XI Accounting Practice And Test by Tariq Aziz

1st year accounting notes written By Tariq Aziz

HEAD OF ACCOUNTS / ELEMENTS OF ACCOUNTS/NATURE OF ACCOUNTS

There are only five heads of accounts to maintain the books of accounts.

1) Assets.

2) Liabilities.

3) Owner’s equity / Proprietorship.

4) Revenue and income.

5) Expenditure/ Expense

 

What are the three basic elements of accounting

The three major elements of accounting are: Assets, Liabilities, and Capital.

 

Assets

CURRENT ASSETS

 

• Cash/Bank:  (cash in hand) ( cash at bank)

• Accounts Receivable:

• Notes Receivable

• Merchandise inventory /goods

• Prepaid Expenses:

• Supplies:

• Marketable Securities:

 

 

FIXED ASSETS

An asset of a business intended for continuing use, rather than a short-term current asset (such as merchandise) is called fixed asset.

There are two types of fixed assets:

Tangible Fixed Assets: :

Land, Building, Machinery, Furniture, Equipment, etc.

Intangible Fixed Assets:::

Goodwill, Copyright, Trademark, Patents, etc.

 

LIABILITIES

CURRENT LIABILITIES

 

• Accounts Payable:

• Notes Payable:

• Accrued Expenses:

• Unearned Revenue:

• Bank Overdraft:

 

LONG TERM LIABILITIES

 

• Bank Loan:

• Mortgage Payable:

• Debentures Payable:

• Bonds payable

 

03)OWNER’S EQUITY

 

• Capital

• Drawings

• Profit and loss

 

 

04) Income or Revenue

 

• Commission income

• Sales

• Rent income

• Interest income

• Fees income

• Consulting fee

• Repairs income

• Other Income

 

Contra Income:

 

• Sales returns and allowance

• Sales discount

 

 

05) Expense

 

• Purchases:   / Purchase Discount /  Purchase Return and Allowance:

• Bad Debts Expense:

• Interest Expense

• Freight /carriage /cartage / transportation

• Miscellaneous Expenses:

• Salaries Expense

• Rent Expense

• Wages Expense

• Repairs and Maintenance Expense

• Advertising Expense

• Utilities Expense

• Cash Discount / Trade Discount / Quantity Discount

 

 

ASSETS	LIABILITIES	EXPENSES
Current Assets:	Current Liabilities:	Purchases
Cash on hand	Accounts payable	Salaries expenses
Cash at bank	Notes/bills payable	Rent expenses
Accounts receivable	Accrued expenses	Commission expenses
Notes/bills receivable	Unearned	Interest expenses
Merchandise inventory	Bank overdraft	Repairs expenses
Accrued income	Long Term Liabilities:	Advertising expenses
Prepaid	Bank loan payable	Utilities expenses
Supplies	Mortgage payable	Transportation
Marketable securities	Debentures payable	Depreciation expenses
Contra Current Asset:		Bad debts expenses
Allowance for bad debts	Contingent Liabilities:	General expenses
Fixed Assets:		Miscellaneous expense
Tangible Fixed Assets:	OWNER’S EQUITY	Selling expenses
Land	Capital	Administrative expenses
Building	Drawings	Amortization
Equipment	Profit and loss	Other expenses
Furniture		Wages expenses
Machinery	REVENUE & INCOME	Carriage inward
Vehicles	Sales	Carriage outward
Contra Fixed Assets:	Commission income	Printing and stationary
Allowance for depreciation	Rent income	Postage and telegram
Intangible Fixed Assets:	Interest income	Supplies expenses
Goodwill	Fees income	Depletion
Patents	Repairs income	Cost of goods sold
Copyright	Other Income
Trademark	Contra Income:	Contra Expenses:
Fictitious Assets:	Sales returns and allowance	Purchase returns & allowance
Preliminary expenses	Sales discount	Purchase discount
Ordinary shares discount
Retained earnings deficit
Contingent Assets:

 

(1). Asset accounts:

Normal balance: Debit

(2). Expense accounts:

Normal balance: Debit

(3). Liability accounts:

Normal balance: Credit

(4). Revenue/Income accounts:

Normal balance: Credit

(5). Capital/Equity accounts:

Normal balance: Credit

 

Q)What is accounting equation formula?

State the fundamental accounting equation.

