchase Purchase Purchase Units 1000 1200 800 2000 1500 700 1370 450 Per Unit 50.00 52.50 55.00 56.00 57.00 58.00 60.00 62.00 The company uses the periodic inventory system and the Co. sold 5800 units for total amount of Rs. 536,000 during the year. Determine the cost of inventory on June 30, 2010 under each of the following inventory costing methods. a) FIFO b) LIFO c) Weighted average d) Gross Profit method, assuming that above mentioned sales was made at an estimated gross profit rate of 40%. 7. The following data relate to the three machines acquired by Mumtaz Company on Jan 1, 2005: Machine Cost Useful Life Scrap value Depreciation Method A 340,000 6 years 40,000 Straight Line B 500,000 5 years 50,000 Sum of the year s Digit C 400,000 4 years 30,000 50% Diminishing Balance a. Compute the annual depreciation expense for the whole life of each machine and present the data in the following form: Year Machine A Machine B Machine C 2005 2006 2007 2008 2009 2010 17

b. Record in general journal the disposal of machines as per the following descriptions: 1. Machine C is traded in with Machine D priced Rs. 480,000 receiving trade in allowance equal to book value on December 31, 2006. 2. Machine B is sold for cash Rs. 190,000 on July 1, 2007. 3. Machine A is retired without any consideration on September 30, 2009. 8. Shadab and Usman are equal partners with capital of Rs. 100,000 each. Jamal is admitted for 1/3rd interest. Make entries in general journal in each of the following independent cases: (a) Jamal invests cash Rs.160, 000 in total capital of Rs.360, 000 (b) Jamal invests cash Rs.180, 000 in a total capital of Rs.420, 000 (c) Jamal invests cash Rs.60, 000 in total capital of Rs.270, 000 (d) Usman purchases 1/3rd interest of each of the old partners after recording goodwill of Rs.10,000 18

ACCOUNTING Time: 3Hours Max. Marks: 100 Instructions: Attempt any FIVE questions. Q.1 (a) TERMINOLOGY Briefly describe any FIVE of the following: a. Contra Asset b. Book of Original c. Adjunct Account d. Discount Lost e. Book of Final Entry f. Discount Expense Q.1 (b) JOURNAL ENTRIES 2009 REGULAR 1. The corrected cash balance at end for a NSF cheque of Rs. 1,000. 2. The merchandise drawing by the owner valued Rs. 2,000. 3. The business cash deposited into the business bank account Rs. 3,000. 4. The discounts lost under net price method of Rs. 4,000. 5. The closing entry for owner's drawings of Rs. 5,000. 6. The correction entry for overcharged bad debts after closing Rs. 6,000. Give the journal entries to record any FIVE of the following. Q.1 (c) MERCHANDISE BUSINESS Sumsan Trading completed the following related transactions for a month. 1. Purchased merchandise under the term 2/10, n/30, valued Rs. 100,000. 2. Paid transportation on it Rs. 3,000. 3. Returned defective merchandise valued Rs. 5,000. 4. Availed the discount as payment made within 10 days. Record the above transactions in the General Journal of the trader. 19

