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  #31  
Old Friday, October 18, 2013
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Question Few confusions

Is this necessary to categorized Balance sheet's Assets and Liabilities in Current and fixed?? If yes, then Provision for Tax, Proposed Dividend, Unclaimed Dividend, Reserve for depreciation are current or long term liabilities??
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Quote:
Originally Posted by Palwashaa View Post
Q.no5. 2002. Trading p&l acc. 15,700,000. Balance sheet. 15,200,000
q.no5.2003. Trad. P&l acc. 149360. Balc. Sheet. 211495
q.no5.2005. Trad. P&l acc. 135000. Baln sheet. 348852
q. No.5.2004. Trad p&l. Acc. 35762. Bal sheet. 141017
q.no3.2007. Trad p&l. Acc. 149800. Bal sheet. 451910
Quote:
Originally Posted by KinzaShoaib View Post
Paper 2013

Gross Profit = 5205240
Net Profit = 2584400
Balance Sheet = 11806440


Paper 2010

Gross Profit = 83530
Net Profit = 25305
Balance Sheet = 207180


Paper 2009

Gross Profit = 6200
Net Profit = 1361
Balance Sheet = 16174


Paper 2008

Gross Profit = 50334
Net Loss = 9365
Balance Sheet = 537365


Paper 2007

Gross Profit = 153000
Net Profit = 65570
Balance Sheet = 451910

Paper 2006

I Do not find original paper on net ...

Paper 2005

Gross Profit = 133800
Net Profit = 65052
Balance Sheet = 347052

Paper 2004

Gross Profit = 35212
Net Profit = 22735
Balance Sheet = 141167

Paper 2003

Gross Profit = 144940
Net Profit = 34624
Balance Sheet = 221020

Paper 2001

Gross Profit = 96400
Net Profit = 14910
Balance Sheet = 199710

I could solve only the following question. For rest of the questions I need you people help.

Paper 2013

Gross Profit = 5205240
Net Profit = 2584400
Balance Sheet = 11806440

Paper 2009

Gross Profit = 6200
Net Profit = 2362
Balance Sheet = 16275


Paper 2007

Gross Profit = 153000
Net Profit = 65570
Balance Sheet = 451910

Paper 2005

Gross Profit = 133800
Net Profit = 66852
Balance Sheet = 348852

Paper 2004

Gross Profit = 35212
Net Profit = 22085
Balance Sheet = 141017
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  #33  
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Quote:
Originally Posted by KinzaShoaib View Post
Is this necessary to categorized Balance sheet's Assets and Liabilities in Current and fixed?? If yes, then Provision for Tax, Proposed Dividend, Unclaimed Dividend, Reserve for depreciation are current or long term liabilities??
Kindza, I have been told that Assets and liabilities should be classified. Provision for tax is a profit and loss item if it is not a partnership. In case of partnership, Tax is deducted from Capital. All kinds of dividends are directly deducted from Capital a/c. Reserve for depreciation is long term liability. However, accumulated depreciation can be written as current liability.
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  #34  
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Default Q. 3. 2007

it is not loan . it is interest on loan. and plant & mach ki dep. mention ha 12840. actually mainy full terms nai likhi, i thought question ma mention han sb.
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Quote:
Originally Posted by Palwashaa View Post
it is not loan . it is interest on loan. and plant & mach ki dep. mention ha 12840. actually mainy full terms nai likhi, i thought question ma mention han sb.
Palwasha I think your balance sheet figure needs revaluation, because kinza and mine answer is same in Q.3,2007
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Quote:
Paper 2005

Gross Profit = 133800
Net Profit = 65052
Balance Sheet = 347052
I rechecked my above solution and Yes Ammara your solution is right.
Now, we have same solutions for 2013, 2007 and 2005. Let discuss the others.

2004

Profit and Loss Debit side
Carriage 800
Establishmnt 2635
Taxes 883
Audit fee 400
General 3950
Travelling 325
Discount 620
Reserve for bad debt 1000
Depreciation 2564

Profit and Loss Credit side

G.P. 35212
Interest 340
Interest Accrued 210
Rent 150


Please point out my mistakes.
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  #37  
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Quote:
Originally Posted by KinzaShoaib View Post
I rechecked my above solution and Yes Ammara your solution is right.
Now, we have same solutions for 2013, 2007 and 2005. Let discuss the others.

2004

Profit and Loss Debit side
Carriage 800
Establishment 2635
Taxes 883
Audit fee 400
General 3950
Traveling 325
Discount 620
Reserve for bad debt 1000
Depreciation 2564

Profit and Loss Credit side

G.P. 35212
Interest 340
Interest Accrued 210
Rent 150


Please point out my mistakes.
Miss Kinza, here you go.

