BBA & B.com 1[1] Accounting

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Lesson Plan Guideline Superior University 1

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Transcript of BBA & B.com 1[1] Accounting

Lesson Plan Guideline

Superior University

Financial Accounting I Module Handbook

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Lesson Plan Guideline

ContentsCOURSE DELIVERY ARRANGEMENTS.............................................................................3COURSE INSTRUCTORS.......................................................................................................32. Course Introduction...............................................................................................................3

2.1 Course Objectives:...........................................................................................................42.2 Course Contents:..............................................................................................................42.3 Student Gain....................................................................................................................6

3. Teaching and Learning Methodology....................................................................................73.1 Lectures..........................................................................................................................73.2 Activities & quizes:........................................................................................................7

3.3 Projects…………………………………………………………………………………7Two projects (Mid-term and Final Term) will be undertaken by the students in order to apply their comprehensions of theoretical constructs with practical demonstrations...........7

4. Assessment............................................................................................................................7 4.1 Assessment chart……………………………………………………………………….7 4.1.1 Mid term exam……………………………………………………………………….7 4.1.2 Final term exam………………………………………………………………………75. Assignment…………………………………………………………………………………86. Reference Material...............................................................................................................12

6.1 Reference books……………………………………………………………………..116.2 Websites and Links........................................................................................................12

7. Lecture Plan.....................................................................................................................148. Academic & Disciplinary Policies.......................................................................................20

8.1 Late Submission:...........................................................................................................208.2 Absenteeism:..................................................................................................................208.3 Scholastic Honesty:.......................................................................................................208.4 Plagiarism......................................................................................................................20

9. Cover Sheets for Assessment:.............................................................................................2010. Assessment GPA and Percentages:..............................................................................209

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Lesson Plan Guideline

COURSE DELIVERY ARRANGEMENTS

Course Financial AccountingCredit Hours 3 Lecture Duration 3 Hours Per week Semester Duration 15 weeks

COURSE INSTRUCTORS

Module Leader 1. Mr. Saeed Ahmad SabirModuleModule Tutors 2. Mr. Saeed Ahmad Sabir

3. Mr. Malik Javied Anwar4. Mr. Imtiaz ahmad5. Mr. Kamran Ali

Room and Building Accounting & Economics Faculty RoomPhone NumberEmailConsultation Hours

2. Course Introduction

This course basically deals with the fundamentals of Financial Accounting. The Students are

expected to learn an understanding of accounting concepts, principles, procedures and

systems for preparation of financial statements, accounting treatments of current assets and

liabilities, tangible and intangible assets. Students should become adept at classifying

problems, situations and applying the required accounting principle.

Program: B.com (hons)

Semester: 1st Session: 2012-2016

Pre Requisites: Nil

Follow Up: Financial Accounting II

Text Books1- Financial Accounting by PROF. Dr. CH. ABDUL REHMAN2- Financial accounting by Meigs & Meigs 11th edition

2.1 Course Objective:

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This module provides a broad overview of financial Accounting for under graduation

students in business and management. The module has following specific aims:

An applied knowledge of accounting principles, concepts and skills of accounting,

and preparing financial statements manually.

An applied knowledge of preparing the Books of accounts.

To develop Understanding the accounting errors and methods of rectifying the

accounting errors.

To provide a comprehensive understanding of Depreciation and methods of

calculation of depreciation.

2.2 Course Contents:

Topics include:

a) Introduction of Financial Accounting & Basic Terms of Accounting

b) Accounting Concepts and Principles

c) Analysis of transactions according to rules of Debit & Credit

d) Accounting Equation

e) Journal

f) Ledger

g) Trail Balance

h) Banking Transactions,

i) Cash book & Bank Reconciliation Statement

j) Financial Statements, Completion of Accounting Cycle

k) Rectification of Errors

l) Capital and revenue incomes & Expenditures.

m) Depreciation.

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RELATIONAL DIAGRAM OF MAIN CAPABILITIES

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The context and purposeOf financial Accounting

Financial information and the fundamental basis of Accounting.

