AIOU SOLVED ASSIGNMENT CODE 444 ADVANCE ACCOUNTING
SOLVED ASSIGNMENT CODE 444
Q 01: Answer
|Joint Venture A/CTo AliTo WaliInvestment Deposited in Joint Bank A/C||700000||400000300000|
|Construction MaterialSmall ItemsTo Joint Bank A/C(Expenses Paid from Joint Bank A/C)||65000065000||715000|
|Joint Venture A/CTo Ali (Wages Paid)To Wali (Supply of Material)(Wages paid and material supplied.)||170000||15000020000|
|Joint Bank A/CTo Joint Venture A/C(Receipt of Contract price.)||950000||950000|
|Mr. AliTo Joint Venture A/C||36000||36000|
|Joint Venture A/CTo Ali ProfitTo Wali Profit(Distribution of Profit)Ali|
To Joint Bank A/C
(Final Payment from Joint Bank)
JOINT VENTURE ACCOUNT
|Joint Bank A/CAliWaliAli ProfitWali Profit||715000150000200005771443286||Joint Bank A/CAli||95000036000|
|Joint Bank A/CProfit and Loss A/C||36000571714||Joint Bank A/CJoint Venture A/CJoint Venture A/C||40000015000057714|
|Joint Bank A/C||363286||Joint Bank A/CJoint Venture A/CJoint Venture A/C||3000002000043286|
Q 02: Answer
HAMMAD & CO., BOOKS (JOURNAL)
|DATE||DESCRIPTIONS||FLIO||DR. (Rs.)||CR. (Rs.)|
|Consignment A/CTo Goods sent on consignment(Being goods sent on consignment.)||200000||200000|
|Consignment A/CTo Cash A/C(Paid insurance Charges||12000||12000|
|Bill Receivable A/CTo Jawad and Co., A/C(Advance against Consignment)||80000||80000|
|Jawad & Co., A/CTo Consignment A/C(Sales receivable from consignee)||210000||210000|
|Consignment A/CTo Jawad & Co., A/C(Consignee commission and expenses||16800||16800|
|Closing stock A/CTo Consignment A/C(Valuation of closing stock)||48400||48400|
|Goods sent on consignment A/CTo Consignment A/C(Difference of cost price and invoice price)||40000||40000|
|Consignment A/CTo profit and loss A/C\(Profit on Consignment.)||10000||10000|
JAWAD & CO., BOOKS (JOURNAL)
|DATE||DESCRIPTION||FOLIO||DR. (Rs.)||CR. (Rs.)|
|Hammad & co., A/CTo Bill Payable A/C(Advance against the consignment)||80000||80000|
|Bill Payable A/CTo Cash A/C(Acceptance of honoured.)||80000||80000|
|Cash A/CTo Hammad & Co., A/C(Sold 800 cases of milk.)||210000||210000|
|Hammad & Co., A/CTo Cash A/CTo commission A/C(Expense and commission receivable from consignee.)||16812||16812|
|Hammad & Co., A/CTo Bank A/C(Payment made to Hammad & Co.,)||210000||210000|
|Goods sent on Consignment A/cHammad & Co., (exp)Jawad & Co., (Comm)Stock Reservice A/CProfit & Loss A/C||2000001200016800800061600||Jawad & Co., A/C (Sales)Stocn on ConsignmentGoods sent on Consignment A/C (Reserve)||2100004840040000|
CONSIGNEE A/C (In The Books of Hammad & Co., A/C)
|Consignment A/C||210000||Bill Receivable A/CConsignment A/CBank A/C||8000016800113200|
CONSIGNEE A/C (In The Books of Jawad & Co., A/C
|Bill Payable A/CCash A/CCommission A/CBank A/C||800001216800210000||Cash A/CBank A/C||21000096812|
Q 03: Answer
Modern life is very automatic especially in large cities. The people of such cities expect all the goods and services just under a sole roof. Contemplating the need of the consumers, the business men are also given that the expected service to the consumers; the business men are also providing the probable service to the consumer just under a roof by opening large scale departmental stores. The departmental stores are the example of large scale retail selling just under a single roof. Different departments are concerned for different goods to be sold out. To calculate the net result of the whole business, a fully fledged trading and profit and loss account is to be prepared. But to appraise individual department, it will be valued to prepare individual trading and profit and loss account. Such entity accounts will help to evaluate and control the special types of departments.
The main objectives of departmental accounting are following:-
- To set up a system applicable to the company.
- To ensure an accurate and proper documentary cycle.
- To prepare the final and periodic financial reports.
- To manage, coordinate and monitor and implementing of the financial plans.
- To regulate the financial procedures.
ADVANTAGES OF DEPARTMENTAL ACCOUNTS:
- To know profits: By departmental accounts not only the profits of the departments are known but also the profit of the whole concern can be ascertained.
- Help in increasing Efficiency: When a businessman does not keep departmental accounts and does not earn as much profit as he expects from it, then he regards whole business as bad and he starts thinking to do some other business. If the profit of that business is determined by preparing departmental accounts, then it can be found out that whole business is not bad but only some departments are inefficient. Under such circumstances, businessman will pay his maximum attention to increase the efficiency of inferior departments and thus he will be able to increase his profits.
Q 4: Answer
|Branch StockGoods SentSalariesOther Exp.Manager CommissionBranch net Profit||30000090000010000040000300057000||SalesBranch Stock||1200000200000|
Q 5: Answer
|Sr. No||DESCRIPTION||DR. (Rs.)||CR. (Rs.)|
|Bank A/CTo 6% Debenture A/CTo Premium A/C(Being issue of 4000 Debentures of 100 each issue at premium 25 on per debenture.)||420000||400000020000|
|Interest on Debenture A/CTo Outstanding interest on debenture A/C(Interest due on 4000 debentures @ 6%||25200||25200|
|6% Debentures A/CPremium on issue of debentures A/CTo Ordinary Share Capital A/CTo Premium on issue of Share A/C(Conversion of 200 6% Debentures of Rs. 100 each issued at Rs. 105 Each into 168(i.e 21000 + 125) ordinary share of 100 each issued at 125.)||200001000||168004200|