Question # 2 (12+8+10+10, Marks)

Mohsin and Bro Trial Balance December 31, 2019

Accounts	Amount Rs.
Cash	6700
Accounts receivable	20200
Prepaid rent	2400
Supplies	1300
Equipment	19900
Accumulated depreciation	4300
Accounts payable	3600
Unearned service revenue	2600
Capital	30000
Service revenue	15400
Salary expense	3500
Advertising expense	1900

Adjustment data at December 31 follow:

1. Unearned service revenue still unearned, Rs.1,100.
2. Prepaid rent still in force, Rs. 500.
3. Supplies used during the month, Rs. 600.
4. Depreciation for the month, Rs. 900.
5. Accrued advertising expense, Rs. 900. (Credit payable)
6. Accrued salary expense, Rs. 1,100.

Required: (Time allowed 45 minutes)

1. Journalize the adjusting entries. No need to make the T Accounts
2. Prepare the 10-column work sheet
3. Report the net profit.

Question # 4 (Marks10+10)

Prepare Bank Reconciliation Statement for the month of June 2017. The cash book of Usman and company shows a cash book balance of Rs. 102,568 in United Bank Ltd. as of 30^th June 2017. In July, 201 7the firm received a bank statement for the month of June 2017 showing a credit balance of Rs. 118,068. Comparison of bank statement with the cash revealed the following differences found:

Check issued Rs. 115,250 recorded in cash book but not yet presented for the payment at bank. Check of Rs. 75,850 deposited into bank but not yet cleared by the bank while properly accounted for in the cash book Check received from the following customers were returned unpaid by the bank totalling Rs. 21700. Bank charges debited by bank Rs. 1,400 Bank Charged commission on collection of check Rs. 800

Required (Time allowed 30 minutes)

1. Prepare the Bank reconciliation Statement.
2. Pass the necessary journal entries.