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 For Solution , Visit: paksights.com/education

Financial Accounting Past Papers 2009 PU B.Com Part 1

Time Allowed: 3 Hours New Course Marks: 100

Note: Attempt any five questions. All questions carry equal marks.

Question No. 1

Give short answers of following question

(1) Define “Intangible Assets”

(2) What do you mean by “mutual Accommodation?

(3) What are “Capital Expenditures”?

(4) Define the term “Depreciation”

(5) What do you mean by “Super Profit?

(6) Write down the formula for determining the net profit under Net worth method

(7) What is the difference between Journal Ledger?

(8) Define “Worksheet”

(9) Why “Realization Account” is Prepared?

(10) Pass adjusting entry for “Unearned Commission”

Question No. 2

For their mutual accommodation, Amar draws a bill for Rs.10, 000 on Bilal for three months. Bilal
accepts it and returns it to Amar. The proceeds of the are to be shared by Amar and Bilal in the ratio of
3/5 and 2/5 respectively. The bill is discounte4 by Amar for Rs. 9,950 and he remits 2/5 of the proceeds
to Bilal Before the due date Bilal draws another bill for Rs 20, 000 on Amar at three months with the
help of these proceeds the frist bill is met by Bilal. The bill discounted for Rs 19, 900. Before the due
date of the second bill Amar becomes insolvent and his estate pays only 25% of the debts.

Required: Pass the entries in the books of both parties

Question No. 3

Form the Following particulars; prepare a revised cashbook and a Bank Reconciliation Statement of
Paradise Stores as 31st March, 2008.

(a) Credit balance as per the cash Book on 31-03-2008 was Rs. 60, 000.

(b) A wrong debit of Rs. 2,000 has been given by the bank in the Pass Book.

(c) Bank charges made by the bank Rs. 480 were recorded only in the Book.

(d) Out of the cheques for Rs. 100, 000 paid into the bank, cheques for Rs. 75, 000 were cleared and
credited by the bank.

(e) Two cheques for Rs. 30,000 and Rs. 60, 000 were issued but out of them only one cheque for
Rs.30000 was presented for payment up tp 31st march, 2008.

(f) Dividend on shares Rs.18, 000 was collected directly by the bank. The trader has no information
about this.

(g) The pass book contains an entry for Rs 20, 000 being a direct payment made by a customer into the
bank.

Question No. 4

Following is the Receipts and Payments Account of Chenab Club for the year ended on 31st December,
2002:

Rs. Rs.

Opening balance 8,000 Salaries 3,600

Subscription Stationery 350

2001 2, 000 Telephone charges 400

2002 18, 000 Insurance 1,200

2003 1,500 Miscellaneous expenditure 480

Entrance fees 1,300 Subscription to newspapers 640

Sales of old magazine 50 Purchase of sports material 6,000

Interest on investments 500 Closing Balance 19,480

Other receipts 800

32,150 32,150

2001 December – 31st Balances of investments Rs.10, 000 Furniture Rs.5,000, Buildings Rs.25, 000
Subscription due Rs.4,000 Stock, of stationery Rs.200. The balance as on 31st December 2002 Rs.150.
Depreciate due Rs.2,500 Stock of sports material Rs.3,000 and Stock of stationery Rs.150. Depreciate
furniture by 10% and buildings by 5% interest due on investments .500.

Required: Prepare income and expenditure account and balance sheet.

Question No. 5

Hamza and Subhan were partners in a firm sharing profits and losses as Hamza and Subhan 1/4 on 1st
January 2009. Their business position was as below.

Assets Rs Liabilities Rs

Cash at Bank 20, 000 Capital accounts

Stock 10, 000 Hamaz capital 50, 000

Sundry Debtors 30, 000 Subahan Capital 30, 000

Plant 40, 000 Sundry Creditors 20, 000

100, 000 100, 000

They agreed o admit Riaz into partnership. He agrees to pay the partners Rs.20, 000 by way of goodwill
and introduce 3/5 of the combined capital of the two existing partners after depreciating paint and
stock at 20% and 10% respectively and raising a reserve of 10% against sundry Debtors, The new partner
is to be allowed 1/4th share of the profit of the firm.

