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Chapter # 9 Worksheet Principles of Accounting – B.Com Part – I Sameer Hussain www.a4accounting.weebly.com | www.facebook.com/a4accounting.net

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Page 1: Chapter # 9a4accounting.weebly.com/uploads/7/1/2/8/7128209/9... · 2020-01-27 · Worksheet Chapter # 9 Sameer Hussain Page 117 Chapter # 9 WORKSHEET WORKSHEET Work sheet is a device

Chapter # 9 Worksheet

Principles of Accounting – B.Com Part – I

Sameer Hussain

www.a4accounting.weebly.com | www.facebook.com/a4accounting.net

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Worksheet

Chapter # 9

Sameer Hussain www.a4accounting.weebly.com Page 116

WHAT THE EXAMINER USUALLY ASK?

Ten – Column Worksheet of servicing business. Ten – Column Worksheet of trading business. Ten – Column Worksheet with cost of goods sold.

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Worksheet

Chapter # 9

Sameer Hussain Page 117

www.a4accounting.weebly.com

Chapter # 9

WORKSHEET WORKSHEET

Work sheet is a device which shows the pre-closing trial balance, adjustments, adjusted trial balance, income statement and balance sheet in a single sheet. Work sheet helps to make different statements in a single sheet. It is also called ten column work sheet because it contains ten columns. Two columns for pre-closing trial balance (debit and credit), two columns for adjustments (debit and credit), two columns for adjusted trial balance (debit and credit), two columns for income statement (debit and credit) and two columns for balance sheet (debit and credit).

Pre – Closing Trial Balance:

Pre-closing trial balance shows the balances before making any adjustments.

Adjustments: Adjustments columns show the adjustments made at the end of the period to adjust the expenses and income for the period.

Adjusted Trial Balance: Adjusted trial balance column shows the balance of trial balance accounts after the adjustments.

Income Statement: Income statement shows the income and expenses of the period. It shows the financial performance of the business.

Balance Sheet: Balance sheet shows the financial position of the business. It shows the assets, liabilities and owner’s equity at the particular date.

FORMAT OF TEN – COLUMN WORKSHEET

Name of Business Worksheet

For the period ended ________

Particulars Trial Balance Adjustments Adjusted Trial

Balance Income

Statement Balance Sheet

Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit

ILLUSTRATION # 1: (Worksheet of Servicing Business)

2003 Regular & Private – UOK Following is the trial balance taken from the books of Maha & Co. on 31st Dec. 2002: Debit Credit Cash 26,000 Office supplies 14,000 Prepaid rent 24,000 Equipment (at cost) 36,000 Salaries expense 20,000 Insurance expense 16,000 Allowance for depreciation – Equipment 10,000 Maha Capital 50,000 Commission income 76,000 136,000 136,000

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Worksheet

Chapter # 9

www.a4accounting.weebly.com Page 118

Sameer Hussain

Data for Adjustments: (a) Commission receivable Rs.5,000. (b) Unearned commission Rs.3,000. (c) Prepaid rent expired Rs.18,000. (d) Unpaid insurance expense Rs.4,000. (e) Office supplies consumed Rs.8,000. (f) Provide depreciation on office equipment at 15%

of cost. (g) Prepaid salaries Rs.5,000. REQUIRED Prepare Ten-Column Work Sheet.

SOLUTION # 1:

MAHA & CO. WORKSHEET

FOR THE PERIOD ENDED 31 DECEMBER 2002 (IN THOUSAND OF RUPEES ‘000)

Particulars Trial

Balance Adjustment

Adjusted Trial Balance

Income Statement

Balance Sheet

Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.

Cash 26 26 26 Office supplies 14 8 6 6 Prepaid rent 24 18 6 6 Office equipment 36 36 36 Salaries expense 20 5 15 15 Insurance expense 16 4 20 20 Allow for depreciation 10 5.4 15.4 15.4 Maha Capital 50 50 50 Commission income 76 3 5 78 78

136 136

Commission receivable 5 5 5 Unearned commission 3 3 3 Rent expense 18 18 18 Insurance payable 4 4 4 Office supplies expense 8 8 8 Depreciation expense 5.4 5.4 5.4 Prepaid salaries 5 5 5

66.4 78 84 72.4 Net income 11.6 11.6

48.4 48.4 150.4 150.4 78 78 84 84

ILLUSTRATION # 2: (Worksheet of Merchandizing Business)

1996 Regular – UOK The following balances were taken from the General Ledger of Mr. Tanveer Adil on Dec. 31, 95: Cash 5,000 10% Investment in bonds 10,000 Merchandise inventory (1-1-95) 4,000 Purchases 20,000 Accounts receivable 10,000 Allowance for bad debts (Dr.) 200 Office supplies expense 800 Office equipment 15,000 Allowance for depreciation – Office equipment 6,000

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Worksheet

Chapter # 9

Sameer Hussain Page 119

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Interest income – Investment in bonds 500 Unearned rent 5,500 Sales 35,000 Salaries expense 4,000 Advertisement expense 1,000 Capital – Mr. Tanveer Adil 23,000 The data for adjustments for the year ended December 31, 1995:

(a) Merchandise inventory Rs.10,000 on 31-12-1995. (b) Interest on investment on bonds is receivable semi-annually on June 30, and Dec. 31. (c) Provision for estimated bad debts for the year at 5%. (d) Office supplies used Rs.500. (e) 20% Depreciation for the year on written down value of office equipment. (f) Rent is not earned Rs.2,000 only. (g) Salaries expense for the year Rs.3,000. (h) Prepaid advertisement Rs.200.