The use of double-entry and accounting systems

Recording the transaction in Journal

Classification in Ledger

Preparing a trial balance

Preparing basic financial statements

Lesson Plan Guideline

2.3 Student Gain

Classification Topics

Knowledge and Comprehension

After Completion of this course students will be able to

Know and understand:

The Business Transactions, Books of Accounts, tools

and techniques of Accounting, Flow of data,

Procedures for measuring business performance.

Skills

Student should be able

To design different types of documents, reports and

data flow diagram. Like “Receipt Vouchers, payment

Vouchers.

To prepare Books of Accounts like Journal, Ledger

and Trail balance.

To prepare basic financial statements: Income

statement, Balance Sheet of trading, service & profit

making organizations.

To reconcile the bank statement.

Analysis and Synthesis

Student should be able

To charge the depreciation on asset.

To analyze the different reports (Income Statement &

Balance Sheet of trading, service and data flow of

accounts.

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3. Teaching and Learning Methodology

3.1 Lectures

Lectures are basically interactive sessions in which teacher uses different techniques to

deliver knowledge about subject as adopted specially in Accounting like:

Some re-cap of previous lecture

Outline of the current lecture

Discussion on Theoretical concepts

Formats of different reports and practical demonstration on the board

Class activity

Lecture review and assignment

3.2 Activities and Quizzes

Different types of activities designed by reputed experts will be commenced in the

class to develop and enhance interest and potential of students towards practical

application of the topic.

To ensure the increased learning of lectures, class quizzes and viva will be carried

out.

3. 3 Projects:

Two projects (Mid-term and Final Term) will be undertaken by the students in order to apply

their comprehensions of theoretical constructs with practical demonstrations.

4. Assessment

The assessment scheme is intended to provide a balance of activities, which enables you to make best use of the learning and also to provide you with opportunity to do well on a number of different factors. This means that a range of assessment techniques are used as follows:

Table 1Percentage Mark Grade 80-100 A70-79 B60-69 C50-59 DBelow 50 F

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4.1 Assessment chart

Assessment Weight ageMid Term Assignment (Break Up on Page No.9)

10%

Mid Term Exam (Break up 4.1.1) 20%Final Term Project (Break Up on Page No.10)

20%

Viva 10%Final Exam 40%Total 100%

4.1.1 Mid Term ExamAssessment Weight ageObjective 10%Subjective 90%Total 100%

Note: 20% weight age of midterm paper’s marks will be include in Final Result.

Topic Percentage in Mid Term PaperTopic Weight age Subjective ObjectiveIntroduction & Basic terms of Accounting

15% 10% 5%

Journal, ledger & Trial balance 40% 40% ---Accounting equation 25% 22% 3%Banking transactions 20% 18% 2%Total 100% 90% 10%

4.1.2 Final Term ExamAssessment Weight ageObjective 10%Subjective 90%Total 100%

Note: 40% weight age of Final term paper’s marks include in Final Result.

Topic Percentage in Final Term Paper

Topic Weight age Subjective ObjectiveBank reconciliation Statement 15% 15% ----Rectification of Error 28% 25% 3%Financial Statement (Without Adjustment)

27% 25% 2%

Depreciation Account 15% 11% 4%Cash book 15% 14% 1%Total 100% 90% 10%

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5. Assignments: Pre mid Assignment:Register your company. Report and discussion on the chart of Accounts on a particular company.

Guide lines for Assignment:

This assignment will be group based & group consists on 2-3 members. Register your company with your course instructor The Annual Report of your company should be obtained from the Lahore

Stock Exchange or can be downloaded from the Company Website. . See the Expenses & Incomes of the company from income statement and

Assets and liabilities from the Balance Sheet of the company. See Notes to the Accounts of the heads of income statement & Balance sheet. Explain each item that include in income statement, balance sheet and notes to

the accounts.