Q.2 SUBSIDIARY LEDGER / TRIAL BALANCE Raziq Company started business on 01-01-2009 with a capital investment of Rs. 100,000. On May 31 2009 its special journals revealed the following information: Purchases Journal (PJ) Rs. 15,000 Sales Journal (SJ) Rs. 45,000 Accounts Receivable Sales Capital Cash Cash Payment Journal (CPJ) Sundry Accounts: Salaries Expense Utility Expenses Accounts Payable Cash Debit 178,000 6,000 3,000 4,000 Credit 8,000 70,000 100,000 13,000 a) Compute the May 31, 2009, balances of the required items stated above. b) Prepare a Trial Balance in sequence at May 31, 2009 Q.3. ADJUSTING AND REVERSING ENTRIES The following are the unadjusted balances taken from the books of Mubeen and Company on Dec 31 2008. DEBIT (RUPEES): Cash 26,000, Supplies 14,000, Accounts Receivable 24,000, Equipment 36,000, Salaries Expense 20,000 and Advertising Expense 16,000. CREDIT (RUPEES): Accounts Payable 5,000, Accumulated Depreciation (Equip) 5,000, Mubeen Company 56,000 and Commission Income 70,000. Balance Day Data: (31-12-2008) 1. Unearned Commission Rs. 5,000. 2. Depreciation expense was estimated at Rs. 6,000. 3. Unrecorded utility expenses for the period Rs. 7,000. 4. Supplies expense Rs. 8,000. 5. Commission accrued Rs. 9,000. 6. Advertising expenses for the period is 20%. Prepare Dated a) Adjusting / correcting entries. b) Reversing entries and indicate the entries which have no reversing. 20

Q.4. WORKSHEET Take data from Question No. 3 of this paper. Prepare a ten column worksheet. Q.5. CASH CONTROL (a) The following information pertains to Aziz Traders for September 30, 2009. Balance as per bank statement 220,050 Balance as per cash book 191,025 1. Proceeds of depositors note collected by the bank Rs.? 2. Deposit in transit Rs. 12,474 3. Outstanding Cheques Rs. 23,195 4. Bank Error detected Rs. 675 from Aziz account for a cheque actually written for Rs. 6,750 Prepare 1. Bank Reconciliation Statement 2. Adjusting entry OR entries. Q5. (b) Hafeez Company uses the voucher system and performed the following selected transactions. Feb 01 Prepared a Voucher No. 27 of Rs. 10,000 for merchandise purchased at 2/10, n/30. Feb 04 Recorded the Voucher No. 28 of Rs. 1,000 payable to GEO TV for advertisement. Feb 10 Issued a Cheque No. 0033 for the Voucher No. 27 after discount and a Cheque No. 0035 for the Voucher No. 28 Feb 25 Prepared Voucher No. 29 and issued the Cheque No. 0036 for purchase of an office typewriter Rs. 5,000. Feb 28 Prepared Voucher No. 30 for the utility bills of Rs. 4,000 for the month. Record the above transactions of Voucher and the cheque register (in general journal) 21

Q.6. ACCOUNTS RECEIVABLE Hadi started business on 01-01-2007 the following are his selected transaction: 2007 Nov 10: Sales of Rs. 320,000 including Cash Sales Rs. 40,000 Dec 25: Collected Rs. 50,000 for Credit Sales. Dec 31: Hadi estimates the bad debts for the year Rs. 9,000 2008 May 11: Various accounts were found worthless and written-off Rs. 20,000. July 15: Total sales were Rs. 350,000 including 10% for cash sales. Oct 25: Total cash collection on accounts Rs.150,000 Nov 20: Previously written-off accounts recovered Rs. 8,000. Dec 31:Hadi estimates the bad debts for the period Rs. 18,000. REQUIRED a. Prepare necessary dated entries in the general journal for the period 2007 and 2008 using allowance method for estimating the bad debts. b. Prepare the partial Balance Sheet as at end of 2007 only. Q.7 (a) INVENTORY VALUATION The following year data is available for a single produce of a Company. 2007 Units Rate Purchases 900 Rs.35 1000 Rs.37 650 Rs.40 Sales 1000 The Company used FIFO method a. Compute the inventory at end of the each year. b. What is the amount of beginning inventory of 2008? 2008 Units Rate 1100 Rs.43 750 Rs.46 800 Rs.48 2300 Q.7 (b) On February 01, 2008 Abid Company had inventory of a commodity 150 units @ Rs. 15. During February his transactions were as follows: February 06: Purchased 150 units @ Rs. 16. February 10: Sold 180 units @ Rs. 20. February 21: Purchased 150 units @ Rs. 17 February 23: Sold 160 units @ Rs. 22 February 25: A customer returned 10 units from Feb. 10 sale. The Company uses perpetual system of inventory applying Moving Average Method. Prepare inventory Card and find out the values of ending inventory. 22

