B.Com I Accounting 2010
NOTE: Attempt any FIVE questions in all.
Q.1. INVENTORY VALUATION
During the year 1995 Shamim Company sold 12,000 units of X commodity for Rs. 240,000. The company had on hand 1500 units each Rs. 13/- on January 01. Purchase during 1995 were as follows:
Month ………. Date ….. Quantity in Units ….. Unit Cost …… Total Cost
January ………… 20 ………… 2,000 ……………… 12.00 …………… 24,000
March …………… 30 ………… 1,000 ……………… 13.00 …………… 13,000
May ………………. 24 ………… 3,000 ……………… 13.00 ……………39,000
July ………………. 12 ………… 4,000 ……………… 15.00 …………… 60,000
September ……… 15 ………… 1,000 ……………… 16.00 …………… 16,000
November ……… 20 ………… 1,000 ……………… 17.00…………… 17,000
December ………. 08 ………… 600 ………………… 18.00 …………… 10,800
Total ……………………………… 12,600 ……………………………………. 179,800
REQUIRED: On December 31, 1995, compute the gross profit/Loss on sales assuming the use of the following cost of closing inventory of each method
(a) LIFO, (b) FIFO, (c) WEIGHTED AVERAGE
Q.2. BANK RECONCILIATION
On comparison of cash book entries with those of the bank statement of Maqsood company on June 30, 1996 the following difference were found:
(i) Cash Book Balance (Dr) Rs. 15,000
(ii) Bank Statement Balance (Dr) Rs. 20,000
(iii) A cheque for Rs. 14,500 deposited into bank was wrongly entered into bank statement for Rs. 5,100.
(iv) Marked up charged by bank Rs. 600
(v) Cheque baber & Co. for Rs. 3,500 has marked NSF (dishonoured) and returned by bank.
(vi) A cheque drawn for purchases of equipment Rs. 4,000 but was recorded by company Rs. 2,500.
(vii) A customer cheque for Rs. 8,600 deposited directly in bank was by mistake entered into cash column of Cash book.
(viii) Total uncleared cheque amounted Rs. 30,000
(ix) Cheque issued Rs. 10,000 but presented for cash Rs. 5,800 into bank.
(x) The bank paid a non-interest bearing note for maqsood company’s account Rs. 3,000 was not recorded in cash book.
(xi) A cheque Rs. 2,000 drawn by Maqbool company, was wrongly debited by bank to Maqsood Co. account.
(xii) Divided collected by bank but was not recorded in cash book Rs. 2,200.
REQUIRED: (i) Prepare a bank reconciliation statement showing adjusted balance.
(ii) Prepare necessary adjusting entries in the general journal of Maqsood company.
Q.3. VOUCHER SYSTEM
Record the following transactions of Aslam in General Journal format. Assume the use of voucher register and cheque register.
(i) Purchase raw material from Zahid worth Rs. 20,000 voucher# 550 and paid transportation expense there on Rs. 300 voucher# 551 wide cheque# 25.
(ii) Paid advertisement expense voucher no. 552 Rs. 2,000.
(iii) Purchased equipment Rs. 6,000 making down payment of Rs. 2,000 and agreeing to pay the balance in 15 days.
(iv) Advance by Cheque Rs. 4,000 for travel expenses to an officer making a business trip.
(v) Reimbursed the officer by Cheque with Rs. 1,000 for expenses incurred by him in excess of travel expenses.
OR
CASH CONTROL
Arif Company completed the following transactions.
(i) Sold for Rs. 2,00,000 half portion of building bearing cost Rs. 1,30,000. Received according to terms of sales Rs. 1,50,000 in cash and a 10% six months note for balance.
(ii) Sold merchandise to Mushtaq brothers Rs. 50,000 on list price subjected 10% Trades Discount on credit terms 5/15, 2/20 and n/30 on June 01, 1996.
(iii) On June 05, 1996 Mushtaq brothers returned merchandise Rs. 10,000 and paid balance in cash on June 19, 1996.
(iv) Merchandise worth Rs. 50,000 and cash Rs. 30,000 were burnt by fire.
REQUIRED: Record the above transaction in General Journal of Arif Company.
Q.4. ACCOUNTING RECEIVABLE
GIVEN: A/R control in the general ledger is showing a debit balance of Rs. 27,000 representing of 25 customers. There are 24 customers have debits balance and one customer having credit balance of Rs. 3,000.
REQUIRED: Prepare a partial balance sheet reporting the above information.
GIVEN: The following information is available in respect of three different companies.
Balance of A/R as on June 30, 1998
Company 1 : 100,000
Company 2 : 87,500
Company 3 : Rs. 187,500
Balance of All. For doubtful debt as on July 01, 1997
Company 1 : 7,500
Company 2 : 10,000
Company 3 : 7,500
A/R written off during the year
Company 1 : 5,000
Company 2 : 12,500
Company 3 : 5,000
Application rate of doubtful debt
Company 1 : 2.5%
Company 2 : 3.0%
Company 3 : 2.0%
REQUIRED: (a) Companies the amount of doubltful debts for each of the above three companies separately.
(b) Give the necessary adjusting entries for each of the above three companies separately on June 30, 1998.
(c) Assumed that the amount written off is recovered from A/R of company 3 give the necessary journal entries to record the recovery.
Q.5. FINANCIAL STATEMENT
GIVEN: The following is the Pre-Cambridge Trial Balance of Uzair & Company on June, 30, 1995.