Required: You are asked to record the above transaction in the books of the firm and give the resultant
Balance sheet of the new firm.

Question No.6
Enumerate the methods of calculating “Depreciation”. Discuses briefly the merits and demerits of each
method

Question No. 7

In taking out the Trial Balance the accountant finds that the total of the credit side exceeds that of debit
side by Rs.2,410 He places the difference to Suspense Account and subsequently detects the following
mistakes:

(a) Stationery purchased for Rs. 890 but debited to stationery account as 980.

(b) A sum Rs. 650 received form Alam was credited twice in his account.

(c) Wages Rs. 250 paid for installing a machine was debited to wages account as Rs. 520.

(d) A sales of Rs. 350 was entered in the purchase book as Rs. 530 but customer’s account was correctly
debited with Rs. 350.

(e) A sale of Rs. 1,000 to Fawad was credited to his account twice.

(f) Old furniture sold for Rs. 6,000 was passed through sales book.

Required: Pass the rectifying journal entries and close the suspense account.

Question No. 8

From the following trial Balance of Farhan and co. you are required to prepare Trading and profit and
loss account / Income statement for the year ending on 31st March 2009, and a Balance sheet as at that
date:

Debit Credit

Opening Stcok 75, 000

Land and Building 62, 000

Goodwill 50, 000

Plant and Machinery 68, 750

Losse tools 1,250

Drawings and Capital 25, 000 150, 000

Bills Receivable and Bills payable 6, 250 20, 000

Purchase and sales 112, 500 312, 500

Carriage 1,250

Salaries 35, 000

Wages 31, 250

Loan to Ahsan and co. at 10% p.a 3, 750

Sundry debtors and creditors 50, 000 75, 000

Cash at Bank 25, 625

Cash in Hand 1,250

Furniture 2,500

Returns 3,125 3,750

Bad debts 1,875

Prepaid Insurance 4,375

561,250 561,250

Adjustments:

(1) Stock on 31-03-2009 was valued at Rs. 50, 000

(2) Depreciation Plant and machinery at 10% and Building at 5%.

(3) Outstanding wages Rs.2, 500.

(4) Interest on saleem and Co. loan was due for one year.

(5) Insurance expired Rs.1, 875.

(6) Provide 5% on debtors for Bad debts and 2% for discount
 For Solution , Visit: paksights.com/education

Financial Accounting Past Papers 2010 PU B.Com Part 1

Time : 3 Hours Marks: 100

Note: Attempt any five questions. All questions carry equal marks.

Question No.1

On 1st January, 2010 Abdullah sold goods to Omer for Rs 60, 000 Omer paid Rs 12, 000 in cash
and three bills for balance. The first bill for Rs. 14, 00 at one month the second for Rs 16, 000 at
two months and the third for the balance amount at three months

Abdullah endorsed 1st bill to Akram his creditor on 2nd January in full settlement of Rs 14, 200,
discounted the 2nd bill at his bank for Rs. 15, 840 and retained the third bill till maturity.

The first bill is met at maturity. The second bill is dishonored and Rs. 200 being paid as noting
charges. Abdullah charges Rs..300 for interest and draw on Omer a forth bill for the amount at
three months. At maturity the 3rd bill was renewed with interest of 10% p.a. for three months.
The 5th bill was duly accepted by Omer. The fourth and fifth bills were met on maturity.

Required: Journal entries in the books of Abdullah

Question No. 2

From the following particulars prepare Bank Reconciliation Statement of Mr. Hamza as at 31st
December 2009.

(a). Bank overdraft as per Bank Statement Rs. 4,700.

(b). Cheques issued prior to 31st Documenter amounted to Rs, 1, 800 of which cheques of Rs. 1,
050 have so far been presented to the bank.

(c). Interest on over draft for six months ending on 31st December Rs. 235 debited in the bank
Statement.

(d). Cheque paid into Banff-, but not cleared and credited by the Bank were Rs. 3, 250

(e). Bank charges debited in the Bank Statement amounted to Rs. 65.