Profit and Loss Account (Cr)

G.P: Rs. 35212
Insurance: Rs. 340
Interest: Rs. 210

Profit and Loss Account (Dr.)

Carriage on Sale................ 800
Provision for Bad debts........1000
Establishment + Salaries......2635
Tax & Insurance + Tax Expense -unexpired insurance.....1233
Audit fee.............400
General Charges.....3950
Discount......620
Travelling expense.....325
Depreciation Exp (Motor +Furniture).....2564
Rent Expense.....150

N.Profit........22085
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Code:
Ahmed Faisal
My two figures are different from you:
1. Taxes
2. Rent of Building

I first charge Rent to debit side of Profit and Loss Account but then I find that this is the same question as Q#14 given in M.A. Ghani's Book and in Key Book rent is recorded as revenue in credit side of P&L Account. Moreover, if we logically examine the statement i.e.
Quote:
Rent due for a portion of the Building let Rs. 150
then I think, It is justified to deal it as revenue. Building is also included in asset.

Secondly,
Quote:
The following balances appeared in the books of a merchant on 31st December, 2003.

Building……….……….…………….70,000
Motor trucks……….……….…….12,000
Furniture……….……….…….…...1,640
Sundry debtors……….………….15,600
Sundry creditors……….….…….18,852
Stock……….……….……….……….15,040
Cash in hand……….……..…..….988
Cash at bank……….…….……….14,534
Bills receivable……….………..….5,844
Bills payable……….……….……….6,930
Purchases……….……….…..…….85,522
Sales……….……….……….…...….1,21,850
Capital……….……….…………..….92,000
Carriage on purchase……..….1,291
Carriage on sales………..…..…800
Reserve for bad debts….…….1,320
Establishment……….…….…....2,135
Taxes & Insurance…….…..….783
Interest (Cr.) …….….…..…….340
Bad Debts……….….……….…….613
Audit fee……….……….……..….400
General charges……….…....…3,950
Travelling expenses ……….….325
Discount (Dr.) …….….…….….620
Investments……….……………..8,922
Sales returns………..……...….285

Required:
Prepare Trading and Profit and Loss account for the year ended 31st December 2003 and Balance Sheet as on that date. In doing so take the following matters into consideration.
Stock on 31st December, 2003 amounted to Rs. 15,500.
Depreciate Motor Trucks at 20 per cent and Furniture at 10 percent.
Increase Bad Debts Reserve by Rs. 1000
Salaries Rs. 500 and Taxes Rs. 150 are outstanding
Unexpired Insurance Rs. 50
Interest accrued on Investments Rs. 210
Rent due for a portion of the Building let Rs. 150
A bill receivable for Rs. 500 was discounted in December 2003 but was not due till January next.
I added outstanding taxes of Rs.150 and deducted unexpired Insurance of Rs.50 from Taxes and Insurance head amounted Rs. 783
( 783+150-50=883)

Now, correct me if I am wrong.
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  #39  
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Quote:
Originally Posted by KinzaShoaib View Post
Code:
Ahmed Faisal
My two figures are different from you:
1. Taxes
2. Rent of Building

I first charge Rent to debit side of Profit and Loss Account but then I find that this is the same question as Q#14 given in M.A. Ghani's Book and in Key Book rent is recorded as revenue in credit side of P&L Account. Moreover, if we logically examine the statement i.e.

then I think, It is justified to deal it as revenue. Building is also included in asset.

Secondly,


I added outstanding taxes of Rs.150 and deducted unexpired Insurance of Rs.50 from Taxes and Insurance head amounted Rs. 783
( 783+150-50=883)

Now, correct me if I am wrong.
Yes, you are absolutely right. Business has its own building in Assets, so paying rent seems unreasonable. It is, for sure, business revenue. Secondly, Yes Tax payable is Rs. 150. Now We have the following figures lets have a look...

Profit and Loss Account (Cr)


G.P: Rs. 35212
Interest + Accrued Interest = Rs. 340 + Rs. 210 =550
Rent Revenue: Rs. 150
Total: Rs. 35912

Profit and Loss Account (Dr.)

Carriage on Sale................ 800
Provision for Bad debts........1000
Establishment + Salaries......2635
Tax & Insurance + Tax Expense -unexpired insurance : Rs. 783 + 150 -50= Rs. 883
Audit fee.............400
General Charges.....3950
Discount......620
Travelling expense.....325
Depreciation Exp (Motor +Furniture).....2564


N.Profit........22585

B.S: Rs. 141167
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  #40  
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Q.NO.1, Paper 2001

G.Profit. 96400
N.Profit. 15010
P/L account bal. 98900
balance sheet. 199810

Kinza rechecked your question 2001.
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