EASY Stores’ balance sheet on 30 November 2001:

Assets Equities
Cash Rs.60,000 Accounts payable Rs.120,000
Other assets Rs.300,000 Afzal – Capital Rs.100,000
Saeed – Capital Rs.60,000
Yousuf – Capital Rs.80,000
Total assets Rs.360,000 Total equities Rs.360,000
Afzal, Saeed and Yousuf share profit and loss in the ratio 3:2:1 respectively. At 30
November 2001, they liquidate their partnership business. Other assets are sold for
Rs.60,000. Liabilities are paid in full. Yousuf is personally solvent, Afzal and Saeed both
personally insolvent.
REQUIRED
a) Prepare a Liquidation Summary.
b) Give all necessary entries in General Journal to record the liquidation process.

Aslam and Akmal sole traders are doing business separately. On 1 January 2003, their
balance sheet shows the following balances:
Aslam Akmal
Cash -----------------------------------------------------Rs.38,000 ----------------Rs.1,000
Accounts receivable ---------------------------------Rs.16,000 -------------- Rs.10,000
Office supplies ----------------------------------------Rs.20,000 ----------------Rs.8,000
Office furniture ---------------------------------------Rs.40,000 -------------- Rs.30,000
Allowance for depreciation – Furniture ---------Rs.22,000 ----------------Rs.8,000
Allowance for bad debts ----------------------------- Rs.1,000 ----------------Rs.2,000
Accounts payable -------------------------------------Rs.16,000 -------------- Rs.19,000
On 1 January 2003, they decided to form a partnership by merging their business as
“A.A. Traders”. The assets and liabilities were taken at the above book values in the
new partnership. The profit sharing ratio of Aslam and Akmal in the new partnership is
3:2 which is based on their capital balances. Akmal contribute the deficiency, if any from
his private funds. Total capital of partnership firm will be Rs.150,000.
Required:
a) Give necessary entries in the General Journal of the newly formed partnership.
b) Prepare a Balance Sheet of “A.A. Traders” as on 1 January, 2003.

Royal Traders established a Petty Cash Fund on Imprest System by issuing cheque for
Rs.4,000 on 1 September 2009. The following payments were made from the fund
during September 2009:
2 Sep: Paid for printing paper Rs.105.
4 Sep: Paid for entertainment Rs.40.
5 Sep: Paid for telegram Rs.20.
6 Sep: Paid for rickshaw fare, Rs.54.
7 Sep: Paid for tea and cigarettes, Rs.265.
9 Sep: Paid for postage, Rs.73.
10 Sep: Paid for carriage, Rs.100.
13 Sep: Paid for rubber stamps, Rs.150.
15 Sep: Paid for carriage, Rs.200.
17 Sep: Paid for postage, Rs.89.
1 Prepared by: Sameer Hussain
+92–333–207–4763 | www.a4accounting.net | a4accounting@hotmail.com |
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18 Sep: Paid for pencil, pen, rubber, etc. Rs.200.
20 Sep: Paid for parcel Rs.72.
21 Sep: Paid for printing paper, Rs.106.
23 Sep: Paid to watchman, Rs.127.
27 Sep: Paid for electricity bill Rs.300.
28 Sep: Paid for taxi fare Rs.205.
29 Sep: Paid for cold drinks Rs.15.
Required:
i. Record the above transactions in the Petty Cash Book.
ii. Balance the Petty Cash Book on 30 September 2009.
iii. Entry to record the establishment of petty cash funds.
iv. Entry to record the payments made out of the petty cash.
v. Entry to record the reimbursement of petty cash fund on 1 October 2009.

2 Prepared by: Sameer Hussain

+92–333–207–4763 | www.a4accounting.net | a4accounting@hotmail.com |
www.facebook.com/a4accounting.net