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Required: Record The Above Transaction in General Journal With Adjustment and Closing Entries. Show Necessary Computation
Required: Record The Above Transaction in General Journal With Adjustment and Closing Entries. Show Necessary Computation
Required: Record The Above Transaction in General Journal With Adjustment and Closing Entries. Show Necessary Computation
Required:
i. Amount of purchase consideration of each company and the number of shares to be issued.
ii. Entries in General Journal of KNKNKN Company Limited.
iii. Initial Balance Sheet of KNKNKN Co. Limited.
Q.4. CASH FLOW AND FUND FLOW
Nokia Diti Net Company’s comparative balance sheet and income statement for the year 2010 follows
Assets …………………………………………………… Equities
Cash ………………….. Rs. 15,000 | Account Payable ……… Rs. 75,000
A/C Receivable ……. Rs. 2,50,000 | Allow. for Dep ………….
Mds. Inventory ……… Rs. 50,000 | Plant Assets …………. Rs. 1,50,000
Investment ……….. Rs. 1,00,000 | Authorized Capital …… Rs. 2,50,000
Preliminary Exp. …….. Rs. 25,000 | Ordinary Shares of Rs. 10 each
Goodwill ……………… Rs. 35,000 | Rs. 25,00,000
Profit & Loss ……… Rs. 1,50,000 | Paid Up Capital ………. Rs. 1,00,000
Plant Assets ……… Rs. 6,50,000 | Ord. shares of Rs.10 each 10,00,000
…………………………………….. | Share Premium ………. Rs. 50,000
TOTAL ……………. Rs. 12,75,000 | ……………………….. Rs. 12,75,000
The following scheme of reconstruction was agreed and implemented on July 31, 2010.
i. Ordinary Shares of Rs. 10 each be reduced to an equal number of fully paid shares of Rs. 5 each.
ii. Share premium was utilized.
iii. Investment was sold for Rs. 90,000.
iv. The amount thus available be utilized to write off preliminary expenses, profit and loss and goodwill completely.
v. Accounts receivable are estimated to realize Rs. 2,00,000 inventory is valued at Rs. 40,000 and plant assets are assigned a book
value of Rs. 3,00,000.
Required: Prepare General Journal entries to give effect to the above scheme. And also prepare revised Balance Sheet of Zeeshan
Ltd.
Q.6. BRANCH ACCOUNTING
The following are some of the selected balances taken out from the trail balance of Head Office and Branch on Dec 31, 1992
……………………………………………. Head Office …………… Branch
Merchandise Inventory (op) ………….. Rs. 29,000 …………. Rs. 25,000
Sales Revenue ………………………… Rs. 3,00,000 ………. Rs. 1,50,000
Purchases ……………………………… Rs. 3,00,000 ………… ——–
Purchase Discount …………………….. Rs. 5,000 …………… ——–
Goods Sent to Branch ……………….. Rs. 64,000 …………… ——–
Goods received from head office ……. ——— …………… 80,000
Allowance for Over Valuation ………. Rs. 18,000 …………… ——-
Salaries Expense …………………….. Rs. 20,000 …………… Rs. 5,000
Miscellaneous Expense ……………… Rs. 5,000 …………….. Rs. 1,000
Adjustment Data
Merchandise Inventory (end) …….. Rs. 40,000 ……………. Rs. 20,000
Accrued Salaries ……………………. ——— …………….. Rs. 1,000
Prepaid Salaries ……………………. Rs. 2,000 ……………… ———
Depreciation on Equipment ……….. Rs. 3,000 …………….. Rs. 500
Required:
i. Income Statement
ii. Consolidate Income Statement of Head Office and Branch
iii. Entries in the book of Head Office to incorporate Branch net income and adjustment of income resulting from over valuation of
merchandise.
Q.7. PROCESS COSTING
The information below relates to a production operated by Mehran Corporation during the month of October 2009.
Required:
i. Compute Equivalent full units completed of Material and conversion costs.
ii. Compute unit cost of Material, Labour and factory overhead.
iii. Determine cost of transferred unit on finished goods inventory (use FIFO method)
Q.8. JOB ORDER
The following transaction relate to DACCAN Corporation for the month of June 2009
…………………………………… Standard ………………………. Actual
Direct Materials …………. 5000 kg @ Rs. 10 ………… 6000 kg @ Rs. 12
Direct labour ……………. 2000 hrs @ Rs. 5.50 ……… 1800 hrs @ Rs. 6
FOH …………………………. Rs. 50,000 ………………….. Rs. 50,000
Required: Compute
i. Material Price and Quantity Variance
ii. Labour Rate and Labour Time Variance
iii. Overhead Variance