2nd year accounting test paper

Shamim collegiate

La54 block 15 gulshan e Mustafa Karachi 03433498272

2^nd year test paper

Question No. 01 Single Entry

Given data belongs to AAA Corporation:

Particular	Jan. 01 2011	Dec. 31 2011
Cash	2000	6600
Account receivable	3600	4300
Supplies	800	1420
Merchandise	2600	3700
Prepaid insurance	360	490
Prepaid rent	750	1150
Furniture		2000
Equipment	2400	6000
Notes payable	1140	1660
Account payable	1000	1230
Bank overdraft		1620
Bank account	1100
Commission revenue	1200	3100
Capital	?	?

Data for adjustment:

1.                              Owner invested 2100 cash as additional investment.

2.                              Drawing 120 p.m

3.                              Commission income unearned 100

4.                              Insurance expired by 90

5.                              Prepaid rent amount to 1300

6.                              Depreciation on fixed assets is 10%

7.                              Bad debts expenses are 300

Shamim collegiate

La54 block 15 gulshan e Mustafa Karachi 03433498272

2^nd year test paper

Question No. 02 dissolution

Assets		Equities
Cash	100000	accounts payable	70000
Other assets	260000	notes payable	30000
Income summary	20000	capitals F	100000
Account receivable	10000	capitals Z	100000

On this date they liquidate their business:

Case I

-account receivable was collected up to 90%
-other assets were sold for 300000
-account payable was paid 90%
-notes payable were paid completely.

Case II

Account receivable were collected up to 100%
-other assets were sold for 200000
-account payable was paid 100%
-notes payable were paid completely.

Required:

-liquidation summary
-computation and general entries under each case.

Question No 03: Retained Earnings

Given balance belongs to DANISH corporation.
Retained earnings 2500000/=
-Closing process revealed credit balance of income summary at Rs.210000/=

Following decisions are made for the year appropriations:

-create general reserve of 10000
-made building extension and renovation reserve 5000
-reserve for debenture redemption 12000
-contingency reserve is ¾ of general reserve

Required:

-journal entries
-partial balance sheet