solved assighnment 438 aiou spring 2019

                                           Solved assignments aiou spring 2019
Solved assighnment 438 aiou spring 2019
 for answers please click on this link
                first assignment 438 spring 2019

ALLAMA IQBAL OPEN UNIVERSITY, ISLAMABAD

(Department of Commerce)

Course: Principles of Accounting (438)

Level: B.A/B.Com    Semester: Spring, 2019

Total Marks: 100    Pass Marks: 40

ASSIGNMENT No. 1

(Units 1–4)

Note: You are required to solve all questions if you are unable to understand any question of assignment, 
do seek help from your concerned tutor. But keep in mind that tutors are not supposed to solve the assignment questions for you.

Q.1    i.    Define the term “Accounting” and describe its objectives.    (10)

    ii.    Demonstrate how certain business transactions affect the elements of the accounting equation: assets=
 Liabilities + Owner’s Equity.    (10)                       

Q.2    What is single entry system of book keeping? Also describe the characteristics and limitations of single 
entry system?    (20)   

Q.3    Mr. Bilal started a sole proprietorship business.  The business is newly established and Mr. Bilal hired an
 accountant for keeping the journal updated.  Suppose you are the accountant of Mr. Noman’s business, prepare
 the journal book for the month of October, 2018. You are also required to post journal entries into the ledger and prepare the trial balance. Detail of the transactions during October, 2018 are given as follows:     (20)

                       

October 1.    Invested Cash Rs.2, 000, 000 & Equipment Rs.300, 000 in the business.

October 3.    Purchased supplies for cash Rs.70, 000.

October 8.    Purchased a Truck for Rs.2, 200,000 paying cash Rs. 1,000,000 and a note payable for
 the balance.

October 15.    Purchased office equipment on account Rs.150, 000.

October 18.    Paid rent for October Rs.75, 000.

October 19.    Received cash for job completed Rs.120, 000.

October 22,    Purchased supplies on account Rs.260, 000.

October 23.    Wages paid to employees Rs.410, 000.

October 25.    Paid premium on property insurance Rs.29, 6000.

October 26.    Paid cash to the creditors Rs.240, 000.

October 28.    Received cash Rs.140, 000 for job completed. 

October 29.    Received an invoice for truck expenses, to be paid in November, Rs. 41, 000. 

October 29.    Paid miscellaneous expenses Rs.33, 000.

October 30.    Paid wages to employees Rs.430, 000.

October 3 1.    Withdraw cash for personal use Rs.300, 000.       

Q.4    The following Trial Balance has been extracted from general ledger of
Mr. Ahmed.    (20)

TRIAL BALANCE

December 31, 2018

PARTICULERS	Dr. (Rs.)	Cr. (Rs.)
Cash Accounts Receivable (Debtors) Inventory (January 1, 2018) Office Equipment Accounts Payable (Creditors) Notes Payable (Bills Payable) Insurance Office Supplies Rent Expenses Office Salary Expenses Ahmed’s Capital Ahmed’s Drawings Advertising Expenses Delivery Expenses Purchases Sales Freight In Purchases Returns Sales Returns	500,000 1,000,000 700,000 460,000 80,000 40,000 60,000 120,000 90,000 20,000 50,000 1,500,000 20,000 60,000 ______ 4,700,000	800,000 300,000 1,250,000 23,00,000 50,000 ______ 4,700,000

   

    Adjustments:

1. Merchandize Inventory on December 31, 2018 is valued at Rs.850,000/-
2. Raise an Allowance for Depreciation on Office Equipment Rs.60,000/-
3. Insurance Unexpired is Rs.20,000/-
4. Office supplies consumed Rs.30,000/-
5. A bill of Rs.10, 000/- in respect of advertising is outstanding.           

Q.5    On 1st January, 2011 Mr. Noman purchased Machinery for Rs. 39,000. The machine has an estimated 
salvage value of Rs. 3,000 and an estimated useful life of 5 years.  The depreciable cost of the asset is
 Rs. 36,000 (39,000-3,000). The machine will produce 720,000 units during its useful life. The units 
produced first through fifth year are 180,000 units, 156,000 units, 138,000 units, 126,000 units and 120,000 
respectively.     (20)

   

    You are required to prepare the Depreciation schedule using the units of production method:

               

ASSIGNMENT No. 2

(Units 5–9)

Total Marks: 100    Pass Marks: 40

Q.1    Ruhi Trader keeps his record of business under single entry system and wants to know the operating 
result of his business. He provides the following data as on 31st December, 2017 and 31st December, 2018 of 
his business:    (20)

    As on 31st December, 2017: Cash in hand Rs. 25,000; Cash at bank Rs. 40,000; Account Receivables
 Rs. 70,000; Stock Rs. 65,000; Land & Building Rs. 300,000, Office Furniture Rs. 150,000, Office Equipment
 Rs. 80,000; Account Payables Rs. 95,000; Bills Payables Rs. 30,000.