(f). Interest and dividends on investments, etc, collected and credited by the, bank in the Bank
Statement amounted to Rs 350.

(g). A cheque for Rs. 220 received from a customer and entered in the bank column of the cash
Book was omitted to be paid into the bank.

(h). A customer has directly paid Rs. 350 to our banker in the settlement of his account
Question No. 3

The following balances appeared in the Books of Sania on 31st December, 2008.

Rs Rs

Building 70,000 Carriage on purchase 1, 291

Car 12, 000 Carnage on sales 800

Furniture 1, 640 Reserve to bad debts 1, 320

Sundry debtors 15, 600 Establishment 2, 135

Sundry creditors 18, 852 Taxes & insurance 783

Stock 15, 040 Interest (Cr) 340

Cash in hand 988 Bad debts 613

Cash at bank 14, 534 Audit fee 400

Bills receivable 5, 844 General charges 3, 950

Bills payable 6, 930 Traveling expenses 325

Purchases 85, 522 Discount (Dr) 620

Sales 121, 850 Investments 8, 922

Capital 92, 000 Sales Return 285

Required: Prepare Trading and Profit and Loss Account of Income statement for the year ended
31st December, 2008, and balance sheet as on that date. In doing so take the following matters
into consideration

(i). Stock on 31st December 2008 amounted to Rs 15, 550

(ii). Depreciate Motorcar at 20 % and Furniture at 10 %

(iii). Increase Bad Debts Reserve by 5 per cent on sundry Debtors

(iv). Salaries Rs. 500 and Taxes Rs. 150 are outstanding.

(v). Unexpired insurance Rs 50

(vi). Interest accrued on Investments Rs. 120

(vii). Rent due for a portion of the Building let Rs 150

(viii). A hill receivable for Rs 500 was discounted in December, 2008 but was not due till
January 2009.

Question No. 4

Ms. Affaf finds excess debit of Rs 800 in the trial balance. She places the difference to a newly
opened suspense account to balance the trail balance. Later she discovers the following
discrepancies.

(a) An item of Sale for Rs 5, 900 was posted to the sale a/c at 9, 500.

(b)The total of the sales returns book has been added Rs 100 short

(c) An amount of Rs 3, 700 received from a customer has been credited to his account as Rs. 7,
300.

(d) Rs. 150, 000 paid for purchase of building has been charged to the ordinary purchase
account.

(e) A sum of Rs 9, 500 written off from building a/c as depreciation has not been posted to
depreciation a/c.

(f) An amount received from a debtor of Rs. 9.700 has been debited to his account as Rs. 7, 900.

Required: Give the rectifying entries and prepare the Suspense Account. State also the ultimate
effect of these correcting entries on the profit of the business.

Question No. 5

Suleman keeps his books on single entry system. His statement of Assets and Liabilities as on
31st December 2007 is as follows:

Assets Rs Liabilities Rs

Land and buildings 40, 000 Sundry creditors 130, 000

Furniture & fixtures 6, 000 Loan from money Lender 113, 200

Plant & machinery 110, 000 Other liabilities 26, 800

Stock 18, 400

Sundry debtors 151, 000

Cash 16, 600

342, 000 270, 000

His drawings during the year amount to Rs.6000. land and building are to be depreciated by 2%,
furniture and fixture by 10% and plant and machinery by 10%. Sundry debtors are to be reduced
by 2%. He has used Rs. 1600worth of stock of his business for private purposes. During the year
2007 he sold some of his household furniture for Rs. 2000 and paid this into his business bank
account. His capital at beginning of the year was Rs. 60,000. draw up his statement of profit
and loss of the year ended 31st December 2007.