Q.8. DEPRECIATION Khalil Company uses 40% reducing balance method for its office equipment costing Rs. 300,000, acquired on Sept 01, 2005. The Salvage value is estimated at 1/6 of the cost. The company closes its books at December 31 each year. On January 01, 2008 the equipment was disposed off as under each of the following independent situations: 1. Discarded equipment without any proceeds. 2. Sold at Loss of Rs. 45,000 for cash. 3. Exchange with similar type of asset along with cash payment of Rs. 16,200 having trade in loss of Rs. 5,000. a. Compute the book value of the asset at 01-01-2008. b. Give the adjusting and closing entries at Dec 31, 2007. c. Prepared journal entries for each type of the disposal stated above. Q.9. PARTNERSHIP - LIQUIDATION The IMKO partnership is being liquidated. After all liabilities have been paid and all assets sold, the balances of the partners capital accounts are as follows: Imran Rs. 5,30,000 credit balance; Muneer Rs. 1,60,000 debit balance; and Kamran Rs. 4,20,000 credit balance. The partners share profit and losses as follows: Imran 30% Muneer 60% and Kamran 10%. If all assets are sold out and all liabilities are paid, estimate the cash and show its distribution in general journal. Muneer is personally insolvent and nothing can be recovered from him. Show necessary computations also. 23

ACCOUNTING Time: 3Hours Max. Marks: 100 Instructions: Attempt any FIVE questions. Q.1 SPECIAL JOURNALS From the following data 2009 PRIVATE 2009 Customers Rs. Feb 2 Waqar Bros. 15,000 Feb 16 Naseem and Sons 20,000 Feb 28 Nasir and co. 10,000 2009 Feb 2 Feb 16 Feb 28 Suppliers Maroof Traders Qamar Printers Hameed Merchant a. Complete the Sales Journal (Page 22) b. Complete the Purchases Journal (Page 33) c. The Control Accounts d. The Accounts Receivable running balance from subsidiary ledgers. Rs. 35,000 15,000 5,000 Q.2. WORK SHEET Following information related to Zulfiqar and Sons as at December 31, 2008 Balance Before Adjustments Debits Credits Rent Expense 5,000 Salaries Expense 20,000 Sales Supplies 3,000 Office Equipment 60,000 Merchandise Inventory 25,000 Cost of Goods Sold 170,000 Cash 40,000 Zulfi Capital 113,000 Sales 215,000 Sales Return and Allowance 5,000 328,000 328,000 Balance Day (31-12-2008) data: 1. Rent Expense Rs. 3,000 2. Salaries Expense Rs. 25,000 for the year 3. Sales Supplies used Rs. 2,000. 4. 10% Depreciation was estimated on Office Equipment. Prepare a ten column Work Sheet. 24

Q.3 ADJUSTING / REVERSING AND BALANCE SHEET Refer to the Question No. 2 of this paper and prepare: a. Dated Adjusting and Reversing Entries b. The Balance Sheet as on December 31, 2008. Q.4. CLOSING AND INCOME STATEMENT The following extracts are related to Mr. Tariq after adjustments at June 30, 2009. Sales 250,000 Salaries Expense 10,000 Inventory Beginning 10,000 Bad Debts Expense 3,000 Purchases 53,000 Purchase Returns 1,000 Commission Income 1,000 Depreciation Expense 5,000 Sales Discount 5,000 Utility Expense 4,000 Allow. for bad debts 11,000 Inventory Ending 15,000 Rent Exp. Payable 11,000 Tariq Drawing 19,000 a. Necessary dated Closing Entries. b. An Income Statement for the year ended June 30, 2009 Q.5 BANK RECONCILIATION M/S Ali Sher's Cash Book showed a debit balance of Rs. 204,520, while the bank statement showed a credit balance of Rs. 163,650 at 31-01-2009. 1. The following items were discovered causing the difference in cash and bank balances. 2. Bank charges not entered in cash Rs. 520. 3. Cheques issued but not presented Rs. 25,000. 4. Promissory Note collected by bank, but remains unrecorded in the firm's books Rs. 46,000. 5. Cheques deposited but not shown on bank statement Rs. 61,350. 6. Interest credited by the bank not recorded in cash Rs. 3,000. 7. NSF cheques returned by the bank Rs. 53,000. Prepare a Bank Reconciliation Statement and also entries to adjust the cash balance in general journal. 25