 

• Assets = Liabilities + Owner’s equity

 

Question 02) Rules of debit and credit

 

Debit	Credit
Increase in assets	Decrease in assets
Increase in expenses	Decrease in expenses
Decrease in liabilities	Increase in liabilities
Decrease in income	Increase in income
Decrease in equity	Increase in equity

 

 

 

 

Accounting Element	Normal Balance	To Increase	To Decrease
1. Assets	Debit	Debit	Credit
2. Liabilities	Credit	Credit	Debit
3. Capital	Credit	Credit	Debit
4. Withdrawal	Debit	Debit	Credit
5. Income	Credit	Credit	Debit
6. Expense	Debit	Debit	Credit

 

 

Question # 1:                     1989 Regular & Private, 2012 Regular & 2012 Private – BIEK

1. a) State the fundamental accounting equation.
2. b) Give the rules of debit and credit in terms of increase and decrease in financial elements.
3. c) List in sequence the steps involved in a complete accounting cycle.

 

Question # 2:                   1998 Regular & Private & 2003 Regular & 2012 Regular – BIEK

For any FIVE of the following accounts state whether they are asset, liability, owner’s equity,

expense or income. Also state whether they would normally have a debit or credit balance:

1. Shop furniture                2. Bank balance 3. Unexpired advertising
2. Bills receivable                5. Purchases 6. Commission revenue
3. Discount allowed             8. Office equipment 9. Sales discount
4. Unexpired insurance    11. Drawings
5. Capital                         14. Cash
6. Bank overdraft               15. Office supplies
7. Merchandise inventory      17. Prepaid rent    18. Accounts receivable
8. Accounts payable             20. Salaries payable

 

1st Test For Accounting students 04 August 2018

 

Question # 1:  the following accounts state whether they are asset, liability, owner’s equity,

expense or income. Also state whether they would normally have a debit or credit balance:

1. Furniture & fixture                2. Bank balance                 3. Prepaid advertising
2. note receivable                5. Purchases                     6. Commission Income
3. Discount allowed               8. Office equipment          9. Sales discount
4. Unexpired insurance      11. Drawings
5. Capital                          14. Cash                      
6. Bank overdraft                   15. Office supplies
7. Merchandise inventory         17. Prepaid rent 18. Accounts receivable
8. Accounts payable                 20. Salaries payable 21. cash at bank
9. Unearned income     23. Prepaid expense 24. Sale
10. Goodwill

 

Question # 2:  the following accounts state whether they are asset, liability, owner’s equity,

expense or income. Also state whether they would normally have a debit or credit balance:

1.Cash in hand 2 cash at bank 3. Stationary/ supplies  4. capital

5.Goods/stock/Inventry 6. Salary expense 7. Salary payable     8. Bank draft

9. Expired rent 10. Unexpired rent

 

Question # 04

Total assets 3000 and total liabilities 1500

Question # 05

total liabilities 150,000 and owner equity 150,000

 

Question # 06

Total assets 110,000 and owner equity 90,000

 

Question # 07 The owners of a start?up invest $1,000,000 into the business. After one year of operations, the business has assets of $850,000 and losses of $300,000. What are the total liabilities at the end of the first year?

 

Question # 08 At the end of an accounting period, a company’s total assets equaled $576,000, and liabilities equaled $245,000. How much was the company’s owners’ equity?

 

The Moon Service Inc. engaged in the following transactions during the month of November 2015:

• Nov. 01: Issued 20,000 shares of common stock at $20 per share
• Nov. 03: Paid office rent for the month of November $500.
• Nov. 06: Purchased office supplies $250.
• Nov. 12: Purchased office equipment on account $4,500
• Nov. 16: Purchased business car for $25,000. Paid $10,000 cash and issued a note for the balance.
• Nov. 21: Billed clients $24,000 on account.
• Nov. 25: Declared dividends $3,000. The amount of dividends will be distributed in December.
• Nov. 28: Paid utility bills for the month of November $180.
• Nov. 29: Received $20,000 cash from clients billed on November 21.
• Nov. 30: Paid salary for the month of November $7,500

Required: Record the above transactions in a general journal.

