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Financial Accounting-1 (Mgt-101) Spring Semester 2008 Student ID: ______________ Total Marks: 10 Quiz-1

Please read the following instructions carefully before attempting the Quiz; • Last date for submission of Quiz is May 06, 2008. • You can consult the concerned chapters of the recommended book accounting by M.Arif and Sohail Afzal for Financial Accounting-1 (Mgt101) for this quiz. • You must go through, thoroughly lecture 11-15 for this quiz. • For each MCQ, read the choices available carefully and “Select” one which you consider is the most suitable answer. • Make sure that you upload the Quiz before due date. No quiz will be accepted through E-mail after the due date. • Plagiarism is strictly prohibited; No credit will be given to copied quiz. • Once you upload the quiz on LMS, it will not be replaced under any condition. • Please submit your solution files (a word document) as illustrated below.

Answer Sheet
• • • Draw this table in a word document and solve your quiz. In the “selected option” column, write the option number (a, b, c, d) which you think is the correct option for MCQs. Upload only the answer sheet on LMS. Don’t upload the whole quiz.

Q. No
1 2 3 4 5 6 7 8 9 10

Selected Option

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Financial Accounting-1 (Mgt-101) Spring Semester 2008 Quiz-1

1) Mr. X, the sole proprietor of Company XY does not list his personal house on the balance sheet of Company XY; Example shows which one of the following concept? a) Business Entity b) Matching Concept c) Going Concern Concept d) Full Disclosure 2) Which one of the following is a current liability? (a) Closing inventory (b) Opening inventory (c) Petty cash (d) Bank overdraft 3) The primary purpose of the balance sheet is to a) Report the financial position of the reporting entity at a particular point of time b) Measure the net income of a business up to a particular point in time c) Determine cash flow for the period d) Report the difference between cash inflows and cash outflows for the period 4) In Accrual Accounting an expense is recorded when it is a) Paid b) Incurred c) 15 days after receipt of invoice d) Earned 5) Which one of the following items will appear on the balance sheet of a company as current asset? a) Prepaid expenses b) Outstanding expenses c) Furniture and equipment d) Building 6) Which of the following is correct about the drawings? a) They reduce the Gross profit b) They reduce the capital & Net Profit c) They increase in liabilities d) They are treated as asset 7) For the purposes of measuring business income, the life of a business is: a) Divided into specific point of time b) Divided into irregular cycles c) Divided into discrete accounting periods d) Considered to be a continuous cycle

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Financial Accounting-1 (Mgt-101) Spring Semester 2008 8) Consider the following totals: Revenues Rs.100,000 Cost and expenses Rs. 45,000 Income taxes Rs. 18,000 Net income Rs. 42,000 What was the total of operating income? a) Rs. 42,000 b) Rs. 55,000 c) Rs. 60,000 d) Rs. 37,000 9) Office salaries, insurance, advertising, sales commissions and rent are the examples of; a) Financial Expenses b) Operating expenses c) Marketing expenses d) All of the given options 10) _______shows how much of a mark-up a company is achieving between the cost of what it sells and the selling price. a) Cost of goods sold b) Gross profit c) Gross margin d) Net profit Quiz-1

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Financial Accounting-1 (Mgt-101) Spring Semester 2008 Quiz-1

Solution of Quiz 1
1) Mr. X, the sole proprietor of Company XY does not list his personal house on the balance sheet of Company XY; Example shows which one of the following concept? a) Business Entity b) Matching Concept c) Going Concern Concept d) Full Disclosure 2) Which one of the following is a current liability? (a) Closing inventory (b) Opening inventory (c) Petty cash (d) Bank overdraft 3) The primary purpose of the balance sheet is to a) Report the financial position of the reporting entity at a particular point of time b) Measure the net income of a business up to a particular point in time c) Determine cash flow for the period d) Report the difference between cash inflows and cash outflows for the period 4) In Accrual Accounting an expense is recorded when it is a) Paid b) Incurred c) 15 days after receipt of invoice d) Earned 5) Which one of the following items will appear on the balance sheet of a company as current assets? a) Prepaid expenses b) Outstanding expenses c) Furniture and equipment d) Building 6) Which of the following is correct about the drawings? They reduce the Gross profit They reduce the capital & Net Profit They increase in liabilities They are treated as asset 7) For purposes of measuring business income, the life of a business is: a) Divided into specific point of time b) Divided into irregular cycles c) Divided into discrete accounting periods d) Considered to be a continuous cycle