REQUIRED Prepare Ten-Column Work Sheet.

SOLUTION # 2:

MR. TANVEER ADIL WORKSHEET (IN THOUSAND OF RUPEES ‘000) FOR THE PERIOD ENDED 31 DECEMBER 1995

Particulars Trial

Balance Adjustment

Adjusted Trial Balance

Income Statement

Balance Sheet

Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.

Cash 5 5 5 10% Investment bonds 10 10 10 Merchandise inventory 4 4 4 Purchases 20 20 20 Accounts receivable 10 10 10 Allowance for bad debts 0.2 0.7 0.5 0.5 Supplies expense 0.8 0.3 0.5 0.5 Office equipment 15 15 15 Allow for depreciation 6 1.8 7.8 7.8 Interest income 0.5 0.5 1 1 Unearned rent 5.5 3.5 2 2 Sales 35 35 35 Salaries expense 4 1 3 3 Advertising expense 1 0.2 0.8 0.8 Capital 23 23 23 Interest receivable 0.5 0.5 0.5 Bad debts expense 0.7 0.7 0.7 Office supplies 0.3 0.3 0.3 Depreciation expense 1.8 1.8 1.8 Rent income 3.5 3.5 3.5 Prepaid salaries 1 1 1 Prepaid advertisement 0.2 0.2 0.2 Merchandise inventory 10 10

30.8 49.5 52 33.3 Net income 18.7 18.7

70 70 8 8 72.8 72.8 49.5 49.5 52 52

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Worksheet

Chapter # 9

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Sameer Hussain

ILLUSTRATION # 3: (Worksheet with Cost of Goods Sold)

2009 Private – UOK Following information related to Zulfiqar & Sons as at December 31, 2008:

Balance Before Adjustments Debits Credits Rent expense 5,000 Salaries expense 20,000 Sales supplies 3,000 Office equipment 60,000 Merchandise inventory 25,000 Cost of goods sold 170,000 Cash 40,000 Zulfi – Capital 113,000 Sales 215,000 Sales return & allowance 5,000 328,000 328,000 Balance Day (31 – 12 – 08) Data:

(i) Rent expense Rs.3,000. (ii) Salaries expense Rs.25,000 for the year. (iii) Sale supplies used Rs.2,000. (iv) 10% depreciation was estimated on office equipment.

REQUIRED Prepare a ten column work sheet.

SOLUTION # 3:

ZULFIQAR & SONS WORKSHEET (IN THOUSAND OF RUPEES ‘000) FOR THE PERIOD ENDED 31 DECEMBER 2008

Particulars Trial

Balance Adjustment

Adjusted Trial Balance

Income Statement

Balance Sheet

Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.

Rent expense 5 2 3 3 Salaries expense 20 5 25 25 Sales supplies 3 2 1 1 Office equipment 60 60 60 Merchandise inventory 25 25 25 Cost of goods sold 170 170 170 Cash 40 40 40 Zulfi – Capital 113 113 113 Sales 215 215 215 Sales return & allowance 5 5 5 Prepaid rent 2 2 2 Salaries payable 5 5 5 Sales supplies expense 2 2 2 Depreciation expense 6 6 6 Allow for depreciation 6 6 6

211 215 128 124 Net income 4 4

328 328 15 15 339 339 215 215 128 128

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Chapter # 9

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Practice questions

Question # 1: 1993 Private – UOK Unadjusted trial balance of Khaleel & Company on December 31, 1992 is an under: Debit Credit Cash 10,000 Accounts receivable 2,000 Prepaid advertising 5,200 Office supplies 1,200 Office equipment 3,000 Notes payable 1,500 Khaleel Capital 6,600 Khaleel Drawings 2,000 Revenue from services 23,000 Salaries expense 5,600 Rent expense 1,500 Insurance expense 500 Repair expense 100 Total 31,100 31,100 Data for Adjustment on December 31, 1992:

(1) One fourth of the rent expense is applicable to the first quarter of 1993. (2) Office Supplies remaining on hand at the end of the year amounted to Rs.480. (3) Salaries of Rs.4,400 were payable. (4) Accrued Service revenue on December 31, 1992 Rs.7,000. (5) The Office equipment is estimated to have 5 year life; no salvage value is anticipated.

