ALLAM IQBAL OPEN UNIVERSITY, ISLAMABAD

(Department of Business Administration)

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WARNING
1. PLAGIARISM OR HIRING OF GHOST WRITER(S) FOR SOLVING
THE ASSIGNMENT(S) WILL DEBAR THE STUDENT FROM AWARD
OF DEGREE/CERTIFICATE, IF FOUND AT ANY STAGE.
2. SUBMITTING ASSIGNMENT(S) BORROWED OR STOLEN FROM
OTHER(S) AS ONE’S OWN WILL BE PENALIZED AS DEFINED IN
“AIOU PLAGIARISM POLICY”.

Course: Principles of Accounting (8401) Semester: Autumn, 2023

Level: BBA(4 Years)

ASSIGNMENT No. 1
Total Marks: 100 Pass Marks: 50

Instructions: You must answer the questions in your own words. Copying from books
is not permissible. Give supporting calculations where necessary.

Q. 1 (a) Why do we study accounting? (20)

(b) Explain the scope of various fields of accounting.

Q.2 Write notes on following: (20)

i. Adjusting Entries ii. Reversing Entries
iii. Depreciation iv. Accounting equation

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Q. 3 Herbor Company uses a periodic inventory system. The company’s records show
the beginning inventory of product No. T 12 on January 1 and the purchases of this
item during the current year to be as follows: (20)
Jan. 1 Beginning inventory 900 units @ Rs.10 9,000
Feb. 23 Purchase 1200 units @ Rs.11 13,200
Apr. 23 Purchase 3,000 units @ Rs.11.20 33,600
May 4 Purchase 4,000 units @ Rs.11.60 46,400
Nov. 30 Purchase 900 units @ Rs.13 11,700
Total 10,000 units 113,900
A physical count indicates 1,600 units in inventory at year-end. Determine the cost
of the ending inventory, based on each of the following methods of inventory
valuation.
(a) Average cost
(b) LIFO
Which of the above methods (if any) results in the same ending inventory valuation
under both periodic and perpetual costing procedures? Explain.

Q.4 Below are the receipts and payments account for Leo’s Club. Prepare income and
expenditure account as on 31stDecember 1991 and a Balance Sheet as on that date;
from it and subjoined information. (20)
Balance b/d Rs.2,476 General expenses Rs.1,084
Annual subscription 3,260 Salaries 1,100
Life membership fees 500 Furniture 1,600
Entrance fees 400 Rent 1,120
Miscellaneous receipts 466 Printing 250
Interest 80 Repairs 300
Balance c/d 1,728
7,182 7,182
On 31st December, 1991 the annual subscription in arrears amounted to Rs.700.
Rs.200 is to be written off as depreciation on furniture.

Q. 5 (a) Key Imports sold merchandise to Marine Systems for Rs.7,500 offering
terms of 3/10, n/30. Marine Systems paid for the merchandise within the
discount period. Both companies use perpetual inventory systems. (20)
i. Prepare journal entries in the accounting records of key Imports to
account for this sale and the subsequent collection. Assume the original
cost of the merchandise to Key Imports had been Rs.4,100.
ii. Prepare journal entries in the accounting records of Marine Systems to
account for the purchase and subsequent payment. Marine Systems
records purchases of merchandise at net cost.
iii. Assume that because of change in personnel, Marine Systems could not
pay for this merchandise within the discount period. Prepare journal
entry in the accounting records of Marine Systems to record payment
after the discount period.

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 (b) Distinguish cash discount from trade discount and what is their accounting
treatment?
ASSIGNMENT No. 2
Total Marks: 100 Pass Marks: 50

This assignment is a research-oriented activity. You are required to obtain information

from a business/commercial organization and prepare a report of about 1000 words on
the issue allotted to you to be submitted to your teacher for evaluation.

You are required to select one of the following issues according to the last digit of your
roll number. For example, if your roll number is P-3427180 then you will select issue # 0
(the last digit): -
ISSUES:
0- Inventory Management
1- Accounting Receivable
2- Accounting Information System
3- Accounting for Plant Assets (Acquisition & Disposal)
4- Accounting for Merchandizing Business
5- Partnership Accounting
6- Accounting for Non-profit Organization
7- Accounting for Bank Reconciliation
8- Accounting for Cash & Short-term Investment
9- Application of International Accounting Standard

The report should follow the following format:

1. Title page
2. Acknowledgements
3. An abstract (one-page summary of the paper)
4. Table of contents
5. Introduction to the issue (brief history & significance of issue assigned)
6. Practical study of the organization (with respect to the issue)
7. Data collection methods
8. SWOT analysis (strengths, weaknesses, opportunities & threats) relevant to the
issue assigned
9. Conclusion (one-page brief covering important aspects of your report)
10. Recommendations (specific recommendations relevant to issue assigned)
11. References (as per APA format)
12. Annexes (if any)

GUIDELINES FOR ASSIGNMENT # 2:

 1.5 line spacing
 Use headers and subheads throughout all sections
 Organization of ideas
 Writing skills (spelling, grammar, punctuation)
 Professionalism (readability and general appearance)

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 Do more than repeat the text
 Express a point of view and defend it.

WORKSHOPS
The workshop presentations provide students opportunity to express their communication
skills, knowledge & understanding of concepts learned during practical study assigned in
assignment # 2.

You should use transparencies and any other material for effective presentation. The
transparencies are not the presentation, but only a tool; the presentation is the
combination of the transparencies and your speech. Workshop presentation
transparencies should only be in typed format.

The transparencies should follow the following format:

1) Title page
2) An abstract (one-page summary of the paper)
3) Introduction to the issue (brief history & significance of issue assigned)
4) Practical study of the organization (with respect to the issue)
5) Data collection methods
6) SWOT analysis (strengths, weaknesses, opportunities & threats) relevant to the
issue assigned
7) Conclusion (one-page brief covering important aspects of your report)
8) Recommendations (specific recommendations relevant to issue assigned)

GUIDELINES FOR WORKSHOP PRESENTATION:

 Make eye contact and react to the audience. Don't read from the transparencies or
from report, and don't look too much at the transparencies (occasional glances are
acceptable to help in recalling the topic to cover).
 A 15-minute presentation can be practiced several times in advance, so do that until
you are confident enough. Some people also use a mirror when rehearsing as a
substitute for an audience.

WEIGHTAGE OF THEORY & PRACTICAL ASPECTS IN ASSIGNMENT # 2 &

WORKSHOP PRESENTATIONS
Assignment # 2 & workshop presentations are evaluated on the basis of theory & its
applicability. The weightage of each aspect would be:
Theory: 60%
Applicability (practical study of the organization): 40%

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