Guide line for viva: Viva consist on six questions; Three questions from the Heads of Income Statement Three questions from the Heads of Balance Sheet Each Question Consist of 10 Marks

Content of Report: Company Profile Heads of Accounts Explanation of Heads of Accounts

Marking Policy

Contents MarksCompany Profile 5Heads of Accounts 5Explanation of Heads of Accounts 40Viva 20Total marks 70

Note: 10% weight age of midterm Assignment marks include in Final Result

Final Term Project:Project Title Application of Deprecation Methods in a Firm According to IAS16.Project Description You should imagine yourselves to have been recently appointed as an

accountant of a company. You have been asked by the board to charge on depreciation on fixed assets of the company which you are selected.

Learning outcomes After the completion of this project student will be able to Apply the concept of Accounting Understand fixed assets & its treatment in financial

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statements. Understand the application of depreciation.

Time Duration Fourteen (14) Days for the completion of Project Size of team There will be a team of three students.

1) One student should have CGPA ranging from 3 to 42) Second student should have CGPA ranging from 2 to 33) Third student should have CGPA ranging from 1 to 2

Tasks Description Timeline Learning outcome/s

Evidence

1) Introduction What is the Accounting Manual?For Which Company you prepare report?Company Introduction?Board of Directors of the company

05 Day Required

LO 1 Report

2) Accounting policies and procedures

To identify that which accounting policy is being followed by a company (Cash basis or Accrual Basis). Which accounting procedures are used by the company for the complete working on the calculation of Depreciation?

1-

05 Days Required

LO Report

3) Fixed Assets At which value fixed assets would be recorded in the books of accounts. Appropriate method of recording depreciation. Valuation of Fixed assets in case of addition and disposal of Fixed Assets.

02Days Required

LO 3 Report

4) Depreciation 1- Straight Line Method

2- Diminishing Balance Method

3- Units of Output Method

4- Sum of years digits Method

02 Days Required

LO 4 Report

Evaluation Criteria and Rubrics

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Learning outcomes Grading descriptors Application the

concept of Accounting.

Grading range (1- 3)DescriptionNo learning – (The individual has not provided any help in completing the assignment and attained no knowledge, this will be assessed through Viva Voce)Acceptable learning– (The individual has participated in the project and has learnt to some extent, this will be assessed through Viva Voce)

Excellent Learning–(The individual has fully participated in the project, has performed his/her assigned task very diligently and has attained the required practical knowledge, this will be assessed through Viva Voce)

Apply the rules of debit & credit.

Understand fixed assets & its treatment in financial statements.

Understand the application of depreciation.

Evaluation criteria of participation in the project

No Contribution Acceptable Excellent(0) (2) (3)

DescriptionNo contribution – (The individual has not provided any help in completing the assignment and has not performed his assigned roles)Acceptable – (The individual has participated in the project and has tried to perform his assigned role to some extent)Excellent–(The individual has fully participated in the project, has performed his/her assigned task very diligently and has contributed quality work in the project)Note: The failure to contribute in the project will result in the failure to get any marks in the project as well.

Project submission Guidelines

When to submit: The date and time of assignment submission will 28th lecture of the semester in the student’s office. If the final project will be submitted next day then 10% and if submitted the two days after that date then 20% deduction will be made from the total marks obtained. How to submit: The process of assignment submission is i.e. use of cover page, submission of assignment in hard copy, in-case of extension or late submission the student has to take written permission from the Program Manager and then submit it to the student’s office. Where to submit: The student has to submit his/her assignment at student office.

Special Instructions/other information if any

Special instructions/information may involve:a. Resources and reference materials

Business Accounting 1 By Frank Wood latest editionReference Books

a. Principles of Accounting By M.A Ghanib. Contemporary Accounting By Robert L. Dansby,

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Burton S. Kaliskic. Accounting Principles By Jack L.Smith (McGraw-Hill d. Financial Accounting Fundamentals by PBP

a)Additional References:

a) Business Weekb) Accountant

b. Websites and Linkswww.iasb.comwww.accounting.comhttp://www.fasb.org/http://www.luca.comwww.businessweek.comwww.ac.com.

c. Special guidelines should be to the students in case of an organizational visit/meeting with executives:

