ee ED Fundamental of Accounting Maximum Marks: 60 ‘assing Marks: 30 Instructions: (i) Attempt all questions, Gi) All questions carry equal marks. QL: Unadjusted trai Justed trail balance of Asia Company on December 31, 2020 is as under: Debit Credit cant _ 1,000 ipplies 2,000 Merchandise inventory (1.1.2020) 34,000 Pace 52,000 Qe 240,000 5 nt expense 32,800 hen ‘expense 36,000 repaid expense 2,200 Allowance for depreciation Accounts payable Asim capital Sales revenue Total Data for adjustm 1, Office supplies ummed RAO 2. Current year depreciation on furniture Rs.5,200, 3, Prepaid advertising expired by Rs.1,800 4, Actual rent expense forthe year Rs.24,000. Ss. Merchandise inventory is valued at Rs.30,000. Salaries of Rs.4,000 were payable. QUIRED: repare adjusting and reversing entries. a ten column work sheet. are an income statement & balance sheet. Prepare opening and closing entries. Q-2: During 2001, Furqan Developers disposed of plant asses in the following transactions: Feb.10 Office equipment costing Rs.14,000 was given to a scrap dealer. No "were received from the dealer. At the date of disposal accumulated depreciation on the office equipment amounted to Rs.11,900. ‘Apt.1 Furgan sold land and a building to Villa associates for Rs.630,000, receiving. Rs.200,000 in cash and a S-years, 10% note receivable for Rs-430,000. ‘accounting records showed the following amounts: Furgan’s uilding (as of Rs.120,000; Building Rs.350,000, accumulated depreciati April 1), Rs.113,000. ‘August 15 Furgan traded in an old truck for a new one. The old truck had cost Re T1000, and accumulated depreciation amounted to Rs-7,000. the Tist the new truck was Rs.17,000; Furgan received a Rs.5,000 trade in or the old truck and paid the Rs.12,000 balance in cash, Furgan traded in its old computer system as part of the purchase of anew system, The old computer had cost him Rs.150,000 ands as of October 1, ceoumulated depreciation amounted to Rs.110,000. the new compuret had a Tit price of Rs.90,000. Furgan was granted a Rs.10,000 trade fo allowance Fe dhe old computer system., paid Rs-30,000 in cash, and issued a RS50,000, years, 9% note payable to Action computers forthe balance. price of allowance October 1 Time: 3 Hrs.REQUIRED: Prepare journal entries to record each of these transactions. 3. Assi that depreciati already has been recorded up to the date of disposal. eh arene Q-3: Hina company Itd uses a periodic i y I periodic inventory system. The company’s records show the beginni m and the purchases during the current year to be as follows: ae Jen! Beginning inventor it ry 900 units @$ 10.00 9,000 pig : Purchases 1,200 units @$11.00 13,200 Ape. 20 Purchases 3,000 units @$11.20 33,600 Hi fay.4 Purchases 4,000 units @$11.60 46,400 jov.30 Purchases 900 units @$13.00 11,700 yee Totals 10,000 113,900, physical count indicates 1,500 units in inventory at year end. REQUIRED: A. Determine cost of ending i itory by: LFLF.O. Binvenone 2. LLF.O. 3. Weighted average method. B. Give adjusting and closing entry. Q-4: The following information is related to Faizan & co for the month of December 2020. i, Balance as per cash book Rs.3,536 and as per pass book Rs.3,500. . ii, Three cheques of Rs.160, Rs.115 and Rs.39 issued in December, were presented for payment in January mn but not eredited until December 31 in next year. i Two cheques of Rs.165 and Rs.150 sent to the bank for colletos the pass book. ; a mmission and allowed Rs.10 as interest but company lacks this record. iv. The bank charge Rs.45 for its co! REQUIRED: ‘A. Prepare a bank reconciliation statement. B. Give adjusting entries.