MODEL PAPER - 1

Assignment No. 1
The following data relate to the business of Mr.Shah store fore the month ended Dec ,31, 2011

Merchandise inventory at Start Rs.70000

Purchases Rs,2,42,000
Transportation Rs.14,800
Purchases return Rs.14,500
Salaries expense Rs.36,000
Purchases discount Rs.12,300
Sales Revenue Rs.4,35,000
Sales discount Rs.9,400
Merchandise inventory at ended Rs.98,000
Rent and taxes expense Rs.24,000
Sales Discount Rs.14,800
Interest income Rs.7,700
Required : a) Compute the amount of Gross profit

Assignment No. 2
The following balances have been taken from the pre-closing Trial balance of Kashif Traders on Dec ,31,
2016. Cash Rs.26,000 , Account Receivable Rs.37,000 , Merchandise inventory opening Rs.44,000 ,
Prepaid Rent Rs.9000 , Furniture Rs.72,000 , Sales return Rs.5000 , Salaries Expense Rs.16,200, Drawing
Rs.500 PurchasesRs.2,16,000, Sales Rs,2,30,000 , Account Payable Rs.40,000 Bank Loan (HBL) Rs.30,000
Allowance for DepreciationRs.5000

Data for adjustment at 31.12.2016

1. Merchandise inventory at ending 31,Dece 2016 Rs.15000
2. Outstanding salaries for Rs.2000
3. Prepaid insurance to the extend Rs.3000
4. Rent expired during the year Rs.6000

Required : a) Compute the amount of Net Income or Loss

Assignment No. 3
The following data relate to the business of A & R Traders fore the year ended Dec ,31, 2017

Cash Rs.18,000 , Account Receivable Rs.84,000 , Merchandise inventory opening Rs.74,000 , Prepaid
Rent Rs.2,400 , Furniture Rs.70,000 , Salaries Expense Rs.21,400, PurchasesRs.2,44,000 ,miscellaneous
expense Rs.13,800 Supplies Rs.3,200 Sales Rs,3,60,000 , Account Payable Rs.60,000 Capital Rs.1,10,800
Data for adjustment at 31.12.2017
1. Merchandise inventory at ending 31,Dece 2016 Rs.56,000
2. Outstanding salaries for Rs.4,600
3. Bad debts expense on net sales 1%
4. Depreciation expense on furniture Rs.5000
Required : a) Compute the amount of Net Income or Loss

Assignment No. 4
Financial Statement

The following balance were taken from the ledger of Karachi & Co. on Dec, 31,2015.

DEBIT CREDIT
Cash 40000
Merchandise inventory ( 01-01-2015) 60000
Office supplies 6000
Accounts Receivable 28000
Purchases 80000
Prepaid shop Rent 12000
Salaries Expense 18000
Office Equipment 75000
Sales Discount 8000
Purchases return & allowance 5000
Freight in 2000
General expense 5000
Drawing 5000
Prepaid Advertising 14000
Taxes expense 7000
Capital – shahid 150000
Sales revenue 180000
Account Payable 25000

Adjustment Data
Merchandise inventory ended Dec,31 2015 Rs. 8000
Supplies on hand Rs.1600
Salary outstanding Rs.2000
Shop rent expense for the year Rs.3000
Accrued Taxes Rs.3000
Allowance for Depreciation on office equipment Rs.2000
Required
a) Prepare multiple step Income Statement for the year ended 2015
b) Prepare classified Balance sheet on December 31, 2015
c) Prepare closing general entries OR opening general entries.
Assignment No. 5
Give: M/s Shahid Traders uses One columns Cash Book in their business. The following transactions
relate to the month of March 2004.
March 02: Balance cash on hand Rs. 25000
March 06: Received a cheque from Mr. Owais for Rs. 12500.
March 10: Paid cash Rs.1500 to Mr. Mansor
March 12: Paid salary to the workers Rs. 3600.
March 17: Purchased merchandise for cash Rs. 4500.
March 24: Sold merchandise on cash Rs. 3900
March 30: Paid Rent for the month Rs. 3300
REQUIRED:
1) Enter the opening balance and record the above transactions in Cash Book.
2) Balance the Cash Book on March 31, 2017 bringing down the cash and Bank balance on April 1, 2004.