Q.6. ACCOUNTS RECEIVABLE The following data is taken over from record of Faizan Co Balances 31.12.07 31.12.08 Accounts Receivable 150,000 260,000 Allowance for Bad Debts 3,000 Allowance for Bade Debts (before adjustment) 11,000 (Cr.) During 2008, the following transactions were performed: 1. Total Sales of Rs. 300,000 including credit sales Rs. 240,000. 2. Previously written off accounts recovered Rs. 8,000. 3. Cash collected from customers Rs. 100,000. 4. Accounts Receivable apply on note Rs. 50,000. 5. Overpayment received from a customer Rs. 20,000. a) Estimate the bad debts at Rs. 10% of Receivable. b) Give the dated adjusting entry for 2008. c) Prepare complete T accounts for Account Receivable and Allowance for Bad Debts to justify the above information. d) Prepare the partial Balance Sheet as on Dec. 31, 2008. Q.7. INVENTORY VALUATION The following date related to the business of Ashraf Company, which uses perpetual system and FIFO method. Nov. 01 Merchandise Inventory 500 units @ Rs. 50 each. PURCHASES SALES Nov. 04, 300 units @ Rs. 55 Nov. 08, 350 units @ Rs. 70 Nov. 09, 400 units @ Rs. 60 Nov. 20, 600 units @ Rs. 80 Nov. 25, 400 units @ Rs. 65 Nov. 30, 100 units @ Rs. 90 a) Prepare an inventory card, indicating each day's inventory. b) Give the cost of goods available for sale and the cost of goods sold at Nov. 30. c) Compute gross profit. 26

Q.8. DEPRECIATION Arshad & Co. acquired two Machines on 3rd March, 2006 for Rs. 440,000 each. The machine has estimated salvage value of Rs. 40,000 each. Other information is as under: Machines Life in Produces/uses: A 200,000 units 2006: 50,000 units, 2007 100,000 units B 500,000 hour 2006: 70,000 units, 2007 : 80,000 units a) Compute the depreciation of both the machine for the year ended dec 31, 2006 and 2007. b) Give the entries for the above disposal. Show necessary computation also. After proceeding 150,000 units, the above machine - A was sold at a gain for Rs. 10,000. The machine - B was trade in with a new machine - C at Rs. 20,000 Less than its book value after 150,000 hours of use (Loss is recognized) Q.9. PARTNERSHIP - LIQUIDATION Irfan, Imran and Kamran are partners in a firm sharing profits and losses in the ratio of 2: 3: 1 respectively. They decided to dissolve the firm on January 1, 2010. On this date the firm's position was as follows: Cash Rs. 140,000, Other Assets? Acc. Payable Rs. 120,000, Irfan Capital Rs. 240,000, Imran Capital Rs. 360,000, Kamran Capital Rs. 120,000. The other assets were sold for Rs. 460,000, liabilities were paid in full. Remaining cash was distributed among the partners. a) Give necessary entries in the general journal for the liquidation of firm. b) Prepare liquidation summary 27