TITLE OF ACCOUNT ……………………………. DEBIT ………….. CREDIT
Cash ……………………………………………………. 20,000
Account Receivable ……………………………….. 30,000
Allowance for Bad Debts …………………………………………………………. 2,000
Office Supplies ………………………………………. 3,000
Merchandise Inventory ………………………….. 12,000
(1994) ………………………………………………….. 6,000
Prepaid Insurance ……………………………………. 30,000
Sales Equipment …………………………………………………………………… 10,000
Allowance for Dep. Sales ………………………………………………………… 35,000
Equipment …………………………………………………………………………… 33,000
Accounts Payable …………………………………… 3,000
Uzair Capital ………………………………………………………………………. 1,80,000
Uzair Drawing ………………………………………… 13,000
Sales …………………………………………………….. 2,000
Sales Return & Allowance ……………………….. 1,05,000
Sales Discount ……………………………………….. 5,000
Purchases ……………………………………………………………………………… 3,000
Transportation in ……………………………………………………………………… 5,000
Purchase Return and Allowance ………………………………………………….. 4,000
Purchase Discount …………………………………. 20,000
Commission Income ……………………………….. 18,000
Salaries Expense ……………………………………. 5,000
Rent Expenses
Advertising Expenses
…………………………………………………………….. 2,72,000 ……………… 2,72,000
Additional Date for Adjustment:
(i) Merchandise inventory on June 30, 1995 was valued at Rs. 7,000.
(ii) Salaries expense for year amounted to Rs. 27,000
(iii) Expired insurance Rs. 3,500
(iv) Provide depreciation on sales equipment for the year Rs. 2,000
(v) The allowances for bad debts were estimated at the rate of 8% of the year end account receivable.
(vi) Commission income includes on amount received in advance Rs. 1,000.
(vii) Rent expense for year amount to Rs. 16,000
(viii) In item of purchase return of Rs. 1,000 was wrongly credited to sale account.
REQUIRED: (i) Prepare income statement for the year ended on June 30, 1995.
(ii) Prepare classified balance sheet June 30, 1995.
Q.6. DEPRECIATION
Arsalan & Co. records the acquisition of vehicle in the account tied as “delivery equipment”. Following are detail of vehicle purchased.
DATE OF PURCHASE ……………. TYPES OF VEHICLES ………….. COST
January 01, 2001 ……………………….. Truck ………………………. 500,000
July 01, 2001 …………………………….. Car ………………………….. 250,000
October 01, 2002 ………………………… Van ………………………… 300,000
It was decided to depreciate delivery equipment at 10% per annum on the straight line Method.
REQUIRED: Write up delivery equipment account, depreciation expenses account and allowance for depreciation account for year ended December 31, 2001, 2002 and 2003. Close and balance (as the case my be) the accounts at each year end. Show computation of each year’s depreciation charge. Prepare Balance Sheet (partial) on December 31, 2003 showing the relevant accounts.
Q.7 (a) Each of the six horizontal lines in the following table represents separate set.
Begining. Inv . Net Buying . Ending Inv . Cost of Goods . Gross Profit . Net Sales
10,00o …………… ? ……………… ? …………… 40,000 ……….. ? …………. 65,000
12,000 …………… ? …………. 10,000 …………. __ …………. 20,000 ….. 70,000
? ………………… 72,000 ……. 18,000 …………. __ …………. 20,000 ….. 95,000
? ………………… 50,000 ……. 15,000 ……… 55,000 ………… ? …………. 50,000
20,000 ……….. 70,000 ……… __ ………….. 82,000 …….. (2000) ……….. ?
22,000 ………….. ? ………….. 18,000 ………. 72,000 …….. 28,000 ………. ?
REQUIRED: Copy the above table and fill in the missing amount showing computations.
The following are eight independent cases.
………………………… Paid …………… Accrued ………… Prepaid …………… Expense
Salary ……………… 33,000 ………… 7,000 …………….. NIL ………………… ?
Rent ……………….. 40,000 …………. NIL ……………… 15,000 ……………… ?
Advertising ……… 78,000 ……….. 15,000 …………… 18,000 …………….. ?
Utilities …………… 20,000 ………… 5,500 ………………. ? ……………….. 22,500
Insurance ………… 77,000 ………….. ? ………………… 12,000 ………….. 80,000
Repair ………………… ? ……………… 8,000 …………….. 11,000 …………. 15,000
Interest …………… 23,000 ………… NIL ………………… NIL ………………… ?
Taxes …………………. ? ………………. NIL ………………… NIL …………….. 22,000
REQUIRED: Copy the above table and fill in the missing amounts showing computations.
Q.8. SPECIAL JOURNAL
From the following date
2009 ……………………… CUSTOMER ………… Rs.
February 02 ………… Waqar Brothers ……… 15,000
February 16 …………. Naeem and Sons …….. 20,000
February 28 …………. Nasir and Co ………….. 10,000
2009 ……………………. CUSTOMER ………….. Rs.
February 01 ………… Maroof Traders ……… 35,000
February 14 ………… Qamar Printers ……… 15,000
February 26 ………….. Hameed ………………. 5,000
REQUIRED: (a) Complete the sales journal
(b) Complete the purchase journal
(c) The control accounts
(d) The accounts receivable running balance from subsidiary ledger
Q.9. PARTNERSHIP ADMISSION
Following is the balance sheet on November 30, 2008 of the partnership firm of Talha and Tayyab who share profit and loss in the ratio of their capitals.
ASSETS …………………………………………… EQUITIES
Cash (Rs. 50,000) …………………………….. Capital Talha (Rs. 25,000)
Other Assets (Rs. 75,000) …………………. Capital Tayyab (Rs. 100,000)
TOTAL ……………. 1,25,000 ……………………………………… 1,25,000
On this date they agree to admit Abdul Hadi as a partner
REQUIRED: Give the required entries on the firm’s book to record the admission of Abdul Hadi and also prepare balance sheet after admission under each of the following assumptions seperately.