2nd year test paper two

Shamim Collegiate
House NO#  LA 54  Block 15 Gulshan e Mustafa  FB Area karachi, Mobile :: 03433498272
Accounting Surprise Test Paper For 2nd year by sir tariq
1. Single Entry
Balances of the assets and equities of the business of Mr. Masroor on Jan. 1, 1988 and Dec. 31, 1988 were as follows:
                                          Jan.1st …… Dec.31st
Cash in hand……………….1,00,000…  …..5,000
account recei……………….120,000… …..12,000
Prepaid Insurance…………………   ……5,000
Furniture………………… .10,000…   ….15,000
Accounts Payable……  …5,000……       ..7,000
Capital 1.1.1988……………10,000………….
Capital (unadjusted) 31.12.1988……………30,000
Additional information of Dec. 31, 1988.
i) During the year Masroor had with drawn Rs. 72,000 cash for his During the year Masroor had with drawn Rs. 72,000 cash for his private use and had made on additional investment of Rs. 50,000.
ii) The Bank Statement showed a debit of Rs. 260 for Zakat deduction and credit of Rs. 840 for profit.
iii) Insurance of Rs. 2,000 had expired.
iv) Depreciation of furniture is to be charged at Rs. 3,000.
After incorporating the additional information prepare.
Required
a) Statement of profit and loss for the year ended on Dec. 31, 1988.
b) Statement of Affairs (Balance Sheet) as of Dec. 31,1988.

2. Partnership-Division of Net Income or Loss
Given
Laiq, Nasir and Mohsin are partners with capital balances of Rs. 90,000, Rs. 60,000 and
Rs. 30,000 respectively. (Capitals are fixed and separate current accounts of partners are
maintained). The partnership agreement provided as under:
i) Annual salary of Rs. 72,000 to Nasir and Rs. 48,000 to Mohsin to be allowed.
ii) Profit equal to 20% of capitals is to be distributed in the ratio of capitals.
iii) Remainder profit to be distributed in the ratio of 3:1:1. During the year partners
drawings were. Laiq Rs. 80,000, Nasir Rs. 65,000 and Mohsin Rs. 55,000. The firm earned a net
profit of Rs. 246,000.
Required
a) Income Distribution Summary.
b) Entries in the General Journal to record partners drawings and distribution of the net
profit.

3. Depreciation
Given
On Jan. 1, 1986 Khud-Mukhtar Company purchased a machine for Rs. 260,000 at the end of its estimated life of five years the machine was expected to be sold for Rs. 60,000.
Required
Determined the depreciation on machine for the year 1986, 1987 and 1988 under:
i) Straight Line Method
ii) 40% Diminishing Balance Method Present year data, separately for each method in the following form:


Year
Cost of machine
Depreciation
Accumulated Depreciation
Book value
1986




1987




1988






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