 

First Example

The company started business on June 6, 2013. The business was started with $300,000. The transactions they engaged in during their first month of business are below:

Date	Transaction
June 8	An amount of $50,000 was paid for six months of rent.
June 9	Equipment costing $100,000 was purchased using $40,000 cash. The remaining amount of $60,000 is a one year note with an interest rate of 3.4%
June 10	Office supplies were purchased totaling $25,000 on account.
June 16	Received $39,400 in cash for services rendered to customers.
June 16	Paid the account for office supplies purchased June 10.
June 20	$63,900 worth of services were given to customers. Received cash amount of $43,700. Customers promised to pay remaining amount of $20,200.
June 21	Paid employees’ wages for June 8-June 21. Wages totaled $23,500.
June 21	Received $20,200 in cash for services rendered to customers on June 20.
June 22	Received $6,300 in cash as advanced payment from customers.
June 27	Office supplies were purchased totaling $3,500 on account.
June 28	Electricity bill received totaling $1,850.
June 28	Phone bill received totaling $2,650.
June 28	Miscellaneous expenses totaled $4,320.

These events would then be recorded into the accounting journal. The table below records the journal entries for the events above.

Date	Account	Debit	Credit
June 6	Cash       Capital	300,000	300,000
June 8	Prepaid rent	50,000
	Cash		50,000
June 9	Equipment	100,000
	Cash		40,000
	Notes Payable		60,000
June 10	Office Supplies	25,000
	Accounts Payable		25,000
June 16	Cash	39,400
	Service Revenue		39,400
June 16	Accounts Payable	25,000
	Cash		25,000
June 20	Cash	43,700
	Accounts Receivable	20,200
	Service Revenue		63,900
June 21	Wages Expense	23,500
	Cash		23,500
June 21	Cash	20,200
	Accounts Receivable		20,200
June 22	Cash	6,300
	Unearned Revenue		6,300
June 27	Office Supplies	3,500
	Accounts Payable		3,500
June 28	Electricity Expense	1,850
	Utilities Payable		1,850
June 28	Telephone Expense	2,650
	Utilities Payable		2,650
June 28	Miscellaneous Expense	4,320
	Cash		4,320

 

Weekly accounting Written by Tariq Aziz

1st year test 27 august 2018

 

Company “Bewaqoof bantey raho”  started business with cash Rs 20,000 , Furniture Rs 30,000 and Equipment Rs 40,000. On august 01, 2018

 

• August. 03: Paid office rent for the month of August Rs 5000..

• August  06: Purchased office supplies Rs 25000..

• August  08 Bewaqoof bantey raho add additional investment in their business Rs 500,000

• August 10 Open a bank account in Standard chartered bank.Rs 5000

• August 15 purchase cash Rs 20,000.

• August 18 Cash transfer into bank Rs 18,000

• August 20 Sale cash Rs 30,000

• August 22 Paid for salary Rs 15,000.

• August 23 receive cash for commission income Rs 18000

• August 24 paid for insurance by cheque Rs 2000

• August 25 receive cheque for rent income Rs 2500

• August 26 purchase furniture on cash Rs 3000

• August 27 sold building on cash Rs 4000

• August 28 receive cheque for consulting fee and deposit into bank Rs 5000

• August 29 Purchase merchandise on cash Rs 6000

• August 30 sold goods on cash Rs 7000

 

 

Best of luck

 

Test

01)the following accounts state whether it is an asset, liability or owner’s equity; also state whether it would normally have a debit or credit balance:

1. Office equipment          2. Akbar Capital 3. Notes receivable
2. Cash                         5. Drawings 6. Notes payable
3. Office supplies             8. Prepaid insurance

 

02) the following accounts state whether they are asset, liability, owner’s equity, expense or income. Also state whether they would normally have a debit or credit balance:

1. furniture                2. Bank 3. Prepaid advertising
2. note receivable    5. Purchases 6. Unearned Commission revenue
3. Purchase Discount        8. Office equipment 9. Sales discount
4. Unexpired insurance         11. Drawings 12. Bank overdraft
5. Capital                         14. Cash 15. Office supplies
6. Merchandise inventory      17. Prepaid rent    18. Accounts receivable
7. Accounts payable             20. Salaries payable 21 accured expense

 

03)Transactions given below relate to the business of Atlas Company. For each of the transaction, you are required to indicate the effects on the elements of accounting equation using (+) for increase, (-) for decrease, and (0) for no change.

1. a) Invest cash in business.
2. b) Purchased furniture on account.
3. c) Purchased office equipment for cash.
4. d) Paid a liability.
5. e) Received cash for service rendered.
6. f)  Paid salaries expense in cash.
7. g) Withdrew cash from the business for personal use of owner.

 

04)Cash invested in the business by the owner Rs.50,000.

Purchased supplies for cash Rs.1,000.

Purchased equipment on account Rs.15,000.

Paid cash to creditor Rs.5,000.

Returned equipment to the supplier Rs.1,000.

