ALLAMA IQBAL OPEN UNIVERSITY, ISLAMABAD

(Department of Commerce)

BASICS OF ACCOUNTING (1339)

CHECKLIST

SEMESTER: SPRING, 2024

This packet comprises the following material:

1. Textbook (One)
2. Assignment No. 1& 2
3. Assignment Forms (2 sets)

In this packet, if you find anything missing out of the above-mentioned material,
please contact at the address given below:

The Mailing Officer,

Mailing Section, Block No. 28,
Allama Iqbal Open University,
H-8, Islamabad.
Phone: 051-9057611-12

ASIA BATOOL
(Course Coordinator)
 ALLAMA IQBAL OPEN UNIVERSITY, ISLAMABAD
(Department of Commerce)
WARNING
1. PLAGIARISM OR HIRING OF GHOST WRITER(S) FOR SOLVING
THE ASSIGNMENT(S) WILL DEBAR THE STUDENT FROM AWARD
OF DEGREE/CERTIFICATE, IF FOUND AT ANY STAGE.
2. SUBMITTING ASSIGNMENT(S) BORROWED OR STOLEN FROM
OTHER(S) AS ONE’S OWN WILL BE PENALIZED AS DEFINED IN
“AIOU PLAGIARISM POLICY”.
SCHEDULE FOR SUBMISSION OF ASSIGNMENTS
06 Credit Hours Due Date 03 Credit Hours Due Date
Assignment-1 31-05-2024
Assignment-1 24-06-2024
Assignment-2 24-06-2024
Assignment-3 22-07-2024
Assignment-2 19-08-2024
Assignment-4 19-08-2024
Note: Tutorial Schedule and Rehnama-e-Tulba are available on AIOU website i.e. [Link]
Course: Basics of Accounting (1339) Semester: Spring, 2024
Level: FA / I Com
Please read the following instructions for writing your assignments. (SSC,
HSSC & BA Programmes)
1. All questions are compulsory and carry equal marks but within a question the
marks are distributed according to its requirements.
2. Read the question carefully and then answer it according to the requirements of
the question.
3. Late submission of assignments will not be accepted.
4. Your own analysis and synthesis will be appreciated.
5. Avoid irrelevant discussion/information and reproducing from books, study
guide or allied material.

ASSIGNMENT No. 1
Total Marks: 100 Unit: (1–5) Pass Marks: 40
Q. 1 Describe Double Entry System of Book-Keeping and its importance in detail. (20)
Q. 2 Explain the following terms: (20)
i. Profit and Loss Account
ii. Direct &Indirect Expenses
iii. Liabilities
iv. Capital
v. Income

2
 vi. Goodwill
Q. 3Define Journal. Explain in detail the objectives and importance of journal. (20)

Q. 4Record the following transactions in the journal.(20)

1st March Mr. Muhammad Asfer commenced business with Cash of Rs. 8,000,000/-
Machinery Rs.6, 500, 000/-
2nd Purchased Furniture with cashRs. 230,000/-
5th Purchased goods from Miss zoha Rs.70, 000/-
th
13 Sold goods to [Link] Rs. 70,000/-
15th Goods returned to Miss Zoha Rs3, 000/-
20th Machinery Purchased Rs.125, 000/-
22nd Returnedgoods from Mr. Haider Rs.2, 550/-
25th Paid commission Rs.10, 000/-
26th Paid Rent Rs.50, 000/-
30th Paid salaries Rs. 109,000/-
Required
a. Record these transactions in journal and ledger accounts.
b. Prepare a trial balance.

Q. 5 Mr. Kamran started business by introducing a machine valuing Rs.2, 000: Goods
worth Rs.25, 000 and Cash Rs.13, 000. (20)
[Link] furniture for office Rs.5,000
[Link] goods from Jafar Sons Rs. 8,000
[Link] goods costing Rs.3000 for Rs.4000 cash.
[Link] goods to Kashif on credit for Rs.3000 costing Rs.2500
[Link] Rs.4000 to Jafar Sons
[Link] machinery from Khalil for Rs.12000 on credit.
[Link] sundry trade expenses Rs.200
[Link] for office stationery Rs.250
[Link] cash from Kashif Rs.1500
10. Purchased furniture for Rs.700
11. Sold a part of an unused machine costing Rs.4000 for Rs.3500.
12. Paid insurance premium Rs.250
13. Paid rent Rs.200
14. Drew merchandise for personal use worth Rs.500

3
 Required: Arrange the above transaction in the accounting equation form.
ASSIGNMENT No. 2
Total Marks: 100 (Units: 5–9) Pass Marks: 40

Q. 1 Mr. Afaq purchased machinery for Rs.2, 850, 000 and the depreciation rate is
8.50% p. a. You are required to prepare the machinery Account for 5 years using
Diminishing Balance Method. (20)

Q. 2 Define cheque and passbook and Explain importance for banking.

(20)

Q. 3 Following is the trial balance of Zoha& Co. Prepare the trading and Profit and
Loss A/C & Balance sheet for the year ending at 31, Dec 2023. (20)
Particular Credit Rs. Particular Debit Rs.
Purchases 9,900 Drawing 60,500
return
Sales 7,50,000 Debtors 3,30,000
Commission 27,000 Machinery 3,80,500
Capital 8,23,740 Building 4,55,000
Creditors 1,40,000 Cash 6,300
Loan 4,20,000 Wages 54,590
Rent 2,24,000
Sales return 26,250
Purchases 5,00,000
Stock 1,33,500
Total 21,70,640 Total 21,70,640
Adjustments:
i. Closing stock was valued Rs. 250,000.
ii. Outstanding insurances Rs. 9,000.
iii. Depreciation on building @10% p.a.

Q. 4 Give journal entries to rectify the following errors: (20)

(i) Sundry items of plants and machinery sold for Rs. 5,000 have been entered in
the Sales Book.
(ii) A cheque for Rs. 6,500 received from Ahmad was credited to the Akhtar
account.
(iii) A sum of Rs. 4,000 drawn by the owner for his personal use has been debited
to the travelling expenses account.
(iv) A sale of Rs. 286 has been entered in the sales book as Rs. 268.
(v) A purchase of Rs. 13,000 from Ali was recorded in sales book but Ali’s
account was correctly posted.

4
Q.5 Define the bill of exchange and describe parties involved in it. Also explain various
types of bills of exchange with each example.
(20)

____[ ]____