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    Class Exercise Accounting

    Uploaded by

    Mohsin Farooq
    1. The document provides questions and exercises related to preparing income statements, balance sheets, and accounting for fixed asset depreciation. 2. It includes questions on straight-line and diminishing balance depreciation, preparing balance sheets from raw data, correcting incorrect balance sheets, journalizing transactions, and preparing trial balances. 3. The purpose is to help students learn skills like preparing financial statements, accounting for fixed assets, and journalizing transactions.

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    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd

    Class Exercise Accounting

    Uploaded by

    Mohsin Farooq
    447 views4 pages
    1. The document provides questions and exercises related to preparing income statements, balance sheets, and accounting for fixed asset depreciation. 2. It includes questions on straight-line and diminishing balance depreciation, preparing balance sheets from raw data, correcting incorrect balance sheets, journalizing transactions, and preparing trial balances. 3. The purpose is to help students learn skills like preparing financial statements, accounting for fixed assets, and journalizing transactions.

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    accounting practice question

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    Class Exercise accounting

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    1. The document provides questions and exercises related to preparing income statements, balance sheets, and accounting for fixed asset depreciation. 2. It includes questions on straight-line and diminishing balance depreciation, preparing balance sheets from raw data, correcting incorrect balance sheets, journalizing transactions, and preparing trial balances. 3. The purpose is to help students learn skills like preparing financial statements, accounting for fixed assets, and journalizing transactions.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    447 views4 pages

    Class Exercise Accounting

    Uploaded by

    Mohsin Farooq
    1. The document provides questions and exercises related to preparing income statements, balance sheets, and accounting for fixed asset depreciation. 2. It includes questions on straight-line and diminishing balance depreciation, preparing balance sheets from raw data, correcting incorrect balance sheets, journalizing transactions, and preparing trial balances. 3. The purpose is to help students learn skills like preparing financial statements, accounting for fixed assets, and journalizing transactions.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 4

    CLASS EXERCISES-SESSION-3,4 (For course instructor Guidance)

    Learning Objective: 1. How to prepare Income Statement and Balance sheet from selected data? 2. How to change balance sheet after new transactions? 3. What are the purposes and formats of an Income statement for service industry? No. 1 2 3 4 5 Q No. 1-12 1A-1 1A-4 2B-3 3A-4 Page No. 47 49 50 98 147

    Q No.1 Salim & Co bought machine at a cost of Rs.500,000 on January 1,1997 on credit from Sheeraz brothers. Estimated life of the machine is 5 years and scrap value is Rs.50,000. Required: Present schedule of depreciation under following methods for 5 years. Last year depreciation should be adjusted to arrive at scrap value: Straight line method Diminishing Balance method(Rate 20%) Q No.2 Merchant & Co bought machine at a cost of Rs.200,000 on September 1,1999 on credit from Hamid brothers. Estimated life of the machine is 5 years and scrap value is Rs.20,000. Required: Present schedule of depreciation under following methods for 5 years. Last year depreciation should be adjusted to arrive at scrap value: Straight line method Diminishing Balance method(Rate 20%) Q No.3 Khalid Brothers purchased two machines at a cost of Rs.25000 each on March 5,1998. Another machine bought on July 5,1998 at Rs.75,000. Three machine purchased on September 5 at Rs.40,000 each.

    Required: Present Machine Account on December 31,1998. Compute depreciation under straight line method( Rate 10% ) using fraction of the year of 1998. Present book value at December 31,1998. Q-4 Prepare Balance Sheet from the given data, but be careful, every item will not be appeared in Balance Sheet. Land Building A/c payable Cash Note payable Sales Office supplies Bank A/c receivable Amir-capital Salaries payable Short-term investment Office salaries expense Prepaid advertising Commission revenue 25000 125000 30000 15000 25800 550000 5000 17000 15000 ? 32500 58000 12500 36000 256900

    Q-5 n incorrect Balance sheet of Ahmad Merchant is given here, your are required to prepare correct and classified Balance Sheet on December 31,2002. Q A/c payable A/c receivable Building Cash Salman-capital 14000 800 52000 9200 ? Land Machinery Note Payable Salaries Payable Supplies 68000 65000 29000 3000 400

    Q-6 Following Balance Sheet presented by Sajid and sons on March 31, 2002
    ASSETS CURRENT ASSETS EQUITIES LIABILITIES

    CASH A/C RECEIVABLE NOTE RECEIVABLE PREPAID ADVERTISING FIXED ASSETS EQUIPMENT BUILDING TOTAL ASSETS

    125,000A/C PAYABLE 45000LOAN FROM AKRAM 25000NOTE PAYABLE 2500 OWNER'S EQUITY CAPITAL 65000 450,000 712,500 EQUITIES

    85000 100,000 25000

    502500

    712500

    Following transactions occurred during the month of April 1. 2. 3. 4. Collected from customer Rs. 15000 Paid to supplier Rs. 65000 Note receivable matured and received Rs.10000 Sajid invest additional capital in business in the form of cash Rs.100,000 and equipment Rs.25000 5. Sajid obtained bank loan from Standard Chartered on five year term Rs. 200,000 6. Note payable paid by firm Rs.5000 7. Sajid withdrew Cash Rs. 20,000 for personal use. Required: 1. Prepare Journal entries for the above transactions 2. Draw General ledger for the accounts effected 3. Prepare Balance Sheet as at April 30th,2002 Q No. 7 The Trial Balance from the given data of Funfood Enterprises on August 31st,2005. Prepaid insurance Cash Office stationary Sales revenue Commission income Office salaries Capital- Haroon Drawing-Haroon Equipment A/c payable Utility expense Bank overdraft Insurance expense Note payable Building Prepaid rent A/c Receivable 4500 15600 5600 1175000 25000 56000 575000 45000 45000 56000 12000 75000 5000 32000 750000 40000 60000

    Loan from bank Marketable securities Interest expense Operating expenses Prepare: 1. Trial Balance( if not equal, use suspense account) 2. Income Statement 3. Balance Sheet

    300000 50000 12000 1125,300

    Q No.8 The balance sheet contains numerous errors. In particular, the bookkeeper knew that the balance sheet should balance, so he plugged in the owner's equity amount needed to achieve this balance. The owner's equity amount, however, is not correct. All other amounts are accurate, but some are out of place. TRSORO PUBLISHING CO. Balance Sheet Month Ended July 31, 20X3 Assets Cash Office Supplies Land Salary expense Office furniture Note payable Rent expense Total assets Required 1. Prepare the correct balance sheet. Compute total assets, total liabilities, and owner's equity.Marks-07 $12,000 1,000 44,000 2,500 8,000 16,000 4,000 $87,500 Owner's Equity Owner's Equity Total liabilities 6,700 $87,500 Liabilities Accounts Receivable Service revenue Property tax expense Accounts payable $ 3,000 68,000 800 9,000

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