Withdrew cash by owner for personal use Rs.400.

Require solve this question using accounting equation

 

Illustration01: Mr. Salman Proprietor.

 

(i) Mr. Salman started business with capital (brought in

cash)Rs. 40,000.

(ii) Paid salaries to staff Rs. 5,000.

(iii) Purchased machinery for Rs. 20,000 in cash.

(iv) Placed an order with Ahmed & Co. for goods for Rs. 5,000.

(v) Opened a Bank account by depositing Rs. 4,000.

(vi) Received pass book from bank.

(vii) Appointed Tariq as Manager on a salary of Rs. 4,000 per

month.

(viii) Received interest from bank Rs. 500.

(ix) Received a price list from Lalit.

REQUIRED

Record the effect of each transaction

 

Illustration 2

1. Commenced business with cash Rs. 50,000
2. Purchased goods for cash Rs. 20,000 and on credit Rs. 30,000
3. Sold goods for cash Rs. 40,000 costing Rs. 30,000
4. Rent paid Rs. 500
5. Bought furniture Rs. 5,000 on credit
6. Bought refrigerator for personal use Rs. 5,000

REQUIRED

Record the effect of each transaction

 

Illustration 3 )Jan. 1 Mohan started business with cash 80,000

Jan. 6 Purchased goods from Ram on credit 30,000

Jan. 8 Sold goods on cash 6,000

Jan. 15 Bought Furniture from Yash for cash 8,000

Jan. 18 Paid Salary to manager 6,500

Jan. 20 Paid Rent to land lord in cash 1,000

REQUIRED

Record the effect of each transaction

 

Illustration 4 :mr tariq 2005

Nov. 1 Paid to Arun Rs. 5,250 discount allowed by him Rs.50

6 Received from Somesh Rs. 1,900 and from Komesh Rs. 400

8 Goods purchased for cash Rs. 4,000

Furniture purchased for cash Rs. 3,000

Paid cash to Raman Rs. 2,090

Paid Salary in cash Rs. 7,600

Paid Rent in cash Rs. 1,400

 

question 01)

01)transaction

02)transaction

03)transaction

04) no transaction

05)transaction

06) no transaction

07) no transaction

08)transaction

09)no transaction

 

ACCOUNTING EQUATION

Assets = liabilities + owner’s equity

liabilities = Assets – owners equity

owner’s equity = Assets – liabilities

 

Question # 01

Total assets 300,000 and total liabilities 150,000 calculate Equity?

Solution

Accounting Equation

Assets = liabilities + owner’s equity

 

Owner’s equity = Assets – liabilities

Owner’s equity = 300,000-150,000

 

Owner’s equity = 150,000

 

Question # 02

total liabilities 150,000 and owner equity 150,000 calculate assets?

Solution

Accounting Equation

Assets = liabilities + owner’s equity

 

Assets = 150,000    + 150,000

 

Assets = 300,000

 

Question # 03

Total assets 110,000 and equity 90,000 calculate liabilities?

Solution

Accounting Equation

Assets = liabilities + owner’s equity

 

Liabilities = Assets – owner’s equity

Liabilities = 110,000 – 90,000

 

Liabilities = 20,000

 

Question # 03 (a) The assets of business entity having liabilities of Rs.60,000 and owner’s equity Rs.120,000

 

Solution

Accounting Equation

Assets = liabilities + owner’s equity

 

Assets =  60,000 +  120,000

 

Assets = 180,000

 

1. The owner’s equity of business entity having assets of Rs.600,000 and liabilities

Rs.250,000.

 

Solution

Accounting Equation

Assets = liabilities + owner’s equity

 

Owner’s equity =  Assets – liabilities

Owner’s equity =  600,000 – 250,000

 

Owner’s equity =  350,000

 

1.  The liabilities of business entity having assets of Rs.310,000 and owner’s equity

Rs.70,000.

Solution

Accounting Equation

Assets = liabilities + owner’s equity

 

Liabilities = Assets – owner’s equity

Liabilities =  310,000 – 70,000

 

Liabilities = 240,000

 

Question # 4)1993 Regular & Private – BIEK For each of the following determine the underlined missing item:-

 

(a) The liabilities of a business entity having assets of Rs.200,000 and owner’s equity of

Rs.90,000.

Solution

 

Accounting Equation

Assets = liabilities + owner’s equity

 

Liabilities = Assets – owner’s equity

 

Liabilities =  200,000 – 90,000

 

Liabilities = 110,000

 

(b) The assets of a business entity having liabilities of Rs.50,000 and owner’s equity of

Rs.100,000.

