2011
XI – ACCOUNTING
PRIVATE
S.Hussain
Compiled & Solved by: S.Hussain
A4accounting@hotmail.com
ACCOUNTING – 2011
PRIVATE
Time: 20 Minutes Max. Marks: 20
SECTION “A” (MULTIPLE CHOICE QUESTIONS)
Note: (i) This section contains of 20 part questions and all are to be answered. Each question carries
equal marks. (ii) Do not copy down the part question in your answer book. Write only the answer in
full against the proper number of the question and its part. (iv) The code of your question paper
must be mentioned in bold letters in the beginning.
Q.No.1 Choose the correct answer for each from the given options:
(1) The owner’s equity in the business arises from these two sources:
(a) Net income and cash.
(b) Net profit and drawings.
(c) Net profit and additional investment.
(d) All of these.
(4) The term “Accounting Period” means the span of time covered by:
(a) Income statement.
(b) Balance sheet.
(c) Cash flow statement.
(d) All of these.
(9) Supplies on hand on Jan. 1, Rs.140, supplies purchased during the period Rs.530, supplies
consumed Rs.480, supplies at the end were:
(a) Rs.910.
(b) Rs.760.
(c) Rs.670.
(d) Rs.190.
(17) A cheque is received for Rs.4,000 and recorded in the bank column receipt side of cash book,
the balance of cash will show:
(a) No effect.
(b) Balance.
(c) Overstatement.
(d) Understatement.
(19) If sales return is debited to purchase account erroneously by Rs.2,000, the net income will
show:
(a) Increase by Rs.2,000.
(b) Decrease by Rs.2,000.
(c) No effect.
(d) Decrease by Rs.1,000.
ACCOUNTING – 2011
PRIVATE
Time: 2 Hours 40 Minutes Max. Marks: 80
SECTION “B” (SHORT – ANSWER QUESTIONS) (50)
Note: Attempt any Four questions. All questions carry equal marks. The use of calculator is allowed.
Q.No.2 GENERAL JOURNAL
GIVEN Following are the first six transactions of Miqdad Traders, posted in respective ledger account:
Cash (Rs.) Capital – Miqdad (Rs.)
Jan. 1, 2011 50,000 Jan. 20, 2011 1,000 Jan. 1, 2011 50,000
Jan. 25, 2011 3,000
REQUIRED
Record the effects shown in above ledgers (postings) in standard form of General Journal.
SOLUTION 2
MIQDAD TRADERS
GENERAL JOURNAL
FOR THE MONTH OF JANUARY 2011
Date Particulars P/R Debit Credit
Jan. 1 Cash 50,000
Capital 50,000
(To record the cash invested by owner in the business)
Jan. 4 Purchases 5,000
Accounts payable (Ahmed) 5,000
(To record the goods purchased on account)
Jan. 15 Accounts receivable (Mansoor) 4,000
Sales 4,000
(To record the goods sold on credit)
Jan. 20 Prepaid rent 1,000
Cash 1,000
(To record the rent paid in advance)
Jan. 25 Office supplies 4,000
Cash 3,000
Accounts payable (Ahmed) 1,000
(To record the purchase of office supplies)
SOLUTION 3
SHAH LATIF & CO.
GENERAL LEDGER
Cash
1.Apr.11 Balance 20,000 6.Apr.11 Salaries payable 15,000
6.Apr.11 Accounts receivable 25,000 10.Apr.11 Accounts payable 10,000
7.Apr.11 Sales 20,000 30.Apr.11 c/d balance 40,000
65,000 65,000
1.May.11 b/d balance 40,000
Bank
14.Apr.11 Capital 25,000
30.Apr.11 c/d balance 25,000
25,000 25,000
1.May.11 b/d balance 25,000
Accounts Receivable
1.Apr.11 Balance 50,000 6.Apr.11 Cash 25,000
7.Apr.11 Sales 30,000 30.Apr.11 c/d balance 55,000
80,000 80,000
1.May.11 b/d balance 55,000
Merchandise Inventory
1.Apr.11 Balance 60,000
30.Apr.11 c/d balance 60,000
60,000 60,000
1.May.11 b/d balance 60,000
Equipment
1.Apr.11 Balance 40,000
30.Apr.11 c/d balance 40,000
40,000 40,000
1.May.11 b/d balance 40,000
Accounts Payable
10.Apr.11 Cash 10,000 1.Apr.11 Balance 30,000
30.Apr.11 c/d balance 20,000
30,000 30,000
1.May.11 b/d balance 20,000
Salaries Payable
5.Apr.11 Cash 15,000 1.Apr.11 Balance 15,000
15,000 15,000
Bank Loan
1.Apr.11 Balance 25,000
30.Apr.11 c/d balance 25,000
25,000 25,000
1.May.11 b/d balance 25,000
Capital
1.Apr.11 Balance 100,000
30.Apr.11 c/d balance 125,000 14.Apr.11 Bank 25,000
125,000 125,000
1.May.11 b/d balance 125,000
Sales
7.Apr.11 Cash/Acc. receivable 50,000
30.Apr.11 c/d balance 50,000
50,000 50,000
1.May.11 b/d balance 50,000
Additional Working:
SHAH LATIF & CO.