Assignment No. 6
Give: Mehran Store uses Two columns Cash Book in their business. The following transactions relate to
the month of March 2004.
March 02: Balance cash on hand Rs. 35000 and at bank Rs. 45000
March 06: Received a cheque from Mr. javed for Rs. 12500.and same Dated deposit into the bank.
March 10: Paid cash Rs.6500 to Mr. to Mr. Aslam
March 12: Paid Insurance premium expense Rs. 2500.
March 17: Purchased merchandise total Rs. 5600. and paid cash Rs.4000 and Balance by cheque.
March 24: Sold merchandise on cash Rs. 8500
March 30: Paid Rent for the month Rs. 2400
REQUIRED:
1) Enter the opening balance and record the above transactions in Cash Book.
2) Balance the Cash Book on March 31, 2017 bringing down the cash and Bank balance on April 1, 2017.

Assignment No. 7
Give: M/s Yusafa Brothers uses Three columns Cash Book in their business. The following
transactions relate to the month of March 2015

May 02: Cash at bank as per bank statement of last month Rs. and Cash on hand showed Rs. 75000
May 06: Paid to Rashid brothers by cheque Rs.15000 and by cash Rs. 5000
May 20: Received Cash Rs. 12000 and full settlement of Rs. 13500.
May 22: Paid salary to office staff by cheque Rs. 3800.
May 27: Purchased merchandise for cash Rs. 4500.
May 29: paid to supplier Rs. 9500 and full settlement of Rs. 1000
May 30: Deposit cash into bank Rs. 6000
May 30 Owner personal use Rs.3500 by Cheque.
REQUIRED:
1) Enter the opening balance and record the above transactions in Cash Book.
2) Balance the Cash Book on March 31, 2015 bringing down the cash and Bank balance on April 1, 2015.
Assignment No. 8
Give: Mr. I.C.I uses Two columns Cash Book in their business. The following transactions relate to the
month of March 2014.

March 02: Balance cash on hand Rs. 35000 and at bank Rs. 45000
March 06: Received a cheque from Mr. javed for Rs. 12500.and same Dated deposit into the bank.
March 10: Paid cash Rs.6500 to Mr. to Mr. Aslam
March 12: Paid Insurance premium expense Rs. 2500.
March 17: Purchased merchandise total Rs. 5600. and paid cash Rs.4000 and Balance by cheque.
March 24: Sold merchandise on cash Rs. 8500
March 30: Paid Rent for the month Rs. 2400
REQUIRED:
1) Enter the opening balance and record the above transactions in Cash Book.
2) Balance the Cash Book on March 31, 2014 bringing down the cash and Bank balance on April 1, 2014.

Assignment No. 9 (7)

Mr. Khalid a sole trader uses a Three column cash book for his Business. On January 02, 2018, he had
cash on hand Rs.36,000 And cash in HBL bank account overdraft Rs.2000 during the month completed
the following transaction.

January ,2018

3 Purchased merchandise by cheque Rs. 13000 and on credit Rs.25000

4 Cash sales for the day Rs.16000 of which Rs.8000deposited into the bank.
8 Cheque received from a customer for Rs.5000 and allowed him discount Rs.500
10 Paid Rent for 3 month on cash @Rs.3000
11 Paid to the creditor by cash Rs. 6500and by cheque Rs.5000.
18 Cash deposit into the bank Rs.25000
22 Withdrew cash from bank for personal use Rs.7500
25 Withdrew cash from bank for Office use Rs. 8000
Required
a ) Enter the opening balance and recorded the above transaction in a three column cash book .
b) Balance the cash book on January 31, 2018 and bringing down the cash balance on February 01, 2018
Assignment No. 10
General Journal

Ahmed Brothers started business on June 02, he invested Cash Rs.40000. And Office equipment
Rs.45000. during the month following transaction .