 

Solution

 

Accounting Equation

Assets = liabilities + owner’s equity

 

Assets =  50,000 +  100,000

 

Assets = 150,000

 

(c) The owner’s equity of a business having assets of Rs.80,000 and liabilities of Rs.40,000.

Solution

 

Accounting Equation

Assets = liabilities + owner’s equity

 

Owner’s equity = Assets – liabilities

 

Owner’s equity =  80,000 – 40,000

 

Owner’s equity = 40,000

 

(d) The revenue of a business entity having expenses of Rs.60,000 and net income of

Rs.15,000

Solution

Revenue = expense + Profit/net income

.Revenue = 60,000  + 15,000

 

Revenue =  75,000

.

 

(e) The expenses of a business entity having revenues of Rs.90,000 and net loss of Rs.8,000.

 

Solution

 

Expense = Revenue + Loss

 

Expense =  90,000 + 8,000

 

Expense =  98,000

.

Question # 5)  2002 Private – BIEK  For each of the following determine the underlined missing item:-

(a) The liabilities of a business entity having assets of Rs.400,000 and owner’s equity of

Rs.180,000.

Solution

Accounting Equation

Assets = liabilities + owner’s equity

 

Liabilities = Assets – owner’s equity

Liabilities =  400,000 – 180,000

 

Liabilities = 220,000

(b) The assets of business entity having liabilities of Rs.100,000 and owner’s equity of

Rs.200,000.

Solution

Accounting Equation

Assets = liabilities +   owner’s equity

Assets = 100,000    + 200,000

 

Assets = 300,000

 

(c) The owner’s equity of business having assets of Rs.1600,000 and liabilities of Rs.80,000.

Solution

 

Accounting Equation

Assets = liabilities + owner’s equity

 

Owner’s equity = Assets – liabilities

 

Owner’s equity =  1600,000 – 80,000

 

Owner’s equity = 1,520,000

 

(d) The revenues of business entity having expenses of Rs.120,000 and net income of Rs.30,000.

Solution

Revenue = expense + Profit/net income

Revenue = 120,000  + 30,000

 

Revenue =  150,000

 

(e) The expenses of a business entity having revenues of Rs.180,000 and net loss of Rs.16,000.

 

Solution

Expense = Revenue + Loss

Expense =  180,000 + 16,000

 

Expense =  196,000

 

Question # 6:

1994 Regular & Private – BIEK  Compute the missing amount in each of the following independent cases:-

 

(i)   The assets of Javeed Company total Rs.350,000 and the owner’s equity amounts to

Rs.110,000. What is the amount of liabilities?

 

Solution

 

Accounting Equation

Assets = liabilities + owner’s equity

 

Liabilities = Assets – owner’s equity

 

Liabilities =  350,000 – 110,000

 

Liabilities = 240,000

 

(ii)   The balance sheet of Star Company shows owner’s equity of Rs.80,000 which is equal

to one third amount of total assets. What is the amount of liabilities?

 

Solution

 

Compute one third amount of total assets.

80,000×3/1

 

Assets = 240,000

 

Accounting Equation

Assets = liabilities + owner’s equity

 

Liabilities = Assets – owner’s equity

Liabilities =  240,000 – 80,000

 

Liabilities = 160,000

 

(iii) Moon Company had assets in the amount of Rs.230,000 on December 31, 1988. Assets

increased to Rs.320,000 by December 31 of 1989. During this same period, liabilities

increased by Rs.85,000. The owner’s equity at December 31, 1988 amounted to

Rs.160,000. Compute the amount of owner’s equity at December 31, 1989.

Solution

Accounting Equation

Assets = liabilities + owner’s equity

1988

Liabilities = Assets – owner’s equity

Liabilities =  230,000 – 160,000

 

Liabilities = 70,000

 

Accounting Equation

Assets = liabilities + owner’s equity

1989

owner’s equity = Assets –  Liabilities

owner’s equity =  320,000 – (70,000 + 85,000)

 

owner’s equity = 320,000 – 155,000

owner’s equity =  165,000

Transactions given below relate to the business of Atlas Company. For each of the transaction,

you are required to indicate the effects on the elements of accounting equation using (+) for

increase, (-) for decrease, and (0) for no change. Use the headings and follow the example given

below:-

Transaction no.         Assets Liabilities   Owner’s equity

1               +              0                   +

1. a) Invest cash in business.
2. b) Purchased furniture on account.
3. c) Purchased office equipment for cash.
4. d) Paid a liability.
5. e) Received cash for service rendered.
6. f)  Paid salaries expense in cash.
7. g) Withdrew cash from the business for personal use of owner.

