Q.1From the following information, find out (a) sales (b) closing stock, (c) sundry Debtors and (d) sundry Creditors.

Gross profit ratio25 percent

Debtors Turnover ratio 4 months

Stock turnover ratio 4 times

Creditors turnover ratio 6 months

Closing stock Rs. 10,000 more than the opening stock. Bills receivable amount to Rs. 65,000, and bills payable to Rs, 80,000. Cost of goods sold for the year is Rs. 1200,000.

Q.2 On 1^st January 2021, the green company bought from baker & Co. four wagons on hire-purchase basis. The cash down price of the wagon was Rs. 5000 each and the installments were Rs. 1,100 each, the first payment being payable on the signing of he contract and the other four at the end of each year. The rate of interest charged by the seller was 5 %. The green Co, decided to charge depreciation at the rate of 10 percent per anum on the diminishing balance method. Show the entries in the books of the green Co., and baker & Co.

Q.3 Ali Ltd. Lease an equipment on 1^st January, 2020 that has fair value of Rs. 12000 from Zain Corporation for four years. Interest rate implicit in the lease is 15%. Useful life of equipment is 4 years. Annual rentals payable at the end of each years are amounting Rs. 4203.18. the lessee depreciates the asset using the straight line method.

Required :

I.Identify the types of lease.

II.Make amortization schedule

III.Make journal entries for the first two years in the books of lessor and lessee.

IV.Extracts of balance sheet as at 31^st December, 2021 in the books of lessor and lessee.

Q.4you are required to pass journal entries for the issue of following debentures:

a)120 10% Rs. 1000 Debentures are issued at 5% discount and are repayable at par.

b)Another 150 7% Rs. 1000 debentures are issued at 5% discount and repayable at 10% premium.

c)Further 80.9% Rs. 1000 Debentures are issued as collateral security against a loan of Rs. 40,000.