2008 June 04. Purchased merchandise Rs. 9000 and on credit Rs.6000
06. Paid shop rent in advance for June Rs.3500
08. Sold merchandise on credit Rs.9500 and on cash Rs.3500
10. Paid to creditor by cheque above mentioned purchased merchandise on June 4.
14. Paid salary to office worker on cash Rs.12500 and by cheque Rs 5000,
16. Received cheque by customer Rs. 9500
20 Purchased 4 computer on credit from Ramzan Traders Rs.20000 each.
25. Paid Advertising for the year by cheque Rs.4500
29. withdrew cash from bank for personal use by Owner Rs.2500 and
Merchandise Rs. 950.
Required
a ) Recorded the above transaction in the standard form of GENERNAL JOURNAL give explanation
below each entry.

Assignment No. 11
General Journal
Jamali Brothers started business on March 01, he invested Cash Rs.95000. And Furniture Rs.
85000. during the month following transaction .

March 04. Purchased merchandise Rs. 60000 of which 50% paid cash and balance on cheque.
06. Paid shop rent in advance for 4 months @ Rs.5000
08. Sold merchandise on credit Rs.70000 and on cash Rs.45000
10. Cash sales Rs.60000 of which 80% deposited into the bank.
14. Paid salary to office worker on cash Rs.12,500 and by cheque Rs 5000,
16. Received cheque by customer Rs. 78500 and allowed him discount Rs.1500.
25. Paid Advertising for the year by cheque Rs.35000
29. withdrew cash from bank for personal use by Owner Rs.6500 and
Merchandise costing Rs. 8000.
Required
a ) Recorded the above transaction in the standard form of GENERNAL JOURNAL give explanation .
Assignment No. 12
Special journal

The following are the selected transaction completed by Salman Khan Traders during May-2013

May, 04, Sold goods to Farooq trader on credit for Rs.2000.

May, 07, Sold merchandise to Fine company limited for Rs.7,000.
May, 12, Sold goods to Farooq trader on account for Rs.8,000.
May, 18, Sold merchandise to Fine company limited for cash Rs.14,000.
May, 22, Merchandise return by Farooq trader for Rs.1,000
May, 25, Merchandise return by Fine company limited for Rs.500.
May, 29, Sold old Furniture to Asim sons on credit for Rs.6,000.
Required : a) Record above transaction in the appropriate journal.
b) Make posting into accounts payable subsidiary ledger.

Q. 1 General Journal Entries

Mar,02 Started business with cash Rs.60000
Mar,05 Open a new bank account with HBL Rs. 40000
Mar,06 Purchased merchandise on cash Rs.5000
Mar,08 Purchased merchandise on Credit Rs.5000
Mar,10 Sold goods on credit Rs. 8000
Paid shop Rent by cheque Rs.2000 and cash
Mar,16 Rs.1500
Mar,20 Paid advertising on Cash Rs. 1200
Mar,22 Withdrew cash from band fro personal use Rs.2500
Mar,24 Paid cash to supplier by cheque Rs.3500
Mar,30 Received cash by customer Rs. 6000
Free sample to distribution for advertisement.
Mar,30 Rs.5000
Required Prepered general journal entries in standared from.
Q. 2
Mr. Shahid started business with cash Rs.4000 Equipenmt
April , 01 Rs.6000
April , 03 Cash Deposit into Bank Rs.9000
April , 06 Purchased merchandise from Maqsood Brothers Rs.7000
April , 15 Merchandise return to Maqsood Brothers Rs.500
April , 18 Sold merchandise to Ali store Rs. 8000
April , 22 Goods return from Ali Rs.450
April , 25 Paid Insurance permiume by cheque Rs.1500
April , 28 Purchased Furniture on cash Rs.7000
April , 30 Paid sales tax expense Rs. 2000
April , 30 Some goods is destoryed by fire Rs.6000
Required Prepered general journal entries in standared from.
Q. 3
Mr. Shahid started business with cash Rs.4000 Equipenmt
April , 01 Rs.6000
April , 03 Cash Deposit into Bank Rs.9000
April , 06 Purchased merchandise from Maqsood Brothers Rs.7000
April , 15 Merchandise return to Maqsood Brothers Rs.500
April , 18 Sold merchandise to Ali store Rs. 8000
April , 22 Goods return from Ali Rs.450
April , 25 Paid Insurance permiume by cheque Rs.1500
April , 28 Purchased Furniture on cash Rs.7000
April , 30 Paid sales tax expense Rs. 2000
Required Prepered general journal entries in standared from.