Q.1. Fill
in the blank (20)
(i) a. When a transaction take place it is recorded same day in a book
called_______________. b. The process of transfer of transaction
from journal to ledger is called _______________
c. The main objective of any
_______________ is to earn profit and expansion.
d. Purchase is of two types’
_______________ and _______________.
e. _____________ Discount is not written in
the books of accounts.
(ii) Choose
the best Answer
a.
Sole proprietor has
(i)
Limited liability
(ii)
Unlimited liability
(iii)
Limited liability up to its investment
b.
Transaction means
(i)
Any deal among the businessman and outsiders
(ii)
Any impotent event that affect the business activities
(iii)
Any economic event that can be objectively measured in
terms of money
c.
Which of the following is correct?
(i)
Capital = Asset + Liabilities
(ii)
Assets = Liabilities – Capital
(iii)
Liabilities = Capital + Assets
(iv)
Capital = Assets -
Liabilities
d.
The amount recorded on the left side of account is
called: Credit entry
(i)
Credit entry
(ii)
Debit entry
(iii)
None of the above
e.
Recording of transaction in the journal is called:
(i)
Posting
(ii)
Journalizing
(iii)
Tallying
(i)
a. When a transaction
takes place, it is recorded the same day in a book called "Journal."
b. The process of
transferring transactions from the journal to the ledger is called
"Posting."
c. The main objective of
any "business" is to earn profit and expansion.
d. Purchase is of two
types: "Cash" and "Credit."
e. "Trade"
Discount is not written in the books of accounts.
(ii)
a. Sole proprietor has
(ii) Unlimited liability.
b. Transaction means (iii)
Any economic event that can be objectively measured in terms of money.
c. The following is
correct: (i) Capital = Asset + Liabilities.
d. The amount recorded on
the left side of the account is called: (ii) Debit entry.
e. Recording of
transactions in the journal is called: (ii) Journalizing.
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Q.2. Choose the appropriate term: (20)
1. Accounting
2. Assets
3. Balance
sheet
4. Business
Transaction
5. Creditors
6. Debtors
7. Journalizing
8. Simple
Journal Entry
9. Posting
10. Compound
Journal Entry
i. …………………….Entering
of a transaction in the book of original entry.
ii. …………………….Entry
only one debit and one credit balances.
iii. …………………….
Recording in the ledger the information contained in the journal.
iv. …………………….Entry
involving more than one debit and/or credit
v. …………………….The
art of recording, classifying, reporting and interpreting the financial data of
an organization.
vi. …………………….A
property or economic resource owned by an individual or enterprise
vii. …………………….An
economic event that can be measure din terms of money
viii …………………….A
person or enterprise to who a debit is owed
ix. …………………….A
financial report showing the assets, liabilities and owner’s equity of an
enterprise on a specific data
x. …………………….A
person or enterprise that owes a debt.
i. Journalizing - Entering of a
transaction in the book of original entry.
ii. Simple Journal Entry - Entry with
only one debit and one credit balance.
iii. Posting - Recording in the
ledger the information contained in the journal.
iv. Compound Journal Entry - Entry
involving more than one debit and/or credit.
v. Accounting - The art of recording,
classifying, reporting, and interpreting the financial data of an organization.
vi. Assets - A property or economic
resource owned by an individual or enterprise.
vii. Business Transaction - An
economic event that can be measured in terms of money.
viii. Creditors - A person or
enterprise to whom a debt is owed.
ix. Balance sheet - A financial
report showing the assets, liabilities, and owner's equity of an enterprise on
a specific date.
x. Debtors - A person or enterprise
that owes a debt.
Q.3. Define
the following key terms: (10x2=20)
i. Define
credit and cash transactions
ii. Define
accounting
iii. Define
Trial Balance
iv. Define
the Debit Note and Credit Note
v. If
total assets are Rs.1,000,000 and total liabilities Rs.370,000 find capital
vi. What
do you know about the Petty Cash Book?
vii. What
is owner’s equity? Give an equation for calculating owner’s equity
viii Pass
the journal entry: Mr. Ali’s Cheque Rs.75,000 deposited into bank
ix. What
do understand by contra entry?
x. What
is the purpose of bank reconciliation statement?
i.
- Credit transactions: Credit
transactions refer to transactions in which goods or services are received with
the agreement to make payment at a later date. It represents an increase in
liabilities or a decrease in assets for the recipient.
