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XII ACCOUNTING TEST MONTH OF JULY & AUGUST

XII ACCOUNTING TEST MONTH OF JULY & AUGUST

 

2nd year accounting test 27 july 2019

Written By Tariq Aziz

Accounting-Test-Sir-Tariq-Aziz-300x169 XII ACCOUNTING TEST MONTH OF JULY & AUGUST
Accounting Test Sir Tariq Aziz

Q1)The retained earnings account on M.M.S.K Company Ltd. showed a credit balance of Rs.420,000 on December 31, 2019. The expense and revenue summary for the year ending on that date showed a net income of Rs.570,000 which is transferred to retained earnings account. The company decided on December 31, 2019 as under:

(a) To declare a cash dividend of Rs.110,000 and stock dividend of Rs.90,000.

(b) To appropriate Rs.70,000 for plant expansion.

(c) To appropriate Rs.25,000 for contingencies.

(d) To establish reserve for building extension for Rs.90,000.

(e) Cash dividend paid through bank.

(f) 9,000 shares issued in settlement of stock dividend.

REQUIRED Give entries in General Journal to give effect to the above decisions.

Q2)The net income of Ahmed & Irfan. Ltd. for the year 2019 was Rs.990,000. The company declared a stock dividend of Rs.100,000 (at par) and appropriated Rs.75,000 for plant expansion.

REQUIRED Give entries in the General Journal 

Q3)The data were extracted from the balance sheet of Muzammil Company Limited on December 31, 2019:- 

Authorized Capital:

200,000 ordinary shares of Rs.10 each                  Rs.2,000,000

Issued and Paid-up Capital:

500,000 ordinary shares of Rs.10 each                  Rs.5,000,000

Retained earnings                                                    Rs.150,000

On December 31, 2019, the income summary of the company sowed net income of Rs.300,000.

At this date the company decided as under:-

(i) To declare cash dividend of 5%. And stock dividend of 8%

(ii) To appropriate Rs.100,000 for plant expansion.

(iii)To appropriate Rs.50,000 for contingencies.

(iv)To appropriate Rs.50,000 for debenture redemption.

(v) paid cash warrent and issued share for stuck dividend 

REQUIRED

(a) Give the entry in the General Journal of the company to transfer the net income to

retained earnings account. (b) Give entries in the General Journal to give effect to the above decision of the company.

Q4)Ordinary share capital: 60,000 shares of Rs.10 par value  Rs.600,000

July 16:  The board of directors of the company appropriated Rs.160,000 of retained

earnings for the plant expansion.

Dec. 12:        Declared a stock dividend of Rs.1.50 per share.

Dec. 31:        Closed the net of Rs.200,000 from income summary account to retained

Best of luck

Muzammil Collegiate 

XII Accounting Test 03 August 2019

Sir Tariq Aziz

Q1)The beginning retained earnings of the Company Tariq Inc. is Rs 800000, the Company had net income of Rs 110000 and paid a dividend of Rs 60000 to the shareholders.

Required : entries and the Statement of Retained Earnings at the end

 

2)Mark’s Ping Pong Palace is a table tennis sports retail shop in downtown Santa Barbara that was incorporated this year with Mark’s initial stock purchase of $15,000. During the year, the company made a profit of $20,000 and Mark decided to take $15,000 dividend from the company.

Required : entries and the Statement of Retained Earnings at the end

 

Q3)The retained earnings account on M.M.S.K Company Ltd. showed a credit balance of Rs.880,000 on December 31, 2019. The expense and revenue summary for the year ending on that date showed a net income of Rs.770,000 which is transferred to retained earnings account. The company decided on December 31, 2019 as under:

(a) To declare a cash dividend of Rs.10,000 and stock dividend of Rs.80,000.

(b) To appropriate Rs.20,000 for plant expansion.

(c) To appropriate Rs.35,000 for contingencies.

(d) To establish reserve for building extension for Rs.70,000.

(e) Cash dividend paid through bank.

(f) 8000 shares issued in settlement of stock dividend.

REQUIRED Give entries and statement of retained earning 

 

04)The data were extracted from the balance sheet of Muzammil Company Limited on December 31, 2017:- 

Authorized Capital:

200,000 ordinary shares of Rs.10 each                  Rs.2000,000

Issued and Paid-up Capital:

700,000 ordinary shares of Rs.10 each                  Rs.7,000,000

Retained earnings                                                    Rs.250,000

On December 31, 2017, the income summary of the company sowed net income of Rs.400,000.

At this date the company decided as under:-

(i) To declare cash dividend of 2.5%. And stock dividend of 0.5

(ii) To appropriate Rs.200,000 for plant expansion.

(iii)To appropriate Rs.30,000 for contingencies.

(iv)To appropriate Rs.40,000 for debenture redemption.

