Examination: ADP (Accounting & Finance) 2 years 2020-24

Subject: Fundamental of Accounting Course code: ACC 103

Maximum marks: 60 (15x4) Date of submission 18/05/21

Assignment No. 1

1. Name and list the process of accounting cycle.

2. Differentiate between Accruals and deferrals.
3. What is accounting?
4. Differentiate between manufacturing concern and merchandising concern.

Assignment No. 2

Chip Company sells one product. Presented below is information or January for Company.
January 1 Inventory 100 units @ $ 6 each Jan 11 Purchase 150 units @ $ 6.50 each
4 Sale 80 units @ $8 each 20 Purchases 160 units @ 7 each
13 Sale 120 units @ $ 8.75
27 Sales 100 units @ $ 9 each

Chip Company uses FIFO flow assumption. All purchases and sales are on account.
Instructions: (a) Assume Chip uses periodic inventory system. Prepare all necessary journal entries, including end of
month closing inventory to record cost of goods sold. A physical count indicates that ending inventory for January is
110 units.
(b) Compute the gross profit using periodic system.
(c) Assume Chip uses a perpetual system, compute gross profit using perpetual system.

Assignment No. 3

FD clinic deposits all cash receipts on the day when they are received and it makes all cash payments by check. At
the close of business on June 30, 2011, its cash accounts show a $ 15141 debit balance. FD clinic June 30 bank
statement shows $ 14275 on deposit in bank. Prepare a bank reconciliation statement using following information:
(a) Outstanding checks as on June 30 total $ 2500
(b) The June 30 bank statement included $ 125 debit memorandum for bank services.
(c) Check No. 919, listed with the cancelled check, was correctly drawn for $ 645 in payment of utility bill on
June 15. FD mistakenly recorded it with a debit to utilities expenses and credit to cash in the amount of $
654.
(d) The June 30 cash receipts of $ 3250 were placed in the bank’s night depository after banking hours and
were not recorded on the June 30 bank statement.

Assignment No. 4

Cosmo and Elip began a partnership by investing $ 50,000 and 75,000 respectively/ during as first year, the
partnership earned $ 165,000. Prepare calculations showing how $ 165,000 income should be allocated to the
partners under each of the following three separate plans for sharing income and loss:
a. The partners failed to agree on a method to share income.
b. The partners agreed to share income and loss in proportion to their initial investment. (round the amount to
nearest dollars)
c. The partners agreed to share income by granting a $ 55,000 per year salary allowance to Cosmo and $
45,000 salary allowance to Elip, 10 % interest on their initial investment and the remaining balance shared
equally.
1. Determine the partner’s shares of Cosmo and Elip is given a first year net income $ 94,400.
2. Determine the partner’s shares of Cosmo and Elip is given a first year net loss $ 15,700