- Cash transactions: Cash
transactions refer to transactions in which payment is made immediately in the
form of physical currency, checks, or electronic transfers. It represents an
exchange of cash for goods or services.
ii. Accounting: Accounting is the
process of recording, classifying, summarizing, interpreting, and communicating
financial information about an organization's economic activities. It involves
the systematic and organized recording of financial transactions and the
preparation of financial statements for decision-making, financial analysis,
and reporting purposes.
iii. Trial Balance: A trial balance
is a statement that lists the balances of all general ledger accounts of a
company at a specific point in time. It is used to ensure the equality of
debits and credits in the accounting system and serves as a preliminary step in
the preparation of financial statements.
iv. Debit Note and Credit Note:
- Debit Note: A debit note is a
document issued by a buyer to a seller indicating that the buyer is debiting
the seller's account due to various reasons such as damaged goods, return of
goods, or an adjustment in the purchase price.
- Credit Note: A credit note is a
document issued by a seller to a buyer indicating that the seller is crediting
the buyer's account due to various reasons such as overpayment, goods returned
by the buyer, or a discount granted.
v. Capital: Capital refers to the
owner's equity or the owner's investment in a business. It represents the
owner's share of assets in the business. To calculate capital, the formula is:
Capital = Total Assets - Total
Liabilities
vi. Petty Cash Book: Petty Cash Book
is a subsidiary book used to record small cash transactions and expenses of
relatively low value. It helps to track and control small cash expenditures
such as stationery, postage, or miscellaneous expenses.
vii. Owner's Equity: Owner's equity,
also known as proprietorship or net worth, represents the residual interest in
the assets of a business after deducting liabilities. It reflects the owner's
investment in the business and any accumulated profits. The equation for
calculating owner's equity is:
Owner's Equity = Total Assets - Total
Liabilities
viii. Journal Entry: The journal
entry for Mr. Ali's cheque of Rs. 75,000 being deposited into the bank would
be:
Debit: Bank Account (Rs. 75,000)
Credit: Mr. Ali's Account (Rs.
75,000)
ix. Contra Entry: A contra entry is
an accounting entry that offsets or cancels out the effect of a previous entry
in the accounting records. It is recorded when there is a simultaneous debit
and credit entry for the same amount, canceling each other out.
x. Bank Reconciliation Statement: The
purpose of the bank reconciliation statement is to compare and reconcile the
balances of a company's cash book (recorded transactions) with the bank
statement (bank's record of transactions). It helps identify any discrepancies,
such as outstanding checks or deposits in transit, and ensures the accuracy of
cash records.
Q.4. Muhammad
Ali informs you that the transactions occurred during May 2019, the first month
of business operations. (20)
May 1 Asgher
Ali transferred Rs.250,00 cash from a personal bank account and equipment with
a value of Rs.40,000 to his business.
1.
A building costing Rs.390,000 and land costing
Rs.200,000 were purchased.
2.
Peremium ofr property insurance wa paid in the amount
of Rs.15,000 for May
3.
Supplies costing Rs.50,000 and equipment costing
Rs.60,000 were purchased on account.
15. Cash received for professional services performed. Rs.56,000
16. Paid cash to creditors on account, Rs.18,000
20. Returned
portion of the supplies costing Rs.2,400 since they were not of the proper
grade.