(v) paid cash warrent full settlement  and issued share at rs 8 for stuck dividend 

REQUIRED

 

Muzammil Collegiate 

XII Accounting Test 17 August 2019

Sir Tariq Aziz

01)The data were extracted from the balance sheet of Muzammil Company Limited on December 31, 2018:- 

Authorized Capital:

100,000 ordinary shares of Rs.10 each                  Rs.1000,000

Issued and Paid-up Capital:

550,000 ordinary shares of Rs.10 each                  Rs.5,500,000

Retained earnings                                                    Rs.250,000

On December 31, 2018, the income summary of the company sowed net income of Rs.800,000.

At this date the company decided as under:-

(i) To declare cash dividend of 8.5%. And stock dividend of 5.7

(ii) To appropriate Rs.50,000 for plant expansion.

(iii)To appropriate Rs.60,000 for contingencies.

(iv)To appropriate Rs.70,000 for debenture redemption.

(v) paid cash warrent full settlement  and issued share for stuck dividend 

REQUIRED : Give entries, statement of retained earning & Balance sheet

  

Q2)The data were extracted from the balance sheet of Muzammil Company Limited on December 31, 2019:- 

Authorized Capital:

250,000 ordinary shares of Rs.10 each                  Rs.2,500,000

Issued and Paid-up Capital:

150,000 ordinary shares of Rs.10 each                  Rs.1,500,000

Retained earnings                                                    Rs.550,000

On December 31, 2019, the income summary of the company sowed net income of Rs.900,000.

At this date the company decided as under:-

(i) To declare cash dividend of 2.08%. And stock dividend of 7%

(ii) To appropriate Rs.10,000 for plant expansion.

(iii)To appropriate Rs.20,000 for contingencies.

(iv)To appropriate Rs.30,000 for debenture redemption.

(v) paid cash warrent and issued share for stuck dividend 

REQUIRED : Give entries, statement of retained earning & Balance sheet

Q3)The following balances appeared in the ledger of Aqeel Company Ltd. on December 31st, 2010:

500,000 Ordinary shares of Rs.10/- each               Rs.5,000,000/-

On this date, the company decided as under:

(i) To declare cash dividend at 15% on ordinary shares.

(ii) To declare stock dividend at 10% on ordinary shares.

(iii)To appropriate Rs.70,000/- for contingencies.

(iv)To appropriate Rs.10,000 for plant expansion.

(v)The company was informed by its banker that cash dividend was collected by 400,000

ordinary shareholders on December 31st, 2010.

REQUIRED : net income 200,000 and retained earning 01 jan 80,000 Give entries, statement of retained earning & Balance sheet

Muzammil Collegiate 

XII Accounting Test 24 August 2019

Sir Tariq Aziz

 

Q1)Gul & Company Ltd. decide to appropriate Rs.40,000/- for the replacement of machinery. For

this purpose, the company sets aside Rs.40,000/- cash, and the amount is invested in

government securities. At the end of the year, the interest accrued was Rs.4,000/-.

REQUIRED Prepare General Journal entries to record the above transactions, 

Q2)Rafat Limited had a debit balance of Rs.35,000 in cash account and a credit balance of Rs.50,000

in retained earnings account. It appropriated Rs.20,000 for debenture redemption, and set

aside an equal amount of cash for this purpose.

REQUIRED

Prepare:

(i) General Journal entries for the creation of reserves and fund.

(ii) Partial balance sheet, reporting the relevant data.

 

Q3)Company purchased a machine on 1 January 2011 at a list price of Rs.600,000, subject to a trade

discount of 5% under the credit term 2/10, n/30. The payment was made within discount

period. The company incurred the following expenditures:

  •   Sales tax @ 5% on net cash price.          • Freight – in Rs.10,000.
  •   Import duty Rs.6,000.                  • Custom duty Rs.8,500.
  •   Insurance – in – transit Rs.13,970.         • Installation charges Rs.12,000.
  •   During installation a part of machine was damaged and was repaired at a cost of Rs.4,800.
  •   Test running cost Rs.3,000.              • Foundation charges Rs.10,000.
  •   Three year fire insurance policy Rs.90,000.  •

REQUIRED:a) Compute the cost of machine b).Classify the above payments into capital expenditures and revenue expenditures.

 

04)Asma Industries acquired a machine by making the following payments:

Net cash price Rs.116,000 including 16% sales tax; transportation Rs.5,000; insurance in transit

Rs.6,000; fire insurance for next two years Rs.6,000; installation charges Rs.15,000; charges to

repair the damage caused during installation Rs.3,000.

REQUIRED

  1. i) cost of machine & Classify the above payments into capital expenditures and revenue expenditures.

 

05)Ali Raza and Company purchased a machine at list price of Rs.250,000 with a trade discount of

10% and credit terms 2/10, n/30, sales tax was paid at 5% of net cash price. The company also

paid for the following (i) Freight – in Rs.2,475 (ii) Installation expenditure Rs.3,000 (iii) 2 year

fire insurance Rs.2,000 (iv) During installation machinery was damaged and repair cost paid

Rs.1,500.

REQUIRED

(a) Compute total cost of machine.

Best of luck Group A & B

 

About Tariq Aziz

Tariq Aziz is a Teacher He is from Karachi, Pakistan. He is 30 years old and he has been teaching for 5 years. his nickname is Mr Crazy.

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