Question No. 6

The partnership of A, B and C who are sharing profits and losses in the proportion of 4/9, 2/9
and 1/3 is dissolved on 1st April 2005. Their balance sheet of 31st March was as follows:

Assets Rs Liabilities Rs

Cash in hand 1, 500 Sundry creditors 4, 500

Cash at bank 2, 250 Bills payable 2, 050

Bills receivable 2,800 A’s loan 2, 000

Investments 12, 000 Capitals

A 34, 000

B 23, 000

C 1, 500

Debtors 15, 500 Reserve fund 6, 300

Stock 9, 700 Profit and loss 2, 250

Furniture 1, 850

Machinery 7, 500

Building 22, 500

75, 600 75,600

The assets realized – investment 15% less, Bills receivable and debtors Rs. 14, 100, Stock 25%
less, Furniture Rs. 1, 025, Machinery Rs. 4, 300 and Buildings Rs. 13, 200. The cost of
realization was Rs.300. All the liabilities were paid off. C becomes bankrupt and Rs. 512 only is
received from his estate full settlement of his indebtedness to his indebtedness to the firm.
Partners are paid off.

Show the realization account and capital accounts of the partners:

(i) When capitals of the partners are fixed amounts and

(ii) When the capitals are not filed.

Question No. 7

Discuss in details the following accounting concepts:

 Separate entity concept

 Dual aspect’ concept
 Matching concept
 Going concern concept
 Cost concept

Question No. 8

Define worksheet. Explain its various columns. Elaborate its importance in the modern
accounting?
 For Solution , Visit: paksights.com/education

Financial Accounting Past Papers 2011 PU B.Com Part 1

Time : 3 Hours Marks: 100

Note: Attempt any five questions. All questions carry equal marks.

Question No. 1

Noman for mutual accommodation draws a bill for Rs.45, 000 on Ahsan at three
months. Noman gets the bill discounted by his banker for Rs. 43, 875 and remits
Rs 14, 625 to Ahsan on maturity Noman is not able to send the amount due to
Ahsan, to enable him to meet the bill. He, however, accepts a bill-for Rs. 56,250
which is discounted by Ahsan for Rs. 52,875. Ahsan meets his acceptance and
remits Rs. 2, 700 to Noman. Before the due date of the bill Noman becomes
insolvent and a dividend of 60 paisa in the rupee is received from his estate.

Required: Pass journal entries and show account of Noman in the books of Ahsan.

Question No. 2

(a) A trader has two Bank Accounts a/c No.1 and a/c No.2. The following
particulars relating to a/c No.1 are available on 31st March 2010.

(i). Pass Book balance (overdrawn) Rs. 60, 000.

(ii). Cheque drawn prior to 31st March but not presented as yet Rs.16, 000.

(iii). Cheque paid into the bank on 31st March 2010 but not yet credited Rs. 28,
000.
(iv). Interest debited by the bank but not entered in the cash book as yet Rs. 1,
600.

(v). Transfer from A/c No. 2 to A/c No.1 recorded by the bank on 31st March, but
not entered in the cashbook Rs. 12, 000.

(vi). Bank charges debited by the bank but not recorded in the cash book as yet
Rs. 40.

Required: Prepare a Bank Reconciliation Statement for account No. 1 as on 31st

March. 2010.

(b) Enter the following transactions in the books of A Rahim in a double column
cash book and balance the same on 30thApril, 2010.

April 1 Cash in hand Rs. 80, 000 and bank overdrawn balance Rs. 270, 000.

April 4 Received two cheques for cash sales

(a) From X Rs. 120, 000.

(b) From Y Rs, 16, 000

April 5 Endorsed the first cheque to purchase furniture from A and the second
cheque to B to settle his account

April 10 Sold goods to M for cash Rs. 200, 000 and deposited the same into the
bank.

April 12 The cheque endorsed to B returned dishonored,

April 16 Purchased stationery for Rs. 10, 000 by cheque.

April 18 Received from P Rs 160, 000 on account.

April 22 Q, a customer deposited into the bank Rs.70, 000

April 25 Bought furniture for cash Rs. 120, 000.

April 30 Bank debited Rs. 3, 000 for incidental charges.

April 30 Deposited all cash over Rs. 40, 000 into the bank.

Question No. 3

The Trail Balance of Farooq & Co. did not agree. The credit side was exceeding
that of debit side by Rs. 20, 000 and the difference was placed in Suspense A/c.
The following errors were discovered later on. To rectify these errors pass
necessary journal entries and prepare suspense account State also the effect of
errors on final accounts.