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Financial Accounting-1 (Mgt-101) Spring Semester 2008 Quiz-1

8) Consider the following totals: Revenues Rs. 100,000 Cost and expenses Rs. 45,000 Income taxes Rs. 18,000 Net income Rs. 42,000 What was the total of operating income? a. Rs. 42,000 b. Rs. 55,000 c. Rs. 60,000 d. Rs. 37,000 9) Office salaries, insurance, advertising, sales commissions and rent are the examples of: a. Financial Expenses b. Operating expenses c. Marketing expenses d. All of the given options 10) _______shows how much of a mark-up a company is achieving between the cost of what it sells and the selling price a. Cost of goods sold b. Gross profit c. Gross margin d. Net profit

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Financial Accounting-1 (Mgt-101) Spring Semester 2008 Student ID: ______________ Total Marks: 10 Assignment-2

Please read the following instructions carefully before attempting the Assignment: • • Last date for submission of Assignment is July 02, 2008. You can consult the concerned chapters of the recommended book accounting by M.Arif and Sohail Afzal for Financial Accounting-1 (Mgt101) for this assignment. You must go through, thoroughly lecture 23-26 for this Assignment. Read question carefully and answer every point, you are required to explain. Make sure that you upload the Assignment before due date. No assignment will be accepted through E-mail after the due date. Cheating or copying of assignment is strictly prohibited; No credit will be given to copied assignment. Once you upload the assignment on LMS, it will not be replaced under any condition

• • • • •

Question:On 31st March, 2008, the Cash Book of Mr. David showed an Overdraft Balance of Rs. 19,000. This balance did not agree with the balance as per Pass Book. The following discrepancies were noted on comparing Cash Book with Pass Book. 1. Cheque for Rs. 5,000 paid into the bank for collection on 20th March, 2008 has not yet been collected. 2. Cheques for Rs. 15,000 Issued on 24th March, 2008, out of which cheques for Rs. 10,000 presented during March, 2008. 3. An amount of Rs. 1,000 for interest on overdraft was debited in the Pass Book but was intimated to Mr. David on 4th April, 2008. 4. Mr. David paid into his bank account an amount of Rs. 3,000 but it was wrongly credited to Mr. Denial’s Account. 5. On 20th March, 2008 the bank received dividend of Rs. 10,000 from a company where Mr. David's has invested his money, the same had been recorded in Cash Book on 31st March, 2008. 6. Cheque of Rs. 2,500 was shown in Pass Book as dishonoured. Required: You are required to prepare Bank Reconciliation Statement as at 31st March, 2008.

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On 31st March, 2008, the Cash Book of Mr. David showed an Overdraft Balance of Rs. 19,000. This balance did not agree with the balance as per Pass Book. The following discrepancies were noted on comparing Cash Book with Pass Book. 1. Cheque for Rs. 5,000 paid into the bank for collection on 20th March, 2008 has not yet been collected. 2. Cheques for Rs. 15,000 Issued on 24th March, 2008, out of which cheques for Rs. 10,000 presented during March, 2008. 3. An amount of Rs. 1,000 for interest on overdraft was debited in the Pass Book but was intimated to Mr. David on 4th April, 2008. 4. Mr. David paid into his bank account an amount of Rs. 3,000 but it was wrongly credited to Mr. Denial’s Account. 5. On 20th March, 2008 the bank received dividend of Rs. 10,000 from a company where Mr. David's has invested his money, the same had been recorded in Cash Book on 31st March, 2008. 6. Cheque of Rs. 2,500 was shown in Pass Book as dishonoured.