1. Dressing2. Communication3. Punctuality4. Preparation of contents to be discussed

Marking Criteria

Contents MarksIntroduction Of A Company 4Accounting Policies And Procedures 6Fixed Assets 6Executive summary 4Total Marks 20

6. Reference Material6.1 Reference Books

a. Business Accounting 1 By Frank Wood b. Principles of Accounting By M.A Ghanic. Contemporary Accounting By Robert L. Dansby, Burton S. Kaliskid. Accounting Principles By Jack L.Smith (McGraw-Hill e. Financial Accounting Fundamentals by PBP

6.2 Websites and Links www.iasb.comwww.accounting.comhttp://www.fasb.org/http://www.luca.comwww.businessweek.comwww.ac.com

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7. Lecture Plan

Lecture Plan Session

TopicsLecture Break up Class Activity Objective of

Activity & SessionHome Assignment

Lecture 1

Introduction to Accounting.

Need and importance of accounting

Book-keeping and accounting Branches of accounting

Group discussion on branches of accounting and book-keeping. Difference between book-keeping and Accounting.

Understanding about the accounting, book-keeping & terminology of Accounting

Summary of branches of Accounting

Lecture 2

Basic terms of Accounting

Objects of accounting Important accounting terms Transaction, purchases,

business, types of business, Accountancy, Goods, types of purchases, sales, types of sales, return outward & inward

Group discussion on basic terminologies of the accounting.

Understand the basic terminologies of the accounting.

Reading basic accounting terms from Chap # 1

Lecture 3 Basic terms of

Accounting

Important accounting terms. Accounts Receivable, Accounts

payable, Trade discount, cash discount, capital, drawings, expense, revenue

Group discussion on basic terminologies of the accounting.

Understand the basic terminologies of the accounting.

Reading basic accounting terms from Chap # 1

Lecture 4 Accounting

Concept and Principles ofAccounting IAS, IFRS,GAAP

Materiality, going concern, accounting period, accrual and cash basis,

Prudence and conservatism International accounting

standards, Generally accepted accounting principles

Discussion on Accounting Concepts & Principles of Accounting. Also discuss

Understand the Accounting Principles & Concepts

Write down the summery of GAAP from Chapter # 1

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Lecture 5

Accounting Equation

Accounting equation Elements of Accounting Sources & resources from

business point of view Problems & Discussion

P # 4, 5 of Chapter # 2

Understand the elements of Accounting & equality of resources & sources.

P # 1, 2 , 3 from Chapter # 2

Lecture 6

Analyzing of Transactions Event monetary and non-monetary, credit and cash transactions

Analysis of transactions Rules of debit & credit Treatment of elements of

accounting

P # 1Of Chapter # 3

Understand the analysis of the transactions as well as rules of debit & credit

P # 2,3,4 from Chapter # 3

Lecture 7

Recording of transactions in Journal

Accounting cycle Introduction of journal Specimen of journal Journal entry Entry Journalising Simple entry, compound entry Narration & ledger reference

P # 1Chap # 4

Understand about the journal, entry, simple & compound entry

P # 1,2 from Chap # 4

Lecture 8 Recording of

transactions in Journal

Journal Problems & discussion

P # 3Chap # 4

Understanding to how the transaction record in first book of accounts. Trade discount and cash discount.

P # 4,5 Chap # 4

Lecture 9 Posting in

ledgers Introduction, second phase of accounting Cycle

What is ledger? What is posting? What is balancing? What is balance? Debit, Credit Balance & Zero

balance.

P #1 Chap # 5

Understand about the ledgers, forms of ledgers, debit & credit balance.

P # 1,2 from Chap # 5

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Lecture 10

Posting in ledgers Introduction, second phase of accounting Cycle

Ledger Practical problems regarding

the ledgers

P # 4 & 5Chap # 5

Understand about the ledger and how the transaction is transfer from journal to ledger.

P # 1, 2, 3 Chap # 5

Lecture 11 Preparation of

Trial balance

Methods of preparing trial balance.

