Assignment #1

Date: 2 March 2021

\\ Student Name & ID: 16098 Sajjid
Code: ACC- 301 Class: ADP-II
Course: Financial Accounting-I Duration: 2 Weeks
Instructor: Hyder Ali Marks: 10 Marks

 Course Financial Accounting II

 Course Instructor Hyder Ali
 Semester ADP III
 Date of Assignment 2 March 2021
 Date of Submission 16 March 2021

Important instructions:

1. Make title proper page. Must write your name, ID and signature on first page.
2. Hand written assignment on A4/letter sized lined paper sheets with page number.
3. Submit your assignment on KASBIT LMS before. 16 March 2021 till 9:00 am
4. Make one pdf file of your assignment then submit. Assignment will not grade if student submit multiple
pages of assignment.
5. File name must be first student ID then name e.g. 12345_ali
6. Late submission assignment will not be acceptable and will not be graded.

Q1) the following balance sheet

Fahad Raheel
Cash 120,000 180,000
Account receivable 280,000 300,000
Merchandise inventory 90,000 150,000
Office furniture 200,000 220,000
Total assets 690,000 850,000
Account payable 90,000 120,000
Capital 600,000 730,000
Total equities 690,000 850,000

All assets and liabilities were taken over under name of Friend and Co Under the following agreed valued
Fahad
Account receivable be realized Rs 240,000
Merchandise inventory be valued at Rs 90,000
Office furniture valued at Rs. 150,000
Raheel
Account receivable be realized Rs 250,000
Merchandise inventory be valued at Rs 135,000
Office furniture valued at Rs. 200,000
Account payable is to be accepted till Rs. 100,000
They further decided that they make capital of Rs 550,000 and 650,000
Required
General journal and balance sheet

Page 1 of 7
 Assignment #1

Q2 Munir, Nasir and Wazir are partners in the firm “Siddiqui Brothers”. On 1st Jun, 2017 their capital
balances appeared at Rs.250,000; Rs.150,000 and Rs.100,000 respectively. According to partnership
agreement, each partner was entitled to receive interest at 5% per annum at capitals at start and salary of
Rs.7,500 per annum. After allowing interest and salary to the partners, the balance off undistributed profits
was to be distributed equally among the partners. The income statement for the year ended December 31,
2017 shows a net profit of Rs.137,500
REQUIRED
Prepare Income Distribution summary of the firm for the year ended December 31, 2017. Also record the
necessary journal entries for the distribution of profit

Q3.
David Company Ltd. Completed the following transactions
1. The Company issued 70,000 share of Rs. 10 each at Rs. 12 but received applications for 80,000 shares.
The Company finalized the allotment and refunded the excess amount.
2. The Company purchased a running business and acquired the following assets and liabilities.
4. Purchased a machine worth Rs. 2,00,000 and in consideration issued shares of Rs. 10 each. Each share
had a market value of Rs. 12.50.
5. Purchased Office Equipment and in consideration issued 10,000 shares of Rs. 10 each. The market value
of the share was Rs. 13.
6. Issued 2,000 10% debenture of Rs. 100 each at Rs. 95 redeemable after five years at Rs. 105.
Required
Give Journal entries in proper form of the above transactions on the books of David Company Ltd.

Page 2 of 7
Assignment #1

Page 3 of 7
Assignment #1

Page 4 of 7
Assignment #1

Page 5 of 7
Assignment #1

Page 6 of 7
Assignment #1

Page 7 of 7