#51
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Quote:
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#52
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Kinza The value of stock withdrawn is to be
Credited to the "Trading a/c" It is generally shown as a deduction from purchases on the debit side of the "Trading a/" Deducted from Capital on the liabilities side of the balance sheet (as additional drawings) |
#53
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Discount allowed and discount received will come in profit&loss or trading account
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#54
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Q5 2002
Trading account dr Opening supplies 3000 Rent 6000 Wages 1150 Credit side Sales 14,400 Closing supplies 1300 Gp= 5,550 Profit and loss debit side Depreciation 1200 Advertising 100 Credit Gp 5550 Np= 4250 Bs Assets Equipment 8400 Prepaid 300 Supplies 1300 Service fee 400 Receivable 1500 Cash 200 Total assets 12,100 Capital 10000 Drawings (3600) Net profit 4250 Total capital 10650 Payable 800 Rent 500 Wages 150 Total capital & liability = 12,100 |
#55
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Since it is a service industry hence wages are part of direct expense
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#56
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Ratios solutions to the Past papers Questions (corrections are welcome, if any)
Q.3, 2013 Theory Q.8, 2012 (a)
(b)
Q.8, 2011 (a)
(b) Yes, it would be prudent decision to have long term loans. Since return on Equity is 20%; and interest payable on long term loan would be 12%, so the company can make an additional profit of 8%. Q.4, 2010
Required Balance Sheet: Assets Cash.............................................. ...........30000 M/s................................................. ..........25000 A/R................................................. ..........200000 Inventory......................................... ..........225000 Net fixed Assets..........................................10 20000 Total Assets...........................................1 500000 Liabilities + O/E A/P................................................. ..........120000 Notes Payable........................................... .160000 Accruals.......................................... ..........20000 Long Term Debts.........................................600, 000 S.H Equity............................................ .....600,000 Total............................................. ...........1500000 Q.4, 2008 I solved these ratios only for company X…
Q. 2, 2007 Pending Q.4, 2006
Later compare the same ratios with reference to standard ratio. Standard Ratio are as follows: Current Ratio............................................. .2:1 Quick Ratio............................................. ...1:1 Working Capital: Depends on the size and nature of a company. Q. 4, 2003 Pertinent Ratios are: Only solved for 2001
Q. 3, 2002
(1)Ratio of Net Sales to Average total Assets (1999).........................0.6:1 Ratio of Net Sales to Average total Assets (2000).........................0.7:1 (2)Ratio of Net Sales to Average Plant & Assets (1999)......................1.7:1 Ratio of Net Sales to Average Plant & Assets (2000)......................1.8:1 (3)The Rate earned on Net Sales (1999):............2.5% The Rate earned on Net Sales (2000):............4.5% (4)Gross Profit Ratio (1999):.............................34% Gross Profit Ratio (2000):.............................37% (5)Rate Earned on avg. Total Assets (1999):...................................2.5% Rate Earned on avg. Total Assets (2000):...................................5% (6)Rate earned on avg. shares Holder Equity (1999):..................................3.4% Rate earned on avg. shares Holder Equity (2000):..................................6.8% (7)The number of times bond Interest requirements were Earned (before income taxes) (1999).............3.67 times The number of times bond Interest requirements were Earned (before income taxes) (2000).............7.67 times (8)Number of Times Preferred Dividend earned (1999)...............................2.08 times Number of Times Preferred Dividend earned (2000)...............................4.5 times
__________________
"Our Lord, give us the good in this world and the good in the hereafter." (Al-Qur'an, 2:201). |
#57
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Cash Budget Solution to the Past Papers