Comprehensive problems

P # 4 & 5Chap # 4

Understand the trial balance & how the ledgers balances transfer in trial balances

P # 1, 2 3 Chap # 4

Lecture 12

Banking transactions

What is bank? Types of bank accounts Relationship with bank or

customer Deposits & withdrawals & their

accounting treatment

Group discussion about the bank & different types of bank accounts.

Understand the bank & different types of bank

Lecture13

Banking transactions

Bank Practical problems & solutions

Problem # 2,3 ofChapter # 7

Understanding the Banking transactions and recording of banking transactions.

Illustration # 1,2,3 &Problem # 1 of Chapter # 7

Lecture14 & 15 Mid Term Paper

Lecture16 Sub –division of

journal

Introduction of cash book. Distinction between cash

account & cash book Single column, double column

& triple column cash book.

p # 1Chap # 8

Understand the cash book and how prepare the single column cash book

P # 2,3Chap # 8

Lecture 17

Bank Reconciliation statement

Importance of BRS Method of preparation of BRS Practice problems & solution

P # 4,5,6Chap # 8

Understand the BRS andhow prepare the BRS

Illustr # 5,P# 7,8,9Chap # 8

Lecture Rectification of Errors in accounting records P # 7,8 Understand and P # 9,10

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errors

Book-keeping errors Trial balance errors Rectifications of errors Double sided Errors and

rectification

Chap # 15 method of rectifying those which are double sided.

Chap # 15

Lecture19

Rectification of errors

Single sided errors and rectification

Suspense Account: why a suspense account is opened and operated

Practical problems and solution

Illustration # 3,4,5Chap # 15

Understand and method of rectifying those which are single sided

P # 1,2,3Chap # 15

Lecture 20

Rectification of errors

Single sided errors and rectification

Suspense Account: why a suspense account is opened and operated

Practical problems and solution

Illustration # 3,4,5Chap # 15

Understand and method of rectifying those which are single sided

P # 1,2,3Chap # 15

Lecture21

Capital and Revenue Capital and revenue expenditures

Why we differentiate b/w capital and revenue

Difference between capital and revenue expenditures

Capital and revenue receipts

P # 1,4,5Chap # 14

Understanding about the capital and revenue item and also differentiate the revenue and capital expenditure, receipts, payments, losses and gains

P # 2,3,6Chap # 14

Lecture 22 & 23

Capital and Revenue Capital and revenue expenditures

Why we differentiate b/w capital and revenue

Difference between capital and revenue expenditures

Capital and revenue receipts

P # 1,4,5Chap # 14

Understanding about the capital and revenue item and also differentiate the revenue and capital

P # 2,3,6Chap # 14

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expenditure, receipts, payments, losses and gains

Lecture 24 Financial

Statements (Income Statement & Balance Sheet

Introduction to financial statements

Difference between income statement and trading and profit and loss account

Statement for Trading, Manufacturing and services(Introduction)

Group discussion on financial statement as well as Income statement & balance sheet.

Understand the Income statement & balance sheet. Statement pattern of Trading & manufacturing business.

Lecture25

Financial Statements (Income Statement & Balance Sheet

Difference between direct & indirect expenses

Classification of assets & liabilities in balance sheet

Marshalling

Group discussion on direct & indirect expenses, assets and its types as well as liabilities and its types

Understand the current Assets & fixed assets and current liabilities & fixed liabilities

Reading the types of assets and liabilities.

Lecture26 & 27

Financial Statements (Income Statement & Balance Sheet

Practice questions & solution Illustration #1,2,3 7P # 7

Understand how income statement & balance sheet is prepare

P # 1,2,3,8,9

Lecture28

Depreciation

Definitions Methods of depreciation Why depreciation is charged?

Discussion on depreciation, amortization, depletion, wear & tear, obsolescence, working life of an asset,

Understand the basic terminology about depreciation

Lecture29 & 30

Depreciation

Straight line method Diminishing balance method Sale of asset Sum of year digits method Units of production method Problems and solutions

Illustration # 1,2,3,4 Understand the how depreciation is calculated by using different methods of depreciation.