REQUIRED Prepare a Ten Column Worksheet on December 31, 1992. Question # 2: 1989 Regular & Private – UOK The Pre-closing Trial of Noorani & Co. December 31, 1988 was as under. Debit Credit Cash 1,000 Accounts receivable 20,000 Allowance for bad debts 300 Prepaid advertising 2,000 Furniture 10,000 Allowance for depreciation 1,000 Noorani Capital 15,800 Commission income 30,000 Office supplies expense 500 Insurance expense 3,000 Rent expense 4,000 Salaries expense 6,000 Total 46,800 46,800 Data for Adjustment on December 31, 1988 Now as Under:

(1) Office Supplies used during the year Rs.150. (2) Insurance Expense represents 3 year insurance policy paid on July 01, 1988. (3) Prepaid Advertising was Rs.1,500. (4) Unearned Commission Rs.1,800. (5) Allowance for Bad Debts was estimated at Rs.500. (6) Depreciation on furniture was estimated at Rs.1,000. (7) Rent Expense for the year was Rs.5,000. (8) Salaries Expense for the year was Rs.5,500.

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REQUIRED Prepare a Ten Column Work Sheet. Question # 3: 2004 Private – UOK Following is the pre-closing trial balance of Rehan Co. at Dec. 31, 2003: Debit Credit Cash 20,000 --- Accounts receivable 60,000 --- Office supplies 5,000 --- Office equipment 60,000 --- Allowance for depreciation – Equipment --- 6,000 Accounts payable --- 20,000 Rehan – Capital --- 95,000 Rehan – Drawings 15,000 --- Commission income --- 90,000 Salaries expense 31,000 --- Rent expense 20,000 --- 211,000 211,000 Data for Year End Adjustments:

(a) Office supplies unused Rs.2,000. (b) Unpaid salaries Rs.4,000. (c) Actual rent for the year was Rs.18,000. (d) Commission earned Rs.80,000. (e) Commission receivable Rs.7,000. (f) Salaries paid to office assistant Rs.5,000 was wrongly charged to drawings account. (g) Depreciation was estimated at 10% p.a. by the Diminishing Balance Method.

REQUIRED Prepare a Ten-Column work sheet. Question # 4: 2006 Regular – UOK Unadjusted trial balance of Waseem, a chartered accountant, on June, 30, 2006 is as under:- Cash 100,000 Accounts receivable 500,000 Prepaid advertising 40,000 Office supplies 10,000 Office equipment 300,000 Waseem’s Capital --- 662,000 Waseem’s Drawings 5,000 Consulting fees --- 400,000 Salaries expense 31,000 Rent expense 60,000 Insurance expense 10,000 Repairs expense 6,000 1,062,000 1,062,000 Data for Adjustment on June 30, 2006:

(a) Supplies on hand at the end of the period Rs.2,000. (b) Unexpired rent amounted to Rs.20,000. (c) Salaries Rs.4,000 are payable. (d) Consulting fee still unearned amounted to Rs.15,000. (e) The office equipment is estimate to have an operating life of 10 years with no salvage.

Use the straight line depreciation method. (f) Advertising expense for the year amounted to Rs.35,000.

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REQUIRED Prepare a Ten-Column work sheet from the above data. Question # 5: 2008 Private – UOK The pre-closing trial balance of Nadir & Company on December 31, 2007 is as under: Debit Balances: Cash Rs.1,200; Office supplies Rs.800; Prepaid advertising Rs.6,000; Rent expense Rs.3,000; Furniture Rs.10,000; Salaries expense Rs.5,000. (Total Rs.26,000). Credit Balances: Allowance for depreciation Rs.2,000; Nadir Capital Rs.10,000; Commission income Rs.14,000. (Total Rs.26,000). Data for Adjustment on December 31, 2007:

(a) Office supplies on hand Rs.500. (b) Advertising cost unexpired Rs.2,000. (c) Current year depreciation on furniture 20% on cost. (d) Prepaid salaries Rs.800. (e) Actual rent expense for the year Rs.3,600. (f) Commission receivable Rs.300 and unearned commission Rs.700.

REQUIRED Prepare a 10 column work sheet. Question # 6: 2010 Regular – UOK The following are pre-adjustment balances taken from the ledger of Amjad Company and month-ended adjustment data on November 30, 2010: Cash 75,000 Office supplies 9,000 Prepaid rent 36,000 Unearned commission 27,000 Amjad, Capital 76,000 Commission earned 83,000 Salaries expense 66,000 Adjustment Data:

(a) Office supplies used during the month Rs.6,000. (b) Unearned commission was nil. (c) Commission earned during the month Rs.120,000. (d) Prepaid salaries amounted to Rs.10,000. (e) Salaries expense for the month Rs.60,000. (f) Rent expense for the month Rs.30,000.

REQUIRED Prepare 10 – column worksheet. Question # 7: 2011 Regular – UOK Following is the pre-closing trial balance of Mehfooz & Co. on December 31, 2010: Title of Account Debit Credit Cash 70,000 Accounts receivable 24,000 Aircraft 1,200,000 Allowance for depreciation – Aircraft 12,000 Accounts payable 18,000 Bank loan 25,000 Capital 1,000,000 Revenue from passengers 260,000

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Revenue from cargo 85,000 Maintenance and overhaul 33,000 Passenger services 15,000 Aircraft fuel 26,000 Salaries expense 32,000 1,400,000 1,400,000 Additional Information:

(a) Salaries accrued Rs.3,000 and prepaid salaries for Rs.5,000. (b) Bad debts estimated at 10% of accounts receivable. (c) Interest on bank loan Rs.5,000 outstanding. (d) Unearned revenue from cargo Rs.10,000 and earned receivable Rs.7,000. (e) Proprietor withdrew cash from the business Rs.5,000 for private use. (f) Book value of Aircraft was estimated at Rs.1,176,000.

