Question # 1 (Maximum Marks = 6) Mr. Qamar keeps his books undersingle entry sys
ID: 2457501 • Letter: Q
Question
Question # 1 (Maximum Marks = 6) Mr. Qamar keeps his books undersingle entry system; his position on 31PstPDecember 2002 (at theend of financial year) was as follows: Cash in hand Rs. 59,200;Stock Rs. 63,000; Debtors Rs. 48,400; Furniture Rs. 12,000Creditors Rs. 50,400; Prepaid Insurance Rs. 200. Machinery Rs.10,000 INFORMATION: • Machinery worth Rs. 2,000 waspurchased on 30PthPJune 2002 andremaining on 30PthPDecember 2001. •Depreciate Furniture and Machinery @ 10% p.a. • Written offbad debts Rs. 2,400 and provide 5% for doubtful debts. •Provide interest on capital @ 10% p.a. Required: You are required to prepareStatement of affairs as on 31PstPDecember2002. Question # 2 (Maximum Marks = 4) From the following particulars ofFine Club, ascertain the amount to be credited toIncome and Expenditure Account in respect of subscription forthe year 2005.Subscription received in cash in2005 10,050
Subscription for 2005 received in advance in2004 750
Subscription accrued for2004 900
Subscription accrued for2005 1050 Question # 1 (Maximum Marks = 6) Mr. Qamar keeps his books undersingle entry system; his position on 31PstPDecember 2002 (at theend of financial year) was as follows: Cash in hand Rs. 59,200;Stock Rs. 63,000; Debtors Rs. 48,400; Furniture Rs. 12,000Creditors Rs. 50,400; Prepaid Insurance Rs. 200. Machinery Rs.10,000 INFORMATION: • Machinery worth Rs. 2,000 waspurchased on 30PthPJune 2002 andremaining on 30PthPDecember 2001. •Depreciate Furniture and Machinery @ 10% p.a. • Written offbad debts Rs. 2,400 and provide 5% for doubtful debts. •Provide interest on capital @ 10% p.a. Required: You are required to prepareStatement of affairs as on 31PstPDecember2002. Question # 2 (Maximum Marks = 4) From the following particulars ofFine Club, ascertain the amount to be credited toIncome and Expenditure Account in respect of subscription forthe year 2005.
Subscription received in cash in2005 10,050
Subscription for 2005 received in advance in2004 750
Subscription accrued for2004 900
Subscription accrued for2005 1050
Explanation / Answer
STATEMENTS OFAFFAIRS
1
31-Dec-02
2
STATEMENTS OFAFFAIRS
1
31-Dec-02
Cash 59200 Stock 63000 Debtors 48400 Furniture 12000 Machinery 10000 Prepaid Insurance 200 Total Assets 192800 Creditor 50400 Capital(Assets-liabilities) 142400 Total liablilities&Capital 192800 Notes: all aditional informationis adjusted in the opening balance ofaccounts.given on 31 dec01 On 31 dec 2002, the givenaccounts balances were already adjusted.2
Income & Expenditure2005 Subscription received incash 2005 10050 add: advance in 2004 750 add: Accrued for 2005 1050 less: accrued for 2004 900 Subscription for2005 10950