PUNJAB GROUP OF COLLEGES (GOJRA CAMPUS)

Marks: 20 Accounting Intermediate ADC-I Time: 20 Mint.

1st Term 2021
Name:- ____________ Section:- ________
Q:1 journalize the following transactions in the books of a trader.
December 1, 2005 Started business with cash 150000.
December 3 goods purchased for cash 90000.
December 3 furniture purchased for cash 15000.
December 7 sold goods for cash 30000.
December 9 sold goods to Mr. Rauf 24000.
December 12 goods purchased from Zulfiqar 15000.
December 16 goods sold to Ali an allowed him 10% trade discount 18000.
December 22 cash received from Rauf in full settlement of his account 22800.
December 25 cash paid to Zulfiqar 5700 and he allowed discount 300.
December 28 cash paid for purchase of stationary 750.
December 13 paid office rent 2400.
December 31 goods returned to Zulfiqar 1500.
December 31 paid salaries to staff 2700.
Q: 2 On 1st January, 2005 Shahid sold goods to Zahid for 15000 and drew a bill for 4 months on him. Zahid accepted the
bill and returned it to Shahid. Shahid got it discounted by his bank at 15% p.a.
On maturity Zahid was not in a position to meet his acceptance. He approaches Shahid and requested him to cancel the
old bill and draw on him a new bill for the amount of old bill plus interest at the rate of 12% p.a. at 3 month. Shahid
agreed to the proposal. On the due date of the new bill, Zahid honoured his acceptance. Give journal entries in books of
Shahid and Zahid.
Q:3 The bank statement of account no 16 of Mr. Saleem showed an overdraft of 134300 on 31st December 200. On
going through the pass book and cash book the accountant found the following
1. A cheque for 4320 wrongly credited in the bank statement on 28th December 2004 and being dishonoured again
debited in the bank statement on 1st January 2005. There was no entry in the cash book about the dishonour of
the cheque until 15 January 20055.
2. Interest collected and credited but the bank in the bank statement on Mr. Saleem’s behalf but the same had
not been recorded in his cash book 11200.
3. Cheque of 82000 paid into the bank for collection on 30th December but cheques amounted to 30000 were
collected on January 2005.
4. Out of cheques amounting to 31200 drawn by him on 27th December a cheque for 10000 was encashed on 3rd
January 2005.
5. The banker has given him a wrong credit for 2000 paid in by him in another account NO 17 and a wrong debit in
respect of a cheque for 1200 drawn on account No 17.
Q: 4 prepare a bank reconciliation statement from the following particulars.
1. Overdraft balance as per the pass book (Dr) on 31 12 2005 was 10000.
2. Bank charges for collecting an out station cheque 15 appeared only in the pass book.
3. Interest on overdraft charged by the bank for half year 550 debited in the pass book only.
4. Two cheques for 15000 and 10000 paid in on 30 December 2005 were not credited by bank.
5. Two cheques for 2100 and 8000 issued in December 2005 had not been presented at the bank during the
month.
Q: 5 Prepare Trading Account and profit and loss Account for the year ending 31 December 2005 and a Balance sheet
as at that date form the Trial Balance and adjustment given below.
Particular Dr Cr
Drawings 10500
Capital 60000
Opening Stock 41250
Purchases 363750
Sales 457500
Debtors 60000
Creditors 45375
Sales returns 3750
Carriage inward 4500
Salaries 21000
Rent rates taxes 11250
Insurance 3000
Machinery 37500
Furniture 3750
Cash in hand 2625
Total 562875 562875
Adjustments:
1- Depreciate plant and machinery at 10% p.a. 4- Maintain 5% reserve for doubtful debts on
2- Outstanding salaries 1500. debtors.
3- Insurance paid in advance 375. 5- Closing stock was valued at 45000.