ACCOUNTING 2008 REGULAR Time: 3Hours Max. Marks: 100 Instructions: Attempt any FIVE questions. 1. WORKSHEET Following are the data related to pre closing trial balance and Adjusted Balance of Humna Associate for the month ended November 30, 2008 Name of Accounts Pre closing Trial Balance Adjusted Trial Balance Cash 4,980 4,980 Commission Receive 3,000 3,850 Office Supplies 600 240 Office equipment 6,600 6,600 Accumulated Depreciation 2,420 2,530 Accounts Payable 1,660 1,660 Salaries Payable 550 Unearned commission 400 190 Humna Capital 12,300 12,300 Humna Drawing 1,000 1,000 Commission Earned 6,900 7,960 Salaries expense 6,000 6,550 Rent expense 1,500 1,500 Off.Supplies expense 360 Depreciation expense 110 23,680 23,680 25,190 25,190 (a) Trace out data and prepare necessary adjusting entries. (b) Prepare a Ten-column worksheet from the above data. 2. (a) DEPRECIATION Aneel Company purchased equipment for Rs.7,00,000. The estimated resale value at the end of its useful life is Rs.60,000. The Company uses straight-line method for computing depreciation.the quartly depreciation of the equipment is Rs.20,000. Compute total life in year of the equipment. 28

2 (b) Qaiser Co. acquired a machine on jan.1 2005 at a cost Rs.5, 00,000. its operating life was estimated to be 5 year with salvage value of Rs.50,000.The company closes its accounts on December 31 each year and uses sum of year digit method for computing depreciation. On June 30, 2008, the machine was exchanged with a new similar machine having a price of Rs.7, 00,000 and the trade in allowa nce of the old machine was agreed upon at 80 percentage of its written down value/a book value. a) Calculate depreciation charge for the years ended Dec.31, 2005, 2006, 2007 and up to June 30, 2008. b) Calculate balance to pay in cash. c) Give any entry to record exchange of the machine. 3. BANK RECONCILIATION The accountant of Faryaz Co.has extracted the following data from its Cash record and it is bank statement on Nov.30, 2008: 1. Bank overdraft as per Cash Book Rs.106, 400. 2. Bank overdraft as per Pass Book Rs.10, 000. 3. Issued a cheque for Rs.50, 000 to supplier (after the expiry of discount period), but it was wrongly entered in cash book as Rs.49,000. 4. A debit memo for Rs.5,000 accompained the Bank statement for locker rent; the bank had erroneously charged this to Fayyaz Co, instead of Fazi Co. 5. Deposited a customer cheque for Rs.78,400 (after discount deduction) but it was wrongly recorded in cash Book as Rs.80,000 as if were received after discount period. 6. A customer cheque for Rs.200,000 deposited directly in bank was by mistake entered into cash coloumn of the cash book. 7. Issued a cheque for purchase of supplies for Rs.10,000 was recorded on company record as Rs1,000. 8. Mark up charged by bank was not recorded by the company Rs.2,000. 9. Three cheque totaling Rs.20, 000 were issued to suppliers, but only one cheque for Rs.5,000 was presented to the bank by the last day of the month. 10. Four cheque totaling Rs.120,000 were sent to the bank for collection but only one cheque for Rs.20,000 was cleared and credited by the bank. a) Prepare Bank reconciliation statement for Nov.30, 2008. b) Pass necessary adjusting entries. 29

4. VALUATION OF ACCOUNTS RECEIVABLE On June 30, 2008, before closing the accounts, the Aiman Company shows the following selected account balance as under. Accouts Receivable-Control 6,00,000 Allowance for doubtful Accounts 10,000 Credit sales 10,00,000 Sales Discount 50,000 On this date, following errors omissions were discovered: 1. The sale return and allowance for Rs.50, 000 were not recorded. 2. Promissory Notes of Rs.10, 000 received from customers to apply on account remained unrecorded. a) General journal entries to correct the error. b) Prepare adjusting entries and also prepare partial balance sheet at June 30, 2008 under each of the following assumption separately. (i) Uncollectible account expense is estimated at 2% of net credit sales. (ii) Allowance for doubtful account is estimated at 10% of account Receivable (corrected) at the year end. 5. CLOSING ENTRIES & INCOME STATEMENT The following are the incorrect closing entries, prepared by an in experienced accountant at the end of the year ended December 31, 2007. Dec.31 Sales 250,000 2007 Sales Discount 5,000 Open Inventory 10,000 Allowance for bad debts 6,000 Drawing 1,000 Purchase 53,000 Income Summary 325,000 Income Summary 26,000 Ending Inventory 15,000 Commission Income 1,000 Salaries expense 10,000 Depreciation Expense 5,000 Utility Expense 4,000 Bad debts Expense 3,000 Allowance for Depreciation 20,000 a) Prepare FOUR correct closing entries. b) Prepare an income Statement for the year ended December 31, 2007. 30