P 1,2,3,4,5,6

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8. Academic & Disciplinary Policies8.1 Late Submission:

According to the University policy an assessment item submitted after the due date, without an approved extension, will be penalized at a rate of 10% per day of the possible maximum mark for the assessment item for each day or part day that the item is late. You can submit your assignment up to 2 days after due date. Late submission subjects to maximum 20% deduction in overall marks. Assessment items submitted more than two days after the due date will be awarded zero marks.

8.2 Absenteeism:

Late coming and shortage in attendance i.e. 8 continual absents from class, ensure that students will be struck off from the relevant subject.

8.3 Scholastic Honesty: Superior University expects each student to do his/her own work. The University has "zero tolerance" for cheating, plagiarism, unauthorized collaboration on assignments and papers, using "notes" during exams, submitting someone else's work as one's own, submitting work previously submitted for another course, or facilitating acts of academic dishonesty by others. The penalties are severe!

8.4 Plagiarism University policy prohibits students plagiarizing, collusion, copying and ghost writing any material under any circumstances. A student plagiarizes if he or she presents the thoughts or works of another as one’s own. This definition may include:

Using another’s ideas without due acknowledgement; Working with others without permission and presenting the resulting work as

though it was completed independently. Aiding another student to plagiarize is also a violation of the plagiarism Policy

and may invoke a penalty.9. Cover Sheets for Assessment:

A Faculty specific Assignment Cover Sheet (available at university bookshop) is to be completed and attached to each assessment item to be submitted.

10. Assessment GPA and Percentages:

(80-100%) This is an outstanding standard indicating comprehensive knowledge and understanding of the relevant materials; demonstration of an outstanding level of academic ability; mastery of skills (as identified in the assessment task); and achievement of all assessment objectives.

(70-79%) This is an excellent standard indicating a very high level of knowledge and understanding of the relevant materials; demonstration of a very high level of academic ability; sound development of skills (as identified in the assessment task); and achievement of all assessment objectives.

(60-69%) This is a very good standard indicating a high level of knowledge and understanding of the relevant materials; demonstration of a high level of academic ability; reasonable development of skills (as identified in the assessment task); and achievement of all assessment objectives.

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(50-59%) This is a satisfactory standard indicating an adequate knowledge and understanding of the relevant materials; demonstration of an adequate level of academic ability; satisfactory development of skills (as identified in the assessment task); and achievement of most assessment objectives.

Fail (less than 50%)

This is an unsatisfactory standard indicating an inadequate knowledge and understanding of the relevant materials; insufficient evidence of academic ability; failure to develop skills (as identified in the assessment task); and failure to achieve assessment objectives.

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Name: ____________

Roll No: __________

Time Allowed: 10 min. Total Marks: 10

SECTION I

Q.1: chose the correct option from the following options. (10*1=10)

1- According to which concept, revenue should be recognized at the time when goods

are sold or services are rendered.

a) Realization concept b) Dual Aspect concept

c) Matching concept d) None of theses

2- The amount invested by owner to start the business or expand the existing business.

a) Capital b) Drawings

c) Both a & b d) None of these

3- Unsold goods are ready for sale is called?

a) Sales b) Stock

c) Purchases d) None of these

4- An entry in which more than one account is debited or more than one account is

credited is called?

a) Simple entry b) An entry

c) Both a & b d) None of these

5- The king of all the books is called?

a) Ledger b) Trial balance

b) Journal d) None of these

6- The transfer of information from journal to ledger is called_____________

a) Journalizing b) Posting

FINANCIAL ACCOUNTING-IMID TERM EXAM

B.com & BBA 1st (OBJECTIVE PART)

Total Marks: 10Department: MS Obtained Marks: ---------------- Course Instructor: _______Course Instructor: Saeed Ahmad

Obtained

Instructions: All questions are to be attempted on the paper and returned to the invigilator within

10 minutes after you have received the question paper.

Any cuttings or overwriting in answering the questions will not be accepted and no

marks will be given even if the answer is correct.

