ASSIGNMENT:

QUESTION 1
From the following particulars prepare a Bank Reconciliation Statement to find out the causes of
difference in two balances as on August 31st, 2016 for Four Star (Pvt.) Ltd.
(i) Bank Overdraft as per Bank Statement ……………………………………….………. 17,000
(ii) Check issued but not uncashed during the August …………………………………... 2,200
(iii)  Dividends on shares collected by banker …………………………….…………….… 2,300
(iv) Interest charged by the bank recorded twice in the Cash Book ……………...…….500
(v) Check deposited as per Bank Statement not entered in Cash Book ……….…..… 3,400
(vi) Credit side of the Bank column in Cash Book cast short ……………….…………… 1,000
(vii) Clubs dues paid by bank as per standing instruction not recorded in Cash Book … 1,200
(viii) Uncredited check due to outstation ………………………………………………….   3,900
QUESTION 2
From the following particulars, you are required to find out the errors in cash book and bank
statement by using missing method and prepare Bank Reconciliation Statement as on 31-12-
2016, for Chand Bibi Ltd:
(i) Bank balance overdraft as per cash book ……………………. 80,000
(ii) Check recorded for collection but not sent to the bank   …… 10,000
(iii)  Credit side of the cash book cast short …………………………1,000
(iv) Premium on proprietor’s Life Insurance Policy (LIP) paid on standing order …5,000
(v) Bank Charges recorded twice in the cash book ………………………………… 100
(vi) Customer’s check returned by the bank as dishonored ………………………. 4,000
(vii)  Bill Receivable collected by the bank directly on the behalf of company …. 20,000
(viii) Check received entered twice in the cash book …………………………….. 6,000
(ix) Check issued but dishonored on technical grounds …………………………. 3,000
(x)  A checks deposited into the bank of worth Rs. 45,000 but Rs. 8,000 check was not collected
by bank
QUESTION 3:
Rectify the following errors which are located in the books of Mr. Ahmed at end March, 2017:
(i) Sale of old furniture for Rs. 2,000 treated as sale of goods.
(ii)  Rs. 12,000 paid of salary to cashier Mr. Naeem, stands debited to his personal
account.
(iii)  An amount of Rs. 5,000 withdrawn by the proprietor for his personal use has been
debited to trade expenses a/c.
(iv) Cash received from Mr. Bilal Rs. 300 was credited to Mr. Baber.
(v) Repairs made were debited to building account Rs. 100.
(vi) Rs. 1,000 received as interest was credited to commission account.
(vii) Rs. 5,200 paid for the purchase of typewriter was charged to office expenses account.
QUESTION 4: An inexperienced book-keeper has drawn up an Incorrect and Unadjusted
Trial Balance, you are required to Correct Trial Balance, Pass Adjusting Entries and then prepare
Adjusted Trial Balance:
Adjustments:
1. Salary Payable on December 31, 2016 is Rs. 1,500
2. Depreciation on Furniture charged to 10% by cost method
3. Inventory on hand on December is Rs. 60,000
4. 30,000 of Sales Account is unearned

QUESTION 5:

Shah Garden Center is retail garden supplier. Record the transactions needed to journalize, post
to respective ledger account and prepare Trial Balance of the following for October, 2011 of the
current year:
Oct. 2     Purchased inventory on credit terms of 1/10 net 30. FOB shipping point, for Rs. 3,000.
Freight charges on the purchase were Rs. 150.
Oct. 9       Sold garden supplies on credit terms 3/20 net 30, FOB shipping point, for Rs. 4,000.
The cost of the supplies sold was Rs. 2,500.
Oct. 10   Paid the amount owed on account for the Oct. 2 inventory purchase.
Oct. 15   Received merchandise that was returned as defective, originally sold for Rs. 500 on
Oct. 9. The original cost of the supplies returned was Rs. 275.
Oct. 25 Received payment on account for the Oct. 9 sale less the appropriate sales discount.
Oct. 28    Inventory lost by fire of cost Rs. 350.