For this question consider following details for adjustments and then answer the requirements

a) ABC Company has two kinds of employees, workers and executive staff. Workers are paid

wages on weekly basis for working 6 days in a week, whereas executive staff is paid salaries

on 5th of following month. The average daily wage expense for the company is Rs.940,560

whereas monthly salary expense is Rs.15,000,000. The work week starts from Monday and

ends in Saturday, the company adjusts its accounts on monthly basis, 30th of September falls

on Thursday. Record the adjusting entry for total accrued payroll for the month.

b) Star Sports is actively engaged in arranging sports events at national level. The company

sells tickets in advance for various tournaments and records the amount received in Unearned

Sports Revenue. Once spectators visit the matches the amount is then transferred to Sports

Revenue account. During month of January 2010 the company sold tickets for Rs.15 Million

in advance for an upcoming cricket tournament. Total 50 matches will be played during the

tournament from February to May. There will be equal number of matches in each month.

You are required to record adjustment in Unearned Revenue Account for March.

c) The Balance Sheet on 30th of June represents a fixed asset for historical acquisition cost of

Rs.4,000,000 and accumulated depreciation of Rs.1,750,000. The residual value of asset is

Rs.500,000. If company follows calendar year and assets estimated life is 5 years then find

for how long the asset has been in use and what is date of purchase of asset.

d) The balance of office stationary is Rs.650,000 in beginning of July. At the month end the

remaining amount of office stationary is Rs.470,000. Record adjusting entries for the

consumption of office stationary during the month.

e) XYZ Company uses periodic inventory management system. The company adjusts accounts

at month end. The beginning balance of inventory is Rs.4,800,000. Purchases during the

month equal Rs.1,500,200. The ending balance for the month is Rs.3,650,240. Record the

adjusting entry for Cost of Goods Sold.