1. Purchase Book was overcast by Rs. 3, 600.

2. An amount of Rs. 5, 200 receivable from Salman & Co. was not included in
Debtors schedule.

3. Received Rs. 11, 600 from Khawaja & Co. but this was credited to their account
as Rs. 10, 000.

4. Goods sold to Ahsan for Rs.14, 000 on credit were not posted to his account.

5. Rafiq Bros. returned goods worth Rs. 6, 000. This was credited to their account
but not entered in the sales returns book.

Question No. 4
X Y and Z carrying on business and sharing profits in the ratio of 3:2:1 respectively
agreed to dissolve their partnership firm on 31st December 2010. The balance
sheet of the firm as on that date is as follows:

Assets Rs Liabilities Rs

Machinery 100, 000 Creditors 88,000

Stock 60, 000 Capital

Debtors 78, 000 X 100, 000

Cash at Bank 32, 000 Y 10, 000

Z 72, 000

270, 000 270, 000

X agreed to take over machinery at on agreed value of Rs. 80, 000. A sum of Rs.
63, 000 could be realized from debtors and stock was sold for 46, 000. The
creditors were satisfied by payment of Rs. 84,000. X agreed to bear all expenses
of dissolution. For this service X is to be paid Rs. 3, 000? Actual expenses amount
to Rs.5, 000. Draw up a realization account, bank account and partner’s capital
accounts assuming that all partners are solvent

Question No. 5

Given below is the receipts and payments account of the mumtaz club for the
year ending 31st December 2010.

Rs Rs

Balance b/d 10, 250 Salaries 6, 000

Subscriptions: General expenses 750

2009 400 Drama expenses 4, 500

2010 20, 500 News papers etc. 1, 500

2011 600 Municipal taxes 400

Donations for prize fund 5, 400 Charity 3, 500

Proceeds of Drama tickets 9, 500 Investments 20, 000

Sale of waste papers 450 Electricity Charges 1, 450

Balance c/d 9, 000

47, 100 47, 100

Prepare the Club’s income and expenditure account for the year ended 31st
December, 2010 and its Balance sheet as on that date, after taking the following
information into account:

(i). There are 500 members, each paying an annual subscription of Rs. 50, Rs. 500
being in arrears for 2009.

(ii) Municipal taxes amounting to Rs. 400 per annum have been paid up to 31st
March 2011 and Rs. 500 for salaries is outstanding.

(iii) Building stood in the books at Rs. 50, 000 and it s required to write off
depreciation at 5 per cent.

(iv) Three per cent interest has accrued investments for five months.
Question No. 6
From the following Trial Balance of Shahid Bros. Prepare a trading & Profit and
Loss A/C for the year ended 31-12-2010 and also Balance Sheet as on the above
date.

Debit Credit
Stock on 1-1-2010 48,400
Purchases 82,000
Sales 239,200
Capital 366,400
Drawings 16,800
Furniture 48,000
Salaries outstanding 52,000
Sundry Debtors 67,200
Sundry Creditors 50,000
Income Tax 2,400
Machinery 7,2000
Building 160,000
Investment in 10% Govt,Securities 32,000
Wages 48,000
Salaries 52,000
General Expenses 12,000
Cash at Bank 12,000
Cash in Hand 8,000
Total 660,880 660,800

Adjustments
(1) Depreciate Building at 2% p.a, Machinery at 5% p.a and furniture at 10% p.a.
(2) Provide for doubtful debts @ 5% and for discount @ 5% on sundry debtors.
(3) Create reserve for discount on creditors @ 3%.
(4) Wages payable Rs 6,000.
(5) Stock on 31-12-2010 is 65,200.

Question No. 7

(a) On 1st July 2007 Raiz purchased machinery for Rs. 60, 000. Depreciation is to
be provided for at 10% on diminishing balance each year. On 31st October 2009
1/4 of Machinery was sold for Rs. 6,000 as they became useless. On the same
date he purchased new machinery for Rs. 20,000. Prepare machinery account
from 2007 to 2009. Accounts are closed on 31st December every year.

