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Financial Accounting Paper
Financial Accounting Paper
Max. Marks: 30
Note: please read instructions before start of your working for better planning.
(1) All questions must be solved on separate page of WORD DOCUMENT. You can work on Excel
but paste that Excel sheet on word document. You can submit final exam copy either PDF or
WORD DOCUMENT.
(2) All questions should be in sequence with proper Question Number
(3) Clarity and presentation of answer will be considered at the time of marking
(4) Take necessary assumptions where you need and mention in the question.
(5) Do not ask any question related to Exam paper on WhatsApp or email or call.
(6) Copy work with any other student will give you ZERO mark in question.
(7) Do not wait for last moment to submit. Submit as you done your work.
(8) Make sure that your file is properly ready before submission.
Q No.1
Part A: marks-05
Business plan in your own words (maximum 300 words ). Suggest why you like this kind of business. No
copy work from anywhere. It should be in your own wordings.
Part B: marks-05
1. What you should do in the first month. How much you will invest, justify your investment? This
part will be important in marking. It will show that being a business student you understand how
to initiate a first month of any business.
2. What things you will buy and what expenses you will incur. (15 to 20 transactions are required)
3. Only transactions required like:
Purchase plant for Rs.200,000
Note: Copy work from anywhere will give you ZERO mark.
1. Business transactions comprehensive and covering all major activities that business
should initiate in the first month of starting business---------------------------- 05
2. Business transactions comprehensive but not covering all major activities that business
should initiate in the first month of starting business---------------------------- 04
3. Business transactions are not comprehensive and not covering all major activities that business
should initiate in the first month of starting business---------------------------- 03
4. Business transactions are poorly covered and not reflecting first month activities ----------02
Instruction:
Being a business student who have completed one subject on Accounting please review this
Balance Sheet and suggest what problems/issues/errors you found in it.
Q. No.3
Accountants for Creve Coeur Manufacturing have assembled the following data for the year
ended December 31,2006
December 31
2005 2006
Current assets:
Cash and cash equivalents Rs.30600 Rs.33800
Accounts receivable 70100 73700
Inventories 90600 96500
Prepaid expenses 3200 2100
Current liabilities:
Note payable Rs.36300 36800
Accounts Payable 72100 67500
Income tax payable 5900 6800
Accrued liabilities 28300 23200
Required:
Prepare cash flow statement showing operating, investing and financing activities under indirect
method
Marks-05
Q No.4 Marks-05
AUSTIN SOUND SEREO CENTER, INC.
TRIAL BALANCE
DECEMBER 31,2012
TITLE OF ACCOUNT DEBIT CREDIT
Cash 110,350
Account receivable 54600
Note receivable 83,000
Plant 110,000
Accumulated depreciation-plant 10,000
Inventory-opening 40,500
Supplies expense 650
Prepaid insurance 1200
Furniture and Fixture 169,200
Accumulated depreciation-furniture 2400
Account payable 47,000
Note payable (long-term) 12,600
Common Stock( Rs.10) 175,000
Retained Earning 86,000
Sales revenue 338,000
Sales discount 1400
Sales return and allowance 2000
Other income 600
Purchases 89,300
Purchases discount 3000
Purchases return and allowances 1200
Freight in 5200
Rent expense 8400
TOTAL 579,800 579,800
ADJUSTMENT DATA:
1. Inventory on hand at the end of the year Rs. 22,000
2. Depreciation is 10% on written down value of plant.
3. Tax rate 25%
Required:
Prepare Income Statement
Prepare Balance Sheet
Q No.5 Marks-05
Rehman Ali started consultancy services. During the first month of operations he completed the
following transactions:
a. Rehman invested Rs.130,000 cash and office equipment valued at Rs.50,000.
b. Borrowed Rs.25,000 from the bank at 10% interest, signed a note payable for six months.
c. Purchased equipment for Rs. 8000, paid Rs.2000 and balance is due to Hashim Bros.
d. Purchased office supplies on account, Rs.400.
e. Rendered services to client and received cash Rs.500.
f. Rendered services to customers on account, Rs.2,300.
g. Rendered services to Netsol Rs.15,000. Netsol paid Rs.5000 and balance will be paid in next
month.
h. Paid due amount to Hashim Bros.
i. Received a Rs.600 bill for utility expense that will be paid in the near future.
j. Received cash Netsol Rs.1,100.
k. Paid for advertising expense Rs.500
l. Owner withdrew cash Rs.800 for personal use.
Instruction:
Prepare Journal entries with narrations
Q No.6
Crystal Glass provides various services to its clients. The accounts are adjusted and closed each month.
At June 30 the trial balance shown below was prepared from the ledger.
Island Hopper
Trial Balance
June 30, 2015
Title of Accounts Dr Cr
Cash $33,600
Accounts Receivable 7,200
Prepaid Rent 9,600
Unexpired Insurance 21,000
Buildinng 1,200,000
Accumulated Depreciation:
Building $380,000
Notes Payable 600,000
Unearned Passenger revenue 70,000
Capital 230,850
Drawing 7,000
Service Revenue 130,950
Traveling Expense 53,800
Salaries expense 66,700
Utilities Expense 12,900
$1,401,80 1,401,80
0 0
Required:
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