Q.4, 2007 Total Receipts.......................................... ....Rs. 9, 20,000 Total Payments.......................................... .......891000 Opening balance........................................... .....80000 Add Total Receipts.......................................... ...920000 Total............................................. ..................10, 00,000 Less T. Payments.......................................... .....8, 91000 Excess of Cash.............................................Rs.109000 Q.5, 2008 Total Receipts.......................................... ....Rs. 34,400 Total Payments.......................................... .......39850 Opening balance........................................... .....5000 Add Total Receipts.......................................... ...34400 Total............................................. ..................39400 Less T. Payments.......................................... .....39850 Deficit........................................... ..............Rs.(450) Bank borrowing......................................... .........5450 Desired ending Month Balance.........................Rs. 5000 Q.4, 2009 Total Receipts.......................................... .....Rs. 257200 Total Payments.......................................... ........281500 Opening balance........................................... ......30000 Add Total Receipts.......................................... ....257200 Total............................................. ...................287000 Less T. Payments.......................................... ......272500 Excess of Cash..............................................Rs. 14700
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"Our Lord, give us the good in this world and the good in the hereafter." (Al-Qur'an, 2:201). |
The Following User Says Thank You to Ahmed Faisal For This Useful Post: | ||
KinzaShoaib (Sunday, November 03, 2013) |
#58
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Quote:
Although the adjusting entry for Stock or goods taken by owner is "drawing a/c debit and trading a/c credit" yet we deduct the stock from purchases, this is the rule I read in both M.Arif's and Ghani's book. This question confuses me too and I read thoroughly the theory of M. Arif's book for this. In M.Arif's book only the terms " Discount on Purchases" and "discount on Sales" are treated as trading a/c items i.e. deducted from purchases and sales respectively and all other terms like discount allowed, discount received or discount are treated as profit and loss a/c items so i treated discount allowed and discount received as profit and loss item. |
#59
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[trade discount should be deducted from purchase and the same case in sale=KinzaShoaib;664871]Sorry for late reply, I was busy with my state bank test.
Although the adjusting entry for Stock or goods taken by owner is "drawing a/c debit and trading a/c credit" yet we deduct the stock from purchases, this is the rule I read in both M.Arif's and Ghani's book. This question confuses me too and I read thoroughly the theory of M. Arif's book for this. In M.Arif's book only the terms " Discount on Purchases" and "discount on Sales" are treated as trading a/c items i.e. deducted from purchases and sales respectively and all other terms like discount allowed, discount received or discount are treated as profit and loss a/c items so i treated discount allowed and discount received as profit and loss item.[/QUOTE]
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I want to live in peace not in piece |
#60
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ACCOUNTANCY & AUDITING, PAPER-I
SECTION-A Q.2. The following information is available: (20) Trial Balance as at December 31, 2012. Particulars Debit Rs. Credit Rs. Capital 6400000 Drawings 1813800 Goodwill 3618200 Land & Buildings 2400000 Plant & Machinery 1600000 Loose Tools 120000 Bills Receivable 145800 Bills Payable 1352000 Creditors 3068840 Purchase Returns 106000 Sales 8720000 Stock, 1st Jan 2011 1677800 Purchases 2050800 Wages 858000 Carriage Outward 22160 Carriage inward 55000 Coal & gases 234160 Salaries 1414560 Rent, Rates & Taxes 113000 Discount 60520 Cash at Bank 1016840 Cash in Hand 18600 Sundry Debtors 1800000 Repairs & maintenance 74600 Printing & Stationery 20600 Bad Debts 48520 Advertisements 140840 Sales Returns 85000 Furniture 48000 General Expenses 210040 19646840 19646840 The following adjustments are to be made: 1. Closing Stock as on December 31, 2011 was Rs 1400000. 2. Depreciation is to be provided on the following assets: ― Plant & Machinery 10 % ― Loose Tools 10 % ― Furniture 10 % ― Land & Buildings 2.5 % 3. Provide for the following payables: ― Wages – Rs. 60000 ― Advertisements – Rs. 20000 ― Salaries – Rs.120000 ― Repairs & Maintenance – Rs. 15000 4. Provide 5 % on the debtors against bad debts and 2 % against discounts. Required:- Prepare Trading, Profit & Loss Account and Balance Sheet as at December 31, 2011 from the above data. |
The Following User Says Thank You to socrates For This Useful Post: | ||
Aahsif (Thursday, January 09, 2014) |
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