REQUIRED Prepare 10 – column worksheet from the data given above. Question # 8: 1988 Regular & Private – UOK Unadjusted trail balance of Asad Company on December 31, 1987 is as under: Debit Credit Cash 500 Office supplies expense 2,000 Merchandise inventory (01.01.1987) 17,000 Furniture 26,000 Allowance for depreciation 7,000 Accounts payable 1,100 Capital Asad 20,000 Purchases 120,000 Sales revenue 171,900 Rent expense 16,400 Salaries expense 18,000 Prepaid advertising 1,100 Total 200,000 200,000 Data for Adjustments on December 31, 1987:

(1) Office Supplies unused Rs.200. (2) Current Year depreciation on Furniture Rs.2,600. (3) Prepaid advertising expired by Rs.900. (4) Actual rent expense for the year Rs.12,000. (5) Merchandise Inventory is valued Rs.15,000. (6) Salaries of Rs.2,000 were payable.

REQUIRED Ten Column Work Sheet. Question # 9: 1992 Regular – UOK The following is the pre-closing Trial Balance of Nadir and Company on June 30, 1992. Debit Credit Cash Rs.21,500 Rs. Accounts receivable 72,500 Merchandise inventory (1 – 7 – 91) 25,000 Office supplies 3,000 Furniture 15,000 Accumulated depreciation: furniture 3,000 Nadir Capital 27,000

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Nadir Drawings 8,800 Sales 116,800 Purchases 60,500 Salaries expenses 18,000 Insurance expense 10,500 234,800 234,800 Supplementary For Adjustments:

(a) Merchandise inventory on June 03, 1992 was valued at Rs.16,000. (b) Salaries expense for the year amounted to Rs.20,000. (c) Unexpired Insurance Rs.3,500. (d) Depreciation on Furniture for the year Rs.1,500. (e) Office Supplies on hand on June 30, 1992 Rs.850. (f) Rent revenue includes an amount received in advance Rs.2,500. (g) Good costing Rs.1,200 were taken by Nadir for private use were not recorded.

REQUIRED Prepare a Ten-Column Work Sheet. Question # 10: 1995 Private – UOK The balances taken from the ledger of Mirza Company on June 30, 1995 before adjustment and the data for adjustment are given below: Debit Credit Cash 5,000 Accounts receivable 10,000 Allowance for bad debts 2,000 Inventory – July 1, 1994 20,000 Prepaid rent 6,000 Furniture 12,000 Accumulated depreciation: furniture 3,000 Mirza Capital 57,000 Sales 50,000 Purchases 40,000 Transportation – in 4,000 Salaries expenses 8,000 Advertising expense 7,000 112,000 112,000 Additional Data:

(a) 10% of accounts receivable estimated to be uncollectible. (b) Prepaid rent expired on Rs.4,000. (c) Depreciation on furniture for the year estimated at Rs.1,000. (d) Salaries expense for the year amounted to Rs.9,000. (e) Advertising expense for the year amounted to Rs.2,000. (f) Inventory valued at Rs.18,000.

REQUIRED Prepare a 10-Column Work Sheet. Question # 11: 1997 Private – UOK Presented below is the unadjusted trial balance of Hasan & Co. as at the end of year Dec. 31, 96. Debit Credit Cash 1,000 Accounts receivable 3,000 Merchandise inventory (1.1.96) 30,000 Office supplies 2,500 Automobile 200,000

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Accumulated depreciation: Automobile 7,500 Accounts payable 2,500 Hasan – Capital 200,000 Hasan – Drawings 1,600 Sales 190,400 Purchases 144,000 Freight – in 500 Salaries expenses 5,800 Rent expense 6,000 Automobile expenses 4,200 Utility expenses 1,800 400,400 400,400 Data for year – end adjustments:

(a) The inventory was counted at end, values Rs.26,000. (b) Out of automobile expenses, Rs.400 represents those of owner’s private use. (c) Office supplies has a physical balance at end valued Rs.200. (d) Salaries included Rs.1,500 not earned by the employees. (e) The automobile has run ten thousand kilometers during the period; the rate of

depreciation is one rupee per kilometer. REQUIRED Prepare a 10-Column Work Sheet. Question # 12: 1997 Regular – UOK The following balances were taken from the General Ledger of Mr. Khalid Saeed, for the year ended on 30th June, 1997. Cash 12,800 Merchandise inventory on 1st July 1996 11,200 Accumulated depreciation – Furniture 3,600 Office supplies 2,000 Accounts receivable 16,000 Carriage outward 800 Furniture 10,000 Bank overdraft 7,400 Carriage inward 1,250 Accounts payable 12,800 Sales 130,400 Commission income 4,600 Salaries expense 19,000 Khalid Saeed’s Capital 42,000 Purchases 89,950 Insurance expense 1,800 Prepaid rent 36,000 Additional Data to be adjusted:

(1) Merchandise inventory on 30th June 1997, was valued at Rs.15,000. (2) Rent expired at the rate of Rs.2,000 p.m. (3) Rs.3,500 of salaries is outstanding. (4) During the year three-fifth of office supplies was consumed. (5) One-fourth of the commission income was received for the work to be done next year. (6) Provide depreciation on furniture at the rate of 10% of written down value. (7) Six month’s interest on over draft is due at 18% p.a. (8) Insurance premium is paid for one year upto 31st March, 1998.