GENERAL JOURNAL
FOR THE MONTH OF APRIL 2011
Date Particulars P/R Debit Credit
Apr. 05 Salaries payable 15,000
Cash 15,000
(To record the payment of outstanding salaries)
Apr. 06 Cash 25,000
Accounts receivable 25,000
(To record the cash collected from customer)
SOLUTION 4 (a & b)
24,800 9,800
Page 9
A4accounting@hotmail.com
Compiled & Solved by: S.Hussain
Compiled & Solved by: S.Hussain
A4accounting@hotmail.com
SOLUTION 5 (a)
SAKINA MARIAM CO.
SALES JOURNAL
FOR THE MONTH OF APRIL 2011 (PAGE # 51)
Date Invoice No. Name of Suppliers P/R Amount
April 05 Apex Stores 24,000
April 14 Shahzad Associates 13,000
April 23 Husnain Industries 12,000
April 30 Accounts receivable Dr. 5001 49,000
Sales Cr. 1005
SOLUTION 5 (b)
GENERAL LEDGER
Sales (1005)
Date Particulars P/R Amount Date Particulars P/R Amount
Apr. 30 c/d bal 49,000 Apr. 30 A/R SJ-51 49,000
49,000 49,000
May 1 b/d bal 49,000
SOLUTION 6
NAEEM & CO.
BANK RECONCILIATION STATEMENT
FOR THE MONTH ENDED 31 MARCH 2011
Particulars Cash Book Pass Book
Balance on 31 March 2011 2,050 (3,500)
Add: Late deposit cheque (iii) 5,400
1,900
Less: Outstanding cheques (iv) (800)
1,100
Add: Error by bank (v) 100
1,200
Less: Bank service charges (vi) (30)
2,020
Add: Office supplies (Error) (vii) 90
2,110
Less: Travelling expense (viii) (110,)
2,000
Less: Dishonoured cheque (ix) (800)
Reconcile Balance 1,200 1,200
SOLUTION 7
DANIYAL BROTHERS
CORRECTING ENTRIES
Date Particulars P/R Debit Credit
1 Bank 4,500
Accounts receivable (Irfan Sons) 4,500
(To correct the cheque deposited into bank)
2 Purchase discount 160
Cash 160
(To correct the payment after discount period)
3 Allowance for bad debts 2,000
Bad debts expense 2,000
(To correct the overstatement of bad debts)
4 Interest expense 4,000
Interest payable 4,000
(To correct the omission of accrued interest expense)
5 Commission receivable 5,000
Commission income 5,000
(To correct the understatement of accrued commission)
SOLUTION 8 (a)
USRA & CO.
INCOME STATEMENT
FOR THE PERIOD ENDED 31 DECEMBER 2010
Sales revenue 105,000
Less: Sales discount (5,000)
Net sales 100,000
Less: Cost of Goods Sold:
Merchandise inventory (beg) 30,000
Add: Net Purchases:
Purchases 130,000
Add: Transportation – in 5,000
Delivered purchases 135,000
Less: Purchase return and allowances (5,000)
Net purchases 130,000
Merchandise available for sale 160,000
Less: Merchandise inventory (end) (60,000)
Cost of goods sold (100,000)
Gross profit ---
Less: Operating Expenses:
Rent expense (25,000 + 2,000) 27,000
Insurance expense 12,000
Depreciation expense 4,000
Total operating expenses (43,000)
Loss from operation (43,000)
Add: Other Income:
Commission income 7,000
Net loss (36,000)
SOLUTION 8 (b)
USRA & CO.
BALANCE SHEET
AS ON 31 DECEMBER 2010
ASSETS EQUITIES
Current Assets: Liabilities:
Cash 40,000 Current Liabilities:
Accounts receivable 35,000 Accounts payable 25,000
Merchandise inventory 60,000 Rent payable 2,000
Unexpired insurance 8,000 Total current liabilities 27,000
Total current assets 143,000
Long – Term Liabilities:
Fixed Assets: Long term loan 80,000
Sales equipment 40,000 Total liabilities 107,000
Less: All for depreciation (4,000)
Total fixed assets 36,000 Owner’s Equity:
Capital 120,000
Less: Net loss (36,000)
Less: Drawings (12,000)
Total owner’s equity 72,000
Total assets 179,000 Total equities 179,000
SOLUTION 8 (c)
USRA & CO.
CLOSING ENTRIES
FOR THE PERIOD ENDED 31 DECEMBER 2010
Date Particulars P/R Debit Credit
1 Expense and revenue summary 213,000
Merchandise inventory 30,000
Purchases 130,000
Transportation – in 5,000
Sales discount 5,000
Rent expense 27,000
Insurance expense 12,000
Depreciation expense 4,000
(To close the various expenses accounts)
2 Sales revenue 105,000
Purchase return and allowances 5,000
Merchandise inventory 60,000
Commission income 7,000
Expense and revenue summary 177,000
(To close the various income accounts)
3 Capital 36,000
Expense and revenue summary 36,000
(To transfer the net loss to the capital account)
4 Capital 12,000
Drawings 12,000
(To close the drawings account)
OR
Additional Working:
USRA & CO.
ADJUSTING ENTRIES
FOR THE PERIOD ENDED 31 DECEMBER 2010
Date Particulars P/R Debit Credit
1 Merchandise inventory 60,000
Expense and revenue summary 60,000
(To adjust the merchandise inventory)
2 Rent expense 2,000
Rent payable 2,000
(To adjust the unpaid rent)
3 Insurance expense 12,000
Unexpired insurance 12,000
(To adjust the insurance expense)
4 Depreciation expense 4,000
Allowance for depreciation – Sales equipment 4,000
(To adjust the depreciation expense)