Solution:
You are required to find out the balance as per Pass Book. MR. DAVID Bank Reconciliation Statement As on 31st March, 2008 Details Rs. Bank Balance as per Cash Book overdraft Add Cheques paid into bank but not collected Add Interest on overdraft not recorded in Cash Book Add amount paid to Bank but wrongly credited to another account Add Dishonoured Cheque 5,000 (Cr.) 1,000 (Cr.) 3,000 (Cr.) 2,500 (Cr.) 11,500 (Cr.) 30,500 (Cr.) Less Cheque issued but not presented (15,000 – 10,000) Balance as per Pass Book (Dr.) 5,000 (Dr.) 5,000 (Dr.) 25,500 (Cr.) Amount Rs. 19,000 (Cr.)

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Financial Accounting (mgt101) For Spring 2008 Quiz02

NOTE: READ AND STRICTLY FOLLOW ALL THESE INSTRUCTIONS BEFORE ATTEMPTING THE QUIZ. INSTRUCTIONS
• • • • • • • This quiz covers Lesson # 24-38 Do not use red color in your quiz. It is used only for marking purpose. Last date for submission of quiz is 29-07-2008. It means you can submit your quiz till 30-07-2008, 12’O clock mid night. Upload your quiz with in due date and time. No quiz will be accepted after due date and time via email. Write down only one option in the answer box which you think is correct. More than one answer will be marked zero. Submit your quiz in the word document not as a PDF file. Use Office 2003 version for creating your files, any file created under any other version will not be accepted.

ANSWER SHEET TO SOLVE THE QUIZ
• • • Copy the following table in a word document and solve your quiz by providing answer in the given column. In the “Selected Option” column, write down only the option number (e-g A, B, C and D) against each question number which you consider is the correct one. Upload only the answer sheet on VULMS. Don’t upload the whole quiz.

Question Number
1 2 3 4 5 6 7 8 9 10

Selected Option

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Financial Accounting (mgt101) For Spring 2008
MARKS: 10
1) Percentage of proposed dividend is calculated on ___________. a) b) c) d) Issued capital Authorized capital Reserves Retained earnings

Quiz02

2) Financial year for Mr. Ali Company decided by partnership agreement is 1st July to 30th June. Mr. Ali is partner and having capital amount of Rs. 15, 00,000 on July 1st 2007. He introduced more capital of amount 5, 00,000 on April 01st 2007. Mark up rate is 10%. Calculate mark up on Mr. Ali’s capital. a) b) c) d) Rs.12, 500 Rs.1, 50,000 Rs.1, 62,500 Rs. 1,64,500

3) Remuneration of director includes __________. a) TA/DA b) Car c) House d) All of the given options 4) Balance of statement of changes in Equity must equal to the balance of ___________ in balance sheet. a) Owner’s equity b) Current Asset c) Current liability d) Working capital 5) Consider the following table: Items Accumulated depreciation Depreciating rate Building at cost Rs. Calculate WDV of building a) b) c) d) Rs. 3, 00,000 Rs. 3, 75,000 Rs. 7, 50,000 Rs. 10,50,000 Rs. 3,00,000 10% 7, 50,000 ?

6) Which of the following will appear in debtor’s control account?

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Financial Accounting (mgt101) For Spring 2008
a) b) c) d) Bad debts Reserves Provision for doubtful debts Retained Earnings

Quiz02

7) Consider the following table Accumulated profit b/f (dr.) Profit before tax Tax rate Calculate net profit a) b) c) d) Rs.47,600 Rs.2, 98,400 Rs.4, 47,600 Rs.8, 47,600

Rs.4,00,000 Rs.7,46,000 40% ?

8) One share has a nominal value of Rs. 100. If the company is doing well, it may be able to sell a share for more than Rs.100. it means company issues share at: a) b) c) d) Premium Discount Par Half premium and half at par

9) Partnership comes to an end when a partner: a) Die b) Resign from partnership c) Declared bank corrupt d) All of the given options 10) Goods returned worth Rs. 500 to “B” but the return was entered in the sales book. What would be the correct entry to rectify this error? a) “B” a/c 500 (dr.) Goods return 500 (cr.) b) “B” a/c 500 (dr.) Sales a/c 500 (cr.) c) Sales a/c 500 (dr.) Gods return 500 (cr.) d) Sales a/c 1,000 (dr.) Gods return 1,000 (cr.)