(b) Pass the necessary adjusting entries from the following for the year ended on
31st December 2010.

(i) Salaries outstanding for the month of December, 2010 Rs. 4, 000.

(ii) Accrued interest or bank deposit Rs. 2, 000.

(iii) Commission received in advance Rs. 2, 000 out of which Rs. 1, 000 has been
earned.

(iv) Goods value Rs. 2,000 was taken away by the proprietor for personal use for
which no record has been made in the book.

Question No.8

Define accounting. What is the need and importance of accounting?

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Financial Accounting Past Papers 2012 PU B.Com Part 1

Time : 3 Hours Marks: 100

Note: Attempt any five questions. All questions carry equal marks.

Question No. 1

A sold goods to B for Rs. 50, 000 and drew on B a bill for the amount at 3 months.
A endorsed the bill-to his creditor. C. C endorsed it to his creditor D. D got the bill
discounted by his bank at 12% p.a. On maturity, the bill is dishonored and bank
pays Rs. 50 for noting charges.

Pass entries in the books of A, B, C, D and the bank.

Question No. 2

On 31st March, 2011, the Cash Book of Mr. Aqeel shows Rs.33, 436 as bank
balance. But it does not agree with the balance as shown by the Pass Book. On
comparison, you

Find the following discrepancies:

(1) The payment side of the cash book was under cast by Rs. 400.

(2) A cheque issued for Rs: 524 on 25th March, was recorded in the cash column
of the cash book.

(3) A cheque of Rs. 600 deposited was recorded in the cash column of the cash
book.
(4) On 20th March, the debit balance of Rs. 6, 104 as on the previous day was
brought forward as credit balance.

(5) Of the total cheques amounting Rs. 46, 056 drawn in the last week of March
2011, cheque totaling Rs. 31, 260 encashed in March.

(6) Dividend of Rs. 1, 000 collected by the bank was not entered in the cash book.

(7) Trade subscription of Rs. 400 paid by the bank was not recorded in the cash
book.

(8) One outgoing cheque for Rs. 1, 400 was recorded twice in the cash book.

Prepare a Bank Reconciliation Statement with the help of revised cash book as at
31st March, 2011.

Question No. 3

From the following Trail Balance and adjustments, you are required to prepare
Trading and Profit and Loss Account for the year ended 31st December, 2011 and
a Balance Sheet as on 31.12.2011.

Debit Balances Rs. Credit Balances

Rs

Cash at bank 31, 800 Capital 420, 000

Cash in hand 4, 800 Sundry creditors 60, 000

Closing stock 180, 000 Bills payable 30, 000

Plant and machinery 450, 000 Sales 1,390,

200

Bills receivable 30, 000 Provision for bad debts 2, 100

Sundry debtors 303,600 Reserve 120, 000

Purchases (adjusted) 540, 000

Buildings 300, 000

Salaries 66, 000

Wages 86, 400

Postage & telegrams 4, 500

Carriage inward 4, 500

Bad debts 5, 700

Carriage outward 6, 000

General expenses 9, 000

Adjustments:

(i) Salaries unpaid Rs. 54, 000

(ii) Charge 5% interest on capital

(iii) Raise Bad debts provision to 2.5% of debtors

(iv) Transfer 2.5% of net profit to reserve a/c

(v) It was discovered in January 2011 that the stock on 31st December, 2010 was
over cast by Rs. 6, 000.

Question No. 4

In taking out the Trial Balance the accountant finds that the total of the credit side
exceeds that of debit side by Rs.2, 410. He places the difference to a suspense
account subsequently detects the following mistakes:

(i) Stationary purchased for Rs. 890 but debited to stationary account as Rs. 980.

(ii) A sum of Rs. 650 received from Alain was credited twice in his account.

(iii) Wages Rs. 250 paid to installing a machine ware debited to wages account as
Rs. 520.

(iv) A sale of Rs. 350 was entered in the purchase book as Rs. 530 but customer’s
account was correctly debited with Rs. 350.

(v) A sale of Rs. 1, 000 to Fawad was credited to his account twice.

(vi) Old furniture sold for Rs. 6,000 was passed through sale book.