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c) Balancing d) None of these

7- Purchases furniture on cash which account will be debited_____________

a) Purchases b) Furniture

c) Creditors d) None of these

8- The rate of allowance given a Creditor to a Debtor, if he pays his debts before the due

date of payment is normally.

a) 5% b) 2%

c) 1% d) None of these

9- Stationary is an example of _____________

a) Consumable asset b) Expense

c) Asset d) None of these

10- All events which are related with money are measured in terms of:

a) Kilogram b) Quantity

c) Both a & b d) None of these

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Name: ___________________

Roll No: ____________

Name _____________

Roll No___________

Time Allowed:1 hours 30 min.

Total marks: 90

Attempt All questions.Question No. 1: Pass the journal entries of the following transactions and post them in the ledgers and prepare the trial balance (50 Marks)

1- Mr. Usman started business with cash Rs. 500,000.

2- He purchase goods for cash Rs. 100,000

3- He purchase building for cash Rs. 200,000

4- Sold good to cash for Rs. 50,000

5- Paid salaries Rs. 5,000

Question No.2: Prepare the accounting equation statement with the help of following

transactions. (20 Marks)

1- Mr. Saeed started business with cash Rs. 200,000.

2- He purchase goods on cash Rs. 20,000

3- Purchase goods from Mr. Haris Rs. 10,000

4- Paid advertising expenses Rs. 2,000

5- Sold goods to Mr. Asif Rs. 15,000 costing Rs. 12,000

6- Withdrew cash from business Rs. 5,000

QuestionNo.4: Record the transactions in the journal. (20 Marks)

1. Mr. Waqas started business with cash Rs. 300,000

2. Deposited cash into bank Rs. 200,000

3. Purchase goods by cheque Rs. 20,000

FINANCIAL ACCOUNTING-IMID TERM EXAM

B.com & BBA 1st (SUBJECTIVE PART)

Department: MS Course Instructor: Total Marks: 9090

Instructions:

The subjective part is to be submitted within 1hours 30 min, extra time will not be

given.

Neat handwriting, use of margins and marker for headlines will increase the

outlook/presentation of your paper

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4. Paid salaries to employees through Cheque Rs.2,000

5. Received cheque from a debtor Rs. 5,000 & deposited into bank.

Name: __________

Roll No: ________

Time Allowed: 10 min.

Total Marks: 10

FINANCIAL ACCOUNTING-IFINAL TERM EXAM

B.com & BBA 1st (OBJECTIVE PART)

Total Marks: 10Department: MS Obtained Marks: ---------------- Course Instructor: _______Course Instructor: Saeed Ahmad

Obtained

Instructions: All questions are to be attempted on the paper and returned to the invigilator within

10 minutes after you have received the question paper.

Any cuttings or overwriting in answering the questions will not be accepted and no

marks will be given even if the answer is correct.

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SECTION IQ.1 Question # 1: chose the correct option from the following options. (10*1=10)Question # 1: chose the correct option from the following options.

1- The term expenses and expenditures are?

a) Same b) Different

b) Opposite d) None of theses

2- Trademark is an_____________

a) Tangible Asset b) In-tangible Asset

c) Both a & b d) None of these

3- Bills receivable is an asset of __________

a) Drawer b) Drawee

c) Payee d) None of these

4- A bill drawn and accepted without any sale and purchase of goods, main purpose to

help one or both the parties financially is called___________

a) Trade bill b) Foreign bill

c) Accommodation bill d) None of these

5- Noting charges is an expense of:

a) Drawer b) Payee

c) Holder of the bill d) None of these

6- Decrease in the value of intangible asset is called__________a) Depreciation b) Amortizationc)Both a & b d) None of these7- Scrape value is also called___________a) Residual value b) Trade in value

c)Both a & b d) None of these

8- Straight line method of depreciation is also called__________

a) Fixed installment method b) Original cost method

c)Both a & b d) None of these

9- Diminishing balance method of depreciation is also called__________

a) Written down value method b) Original cost method

c)Both a & b d) None of these

10- The decrease in the value of natural resources is called__________

a) Depletion b) Obsolescence

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c)Both a & b d) None of these

Name: ___________________

Roll No: ____________

Name _______________

Roll No______________

Time Allowed: 150 mints.Total marks: 90

Attempt All questions.Question No 1: [20]Mr. Simmons has the following items in his balance sheet as on December 31st, 2012:

Capital $ 147,200 Accounts payable $ 16,800; Fixtures $ 22,400; Car $ 30,400; Inventory $

FINANCIAL ACCOUNTING-IFINAL TERM EXAM

B.com & Bba 1st (SUBJECTIVE PART)

Department: MS Course Instructor: Total Marks: 90

Instructions:

The subjective part is to be submitted within 2hours 30 min, extra time will

not be given.