REQUIRED Prepare Ten-Column Work Sheet.

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Question # 13: 1998 Private – UOK The following are unadjusted balance taken from the books of Mr. Shoukat on March 31, 1998. Debit Credit Cash 5,000 Accounts receivable 12,000 Merchandise inventory (1-4-97) 10,000 Prepaid insurance 4,000 Office equipment 50,000 Allowance for depreciation (O/E) 10,000 Accounts payable 8,000 Capital, Shoukat 52,300 Drawings, Shoukat 6,000 Sales 80,000 Sales discount 4,000 Purchases 40,000 Purchase return & allowance 5,000 Transportation in 5,800 Advertising expense 8,500 Salaries expense 10,000 155,300 155,300 Data for Adjustment on March 31, 1998

(a) Make allowance for doubtful accounts at 10% of accounts receivable at year end. (b) Insurance expired Rs.2,500 (c) Record for depreciation on office equipment Rs.2,000. (d) Advertising prepaid was Rs.1,200. (e) Unpaid salaries were Rs.2,000. (f) Merchandise inventory on March 31, 1998 Rs.15,000.

REQUIRED Prepare Ten-Column Work Sheet. Question # 14: 2002 Regular & Private – UOK The selected account balances taken from the ledger of Noman & Co. on Dec. 31, 2002 the year end are as follows: Cash 5,000 Plant asset 40,000 Merchandise inventory (1.1.2002) 20,000 Capital 37,800 Unearned rent income 1,900 Purchases 45,000 Accounts receivable 50,000 Sales revenue 67,000 Accounts payable 18,500 Interest expense 200 Notes payable 5,000 Salaries expense 14,000 Allowance for doubtful debts (Dr) 1,000 Goodwill 7,000 Supplementary Data for Adjustments at Dec. 31, 2002 are as Follows:

(a) The allowance for doubtful debts was estimated at 2-1/2% of accounts receivable. (b) Plant assets are depreciated at 20% using Diminishing Balance Method having a scrap

value of Rs.5,000. (c) Salaries expense for the year amounted to Rs.15,000. (d) Unearned rent at year-end amounted to Rs.1,200. (e) Accrued interest on N/P Rs.300. (f) Merchandise inventory on Dec. 31, 2002 was valued at Rs.25,000 using periodic system. (g) The cash was found short by Rs.500.

REQUIRED Prepare a partial Ten-Column Work Sheet. The column totals are not required.

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Question # 15: 2006 Private – UOK The unadjusted trial balance of Fahad Sons on Dec. 31, 2006 is as under:-

Fahad Sons. Trial Balance as on Dec. 31, 2006

Cash 40,000 Accounts receivable 350,000 Merchandise inventory beg. 100,000 Prepaid insurance 40,000 Office equipment 300,000 Accumulated depreciation (Equipment) 60,000 Accounts payable 85,000 Purchase returns 90,000 Fahad Capital ? Sales discount 10,000 Sales revenue 850,000 Purchases 600,000 Salaries expense 240,000 Rent expense 180,000 Utilities expense 25,000 Data for Adjustment:

(i) Salaries unpaid amounted to Rs.15,000 and salaries prepaid amounted to Rs.20,000. (ii) Insurance premium expired during the year Rs.25,000. (iii) Depreciation on equipment during the year was Rs.30,000. (iv) Commission earned but not recorded Rs.40,000. (v) Merchandise inventory at Dec. 31, 2006 Rs.50,000.

REQUIRED Prepare a 10-Column work sheet for Fahad Sons. Question # 16: 2010 Private – UOK The following are trial balance and adjustment data for Zaidi’s Shop on December 31, 2010: Debit Credit Cash 9,200 Accounts receivable 21,400 Merchandise inventory, Jan 1 3,200 Prepaid rent 1,800 Furniture 12,000 Accumulated depreciation 2,400 Unearned commission 3,600 Capital, Zaidi 48,400 Sales 30,000 Sales discount 300 Purchases 32,000 Purchase return 500 Transportation – in 500 Salaries expense 3,300 Rent expense 1,200 Adjustment Data:

(a) Accounts receivable were extracted to realize Rs.20,000. (b) Book value of furniture was estimated at Rs.9,000. (c) Rent was prepaid to the extent of Rs.600. (d) Commission earned during the year amounted to Rs.2,400. (e) Actual salaries expense for the year amounted to Rs.4,800.

