Question 3: 35 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 5 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 Uneamed Revenue Account for March c) The Balance Sheet on 30 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 asset's 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