6. INVENTORY VALUATION Rahat Equipment Co. provides you with the following inventory data. Date: 2008 Units Cost per unit January 1 Beginning 40 1250 February 28 Purchases 100 1220 June 25 Purchases 85 1200 November 11 Purchases 110 1800 The Inventory on Dec. 31, 2008, of 50 units. Determine the cost of: a) Cost of good available for sale and. b) Required to cost of ending inventory, using FIFO Method Periodic System. 6. (b) Bushra Arshad Firm sells goods at a gross profit of 40% of sales. Following are the information to relate to sale & purchase of merchandise for the month of November, 2008: Sales (Net) during the month 300, 000 Merchandise Inventory (1.11.2008) 9, 600 Purchase (Net) during the month 192, 000 During the month a certain class of merchandise costing to Rs.12,000 was sold for Rs. 14,400. Expect for this sale, the gross profit on rest of the sales remained normal at 40%. Determine the cost of ending inventory by Gross Profit Method on November 30th, 2008 7. PARTNERSHIP ADMISSION Following is the balance sheet on November 30, 2008 of the partnership firm of Talha & Tayyab who share profit & loss in the ratio of their capital: ASSETS EQUITIES Cash 50,000 Capital Talha 25,000 Other Assets 75,000 Capital Tayyab 100,000 125,000 125,000 On this date they agree to admit Abdul Hadi as a partner. Give the required entries on the firm s book to record the admission of Abdul Hadi & also prepare balance sheet after admission under each of the following assumptions separately. a) Abdul Hadi purchase ¼ of each old partner s capital. b) The new partner invests Rs.75, 000 for a 1/3rd interest, in the total capital of the firm of Rs.210, 000. c) The new partner invests Rs.100, 000 for a 1/4th interest in the firm. Record bonus. 31

8. (a) CORRECTION OF ERRORS The following errors/omissions were made during 2007 & were discovered before closing of the books of Accouts: 1. Sales returns of Rs.16, 000 was charged to purchase. 2. Outstanding Advertising expense were over looked Rs.45, 000 3. Rs.150, 000 spent for the extension of building was debited to building repairs accounts. 4. Prepaid salary of Rs.10, 000 was included in salary expense account. 5. Accrued Rent income of Rs.15, 000 was overlooked. Pass rectifying entries in general journal. 8. (b) The following errors were made during the year 2007 & were discovered in 2008: 1. Purchase of equipment for Rs. 250,000 was debited to Repairs Expense account in error. Because of this error deprecation on equipment Rs. 20,000 could not be recorded. 2. Credit purchase of merchandise of Rs. 170,000 was not recorded in 2007 although the goods were received and included in the ended inventory of 2007. 3. Merchandise of Rs. 180,000 purchased in the month of December, 2007 & included in the ending inventory of 2007, but the purchase was recorded on January 5, 2008. 4. Ending inventory of 2007 was understood by Rs.5, 000. Pass correcting entries in general journal entries in the year 2008. 32