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(f) Merchandise inventory on Dec. 31 was valued at Rs.8,800. REQUIRED Prepare 10 – column worksheet. Question # 17: 2011 Private – UOK Following is the unadjusted trial balance of Mansoor Trading Co. at December 31, 2010: Account Titles Debit Credit Cash Rs.20,000 Accounts receivable 180,000 Merchandise inventory (1-1-2010) 50,000 Office supplies 4,000 Furniture 100,000 Allowance for depreciation – Furniture 38,000 Accounts payable 50,000 Mansoor, Capital 205,000 Mansoor, Drawings 15,000 Sales 267,000 Rent revenue 80,000 Purchases 180,000 Salaries expense 51,000 Insurance expense 40,000 640,000 640,000 Supplementary Data for Adjustments:

(a) Merchandise inventory on December 31, 2010 was valued at Rs.60,000. (b) Salaries expense for the year amounted to Rs.45,000. (c) Unexpired insurance Rs.3,500. (d) Depreciation on furniture for the year Rs.15,000. (e) Office supplies on hand on December 31, 2010 Rs.1,000. (f) Rent revenue includes an amount received in advance Rs.2,000. (g) Goods costing Rs.2,000 were taken by Mansoor for private use was not recorded.

REQUIRED Prepare Ten – column worksheet. Question # 18: 2005 Regular – UOK The following balances were taken from the General Ledger of Haleem Sons on December 31, 2004: Cash 12,250 Accounts receivable 5,840 Notes receivable 3,000 Allowance for bad debts 100 Merchandise inventory 20,180 Sales revenue 95,000 Building 30,000 Interest revenue 200 Accounts payable 8,720 Cost of goods sold 57,900 Notes payable 5,000 Salaries expense 7,500 Haleem Capital 40,000 General expense 10,900 Property tax expense 750 Interest expense 700 The data for adjustments to be made at year ended December 31, 2004 are:

(i) Property tax still prepaid Rs.250. (ii) Accrued interest on notes receivable Rs.212. (iii) Accrued interest on notes payable Rs.150. (iv) Adjust the allowance for bad debts account to 5% of accounts receivable. (v) Depreciation on building for the year was Rs.5,000.

REQUIRED Prepare a Ten-Column work sheet.

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Question # 19: 2005 Private – UOK Following are the balances taken from the records of Qasim & Bros on Dec. 31, 2004: Cash at bank 40,000 Unearned commission 54,000 Merchandise inventory 50,000 Qasim Capital 230,000 Prepaid rent 9,000 Sales 184,000 Accounts receivable 60,000 Bonds payable 50,000 Equipment 100,000 Qasim Drawings 30,000 Cost of goods sold 160,000 Utilities expense 24,000 Wages expense 45,000 Data for Adjustment of December 31, 2004:

(i) Commission earned during the year Rs.48,000. (ii) Rent expired Rs.6,000. (iii) Accrued wages Rs.7,000. (iv) Depreciation on equipment was estimated at 5% on cost. (v) Provide 1% of sales for uncollectible accounts.

REQUIRED Prepare a Ten-Column work sheet. Question # 20: 2004 Regular – UOK Following is the pre-closing trial balance of Adnan Traders was on Dec. 31, 2003: Debit Credit Cash 30,000 Accounts receivable 20,000 Allowance for bad debts 200 Furniture 60,000 Allowance for depreciation – Furniture 6,400 Adnan – Capital 119,800 Office supplies 6,000 Sales 200,000 Cost of goods sold 160,000 Rent expense 20,000 Prepaid advertising 10,000 Salaries expense 20,000 326,200 326,200 Data for Adjustment on December 31, 2003:

(a) Office supplies unused Rs.2,000. (b) Rent expense for the year was Rs.10,000. (c) Prepaid advertising was Rs.6,000. (d) Salaries expense for the year was Rs.25,000. (e) Depreciation on furniture was estimated at Rs.6,000. (f) Allowance for bad debts was estimated at 10% of year end accounts receivable.

REQUIRED Prepare a Ten-Column work sheet. Question # 21: 2001 Regular & Private – UOK The following is the pre-closing trial balance of Nadir and Company on December 31, 2000: Debit Credit Cash 30,000 Accounts receivable 90,000 Allowance for bad debts 1,000 Merchandise inventory 60,000

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Prepaid insurance 6,000 Building 230,000 Allowance for depreciation – Building 30,000 Accounts payable 71,000 Capital 250,000 Drawings 20,000 Sales 343,000 Sales return & allowance 3,000 Commission income 72,000 Cost of goods sold 230,000 Salaries expense 50,000 Rent expense 30,000 Supplies expense 16,000 Data for Adjustment at December 31, 2000:

(a) Insurance was prepaid to the extent of Rs.1,500. (b) The allowance for bad debts was estimated at the rate of 3% of the year end accounts

receivable balance. (c) Depreciation expense is estimated at the rate of 20% on declining balance. (d) Commission income is unearned to the extent of Rs.27,000. (e) Salaries expense for the year amounted to Rs.50,000. (f) Rent expense for the year amounted to Rs.27,000. (g) Supplies consumed during the year Rs.13,000.