 

Transaction No.	Assets	Liabilities	Owner’s Equity
(i)	+	0	+
(ii)	+	+	0
(iii)	0	0	0
(iv)	–	–	0
(v)	+	0	+
(vi)	–	0	–
(vii)	–	0	–

 

Question # 1:  1994 Regular & Private – BIEK Transactions given below relate to the business of Tara Company. Indicate the effect of each of these transactions upon the total amounts of the company’s assets, liabilities and owner’s equity:-

(i)   Owner invested cash in the business.

(ii) Purchased a typewriter on credit.

(iii) Collected an accounts receivable.

(iv) Owner withdrew cash from the business for his private use.

(v) Paid a liability.

(vi) Sold land for cash at a price excess of cost.

(vii)   Borrowed money from a bank.

(viii)   Purchased office equipment for cash.

(ix) Returned on credit some of the office equipment previously purchased on credit but

not yet paid for.

 

Question # 2:

2002 Private – BIEK Transactions given below relate to the business of New Way Company.

For each of the transaction, you are required to indicate the effects on the elements of

accounting equation using (+) for increase, (-) for decrease, and (0) for no change. Use the

headings and follow the example given below:-

FOR EXAMPLE

Transaction no.         Assets     Liabilities   Owner’s equity

a             +                0                   +

(a) Started business with cash investment.

(b) Purchased building for cash.

(c) Purchased merchandise on credit.

(d) Sold merchandise at a cost on credit for the same amount.

(e) Paid to accounts payable.

(f) Withdrew cash from the business for personal use of the owner.

(g) Paid cash for utility bills.

 

ACCOUNTING TEST

QUESTION 01)

Transactions given below relate to the business of Atlas Company. For each of the transaction,

you are required to indicate the effects on the elements of accounting equation using (+) for

increase, (-) for decrease, and (0) for no change. Use the headings and follow the example given

below:-

Transaction no.         Assets Liabilities   Owner’s equity

1               +              0                   +

1. a) Invest cash in business.
2. b) Purchased furniture on account.
3. c) Purchased office equipment for cash.
4. d) Paid a liability.
5. e) Received cash for service rendered.
6. f)  Paid salaries expense in cash.
7. g) Withdrew cash from the business for personal use of owner.

QUESTION 02)

Transaction no.         Assets     Liabilities   Owner’s equity

a             +                0                   +

(a) Started business with cash investment.

(b) Purchased building for cash.

(c) Purchased merchandise on credit.

(d) Sold merchandise at a cost on credit for the same amount.

(e) Paid to accounts payable.

(f) Withdrew cash from the business for personal use of the owner.

(g) Paid cash for utility bills.

 

QUESTION 03)

1st year pagal Company had assets in the amount of Rs.530,000 on December 31, 2017. Assets increased to Rs.620,000 by December 31 of 1989. During this same period, liabilities increased by Rs.95,000. The owner’s equity at December 31, 2018 amounted to

Rs.500,000. Compute the amount of owner’s equity at December 31, 2017.

 

QUESTION 04)

01) The balance sheet of Star Company shows owner’s equity of Rs.100,000 which is equal to one third amount of total assets. What is the amount of liabilities?

02)The assets of Javeed Company total Rs.450,000 and the owner’s equity amounts to

Rs.210,000. What is the amount of liabilities?

 

QUESTION 05) (a) The assets of business entity having liabilities of Rs.60,000 and owner’s equity Rs.120,000

1. The owner’s equity of business entity having assets of Rs.600,000 and liabilities

Rs.250,000.

1.  The liabilities of business entity having assets of Rs.210,000 and owner’s equity

Rs.80,000.

 

QUESTION 06)1993 Regular & Private – BIEK For each of the following determine the underlined missing item:-

(a) The liabilities of a business entity having assets of Rs.180,000 and owner’s equity of

Rs.80,000.

(b) The assets of a business entity having liabilities of Rs.60,000 and owner’s equity of

Rs.110,000.

(c) The owner’s equity of a business having assets of Rs.850,000 and liabilities of Rs.250,000.

(d) The revenue of a business entity having expenses of Rs.60,000 and net income of

Rs.15,000

(e) The expenses of a business entity having revenues of Rs.100,000 and net loss of Rs.15,000.

