XI Accounting 2003 (Private)
XI Accounting
(PRIVATE)
NOTE: Attempt FOUR questions in all.All questions carry equal marks.
1. Answer the following questions: (25)
a) Give five examples of an asset.
b) What do you mean by owner’s equity?
c) What is a Business Transactions? Give three examples.
d) Analyzing is the first step in accounting process.Identify the other five phases of accounting process.
2. Accounting for Cash Book: (25)
On April 1, 2003 Mr. Inam has the balances of cash and at Bank Rs. 25,000 and Rs. 50,000 Respectively.He completed the following transaction during the month.
Apr.02: Purchased furniture for cash Rs. 7,000.
Apr.03: Cash sales Rs. 5,000 of which Rs. 2,000 was deposited into bank.
Apr.08: Purchased merchandise worth Rs. 9,000.Giving Rs. 4,000 cash and the balance by cheque.
Apr.09: Bought office supplies cash Rs. 1,000.
Apr.11: Sold merchandise worth Rs. 4,000.
Apr.13: Paid to supplied by cheque Rs. 6,000 in full settlement of his account of Rs. 6,200.
Apr.16: Deposited cash into bank Rs. 9,000.
Apr.19: Advice received from bank that a customer had deposited Rs. 4,000 direct into the bank.
Apr.21: Withdrew from bank 1,500 for personal use.
Apr.22: Received cash Rs. 6,585 from Mr. Solangi in full settlement of Rs. 6,700.
Apr.23: Paid salaries Rs. 8,000 cash.
Apr.26: Paid rent for the month by cheque Rs. 4,000.
REQUIRED
i) Record the above transaction in three-column cash book.
ii) Balance the cash book on April 30, 2003.
iii) Set up sales discount account No. 4003 and purchase discount account No. 5003 in ‘T’ form and post discount amounts in respective accounts.
3. General Journal
Given
Take the transactions given in questions No. 2 in this paper.
Required
Record the transaction in the standard form of General Journal.Give explanation below each entry.
4. Bank Reconciliation Statement: (25)
A comparison of cash and bank records of Kahkashan Corporation revealed the following information:
i) Balance as per cash book Rs. 25,000.
ii) Balance as per bank statement Rs. 50,000.
iii) Cheques deposit but not shown in bank statement Rs. 15,000.
iv) Cheques issued but not presented at the bank Rs. 32,000.
v) Direct deposit by customer in bank Rs. 8,000.
vi) Dishonoured cheque Rs. 1,500.
vii) Bank service cheque Rs. 500.
viii) Profit given by the bank Rs. 2,000.
Required
i) Prepare the Bank Reconciliation statement on May 1, 2003.
ii) Prepare necessary adjusting entries.
5. Special Journal: (25)
M/S Baig deals in electronics items.The following transactions were completed during April 2003:
Apr.01: Sold merchandise on account to Zaheer and sons for Rs. 20,000.
Apr.05: Sold merchandise on credit to Arif and Brothers for Rs. 27,000.
Apr.15: Sold merchandise for cash Rs. 15,000.
Apr.18: Sold merchandise to Ahmed and Co. on credit for Rs. 21,000.
Apr.26: Sold merchandise to Hakeem and Co. Rs. 13,000.
Required
i) Enter the above transactions in sales Journal.
ii) Set up Account Receivable No. 1102 and sales account No. 4001 in the General Ledger.
iii) Prepare Account Receivable for each customer in self balancing form in subsidiary Ledger.
6. Bills Transactions: (25)
On 1st Feb. 2003 ,Afzal sold merchandise to Zafar on account for Rs. 7,000.Afzal draws a Bill of Exchange on Zafar for 3 months duration.Zafar accepted it and returned it to Afzal.On the due date the bill was not paid for.
Required
Give entries in General Journal form in the books of Afzal and Zafar.
7. Financial Statement: (25)
The following balance were taken from the ledger of Khursheed and Sons on Dec. 31, 2002.
Debits……………………………….. Credits
Cash………………………………….30,000
Accounts Receivable………………15,000
Office Supplies…………………….2,000
Merchandise Inventory (1.1.2002)…..10,000
Office Furniture…………………….8,000
Accounts Payable………………………15,000
Khurshid’s Capital………………………40,500
Khurshid’s Drawing……………………..500
Sales………………………………………..40,000
Purchases………………………………18,000
Rent Expense………………………….5,000
Advertisement Expense……………….7,000
Total 95,500……………………………. 95,500
Adjustment Data:
i) Merchandise Inventory Dec.31, 2002 Rs. 7,000.
ii) Estimated allowance for bad debt Rs. 1,000.
iii) Estimated allowance for depreciation on office furniture @ 20%.
iv) Office supplies unused Rs. 300.
v) Accrud rent Rs. 2,000.
Required
i) Prepare Income statement for the year ended Dec. 31, 2002.
ii) Prepare classified Balance sheet as of Dec. 31, 2002.
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