REQUIRED Prepare a Ten-Column Work Sheet. Question # 22: 2000 Regular & Private – UOK Presented given below is the unadjusted trial balance of Hassan Traders at December 31, 1999: Debit Credit Cash 1,250 Accounts receivable 11,000 Allowance for doubtful accounts 500 Merchandise inventory 12,000 Unexpired insurance 1,700 Plant assets 45,000 Allowance for depreciation – Plant assets 15,000 15% Notes payable (due in 2003) 20,000 Capital – Hassan 35,000 Drawings – Hassan 2,000 Sales revenue 22,500 Cost of goods sold 12,300 Office supplies expense 2,500 Salaries expense 4,250 Data for Adjustments

(a) Insurance expired during the year amounted to Rs.700. (b) Provide doubtful debts at 10% of accounts receivable. (c) Interest is paid annually on the notes payable at June 30, each year. (d) Office supplies used amounted to Rs.500. (e) Charge depreciation on plant assets at 20% on reducing balance method. (f) Salaries prepaid amounted to Rs.850.

REQUIRED Prepare a Ten-Column Work Sheet in proper form and complete in all respects.

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Question # 23: 1999 Regular & Private – UOK Following is the pre-closing trial balance of Adnan & Co. on December 31, 1998: Debit Credit Cash 20,000 Accounts receivable 30,000 Allowance for doubtful debts 500 Merchandise inventory 20,000 Prepaid advertising 10,000 Equipment 40,000 Allowance for depreciation – Equipment 2,500 Accounts payable 10,000 Adnan – Capital 50,000 Commission income 10,000 Sales revenue 200,000 Cost of goods sold 123,000 Salaries expense 15,000 Office supplies expense 5,000 Rent expense 6,400 Insurance expense 3,600 273,000 273,000 Data for Adjustments on December 31, 1998:

(a) Office supplies used Rs.2,000. (b) Salaries expense for the year amounted to Rs.12,000. (c) Commission earned during the year Rs.8,000. (d) Prepaid advertising Rs.4,000. (e) Rent expense for the year amount to Rs.8,000. (f) Insurance expense represents a 3-year insurance policy paid on August 1, 1998. (g) Depreciation on equipment was estimated Rs.1,000. (h) Doubtful debts on accounts receivable was estimated at Rs.1,000.

REQUIRED Prepare a Ten-Column Work Sheet for the year ended December 31, 1998 from the above balances and data for adjustments and complete in all respect. Question # 24: 1998 Regular – UOK Following is the pre-closing trial balance of Falcon Traders Trial Balance July 31, 1997. Debit Credit Cash 4,755 Accounts receivable 2,000 Merchandise inventory 2,700 Unexpired insurance 486 Advertising supplies expense 835 Office equipment 8,520 Accumulated depreciation – Office equipment 276 Accounts payable 4,800 RH Capital 13,140 Cost of goods sold 4,600 Sales revenue 8,580 Office salaries expense 2,000 Sales discount 500 Sales returns 400 26,796 26,796

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Other Data (a) Insurance expense for the month Rs.18. (b) Advertising supplies on hand July 31 Rs.507. (c) Depreciation on equipment Rs.75. (d) Salaries earned by employees but yet not paid Rs.200, and salaries prepaid Rs.150. (e) Provide for bad debts at 10% of accounts receivable.

REQUIRED Prepare Ten-Column Work Sheet. Question # 25: 1996 Private – UOK The following balances were taken from the General Ledger of Mr. Saleem, a sole proprietor on September 30, 995 Cash 12,250 Notes receivable 3,000 Accounts receivable 5,300 Allowance for bad debts (Cr.) 100 Merchandise inventory 20,180 Store supplies 540 Building 50,000 Accumulated depreciation – Building 20,000 Accounts payable 8,720 Notes payable 5,000 Saleem, Capital 40,000 Sales revenue 95,000 Interest revenue 200 Cost of goods sold 57,900 Salaries expense 7,500 General expense 10,900 Interest expense 700 Property tax expense 750 The data for adjustments to be made at year ended September 31, 1995 are:

(i) Store supplies on hand Rs.310. (ii) Property tax paid in advance Rs.145. (iii) Accrued interest on notes receivable Rs.212. (iv) Accrued interest on notes payable Rs.150 (v) Adjust the allowance for bad debts account to 5% of accounts receivable. (vi) The building has an estimated life of 50 years with no salvage value (Straight Line

Method of depreciation). REQUIRED Prepare Ten-Column Work Sheet. Question # 26: 1991 Regular & Private – UOK The Pre-closing Trial Balance of Salman and Company on December 31, 1990 was as under. Debit Credit Cash Rs.30,000 Accounts receivable 20,000 Merchandise inventory 10,000 Prepaid advertising 9,000 Accounts payable Rs.10,000 Unearned commission 5,000 Salman, Capital 25,000 Sales 110,000 Cost of goods sold 70,000

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Salaries expenses 5,500 Office supplies expense 1,500 Rent expense 4,000 150,000 150,000 Supplementary Data for Adjustment on December 31, 1990:

