B.com Part 1 Accounting Guess Papers 2012-2013

by • 24/11/2012 • GeneralComments (0)969

Note: Attempt any FIVE questions.

 

Q1. WORK SHEET

Following are the data related to pre-closing Trial Balance and Adjusted Balance of Humna ASSOCIATES FOR THE MONTH ENDED November 30, 2012:

 

Name Of Accounts Pre-closing Trial Balance Adjusted trial Balance
  Debit Credit Debit Credit
Cash 4,980   4,980  
Common Receivable 3,000   8,850  
Office Supplies 600   240  
Office Equipment 6,600   6,600  
Acculated 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  
Office Supplies Expense     360  
Depreciation Expense     110  
  23,680 23,680 25,190 25,190

 

REQUIRED:

(a) Trace out the data and prepare necessary adjusting entries.

(b) Prepare a Two-Column work sheet from the above data.

 

Q2. DEPRECIATION

a) Aneel Company purchased an equipment for Rs.7,00,000. the estimated resale value at the end of its useful life is Rs.60,000. the company uses staright line method for computing deprecation. The quarterly depreciation of the equipment is Rs. 20,000.

 

Required:

Compute total life in years of the equipment.

 

b) Qaiser Co. acquired a machine on Jan. 1, 2005 at a cost of Rs.5, 00,000; its operating life was estimated to be 5 years with salvage value of Rs.50, 000. The company closes its accounts on December 31 each year and uses sum of the year’s digits method for computing depreciation.

On June 30, 2008, the machine was exchanged with a new similar machine having a piece of Rs. 700,000 and the trade in allowance of the old machine was agreed upon at 80% of its written down value/ a book value.

 

 

Required:

a) Calculate depreciation charge for the years ended Dec. 31, 2005, 2006, 2007 and up to June 30, 2008.

b) Calculate balance to be paid in cash.

c) Give an entry to record exchange of the machine.

 

Q3. BANK RECONCILIATION

The accountant of Fayyaz Co. has extracted the following data from its cash record and its Bank statement on November 30, 2008.

i) Bank overdraft as per cash book Rs. 106,400.

ii) Bank overdraft as per Pass book Rs. 10,000.

iii) Issued a cheque for Rs. 50,000 to a supplier (after the expiry of discount period), but it was wrongly entered in cash book as Rs. 49,000.

iv) A debit memo for Rs. 5000 accompanied the bank statement for locker rent; the bank had erroneously charged this to Fayyaz Co, instead of Faiz Co.

v) Deposited a customer’s cheque for Rs. 78,400 (after discount deduction) but it was wrongly recorded in cash book as Rs. 80,000 as if it were received after discount period.

vi) A customer’s cheque for Rs.200,000 deposited directly in bank was by mistake entered into cash column of the cash book.

vii) Issued a cheque for purchase of supplies for Rs.10,000 was recorded on company’s record as Rs.1,000.

viii) Mark-up charged by bank was not recorded by the company Rs.2000.

ix) Three cheque totaling Rs.20,000 were issed to suppliers, but only one chque Rs.5000 was presented to the bank by the last day of the month.

x) Four cheuqes totaling Rs.120,000 were sent to the bank for collecting but only one cheque for Rs.20,000 was cleared and credited by the bank.

 

Required:

(a) Prepare Bank Reconciliation statement for November 30, 2008.

(b) Pass necessary adjusting entries.

 

Q4. VALUATION OF ACCOUNTS RECEIVABLE

 

On June 30, 2010 before closing the accounts, the AZ Company shows the following selected account balances as under:

 

Accounts Receivable- Control Rs.600,000
Allowance for Doubtful Accounts 10,000
Credit Sales 1,000,000
Sales Discount 50,000

 

On this date, following errors of omission were discovered:

i) The sale return and allowances for Rs.50, 000 were not recorded.

ii) Promissory Notes of Rs.10, 000 received from customers to apply on account remained unrecorded.

 

Required:

a) Give General Journal entries to correct the errors.

b) Prepare adjusting entries and also prepare initial Balance sheets at June 30, 2012 under each of the following assumptions separately:

 

i) Uncollectable account expenses are estimated at 2% of net credit sales.

ii) Allowance for doubtful accounts is estimated at 10% of Accounts Receivable (corrected) at the year end.

 

 

Q5. CLOSING ENTRIED AND INCOME STATEMENT

The following are the incorrect closing entries prepared by an in-experienced accountant of the end of the year ended December 31, 2007.

 

 

Dec. 31, 2007 Sales   250,000  
Sales Discount   5000  
Opening Inventory   10,000  
Allowance for Bad Debts   6000  
Drawing   1000  
Purchases   53000  
  Income Summary   325,000
Income Summary   26000  
Ending Inventory   15000  
Commission Income   1000  
  Salaries Expense   10,000
  Depreciation Expense   5000
  Utilities expense   4000
  Bad debt Expense   3000
  Allowance for Depreciation   20,000

 

Required:

Prepare FOUR correct closing entries.

Prepare an Income statement for the year ended December 31, 2007.

 

Q6. INVENTORY VALUATION

a) Rahat Equipment Co. provides you with the following inventory data:

Date   Quantity Cost/Unit
2008   Units Rs.
Jan 1 Beginning 40 1250
Feb 28 Purchase 100 1220
June 25 Purchase 85 1200
Nov 11 Purchase 110 1800

 

The inventory on December 31, 2012 of 50 units.

 

Required:

i) Determine the cost of Goods Available for sale.

ii) Determine the cost of ending inventory using FIFO method under Periodic system.

 

b) Bushra-Arshad Firm sells goods at a gross profit of 40% of sales. Following are the information related to sale and purchase of merchandise for the month of November, 2012.

 

Sales (net) during the month Rs. 300,000
Merchanse Inventory (1-11-2012) Rs. 9600
Purchase (Net) during the month Rs. 192,000

 

During the month, a certain class of merchandise costing to Rs. 12,000 was sold Rs. 14,400. Except for this sale, the gross profit on rest of the sales remained normal at 40%.

 

Required:

Determine the cost of Ending Inventory by Gross Profit method November 30, 2012.

 

Q7. PARTNERSHIP ADMISSION

Following is the Balance sheet on November 30,2012 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 25,000
Other Assets Rs. 75, 000 Capital Tayyab 100,000
  125,000   125,000

 

On this date, they agree admit Abdul Hadi as a partner.

 

Required:

Give the required entries on the firm’s books to record the admission of Abdul Hadi and also prepare Balance sheet after admission under each of the following assumptions separately:

 

a) Abdul Hadi purchases a 1/4th 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.

 

The new partner’s invests Rs. 100,000 for a 1/4th interest in the firm. Record bonus.

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