ALLAMA
IQBAL OPEN UNIVERSITY, ISLAMABAD
(Department
of Commerce)
ADVANCED
ACCOUNTING (444)
CHECKLIST
SEMESTER:
SPRING, 2012
This
packet comprises the following material: -
- Text book (one)
- Assignment No. 1, & 2
- Assignment forms (Two sets )
- Schedule for submitting
assignments and tutorial meetings
If you find anything missing in
this packet, please contact at the address given below:
The
Mailing Officer,
Allama Iqbal Open
University
H-8, Islamabad
051-9057611- 12
Muhammad
Munir
Course Coordinator
ALLAMA IQBAL
OPEN UNIVERSITY ,
ISLAMABAD
(Department
of Commerce)
[
1.
PLAGIARISM OR HIRING OF GHOST
WRITER(S) FOR SOLVING THE ASSIGNMENT(S) WILL DEBAR THE STUDENT FROM AWARD OF
DEGREE/CERTIFICATE, IF FOUND AT ANY STAGE.
2.
SUBMITTING ASSIGNMENT(S) BORROWED
OR STOLEN FROM OTHER(S) AS ONE’S OWN WILL BE PENALIZED AS DEFINED IN “AIOU
PLAGIARISM POLICY”.
Course: Advanced
Accounting (444) Semester:
Spring, 2012
Level: BA/B.Com Total
Marks: 100
Units: 1–9 Pass
Marks: 40
Assignment No. 1
(Units:
1–4)
Note: You are required to attempt all questions if you are unable to
understand any question of assignment, do seek help from your concerned tutor. But
keep in mind that tutors are not supposed to solve the assignment questions for
you.
Q.
1 From the following transactions between
Ahmad and Raza on account of joint venture business carried out by them in
March 2010, show how the account will be maintained by Raza and how settlement
would be made? Also show entries in the books of Ahmad. The profit and losses are
shared equally. (20)
|
Date
|
Details
|
|
March 2nd
|
Ahmad purchased gods worth Rs.
40,000 for the joint venture and spent Rs. 5,000 as freight.
|
|
March 5th
|
Raza purchased goods worth Rs.
60,000 for the joint venture and spent Rs. 3,000 as go down rent.
|
|
March 6th
|
Ahmad sold goods for Rs.
40,000.
|
|
March 10th
|
Raza sold goods for Rs. 50,000.
|
|
March 13th
|
Ahmad sold remaining goods for
Rs. 30,000. He paid Rs. 2,000 as commission to his agent and Rs. 1,000 wages.
|
|
March 18th
|
Raza sold goods for Rs. 30,000
and remaining stock of gods was taken over by for Rs. 5,000.
|
|
March 18th
|
Raza paid Rs. 1,500 as wages
and Rs. 500 as miscellaneous business expenses.
|
|
March 26th
|
Ahmad and
Raza submitted an account to each other for information.
|
|
March 29th
|
Raza received Rs. 1,000 from
Ahmad in settlement of account.
|
Q. 2 On January 1, 2010, Hassan of Quetta consigned goods
to Ali of Lahore for selling purpose. Ali is entitled to commission of 6% on
invoice price and 20% of any surplus price realized. Goods costing Rs. 18,000
were consigned at an invoice price of Rs. 22,500. The expenses of consignment
amounted to Rs. 1,800 were incurred by Hassan. Ali sent an Account Sales
showing the following information: He sold 75% of the quantity of goods
consigned to him for Rs. 18,500. He paid freight Rs. 180, insurance Rs. 90 and
other expenses Rs. 230. Hassan drew a bill for Rs. 10,000 on Ali, which was
accepted. Ali paid the remaining balance in cash. You are required to prepare
the necessary ledger accounts in the books of both the parties. (20)
Q. 3 Arif Traders has a branch at
Gujrat. The goods are invoiced to the branch at cost plus 20%. The expenses of
the Branch are paid from Head Office. The branch keeps a sales journal and
Debtors ledger only. On the basis of the following information, prepare Branch
Account as it would appear in the books of Head Office. (20)
Details Amount (Rs.)
Opening
stock (at invoice price)................................. Rs.12,000
Closing
stock (at invoice price)................................... 9,000
Credit
sales................................................................. 20,500
Cash
sales................................................................... 8,750
Receipt
from debtors.................................................. 18,950
Sundry
debtors on 31st December, 2010..................... 4,580
Goods
received from Head Office............................. 15,000
Goods
in transit from Head Office on 31st March 2010 1,800
Expenses
paid by Head Office for the branch............ 5,200
Q. 4 Explain the procedure of issuance of shares of a company.
Give the accounting treatment for different steps involved in this procedure
with the help of an example. (20)
Q. 5 ABC Ltd. offered
to the public 5,000, 10% debentures of Rs. 100 each at Rs. 105 each. 80% of the
issued debentures was underwritten by M/s Stock and Shares with an underwriting
commission of 25%. The company received applications for 4,000 debentures, which
were allotted. Journalise the above transactions in the books of ABC Ltd. (20)
Assignment
No. 2
(Units: 5–9)
Q. 1 Khawaja Ltd. Was registered with a capital of Rs. 10,00,000 divided
into equity shares of Rs. 10 each. From the following trial balance of Khawaja
Ltd., prepare Profit and Loss account and a Balance Sheet December 31, 2010. (20)
|
Particulars
|
Rs.
|
Particulars
|
Rs.
|
|
Sundry debtors
Closing stock
Fixed assets (at cost):
Furniture
Motor car
Premises
Salaries
Investment
in shares (at cost)
Printing and stationery
Postage and telegrams
Motor car fuel
Audit fee
Directors fee
Cash at bank
Cash in hand
|
134,200
80,000
75,000
22,000
180,500
32,750
15,000
1,020
1,520
5,450
3,100
950
50,247
35,058
|
Share
capital (fully called-up)
Gross profit
Sundry creditors
Dividends
Profit
& Loss Account (last year)
Depreciation
provisions:
Furniture
Motor car
Premises
|
400,000
152,500
39,765
1,500
22,030
10,000
6,000
5,000
|
|
|
636,795
|
|
636,795
|
Additional
Information:
i)
Provide
10% depreciation on motorcar, furniture, and premises.
ii)
Salaries
include Rs. 9,000 paid to Managing Director.
iii)
Proposed
dividend at 12%.
iv)
Provision
for taxation is to be made Rs. 45,000.
Q. 2 Define recapitalization. What are the legal provisions for
recapitalization? Discuss the advantages of recapitalization. (20)
Q. 3 a) What are the major
objectives of ratio analysis? (10)
b) Following is the trading and profit &
loss account of Anderson Ltd. (10)
Trading and Profit & Loss
Account
|
Details
|
Rs.
|
Details
|
Rs.
|
|
Opening stock
Purchases
Manufacturing Expenses
Gross profit
|
55,000
125,000
17,500
97,970
|
Sales
Closing stock
|
265,000
30,470
|
|
|
295,470
|
|
295,470
|
|
Office & administrative
expenses
Selling & distribution
expenses
Preliminary expenses written
off
Net Profit
|
13,200
18,420
4,000
62,350
|
Gross profit
|
97,970
|
|
|
97,970
|
|
97,970
|
Calculate:
i) GP Ratio ii) NP Ratio
iii) Profit Margin Ratio iv) Inventory
Turnover Ratio
Q. 4 What is
the difference between Hire-Purchase and Installment Sale? Explain the
accounting procedure for the buyer in installment sale. (20)
Q. 5 Differentiate
between operating lease and capital lease. Give accounting treatment for
operating lease in the books of lessor. (20)
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