22. Received
Rs.18,800 cash from clients on account
31. Paid
utility bill Rs.5,000
31. paid
monthly salaries, Rs.30,000
You
are required to
a. Prepare
the General Journal
b. Ledger
Accounts
c. Trial
Balance
a. Prepare the General Journal:
Date
Description Debit
Credit
-------------------------------------------------------------------------------------------
May 1 Cash
(Asgher Ali's personal bank account)
250,000
Equipment
40,000
Asgher
Ali's Capital Account 290,000
May 1 Building
390,000
Land
200,000
Cash
590,000
May 2 Prepaid
Property Insurance
15,000
Cash
15,000
May 3 Supplies
50,000
Equipment
60,000
Accounts
Payable 110,000
May 15 Cash
56,000
Accounts
Receivable
56,000
May 16 Accounts
Payable 18,000
Cash
18,000
May 20 Accounts
Payable 2,400
Supplies 2,400
May 22 Cash
18,800
Accounts
Receivable
18,800
May 31 Utilities
Expense 5,000
Cash
5,000
May 31 Salaries
Expense 30,000
Cash
30,000
b. Ledger Accounts:
1. Cash
Date Debit Credit Balance
--------------------------------------------------------
May 1 250,000 250,000
May 15 56,000 306,000
May 16 18,000 288,000
May 22 18,800 306,800
May 31 5,000 301,800
May 31 30,000 271,800
2. Equipment
Date Debit Credit Balance
--------------------------------------------------------
May 1 40,000 40,000
May 3 60,000 100,000
3. Building
Date Debit Credit Balance
--------------------------------------------------------
May 1 390,000 390,000
4. Land
Date Debit Credit Balance
--------------------------------------------------------
May 1 200,000 200,000
5. Asgher Ali's Capital Account
Date Debit Credit Balance
--------------------------------------------------------
May 1 290,000 290,000
6. Prepaid Property Insurance
Date Debit Credit Balance
--------------------------------------------------------
May 2 15,000 15,000
7. Supplies
Date Debit Credit Balance
--------------------------------------------------------
May 3 50,000 50,000
May 20 2,400 47,600
8. Accounts Payable
Date Debit Credit Balance
--------------------------------------------------------
May 3
110,000
May 16 18,000 92,000
May 20 2,400 89,600
9. Accounts Receivable
Date Debit Credit Balance
--------------------------------------------------------
May 15 56,000 56,000
May 22
18,800
10. Utilities Expense
Date Debit Credit Balance
--------------------------------------------------------
May 31 5,000 5,000
11. Salaries Expense
Date
Debit Credit Balance
--------------------------------------------------------
May 31 30,000 30,000
c. Trial Balance:
Debit Credit
--------------------------------------------------------------------------------
Cash 271,800
Equipment 100,000
Building 390,000
Land
200,000
Prepaid Property Insurance 15,000
Supplies 47,600
Accounts Payable 89,600
Accounts Receivable 18,800
Utilities Expense 5,000
Salaries Expense 30,000
Asgher Ali's Capital Account 290,000
-------------------------------------------------------------
Total
1,358,200 1,358,200
Q.5. Following
are the credit purchase and sale transactions of a merchant for the month of
February 2019; record these transactions in the purchase and sale journal. (20)
Feb 02: Purchase 200 yards of Latha from M. Aslam at Rs.400 per yard
vide bill No 202 dated 1st of February.
Feb 15: Purchased 400 yards of Silk at R.750 per yard from Mr.
Iqbal, bill No. 1015, dated 10 February.
Feb 22: Bought from Ijaz and Co, 20 blankets at an invoice price of
Rs.2,500 each, Invoice No 32, dated 20 February.
Feb 25: Sold 200 yards of Latha at Rs.750 per yard and 10 blankets
at Rs.2,750 per blanket to Mr. Afzal vide bill no. 105.
Feb 27: Sold 120 yards of silk at Rs.800 per yard to Mr. Alli on
account and sent Bill No.109 for this amount.
Feb 28: 80 yards of cloth were sold to Mr. Amin and sent bill No.116
for Rs.32,000.
Purchase
Journal:
|
Date |
Vendor |
Invoice No. |
Item |
Quantity |
Rate |
Amount |
|
Feb 02 |
M. Aslam |
202 |
Latha |
200 |
Rs.400 |
Rs.80,000 |
|
Feb 15 |
Mr. Iqbal |
1015 |
Silk |
400 |
Rs.750 |
Rs.3,00,000 |
|
Feb 22 |
Ijaz and
Co |
32 |
Blankets |
20 |
Rs.2,500 |
Rs.50,000 |
|
Total: |
620 |
Rs.4,30,000 |
Sales
Journal:
|
Date |
Customer |
Invoice No. |
Item |
Quantity |
Rate |
Amount |
|
Feb 25 |
Mr. Afzal |
105 |
Latha |
200 |
Rs.750 |
Rs.1,50,000 |
|
Feb 25 |
Mr. Afzal |
105 |
Blankets |
10 |
Rs.2,750 |
Rs.27,500 |
|
Feb 27 |
Mr. Alli |
109 |
Silk |
120 |
Rs.800 |
Rs.96,000 |
|
Feb 28 |
Mr. Amin |
116 |
Cloth |
80 |
Rs.32,000 |
|
|
Total: |
410 |
Rs.3,05,500 |
Dear Student,
Ye sample assignment h. Ye
bilkul copy paste h jo dusre student k pass b available h. Agr ap ne university
assignment send krni h to UNIQUE assignment hasil
krne k lye ham c contact kren:
0313-6483019
0334-6483019
0343-6244948
University c related har
news c update rehne k lye hamra channel subscribe kren: