XI Accounting 2001
XI Accounting
INSTRUCTIONS
i) Attempt any Four questions,All questions carry equal marks.
1-a) What is a Fundamental Accounting Equation? (5)
b) State the rules of debit and credit. (10)
c) List in sequence the steps involved in an accounting cycle. (10)
2- A business was started on March 1, 2001 with the investment of cash Rs. 50,000 and office equipment worth Rs. 50,000 and the following transactions were completed during the month:
March 2 : Purchased merchandise for cash Rs. 25,000 and on account Rs. 15,000.
March 3 : Purchased office supplies for cash Rs. 2,000.
March 12: Purchased furniture on account Rs. 5,000.
March 18: Sold merchandise for cash Rs. 20,000.
March 20: Paid to suppliers Rs. 10,000.
March 25: Sold merchandise on account Rs. 5,000.
March 30: Paid rent for the month Rs. 1,500.
REQUIRED
a) Record the above transactions in the General Journal.(10)
b) Post the transactions to “T” accounts.
c) Balance the accounts and prepare a trial balance.(5)
3- The following balances were extracted from the ledger of a vegetable seller on March 31,2001.
Cash Rs.2,000; Accounts receivable Rs.4000; Rent Security deposit Rs.6,000;Equipment Rs.2,000;Accounts payable Rs.3000; Malik capital Rs.?, Sales Rs.35,000;Purchases Rs.19,000;Salaries Expense Rs.6,000,Rent Expense Rs.3,000,Miscellaneous Expense Rs.1,500;Cartage-in Rs.500.
REQUIRED
i) Determine Malik Capital. (5)
ii) Prepare Income Statement for 3 months,ended March 31,2001.
(10)
iii) Balance sheet as of March 31,2001.
4- The following transactions were completed by Mr.Baig during March 2001:
March 2: Sold merchandise on account for Rs.1,350 to Mr.Rizvi.
March 9: Sold merchandise on account for Rs. 1,750 to Mr.Arain.
March 15: Defective merchandise returned by Mr.Rizvi Rs.150.
March 18: Sold merchandise on account for Rs. 2,000 to Mr.Shaikh.
March 19: Inferior merchandise returned by Mr.Arain Rs.200.
REQUIRED
a) Enter the above transactions in the Sales Journal (Page 3) and Sales Return and Allowance Journal (Page 5). (10 )
b) Post them to each customer’s account separately in the accounts receivable subsidiary ledger in self-balancing form. (5)
c) Prepare a schedule of accounts receivable.(5)
5- On March 1,2001 Mr.Aslam started a business with a cash investment of Rs.15,000 and completed the following transactions during the month:
March 2: Purchased merchandise for cash Rs. 5,000.
March 3: Cash sales Rs. 2,000.
March 7: Purchased office supplies for cash Rs. 1,500.
March 10: Sold merchandise on account Rs. 3,000.
March 11: Paid to supplier by cheque Rs. 770 in full settlement of his account of Rs. 800.
March 13: Deposited cash into bank Rs. 3,000.
March 15: Advice received from bank that a customer has deposited Rs. 3,000 direct into bank.
March 18: Withdrew from bank for office use Rs. 1,000.
March 20: The proprietor purchased an office equipement for cash Rs. 3,000 for business use from his own pocket.
March 23: Received cash Rs. 3,850 from Mr.Babar in full settlement of Rs. 4,000 and deposited into bank.
March 25: Paid salaries by cheque Rs. 6,000.
March 31: Paid rent for the month by cheque Rs. 3,000.
March 31: Cash is short by Rs. 100.
REQUIRED
i) Record the above transactions in 3-column cash book. (16)
ii) Balance the cash book on March 31,2001.(4)
iii) Setup the sales discount a/c No.4003 and purchase discount a/c No.5003 in standard form; post the discount amounts in respective accounts. (5)
6- Masood sold merchandise on account on February 2,2001 to Javed for Rs. 5,000 and drew a bill of exchange on Javed for the same ,payable 60 days after date.Javed accepted it and returned it on February 5,2001.After a month Masood discounted this bill with his bank at Rs. 4,950.On the due date bank presented the bill to Javed who showed his inability to pay the bill.The bank paid the noting charges,Rs.50 cash.Two days after default Javed signed a
promissory note for all amounts due in favour of Masood.
REQUIRED
Give entries in proper form in General Journal of Masood and Javed.
7- The following balances are extracted from the ledger of a sole trader on December 31,2000: Unearned Rent Rs. 9,000; Commission Earned Rs. 12,000 ; Office supplies expense Rs. 2,000; Advertising expense Rs. 10,000; Salaries expense Rs.18,000.
The following data for correction of errors and adjustments are available before closing the books:
i) Accrued commission income amounting to Rs. 500 was overlooked.
ii) Purchase of supplies for Rs. 235 cash was recorded and posted as Rs. 255.
iii) Printing of stationary for office use for Rs. 500 was recorded as advertising expense.
iv) Rent earned during the period amounted to Rs. 6,000.
v) Unearned commission at year end Rs. 3,000.
vi) Unused office supplies amounted to Rs. 500.
vii) Prepaid advertising at year end Rs. 3,000.
viii) Prepaid salaries on December 31,2000,Rs. 2,000.
REQUIRED
Prepare correcting and adjusting entries in proper form. (25)
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