 

QUESTION 07)For each of the following determine the underlined missing item:-

(a) The liabilities of a business entity having assets of Rs.480,000 and owner’s equity of

Rs.280,000.

(b) The assets of business entity having liabilities of Rs.200,000 and owner’s equity of

Rs.300,000.

(c) The owner’s equity of business having assets of Rs.1500,000 and liabilities of Rs.900,000.

(d) The revenues of business entity having expenses of Rs.220,000 and net income of Rs.60,000.

(e) The expenses of a business entity having revenues of Rs.190,000 and net loss of Rs.26,000.

 

General Journal:

Given:

1. Muhammad Umar started business with a cash investment of Rs. 500,000/ and equipment Rs. 100,000/.
2. Cash deposit into bank for business account Rs. 100,000/.
3. Purchased merchandise on cash Rs. 75,000.
4. Cash sales Rs. 50,000/.
5. Withdrew cash from bank for personal use Rs. 15,000/.
6. Paid Salaries to the employess by cheque Rs. 6,000/.
7. Recieved rent of the building in advance of Rs. 10,000 cash.

 

1st year Accounting Test written by Tariq Aziz

 

01)Owner Invest cash in his business 1000

02)Mr tariq Investment 2000

03)Purchase Building on cash 3000

04)Sold building on cash 4000

05)Purchase Equipment 5000 on cash

06)Proprietor commenced business with cash 1000 , building 2000, Equipment 3000 machine 4000, furniture 5000 , supplies 6000 and land 7000

07)Equipment sold on cash 80,000

08)Sale Building on cash 90,0000

09)Furniture purchase on cash 10,000

10)Owner made additional investment 2000

11)Bought computer on cash 3000

12)Sell computer on cash 4000

13)Owner bring cash and bank in his business 2000 and 40000

14)Owner purchase  furniture for business use for cash 26000

15)Sold machinery on cash 25000

 

01)the following accounts state whether it is an asset, liability or owner’s equity; also state whether it would normally have a debit or credit balance:

1. Office equipment          2. Tariq Capital 3. Notes receivable
2. Cash                         5. Drawings 6. Notes payable
3. Office supplies             8. Prepaid insurance

 

Account Title	Head of Account	Normal Balance
1. Office equipment	Asset	Debit
2. Tariq  Capital	Owner’s equity	Credit
3. Notes receivable	Asset	Debit
4. Cash	Asset	Debit
5. Drawings	Owner’s equity (Contra)	Debit
6. Notes payable	Liability	Credit
7. Office supplies	Asset	Debit
8. Prepaid insurance	Asset	Debit

 

02) the following accounts state whether they are asset, liability, owner’s equity, expense or income. Also state whether they would normally have a debit or credit balance:

1. furniture                2. Bank 3. Prepaid advertising
2. note receivable    5. Purchases 6. Unearned Commission revenue
3. Purchase Discount        8. Office equipment 9. Sales discount
4. Unexpired insurance         11. Drawings 12. Bank overdraft
5. Capital                         14. Cash 15. Office supplies
6. Merchandise inventory      17. Unexpired rent      18. Accounts receivable
7. Accounts payable             20. Salaries payable 21 accrued expense
8. Building          23 sale

 

Account Title	Head of Account	Normal Balance
Furniture	Asset	Debit
Bank	Asset	Debit
Prepaid advertising	Asset	Debit
note receivable	Asset	Debit
Purchases	Expense	Debit
Unearned Commission revenue	Liability	Credit
Purchase Discount	Expense	Credit
Office equipment	Asset	Debit
Sales discount	Revenue /Income	Debit
Unexpired insurance	Asset	Debit
Drawings	Owner’s Equity	Debit
Bank overdraft	Liability	Credit
Capital	Owner’s Equity	Credit
Office supplies	Asset	Debit
Merchandise inventory	Asset	Debit
Unexpired rent	Asset	Debit
Accounts receivable	Asset	Debit
Accounts payable	Liability	Credit
Salaries payable	Liability	Credit
accrued  expense	Liability	Credit
Building	Asset	Debit
Sale	Revenue /Income	Credit
Sale return	Revenue /Income	Debit

 

Example # 1:

January 1:   Mr. Tariq started business with cash investment of Rs.100,000.

