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Time Allowed: 3 Hours Max Marks: 100: Colleges 1st Simulation

This document contains an accounting exam with 7 multiple choice questions. Question 1 asks to prepare machinery accounts using hire purchase terms. Question 2 asks to prepare financial statements from a trial balance. Question 3 calculates financial ratios for two companies. Question 4 asks to prepare contract, contractor, and balance sheet accounts. Question 5 provides journal entries for debenture issues. Question 6 asks to prepare a branch account. Question 7 defines departmental accounts. Question 8 defines bonus shares and their issuance process.

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56 views3 pages

Time Allowed: 3 Hours Max Marks: 100: Colleges 1st Simulation

This document contains an accounting exam with 7 multiple choice questions. Question 1 asks to prepare machinery accounts using hire purchase terms. Question 2 asks to prepare financial statements from a trial balance. Question 3 calculates financial ratios for two companies. Question 4 asks to prepare contract, contractor, and balance sheet accounts. Question 5 provides journal entries for debenture issues. Question 6 asks to prepare a branch account. Question 7 defines departmental accounts. Question 8 defines bonus shares and their issuance process.

Uploaded by

Kashif
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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ADVANCE ACCOUNTING B.

COM-II SOURCE GROUP OF


1st Simulation
COLLEGES

Time Allowed: 3 Hours Max Marks: 100

************************************************************************************
*
Attempt any five questions. All questions carry equal marks.

Q.1: On 1st January 2005 Naveed & co purchased machinery on hire purchase. The terms of the
contract were as follows:

a) Cash price of the machine was Rs 10,000


b) Rs 4,000 were to be paid on the signing of the agreement
c) The balance was to be paid in annual installment of Rs 2,000 plus interest
d) Interest chargeable on the outstanding balance was 10% p.a Depreciation at 20% p.a it to written
off on straight line method

REQUIRED:

Prepare relevant accounts in the books of Naveed & co from 1 st January 2005 to 31st December 2007
show machinery accounts in the balance sheet of the purchase as at 31 st December 2006.

Q.2: From the following Trial Balance of Lahore Manufacturing prepare “Trading and profit
& loss Account” Profit & Loss Appropriation Account “and or a “Balance Sheet “For the
year 2004 ended on 31-12-2004
Stock (01-01-2004) 75000 Reserve for Bad Debts 1800
Purchases 165,000 6% Debentures 300,000
Free hold property 216,000 Plant & Machinery 256,500
Cash &Bank 45000 Furniture 30000
Cash in hand 1200 Share premium 7500
Fuel and power 2250 Sundry Creditors 9750
Wages and salaries 39000 Debenture Redemption Reserve 6750
Insurance 6150 Discount Received 2400
Director Fee 6000 Interim Dividend 13,500
Custom Duty and clearing 5250 Debenture interest paid 9000
Repairs 3600 Issued ,Subscribed paid up capital 225000
Sundry Debtors 58500 General Reserve 15000
Sales 3,60,000 Dividend on investment 1000
Profit & loss A/C (Cr) 26,250 Tax Deducted at source 120
Bad Debts 1500 Carriage outward 880
Investment in shares 15000 Preliminary expenses 6000
Additional Information:

(i) Company was incorporated with an authorized capital of Rs 450,000 divided into shares of
Rs 10 each .
(ii) Wages and salaries include Rs 2000 paid as wages for installation of Machinery.

1st Simulation Examination, May 2013 1


ADVANCE ACCOUNTING B.COM-II SOURCE GROUP OF
1st Simulation
COLLEGES

(iii) Provide Depreciation on plant & Machinery @ 10% &Furniture & Fixtures @ 5%
(iv) The Directors recommended the following:
(a) Write of preliminary Expenses
(b) Transfer Rs 18000 to General Reserve
(c) Proposed final Dividend 10% On equality shares
(d) Rs 37,500 is appropriated for Taxation provision
(v) Create a reserve for doubtful debts @ 5% on debtors
(vi) Closing stock was valued at Rs 110,000

Q.3: From the following information calculate for the both companies:
(i) Gross profit ratio (ii) Working Capital ratio (iii) Stock turn over ratio (iv) Liquid ratio
XLtd YLtd XLtd YLtd
Sales 25,20,000 21,40,000 Fixed Assets 14,40,000 16,00,000
Cost of Sales 19,20,000 16,35,000 Net Worth 15,00,000 14,00,000
Opening Stock 3,00,000 2,75,000 Debts (long term) 9,00,000 9,50,000
Closing stock 5,00,000 3,50,000 Current Liabilities 6,00,000 6,65,000
Current Assets 7,60,000 6,40,000

Q.4: FWO Contractors began to trade on 1st April 2009 The following was the expenditures on the
contract for Rs 300,000.Material issued to contract Rs 51,000; plant used for contract Rs 15000;
wages incurred Rs 51000, other Expenses incurred Rs 5000 cash Received on Account by 31 st
March 2010 amounted to Rs 128,000 being 80% of the work certified, of the plant and materials
charged to the contract plant which cost Rs 3000 and material which cost Rs 2500 were lost .On
the 31st March 2010 plant which cost Rs 3000 was returned to stores the cost of work done but
uncertified was Rs 2000 and material costing Rs 2400 were in hand on site. Charge 15%
Depreciation of plant and take to the profit and loss Account 2/3 of the profit received.

You are required to prepare a contract Account, contractee’s Account and Balance sheet from the above
Information.

Q.5: Ali chemical Ltd issued 5000,10 % Debenture of Rs 100 each pass journal entries and prepare
Balance Sheet in each of the following cases:

(a) Debentures are issued at par and redeemable at par.


(b) Debenture are issued at 7% discount and redeemable at par
(c) Debentures are issued at 5% discount and redeemable at 4% premium.
(d) Debenture are issued at par and redeemable at 4% premium
(e) Debentures are issued at5% premium and redeemable at par.

1st Simulation Examination, May 2013 2


ADVANCE ACCOUNTING B.COM-II SOURCE GROUP OF
1st Simulation
COLLEGES

Q.6: Nazir & co Lahore has a branch at Faisalabad. Goods are invoiced to the branch at selling price
being cost plus 25%.The branch keeps its own sales ledger and deposits all cash received daily to
credit of the head office account opened at HBL, Faisalabad. All expenses are paid by cheque
from Lahore from the following information prepare branch Account in the books of head officer
after making necessary adjustment & calculate branch profit and loss for the year 2010.

Particulars Rs
Stock 1-1-2010 60,000
Stock 31-12-2010 72,000
Sundry debtors 1-1-2010 33,600
Sundry Debtors31-12-2010 43,200
Petty Cash 1-1-2010 1,500
Petty Cash 31-12-2010 1,500
Goods invoiced from H.C 436,800
Wages paid 19,200
Sundry expenses 3,840
Cash sales 259,200
Credit sales 168,000
Cash collected from debtors 158,400
Rent paid 17,920

Q.7: What is meant by Department Accounts? What are the objects and advantages of preparing
Departmental Accounts?
Q.8: Define bonus shares what are the objectives of issue of bonus shares? Also explain the process of
issuing these shares

1st Simulation Examination, May 2013 3

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