Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Answer Q 1 Q2 and Q3 Pass Marks: 40 Q. 1 Rectify the following errors by making necessary journal entries in the General Journal. (20)

Answer Q 1 Q2 and Q3

image text in transcribed
Pass Marks: 40 Q. 1 Rectify the following errors by making necessary journal entries in the General Journal. (20) a) A Cash Sales of Rs. 3,750 to Rahat correctly entered in the Cash Book but also posted to the credit of his personal account. b) Goods returned by Moeen Rs. 300 have been entered in the Returns Outwards Book. However, Moeen's account has been correctly posted. 3 c) The purchase Book has been under casted by Rs. 900, Rs. 600 and Rs. 1,500 respectively on consecutive three pages. d) Purchase of Furniture on credit from Lahore Furniture for Rs. 7500 was entered in the Purchase Book. e) The account of a debtor for Rs. 12,000 had been written off as bad, but the entry had been made only in the personal account. The sales book was under cost by Rs. 50, Rs. 175 and Rs. 75 respectively on consecutive three pages. Q. 2 Discuss the various causes of disagreement of balance between Bank Statement and Company's Cashbook. (20) Q. 3 Prepare Income and Expenditure Account and Balance Sheet of Iqra Foundation from the following Receipts and payment Account for the period ended on 30 June, 2017. (20) Receipts Amount (Rs.) Payments Amount (Rs.) Balance Entrance fee (25 @ Rs.100) 6,274 Grants to members 1,320 2,500 Salaries 675 Annual subscription: Rend and rates 1,266 2016 200 2017 Postage & telegram 136 2.900 2018 150 Repair to premises 425 3,250 Investment 13,000 Legacies 12,600 Furniture purchased 1,700 Miscellaneous receipts 3,450 3,578 Sale of old furniture 1,500 Cash in office 406 Cash at bank 7,880 Donations 29.980 29.980 Additional information: i) ii) Annual subscription for each member is Rs. 120, Rs. 240 being in arrear for 2016. Prepaid rent and rates Rs. 300. iii) Postage and telegram Rs. 56 related to 2016, One-half of the legacies are to be treated as income. iv) At July, 2016 the building and premises stood in the books at Rs. 35,000 investment Rs. 12,000 and furniture Rs. 3,000. v) Depreciation is to be provided at the rate of 10% p.a. on furniture and writing down investments by 5% (opening balance only)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial And Management Accounting An Introduction

Authors: Pauline Weetman

8th Edition

1292244410, 978-1292244419

More Books

Students also viewed these Accounting questions

Question

4. Find an event that has a probability of 1.000.

Answered: 1 week ago

Question

How easy the information is to remember

Answered: 1 week ago

Question

The personal characteristics of the sender

Answered: 1 week ago