Neat handwriting, use of margins and marker for headlines will increase the

outlook/presentation of your paper

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36,400; Accounts Receivable $ 22,240; Cash at bank $ 50,000; Cash in hand $ 1,760.

During the first week of December 2012

a) He bought extra inventory for $ 1,600 and payment is made through cheque.

b) One of the Accounts Receivable paid his $3,670 by cheque.

c) He bought a Fixture by cheque $ 3,400.

d) He paid Accounts payable by cheque $ 8,000.

You are asked to draw up a Balance Sheet as on December 31, 2012 after the above

transactions have been completed.

Question No 2: The bank columns in the cash book for June 2010 and the bank statement for the month for Ali are as follow: [25]

Cash BookDate Particulars Rs.(Dr) Date Particulars Rs.(Cr)Jun 1 Balance b/d 6,960 Jun 10 Usman 1,396Jun 16 M.Ali 352 Jun 15 Bilal 132Jun 24 Kamran 292 Jun 28 Fiza 460Jun 31 M.Ilyas 996 Jun 31 Balance 6,968Jun 31 M.Yasir 356

Total 8,956 Total 8,956

Bank StatementDate Particulars Dr Cr Balance2010Jun 1

Balance b/d 6960 Cr

Jun 16 Cheque 352 7312 CrJun 10 Usman 1,396 5916 CrJun 15 Bilal 132 5784 CrJun 24 Mubashir 292 6076 CrJun 30 Credit transfer 108 6184 CrJun 30 Bank Charges 88 6096 CrJun 30 Interest 200 6296 CrJun 30 Zakat 120 6176 CrJun 30 ATM charges 80 6096 Cr

You are required to:(a) Write the cash book up to date to take the above into account, and then(b) Draw up a bank reconciliation statement as on 30 June 2010

Question No 3: From the following trial balance of Mr. Wilcox after his first year’s trading December ended 20X8. A balance sheet is also required [25]

Trial Balance as at Dec. 31, 20X8General expenses ………………………………………………………………………………305Business rates ……………………………………………………………………………......2,400Motor expenses …………………………………………………………………………………910Salaries ………………………………………………………………………………………….39,560

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Lesson Plan Guideline

Insurance ………………………………………………………………………………………..1,240Purchases…………………………………………………………………………………....121,040Sales………………………………………………………………………………………………………………….. 235,812Car………………………………………………………………………………………………….. 4,300Creditors……………………………………………………………………………………………………………….11,200Debtors …………………………………………………………………………………………..21,080Premises …………………………………………………………………………………………53,000Cash at bank……………………………………………………………………………………..2,715Cash in hand……………………………………………………………………………………… 325Capital ………………………………………………………………………………………………………………….23,263Drawings………………………………………………………………………………………….23,400 270,275 270,275Stock at 31 December 20X8 was £14,486.

Question No 4: Give journal entries to rectify the following errors. [20]

a) Sold goods to Mr. Ahmed Rs. 2000 and but wrongly debited to Mr. Ammar Account.b) Paid salaries Rs. 950 but wrongly debited to Salaries account Rs. 590.c) Wages Rs. 500 paid on installation of machinery but wrongly charge to wages

account.d) Sold goods to Mr. A Rs. 23000 but wrongly credited to his account.

e) The taxes on the private property of Mr. Saeed Rs.1,500 had been paid by the business and debited to “Taxes Account”.

f) The Purchases Book has been under cast Rs.100, Rs.350 and Rs.150 respectively on consecutive three pages.

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Lesson Plan Guideline

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