(1) Un-used Office Supplies Rs.300. (2) Salaries Payable Rs.500. (3) Unearned Commission Rs.1,500. (4) Commission Receivable Rs.1,400. (5) Prepaid Advertising Rs.4,300. (6) Rent Expense for the year Rs.6,000

REQUIRED Prepare Ten Column Work Sheet from the data given above. Question # 27: 1990 Regular & Private – UOK The following is the Pre-Closing Trial Balance of Qasim & Co. on December 31, 1989. Debit Credit Cash 40,000 Accounts receivable 80,000 Allowance for bad debts 600 Merchandise inventory 30,000 Prepaid insurance 6,400 Building 250,000 Allowance for depreciation 50,000 Accounts payable 40,000 Bonds payable 20,000 Capital 257,000 Drawings 30,000 Sales 450,000 Commission income 40,000 Cost of goods sold 330,000 Salaries expenses 40,000 Rent expense 50,000 Supplies expense 30,000 Data for Adjustment on December 31, 1989 were as under:

(1) Prepaid Insurance Expired by Rs.4,400. (2) The Allowance for Bad Debts was estimated at the rate of 5% of the year end Account

Receivable Balance. (3) Depreciation Expense is estimated at the rate of 20% of the Cost of Building. (4) Commission income is unearned to the extent Rs.4,000. (5) Salaries Expense for the year amounted to Rs.48,000. (6) Rent Expense was prepaid by Rs.5,000. (7) Supplies used during the year were Rs.27,000.

REQUIRED Prepare a Ten Column Work Sheet from the data given above. Question # 28: 2012 Private – UOK Following trial balance data has been extracted from the books of Ali Ltd. For the year ended December 31, 2009: Cash Rs.220,000; Accounts receivable Rs.75,000; Office supplies expense Rs.5,000; Unearned commission Rs.50,000; Machine Rs.150,000; Accounts payable Rs.80,000; Allowance for depreciation – machine Rs.5,000; Merchandise inventory Rs.50,000; Allowance for bad debts

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(Dr.) Rs.3,000; Cost of goods sold Rs.200,000; Prepaid rent Rs.3,600; Salaries expense Rs.6,000; Drawings Rs.5,000; Capital Rs.296,000; Sales revenue Rs.280,000; Long term loan ? Data for Adjustment:

1. Used office supplies Rs.3,000. 2. Rent was paid for 1 year on April 30, 2009. 3. Allowance for bad debts estimated @ 6% of accounts receivable at end. 4. Expired salaries Rs.1,500. 5. The machine has a life of 80,000 hours and estimated salvage value is Rs.50,000.

Machine has operated 5,000 hours during 2009. 6. Interest accrued on long term loan @ 6% per annum. Loan acquired in September 1,

2009. REQUIRED Prepare ten columns Work Sheet. Question # 29: 1993 Regular – UOK Selected balance before and after adjustments relating to QASIM & COMPANY for the year ended December 31, 1992 are as under. Balance Before

Adjustments Balance After Adjustments

Debit Credit Debit Credit Office supplies Rs.5,400 Rs.1,320 Accrued commission 25,560 49,560 Accumulated depreciation – Equipment

34,560 35,880

Salaries payable 13,200 Unearned commission 10,200 7,800 Commission revenue 28,200 54,600 Salaries expense 13,200 26,400 Office supplies expense 4,080 Depreciation expense 1,320 Merchandise 12,600 Cost of goods sold 25,800 REQUIRED Give the necessary Adjusting Closing & Reversing Journal Entries.

OR Prepare a Ten-Column Worksheet (partial) copy out the above data and complete the Adjustments, Income Statement & Balance Sheet column only. Question # 30: 2008 Regular – UOK Following are the data related to pre-closing trial balance & adjusted balance of Humna Associates for the month ended November 30, 2008:

Name of Accounts Pre-Closing Trial Balance Adjusted Trial Balance Cash 4,980 4,980 Commission receivable 3,000 3,850 Office supplies 600 240 Office equipment 6,600 6,600 Accumulated depreciation 2,420 2,530 Accounts payable 1,660 1,660 Salaries payable 550 Unearned commission 400 190 Humna capital 12,300 12,300 Humna Drawings 1,000 1,000

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Commission earned 6,900 7,960 Salaries expense 6,000 6,550 Rent expense 1,500 1,500 Office supplies expense 360 Depreciation expense 110 23,680 23,680 25,190 25,190 REQUIRED

(1) Trace out data & prepare necessary adjusting entries. (2) Prepare a ten-column worksheet from the above data.

Question # 31: 2010 Regular – UOK The following are eight independent cases: Paid Accrued Prepaid Expense Salaries 33,000 7,000 Nil ? Rent 40,000 Nil 15,000 ? Advertising 78,000 15,000 18,000 ? Utilities 20,000 5,500 ? 22,500 Insurance 77,000 ? 12,000 80,000 Repair ? 8,000 11,000 15,000 Interest 23,000 Nil Nil ? Taxes ? Nil Nil 22,000 REQUIRED Copy the above table and fill in the missing amounts, showing computations.