Give the rectifying entries and prepare the suspense account.

Question No. 5

Enter five imaginary transactions in Journal, post them in ledger and prepare trial
balance.

Question No. 6
Write short notes on:

(i) Cash discount and trade discount.

(ii) Fixed installment method and Diminishing balance method of depreciation.

(iii) Work sheet and income statement.

(iv) Capital expenditures and revenue expenditures.

Question No. 7

The following are the assets and liabilities of Mr. Qaiser at the end and beginning
of the year 2011, under single entry system

As at 31st Dec 2011 As at 1st Jan 2011

Land and building 58, 800 60, 000

Plant and Machinery 120, 000 96, 000

Furniture and fixtures 16, 200 16, 000

Stock in trade 56, 000 30, 000

Sundry debtors 310, 000 280, 000

Sundry creditors 150, 000 145, 000

Loan from bank 100, 000 120, 000

Other outstanding liabilities 80, 000 90, 000

Cash at bank 32, 000 36, 000

During the year Mr. Qaiser had withdrawn Rs. 6, 000 in cash and Rs. 3, 000 in
goods from the business. He had also introduced Rs.100, 000 as additional capital.
A machine book value Rs. 25, 000 had been sold during the year for Rs. 30, 000
and new machine costing Rs.58, 000 was purchased in replacement. New
furniture costing Rs.2, 000 was purchased during the year.

Prepare a statement of profit and loss for the year ended December 31 2011

Question # 8

Ali and Babar are partners in a firm sharing profits and losses as All 3/4 and Babar
1/4 on January, 2011 their position was as given below;

Assets Rs Liabilities Rs

Plant 80, 000 Capital Accounts:

Stock 20, 000 Ali 100, 000

Debtors 60, 000 Babar 60, 000

Cash at bank 40, 000 Sundry creditors 40,000

200, 000 200, 000

Usman is now to join the partnership. He agrees to pay the partners Rs. 40, 000
by way of goodwill and introduce 3/5 of the combined capital of the two existing
partners after depreciating plant and stock at 20% and 10% respectively and
raising a reserve of 10% against sundry’ debtors. The new partner is to be allowed
114th share of the profits of the firm.
You are asked to record the above transactions in the books of the firm and give
the resultant Balance sheet of the new firm.
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Financial Accounting Past Papers 2013 PU B.Com Part 1

Time : 3 Hours Marks: 100

Note: Attempt any five questions. All questions carry equal marks.

Question No. 1

For their mutual Accommodation Asim draws a bill for Rs. 50, 000 on Wasif for
three months. Wasif accepts it and returned it to Asim, The proceeds Of the bill
are to be shared by Asim and Wasif in the ratio of 3/5 and 2/5 respectively. The
bill is got discounted by Asim for Rs, 49, 750 and he remits 2/5 of the proceeds to
Wasif. Before the due date Wasif draws another bill for Rs. 100, 000 on Asim at
three months, which help of these proceeds the first bill is met by Wasif and
remaining proceeds are shared Asim and Wasif in the ratio of 2/5 and 3/5
respectively. The bill is discounted for Rs. 99, 500. Before the due date of the
second bill, Asim becomes insolvent and his estate pays only 25% of the debts.

Question No. 2

From the following particulars prepare a bank reconciliation statement as on 31st

March 2011.

(1) Bank balance as on 31st March 2011 as per pass book Rs. 15, 200

(2) Bank charges debited Rs..130 in the pass book

(3) Cheques issued but not presented to bank for payment Rs.2, 000

(4) Cheques deposited to bank but not credited in the pass book.Rs.7, 000
(5) A cheque entered as a deposit in a cash book instead of payment Rs.220

(6) Rs. 364 paid into Bank had been entered twice in the cash book.

(7) The receipt column of the Cash Book has been over cast by Rs, 1, 000

(8) A cheque drawn for Rs, 9 had been incorrectly entered in the cash book as
Rs.99.

Question No. 3

Pass necessary journal entries to rectify the following errors:

(a) An item or Rs. 53 has been debited to a personal account as Rs 35

(b) A sum of Rs 100 written off as depreciation on furniture was not debited to
depreciation account.