    As on 31st December, 2018: Cash in hand Rs. 40,000; Cash at bank Rs. 60,000; Account Receivables
 Rs. 110,000; Stock Rs. 85,000; Account Payables Rs. 75,000; Bills Payable Rs. 45,000.

    Depreciation @ 5% on Land & Building; @ 15% on Office Furniture; @ 10% on Office Equipment is
 charged annually on original cost.

    During the year Ruhi trader withdrew Rs. 158,000 and invested Rs. 112,000 into the business. 

    You are required to:

    i.    Prepare the statement of affairs as on 31-12-2017 and as on 31-12-2018 to calculate the amounts of
 capitals.

    ii.    Prepare statement of Profit & Loss account for the period ended on 31-12-2018

Q.2    Mr. Naeem has a trading business of computer accessories. The business has been successfully run 
from last 10 years and is considered as one of the leading trading store of the city. Recently, due to the increase 
in volume of the transactions, Mr. Naeem is unable to identify the difference in the balances of Cash book and
 the pass book. Details of the transactions are given in the preceding paragraph.    (20)

   

    On 31st March, 2018 the pass book showed a credited balance of Rs. 500,000 and as per cash book is 
Rs. 408,750 of Mr. Naeem Trader. These are following discrepancy items between pass book and cash book:-

1. Cheque for Rs. 100,000 was paid in March 5th, 2018, but out of which Rs. 80,000 credited by the
    bank on 25th March, 2018 and remaining balance on 5th April, 2018.
2. Interest on investments collected by bank Rs. 1,750.
3. Bank charges for the above period also debited in the pass book of Rs. 500
4. Cheque for Rs.85, 000 were issued to creditor but not presented into bank for payment till
    31st March, 2018.
5. On 29 March, 2018 a cheque of Rs. 25,000 received was deposited into the bank but was 
   omitted to the entered into cash book.  

   

    Required: Prepare the Bank Reconciliation Statement under double balance method 

Q.3    X and Y are carrying on business as general merchants, sharing profit and losses in the ratio of 2:3. 
Their balance sheet as on 31st December, 2018 is as under:    (20)

Equities & Liabilities	Amount	Assets	Amount
Sundry creditors Bills payable General reserve Capital X Capital Y	320,000 60,000 40,000 80,000 60,000	Cash at bank Bills receivable Stock Investment Machinery Building	20,000 30,000 80,000 40,000 190,000 200,000
	560,000		560,000

    It is decided to admit Z into the partnership on the condition that he would pay Rs.40, 000/- as capital on 
1st January. Goodwill is to be valued at 3 years purchase of 4 years average profit, the profit or loss for the 
4 years are:

   

1st year profit	22,000	2nd year profit	16,000
3rd year loss	8,000	4th year profit	18,000

    The new profit sharing ratio is 5:6:7

    Required:    Give journal entries and show the balance sheet under the following methods of treatment, 
of goodwill:

    i.    Goodwill paid privately

2. Goodwill paid in cash and retained

Q.4    Short questions:    (4x5=20)                                (4x5=20)                                                                                                         

    i.    What is meant by dissolution of partnership? 

2. What is realization accounts?

    iii.    What are the implications of the Garner Vs Murry decision?

    iv.    In which situation the Garner Vs Murry is applicable? 

Q.5    Short questions        (4x5=20)

   

    i.    How would you rectify the following errors:

        a.    Monthly total of Rs. 180 of discount allowed column of the cash book was posted to the credit of 
discount received account.

        b.    An amount of Rs. 3,000 paid for erection of machinery was wrongly debited to wages A/c.

    ii.    Write down the formula for determining the net profit under net worth method.

    iii.    What will be the capital of the proprietor, if his assets are of Rs. 10,500,000 and liabilities are of 
Rs. 5,070,500?

    iv.    State with reasons whether the following items of expenditure are capital or revenue.

1. Telephone expenses 
2. Offices salaries
3. Purchase second hand truck
4. Paid for advertising
   For date sheet aiou spring 2019 click on this link
   Date sheet aiou MATRIC/ FA/PTC/CT spring 2019.. 

For solved assignment 5404 1st assign click on this link
                      5404  spring 2019 aiou 

For solved assignment 5404 2nd assignment click on this link
                        solved  assign# 2 aiou 5404 spring 2019
                 BSCS
solved assignment   3497 spring 2019 click here
                         solved assignment 3497 aiou 

   AUTUMN 2019
For other solved assignments click on this link                        

     Solved assignments autumn 2019 aiou all codes