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Financial Accounting (mgt101) Spring 2008 Quiz

NOTE: READ AND STRICTLY FOLLOW ALL THESE INSTRUCTIONS BEFORE ATTEMPTING THE QUIZ. INSTRUCTIONS
• • • • • • • This quiz covers Lesson # 38-44 Do not use red color in your quiz. It is used only for marking purpose. Last date for submission of quiz is 05-08-2008. It means you can submit your quiz till 06-08-2008, 12’O clock mid night. Upload your quiz with in due date and time. No quiz will be accepted after due date and time via email. Write down only one option in the answer box which you think is correct. More than one answer will be marked zero. Submit your quiz in the word document not as a PDF file. Use Office 2003 version for creating your files, any file created under any other version will not be accepted.

ANSWER SHEET TO SOLVE THE QUIZ
• • • Copy the following table in a word document and solve your quiz by providing answer in the given column. In the “Selected Option” column, write down only the option number (e-g A, B, C and D) against each question number which you consider is the correct one. Upload only the answer sheet on VULMS. Don’t upload the whole quiz.

Question Number
1 2 3 4 5 6 7 8 9 10

Selected Option

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Financial Accounting (mgt101) Spring 2008 Quiz

MARKS: 10 (1*10=10)

1. If Accumulated profit brought forward has credit nature, what will be its treatment? a. It will be added in net profit for the year b. It will be subtracted from the net profit for the year c. It will be deducted from current Assets d. It will be added in current assets 2. a. b. c. d. Fixed Assets at WDV + working capital =? Total shareholders equity Net capital employed Long term loan Current liability

3. Keeping in view the following data, what will be Net Cash Flow from Investing Activities? Particulars Purchases from short term borrowing Purchases of marketable securities Proceeds from marketable securities Loans made to borrowers Cash paid acquire plant assets Proceeds from sales of sales of plant Assets Collection on loans a. b. c. d. Rs. (115,000) Rs. 100,000 Rs. 55,000 None of the given options Rs. 45,000 (65,000) 40,000 (17,000) (160,000) 75,000 12,000

4. Keeping in view the following data, what will be Net cash provided by operating activities?

Particulars Net income Depreciation expenses Decrease in accrued interest receivable

Rs. 65,000 40,000 1,000

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Financial Accounting (mgt101) Spring 2008 Increase in accounts payable Increase in accrued liabilities Non operating loss on sales of marketable securities Increase in accounts receivable Increase in inventory Decrease in accrued liabilities Increase in prepayments Non operating gain on sales of plant assets Net cash provided by operating activities Quiz 15,000 7,000 4,000 30,000 10,000 8,000 3,000 31,000 ?

a. b. c. d.

Rs. 115,000 Rs. 100,000 Rs. 50,000 None of the given options

5. Advances from customers are shown in which of the following heads in Balance Sheet? a. Current Assets b. Current liabilities c. Fixed Assets d. Long term liabilities 6. While preparing cash flow statements, the repayments of a loan during the year should be included under the heading of: a. b. c. d. Operating activities Financing activities Investing activities None of the given options

7. Which of the following statement is also known as a source and use statements? a. Income Statements b. Statement of Cash Flows c. Balance Sheet d. Statement of Retained Earnings

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Financial Accounting (mgt101) Spring 2008 8. Calculate depreciation for the year. Building at cost = Rs. 1, 00,000 Depreciation rate = 10% a. b. c. d. Rs. 10,000 Rs. 1,000 Rs. 500 Rs. 0 Quiz

9. Mr. A, Mr. B and Mr. C are three partners of a partnership firm. The profit sharing ratio is 2:3:5. If company has distributable profit of Rs. 4, 90,000, determine the profit of Mr. A. a. Rs. 98,000 b. Rs. 1, 47,000 c. Rs. 2, 45,000 d. Rs. 3, 43,000

10. An example of financing activities in the context of cash flow statement is: a. b. c. d. Fixed capital expenditure Long-term deposit Financial charges paid Dividend paid

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MGT101 SPRING 2008 SOLUTION: QUIZ
Question Number 1 2 3 4 5 6 7 8 9 10 Correct Option A B A D B B B A A D