(c) The total of purchase book was added Rs. 60 short.

(d) A machine bought for Rs. 5,000 has been debited to purchase account.

(e) Sale of old machine for Rs. 500 to Mehwish has been entered in the Sales
Book.

(f) Total of Return Outward book was Rs. 100 short.

(g) A sale of Rs.359 to R has been entered correctly in the Sales Book but credited
to S account as Rs. 395

(h) Repairs Rs. 680 to Motor Truck has been debited to Motor Vehicle account as
Rs 860
(i) Cash received from John Rs. 300 has been debited to John’s a/c.

(j) Furniture purchased for Rs 3, 000 was not entered in the books.

Question No. 4

The following are the balances extracted from the books of A. Rashid as at 31st
December 2008.

Accounts Title Rs. Accounts Title Rs.

Capital account 90, 000 Bad debts reserve 3, 240

Drawings 7, 600 Taxes & insurance 1, 300

Purchases 89, 470 Discount account credit 190

Purchases return 4, 240 Bills receivable 1, 240

Sales 1, 49, 840 Sundry debtors 62, 970

Sales return 2, 820 Sundry creditors 16, 980

Stock (1-1-2008) 11, 460 Cash & bank 12, 400

Salaries & wages 6, 280 Cash in hand 2, 210

Buildings 25, 000 Office furniture 3, 500

Freight & cleaning Travelers salaries &

charges 16, 940 commission 9, 870

Carriage inwards 2, 310 Addition to building 7, 000

Office expense 1, 340 Rent received 2,100

Printing & stationary 660

Postage & telegram 820

Bad debts 1, 400

You are required to prepare trading and profit and loss account for the year
ended 31st December 2008 and a balance sheet as on that date after making the
following adjustments.

(1) Depreciate building by 2-1/2% and office furniture by 5%

(2) Reserve for bad debts to be made up to Rs. 4,000

(3) Salaries outstanding for December Rs. 570

(4) Rend Receivable Rs. 200

(5) 5% interest to be charged on capital.

(6) The value of Stock on 31st December 2008 was Rs. 14, 290

(7) Unexpired insurance amounted Rs. 240

Question No. 5

Jamil does not maintain proper books of accounts. From the following particulars
prepare trading and profit and loss accounts for the year ended 31st December,
2010 and the balance sheet on that date.

31.12.2011 31.12.2012

Debtors 90, 000 2, 500

Stock 4, 900 6, 600

Furniture 500 750

Creditors 3, 000 2, 250

Analysis of the other transactions is as follows:

Rs.

Cash collected from debtors 304, 000

Cash paid to creditors 22, 000

Salaries 6, 000

Rent 750

Office expense 900

Drawings 1, 500

Additional capital introduced I, 000

Cash sales 750

Cash purchases 2, 500

Discount allowed 150

Discount inwards 350

Returns inwards 500

Returns outwards 400

Bad debts 100

He has Rs. 2, 500 as cash balance at beginning of the year

Question No. 6

Define work sheet. How is work sheet used?

Question No. 7

Sarmad and Bilal were partners in a firm sharing profits equally. Their business
position on 30th June 2009 was as follows:

Assets Rs Liabilities Rs

Cash in hand 300 Sarmad’s capital 4,200

Stock 7,200 Bilal’s capital 3,200

Sundry debtors 12,400 Bank Overdraft 3,000

Furniture 1,200 Sundry creditors 12,000

Investments 1,300
It is agreed to take Shahid into partnership and to make the following
adjustments:

(1) Bad debts to be/written off Rs. 3,200

(2) Value of furniture to be reduced to Rs.800

(3) Depreciate stock @ l0%

(4) Write off 20% on investments.

Shahid introduced Rs. 2000 as capital for his 1/3 share. Other partner’s capital
should be adjusted according to new partner’s capital.

Prepare necessary Journal entries regarding above arrangements. Also prepare

important Ledger Accounts.

Question No. 8

Enumerate the methods of calculating depreciation. Discuss briefly the merits and
demerits of each method.
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