ACCOUNTING 2008 PRIVATE Time: 3Hours Max. Marks: 100 Instructions: Attempt any FIVE questions. 1. VALUATION OF ACCOUNTS RECEIVABLE Hadi Brother furnished the following account balances and transactions concluded during 2008: Account Receivable 1.1.2008 150,000 Allowance for bad debts 1.1.2008 6,400 Total cash collected from customers 395,000 Promissory notes received from customers to apply on account 34,000 Credit balance in customers accounts at year end (advance payments) 23,300 Customers account written off during the year 3,600 Gross credit sales for the year 600,000 Sales return and allowance 32,400 Sales discount allowed to customer 4,500 Previously written off A/c. receivable recovered 8,500 Note: Allowance for bad debts December 31, 2008 should be equal to 5% of the year end balance of accounts receivable account. a) Make posting of the above transactions directly into the accounts receivable and the allowance for the bad debts accounts. Balance both the accounts on December 31, 2008. b) Prepare a journal entry to record the year end adjustment as required in the note. Prepare a partial balance sheet showing the accounts receivable and its Allowance for bad Debts accounts. 2. BANK RECONCILIATION: The accountant of Urooj Ltd. Has extracted the following data from cash Book (Bank Column) and the bank Statement on November 30, 2008: 1. Credit Balance (O.D) as per Cash Book Rs.74, 000 2. Debit Balance (O.D) as per Bank Statement Rs.62,700 3. Bank charges not recorded by the co.rs.1, 200 4. Cheque deposited on November 30, 2008 but not shown on Bank statement Rs.28, 000 5. Deposit by a customer directly made in company account not recorded by the company Rs.50,000 6. A cheque for purchase of supplies was drawn for Rs.65,000 but was recorded on company records as for Rs.56,000 7. The company Officer issued a cheque for Rs.5,000 for traveling expense. This cheque was not recorded by the company 8. Cheque issued during November, but not presented to the bank for payment Rs.4, 500 a) Prepare a Bank Reconciliation Statement showing the corrected balance. b) Prepare necessary adjusting entries in the general journal. 33

3. VOUCHER SYSTEM: Uroosa Company uses a voucher system for all major expenditures. Selected transactions for June, 2008 are presented below: 1. Paid a note including accrued interest Rs.41,500 (Face value of note was Rs.40, 000) 2. Gave a 10% sixty day note in settlement of outstanding voucher for Rs.10, 000 3. Drew a Cheque for Rs.5,000 to establish a petty cash fund. 4. Purchased goods from Adnan Store for Rs.60,000 making a down payment of Rs.20,000 & agreeing to pay the balance in 15 Days. 5. Received credit memorandum from Adnan Store for Rs.5,000 for the return of goods purchased from them. 6. Advanced by cheque Rs.18,000 for traveling expense to an officer making business trip. 7. Drew a cheque for Rs.4,500 to reimburse petty cash fund office expense. 8. Reimbursed the officer by Cheque of Rs.2,000 for trip expenses incurred by him in excess of advance of Rs.18,000 9. Paid Adnan Stores invoice taking the discount. Using general journal show how the above transactions would be recorded by the company in the Voucher Register cheque Register & General Journal. 4. WORKSHEET The pre closing Trial balance of Nadir & Company on December 31, 2007 is an under: Debit balance: Cash Rs.1, 200, Office Supplies Rs.800, Prepaid Advertising Rs.6, 000, Rent Expense Rs.3, 000, Furniture Rs.10,000, Salaries expenses Rs.5,000. (Total: 26,000) Credit balances: Allowance for depreciation Rs.2000, Nadir Capital Rs.10,000. Commission income Rs.14,000 (Total: 26,000) Data for adjustment on December 31, 2007 1. Office supplies on hand Rs.500 2. Advertising cost unexpired Rs.2,000 3. Current year deprecation on furniture 20% on cost 4. Prepaid salaries Rs.800 5. Actual Rent expense for the year Rs.3,600 6. Commission Receivable Rs.300 and unearned commission Rs.700 Prepare a 10 column worksheet. 5. ADJUSTING, CLOSING & REVERSING ENTRIES Take the data given in Q. No.4. Prepare dated Adjusting, Closing & Reversing entries. 34