Department Management Sciences

Program Name BS ACCOUNTING & FINANCE

Examination Mid Term (2021 Spring)

Course Code
Course Title ADVANCE ACCOUNTING
Exam Date 08/APR/2021
Exam Time (2:00 p.m.—7:00 p.m.)
Duration 5 Hours
Maximum Marks 50
Teacher Name SAID WALI

Student Name SAMI ULLAH KHAN

Section Student Id
9494
(if any)
INSTRUCTIONS TO CANDIDATES
 Write your Student ID, Name and Section clearly on any of your answer books.
 Use A4 Size plain or lined sheets.
 Write the same question number on answer book / sheet as mentioned on question paper.
 Solve the paper in your own words because if paper grader reports copying/ cheating, your
paper will be cancelled and UFM case will be initiated against you.
 In case answers of two or more students match, their paper will be cancelled and UFM case
will be initiated against each student.
 You are required to submit solved answer book/sheet on LMS as per prescribed date and time.
 Submission of papers on LMS is compulsory, however e-mail your paper “To:”
answersheets@cusit.edu.pk and “cc:” hod.mgt@cusit.edu.pk
 In case of sending papers to wrong email, no further chances will be given.
 Anyone failing to submit his/ her answer book/ sheet on specified time as per his/ her exam
date sheet will be declared ABSENT and late submissions will not be accepted in any case.
 QUESTION: 1
ANSWER:

TRADING & P&L ACC 1

TRADING & P&L ACC 2
 QUESTION:2
 ANSWER:
 QUESTION:3
Write Short note on the following.
I. TRADING ACCOUNT:
Any investment account that holds shares, cash, or other assets
qualifies as a trading account. The main account of trader is
usually referred to as a trading account. As a result of their
tendency for buying and selling assets regularly, even within the
same trading day, their accounts are subject to special regulation.
Assets held in a trading account are kept separate from those held
in a long-term buy and hold approach.

II. DIRECT AND INDIRECT EXPENSE:

 DIRECT EXPENSE:
Direct expenses are those that are paid specifically for the
use of manufacturing purposes of businesses. For example,
if you just pay for the repairing of manufacturing machines
in the business area, this is a direct expense.
 INDIRECT EXPENSE:
Indirect Expenses are those expenses which are not
involved in manufacturing purposes. The examples are
utility bills, insurance, building maintenance etc.

III. OUTSTANDING EXPENSE:

An outstanding expense is one that is overdue but has yet to be
charged. When an organization receives a benefit but does not pay
for it, the expense is considered outstanding.
 EXAMPLE:
i. Rent that is past due but has not yet been paid
ii. Bills that are past due but have not yet been received
IV. UNEARNED INCOME:
Unearned revenue, also known as deferred revenue, is money
collected by a business from a buyer for goods or services that will
be provided at a later date. The term comes from accrual
accounting, which recognizes income only when a business
receives payment AND the goods or services have not yet been
provided to the consumer.
 EXAMPLE:
i. Advance rent payments
ii. Annual subscriptions for a software license
iii. Prepaid insurance