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ALLAMA IQBAL OPEN UNIVERSITY, ISLAMABAD(Department of Commerce

ADVANCE ACCOUNTIN! ("""

C#EC$ LIST

SEMESTER% AUTUMN, &''

This packet comprises following material:-

1. Text book (one)2. Assignment No.1 and 2

. Assignment form (!ne set)". #ched$le for s$bmitting the assignments and t$torial meetings.

%f &o$ find an&thing missing' in this packet' please contact at the address gienbellow

D)rector,

A*m)++)on Ma)-)n.,

A--ama I/0a- Open Un)1er+)t2,

#34, I+-ama0a*5'637'6893&

S2e*a :a);a UrooARNIN!5 PLA!IARISM OR #IRIN! O: !#OST >RITER(S :OR SOLVIN!

T#E ASSI!NMENT(S >ILL DEBAR T#E STUDENT :ROM A>ARD

O: DE!REE?CERTI:ICATE, I: :OUND AT ANY STA!E5

&5 SUBMITTIN! ASSI!NMENTS BORRO>ED OR STOLEN :ROM

OT#ER(S AS ONE@S O>N >ILL BE PENALIED AS DE:INED IN

AIOU PLA!IARISM POLICY5

*o$rse: Adanced Acco$nting (""") #emester: A$t$mn' 2+1+,eel: .*om .A Total /arks: 1++

ASSI!#MENT NO5(Un)t+ 6

0.1. a) #tate the main difference between oint ent$re acco$nt and consignmentacco$nt. (2+)

b) !n 1 $l&' 3ahim and #aleem entered into a oint ent$re to b$& and sellanti4$es and the& agreed to share profit and loss e4$alit&.

(i) !n 15 $l&' 3ahim bo$ght two anti4$es for 61+'+++. 3ahim inc$rredexpenses of 61'+++. !n 2" $l&' he sold the anti4$es for 6+'+++.

(ii) !n 27 $l&' #aleem bo$ght two anti4$es for 62+'+++ and on $l& 25managed to sell them off for 68+'+++ and inc$rred expenses of 62'+++.

(iii)The books are agreed to be closed at end of the month and financialsettlement is s$pposed to be effected amongst #aleem and 3ahim.

Re/=)re*

(i) 9repare the oint ant$re acco$nts as it wo$ld appear in the books of3aheem and #aleem.

(ii) 9repare the /emorand$m oint ent$re Acco$nt for the aforesaid ointent$re.

0.2. ;asim of 3ahim ateh hang. The inoice was made pro-forma so as to show a profitof 27? on cost. ;asim paid freight and ins$rance 3s "'+++. /$dassar sold part of

the consignment for 3s. 1'@8'+++ at a $niform price of 1+? oer inoice price andspent 3s. 8'+++ as wareho$sing charges and 3s. 2'+++ as selling expenses./$dassar is entitled to a commission of 7? on sales and 2+? of the net profit aftercharging commission on sales. raw $p consignment acco$nt in the books ofconsignor. (2+)

2

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0.. >rom the following details regarding ;est ranch of the ,ahore Trading *o.

prepare a branch acco$nt in respect of the &ear 2++5: (2+)

#tock on 1-1-2++5 3s. 12'+++ 3et$rns to Bead !ffice 3s."'C++#tock on 1-12-2++5 5'8++ ad debts 8++

ebtor on 1-1-2++5 1+'+++ isco$nt allowed 1+

ebtors on 1-12-2++5 11'7++ 3et$rns from c$stomers '+++

Doods sent to branchd$ring 2++5

"2'+++ Expenses paid b& headoffice:

*ash sales 27'C++ #alaries and wages C'"++

*redit sales 8'+++ 3ent (from 1-1-2++5-

1-12-2++5)

7'27+

Normal loss 2'+++ #$ndr& expenses '8++

0.". isc$ss the t&pes of *ompanies and also explain the different classes of #hare*apitalF (2+)

0.7. Die o$rnal entries to record the following transactions (2+)G %ss$ed on par 27+'C? preference shares of 3s. 1++ each.G %ss$ed 7++ ordinar& shares of 3s. 1++ each at 3s.12+ all amo$nt receied in

cash.G p$rchased b$ilding costing 3s. 187+++ and iss$ed 1+++'C? preference shared

of 3s.1++ each for f$ll consideration.G %ss$ed 7+++ ordinar& shares of 3s.1+ each to promoters as rem$neration for

their serices.

ASSI!#MENT NO5&

(Un)t+ 9 70.1. ;hat are the co$rses aailable to companies for reorganiHation and also

differentiate the absorption from amalgamation of a compan&. (2+)

0.2. 9 ,td p$rchases a plant on hire p$rchases basis for 3s. 7+'+++ and makes thepa&ment in the following order. own pa&ment 3s. 1+'+++: the first installmentafter one &ear 3s. 2+'+++ the second installment after two &ears 3s. 1+'+++ andthe last installment after three &ears. The cash price of the plant is 3s."'+++.

Re/=)re*%

(i) the total interest(ii) the interest incl$ded in each installment. (2+)

0.. >rom the following &o$ are re4$ired to comment $pon the long-term as well asshort-term solenc& of the compan&:

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,iabilities 3s. Assets 3s.#hare *apital 7'7+'+++ >ixed Assets 8'7+'+++>ixed ,iabilities 2'7+'+++ ,i4$id Assets 2'7+'+++

*$rrent ,iabilities 2'++'+++ #tock in Trade 1'++'+++T!TA, 1+'++'+++ T!TA, 1+'++'+++

Bint: *alc$late debt-e4$it& ratio fixed assets ratio' proprietar& ratio' c$rrent ratioand li4$idit& ration. (2+)

0.". a) ;hat are the maor reasons of /ergers and Ac4$isitionsF. (1+)

b) !n an$ar& 1' 2++@' $rke *orporation signed a 7-&ear non canclable leasefor a machine. The terms of the lease called for $rke to make ann$alpa&ments of 3s. C'88C at the beginning of each &ear' starting an$ar& 1'2++@. The machine has an estimated $sef$l life of 8 &ears and 3s. 7'+++ $ng$aranteed resid$al fal$e. $rke $ses the straight-line method of depreciationfor all of its plant assets. $rkeIs incremental borrowing rate is 1+?' and the,essorIs implicit rate is $nknown.

Required: (i) 9repare all o$rnal entries for r$ke for the &ear 2++@. (1+)

0.7. >ollowing is the trial balance of /# AHa&a Traders as on +th$ne 2++5. (2+)Trial alance of /s AHa&a Traders as on +th$ne 2++59artic$lars ebit Amo$nt (3s.) *redit Amo$nt (3s.)!pening #tock C8'+++9$rchases 11'8'+++#alaries 1'7'+++;ages 1C'+++*arriage !$twards 28'+++Trading *harges 8"'+++*arriage !$twards 72'7++

3ent 3eceied 1'@C'++*ash 82'7++*apital '""'@++ank (!erdraft) @'5C+*ommission "2'@C+*reditors 2'8C'+++#ales 17'"C'@++ebtors 2'78'+++/achiner& "'C+'+++Tota- &,88,94' &,88,94'

A*