BEST OF LUCK

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Financial Accounting-1 (Mgt-101) Spring Semester 2008 Student ID: ______________ Total Marks: 10 Assignment-1

Please read the following instructions carefully before attempting the Assignment: • • Last date for submission of Assignment is April 23, 2008. You can consult the concerned chapters of the recommended book accounting by M.Arif and Sohail Afzal for Financial Accounting-1 (Mgt101) for this assignment. You must go through, thoroughly lecture 01-10 for this Assignment. Read question carefully and answer every point, you are required to explain. Make sure that you upload the Assignment before due date. No assignment will be accepted through E-mail after the due date. Cheating or copying of assignment is strictly prohibited; No credit will be given to copied assignment. Once you upload the assignment on LMS, it will not be replaced under any condition

• • • • •

Question:From the following transactions, state the nature of accounts and state which account will be debited and which account will be credited by filling up the appropriate boxes. Accounts involved Mr. A started business with Rs. Cash 100,000 Capital Goods sold to Ali for Cash Rs.5,000 Goods of Rs. 1000 returned by Ali Paid telephone bill Rs.4,000 Receive commission Rs.1,000 Purchase furniture for cash Rs.15,000 ? ? ? ? ? ? ? ? ? ? Transaction Nature of account Asset Owners Equity ? ? ? ? ? ? ? ? ? ? Debit Rs. 100,000 Credit Rs. 100,000 ? ? ? ? ? ? ? ? ? ? Reason Increase in asset Increase in owners equity ? ? ? ? ? ? ? ? ? ?

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Financial Accounting-1 (Mgt-101) Spring Semester 2008 Assignment-1

Helping Material

Rules of Debit and Credit
• • • • Increase in assets / expenses ---------------------------------------------- (Debit) Decrease in assets / expenses--------------------------------------------- (Credit) Increase in income or revenue / liabilities / owners equity-------------- (Credit) Decrease in income or revenue / liabilities /owners equity-------------- (Debit)

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Financial Accounting-1 (Mgt-101) Spring Semester 2008 Student ID: ______________ Total Marks: 10 Assignment-1

Please read the following instructions carefully before attempting the Assignment: • • Last date for submission of Assignment is April 23, 2008. You can consult the concerned chapters of the recommended book accounting by M.Arif and Sohail Afzal for Financial Accounting-1 (Mgt101) for this assignment. You must go through, thoroughly lecture 01-10 for this Assignment. Read question carefully and answer every point, you are required to explain. Make sure that you upload the Assignment before due date. No assignment will be accepted through E-mail after the due date. Cheating or copying of assignment is strictly prohibited; No credit will be given to copied assignment. Once you upload the assignment on LMS, it will not be replaced under any condition

• • • • •

Question:From the following transactions, state the nature of accounts and state which account will be debited and which account will be credited by filling up the appropriate boxes. Accounts involved Mr. A started business with Rs. Cash 100,000 Capital Goods sold to Ali for Cash Rs.5,000 Goods of Rs. 1000 returned by Ali Paid telephone bill Rs.4,000 Cash Sales Sales return Cash Utility Expense Cash Cash Commission income Furniture Cash Transaction Nature of account Asset Owners Equity Asset Income /Revenue Income / Revenue Asset Expense Asset Asset Income Asset Asset Debit Rs. 100,000 Credit Rs. Reason

5,000

Increase in asset 100,000 Increase in owners equity Increase in asset 5,000 Increase in Income Decrease in Income 1,000 Decrease in asset Increase in expense 4,000 Decrease in asset Increase in asset 1,000 Increase in income Increase in asset 15,000 Decrease in asset

1,000 4,000

Receive commission Rs.1,000

1,000

Purchase furniture for cash Rs.15,000

15,000

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Financial Accounting-1 (Mgt-101) Spring Semester 2008 Assignment-1

Helping Material

Rules of Debit and Credit
• • • • Increase in assets / expenses ---------------------------------------------- (Debit) Decrease in assets / expenses--------------------------------------------- (Credit) Increase in income or revenue / liabilities / owners equity-------------- (Credit) Decrease in income or revenue / liabilities /owners equity-------------- (Debit)

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