Date	Particular	P/R	Debit	Credit
2018 Jan   01	Cash      Capital To record Owner Invest cash		100,000	100,000

 

XI Accounting Weekly Test By Tariq Aziz

Asim Traders

        General Journal

Date	Particular	P/R	Debit	Credit
2018 Feb  01	Cash      Capital		100,000	100,000
Feb 05	Equipment      Account payable		20,000	20,000
Feb	Purchases      Account payable		25,000	25,000
Feb 12	Cash Account receivable      Sales		10,000 15,000	25,000
Feb 18	Account payable      cash		15,000	15,000
Feb  23	Cash      Account receivable		10,000	10,000
Feb  28	Salaries expense      cash		3,000	3,000

Question 01) Required General Ledger & Trial Balance

 

Date	Particular	P/R	Debit	Credit
2018 jan  01	Cash      Capital		150,000	150,000
jan 05	Equipment      Account payable		200,000	200,000
Jan 10	Cash      Sale		250,000	250,000

Question 02)  Required General Ledger & Trial Balance

Question 03 1.)owner invested cash and furniture 200,000 and 300,000 respectively

02) Purchase furniture on cash 2000

03)bought building on cash 3000

04) Owner made additional investment 4000

05)purchase Equipment on cash 1000

Question 03 )Above entry record in general journal

Surprise Accounting Test By Sir Tariq Aziz

 

• Purchase furniture on cash 2000

• Withdrew cash from business for business use 3000

• Purchase goods on cash 3000

• Purchase Supplies on cash 5000

• Purchase cash 7500

• Withdraw cash from bank for office use  2000

• Purchase merchandise on cash  7000

• buy Shop furniture on cash 8000

• buy building on cash 9000

• Cheque deposit into bank 20,000

• Bought Equipment on cash 10,000

• Bought office Supplies on cash 11.000

• Bought Land on cash 12,000

• Cash sale 8500

• Cheque transfer into bank account 6000

• bough sale equipment on cash  1000

• Purchase Sale furniture On Cash 1500

• Sold furniture on cash 2000

• Sold building on cash 3000

• Cash transfer into bank 2000

• Sold Equipment on cash 4000

• Sold Supplies on cash 5000

• Sold Land on cash 6000

• Sale machinery on cash  7000

• sell office supplies on cash 2000

• Open a bank account 4000

• Owner made additional investment 5000

 

 

Weekly Accounting Test By Tariq Aziz

 

• Paid for insurance in advance through cheque Rs.23,000.

• Purchased sales supplies for cash Rs.800.

• Received commission in advance through a cheque of Rs.2,000.

• Proprietor withdrew cash and merchandise for Rs.10,000 and Rs.5,000 respectively.

• Proprietor invested into the business cash Rs.10,000 and Furniture valued at Rs.6,000.

• Commenced business with an investment of cash Rs.50,000 and merchandise worth Rs.40,000.

• Opened current account with the bank with Rs.10,000.

• Purchased merchandise for cash Rs.150,000.

• Sold merchandise for cash Rs.150,000

• Paid rent in advance by a cheque of Rs.10,000 for office building.

• Received cheque  for commission in advance 12,000.

• Paid salary to the salesman in advance  Rs.15,000

• Received cheque  for rent in advance 8000 and deposit into bank

• Paid shop rent in advance for ten months Rs.60,000.

• Proprietor purchased gold ring from business cash worth Rs.5,000.

• Issued cheque for office rent In advance  Rs.12,000.

 

 

Surprise Weekly Accounting Test By Sir Tariq Aziz

 

• He acquired a shop by paying Rs.36,000 as advance rent for a year.

• Paid shop rent Rs.150 in cash.

• Opened current account with the bank with Rs.10,000.

• Withdrew from the bank Rs.4,000 for private expenses of the proprietor.

• proprietor invested into the business cash Rs.10,000 and Furniture valued at

• Rs.6,000.

• Purchased merchandise for cash Rs.6,000.

• Purchased merchandise on credit from Khalid Rs.2,000.

• Sold merchandise for cash Rs.8,000.

• Sold merchandise on account for Rs.12,000.

• Proprietor withdrew cash Rs.8,000 and merchandise worth Rs.2,000.

• Paid advertising expense by cheque Rs.4,500.

• Paid shop rent in advance for ten months Rs.60,000.

• Purchased computer for the business worth Rs.25,600 in cash.

• Purchased goods on account for Rs.110,000.

• Paid for advertising Rs.17,000.

• Purchased merchandise for cash Rs.25,000.

• Purchased office supplies for Rs.50,000 on account.

 

Accounting Test 16 april 2019