Central College Multan

Name:__________ Paper: Accounting Total Marks :50

Roll no:_________ Class: BSC 4th year

Note: Attempt any five question in all , question one is compulsory.

Q1: prepare, in proper form, general journal entries for the following transaction for the month
of March:
1. Mr usman invested Rs. 30,000 cash to start business.
3. Paid advance rent for the building Rs. 10,000.
4. Purchase furniture for Rs. 5,000.
8. Purchase Equipment for Rs. 6000, paying Rs. 2000 cash and signed a note payable for the
remaining cost.
9. Purchase supplies on account Rs. 700.
12. Receive Rs 15000 for the services performed.
15. Receive advance for the work to be performed later on Rs. 3000.
18. Withdrew Rs. 800 for personal use.
20. Paid the remaining cost of equipment purchased on March-9
25. Paid salary to the employee Rs. 3000.
Q2: The accounts in the ledger of Tardy delivery services contain the following balance on July
31, 2002.
Account Receivable $ 8642 Prepaid insurance $ 1,968

Account Payable 8,396 Repair Expense 961

Cash ? Service Revenue 10,610
Delivery Equipment 49,360 I.M. Tardy Drawing 700

Gas and Oil Expense 758 I.M. Tardy Capital 44,636

Insurance Expense 523 Salaries Expense 4,428

Notes Payable 21,450 Salaries payable 815

Required: Prepared a Trial Balance From the above given Data.
Q3: prepare Adjusting entries of the following.
a) The prepaid insurance account had a $5000 balance on Dec 31 2004, an analysis of insurance
policies shows that 2200 of unexpired insurance benefits remain at Dec31,2005
b) one third of the word related to $30000 cash received in advance is performed this period
Q4: fill in the blanks in the following separate income statements a through c
a b c
$ $ $
sale 60,000 42,500 36,000
Cost of goods sold
Merchandise inventory
(Beginning) 6,000 17,050 7,500
? ?
Purchases 36,000
?
Merchandise inventory (Ending) (2,700) (9,000)
?
Cost of goods sold 34,050 15,900
? ?
Gross Profit 3,750

Expenses 9,000 10,650 12,150

?
Net Income(Loss) 15,950 (8,400)