Excel Academy of Commerce

Hassan Jameel

Question # 1
Details Rs. Details Rs.
Share Capital 500,000 Financial charges 10,000
Long term liabilities 250,000 Liquid Assets 300,000
Current liabilities 250,000 Sales 900,000
Fix assets 600,000 Purchases 600,000

1. Debt equity Ratio 3. Proprietary Ratio 5. Liquid Ratio

2. Fix Asset Ratio 4. Current Ratio

Question # 2
Haider & Co. purchase a machine from XYZ
1. Cash price of machine Rs .40,000
2. Rs.16000 to be paid on signing of agreement
3. Balance to be paid three equal install plus interest
4. Interest rate is 12%
5. Deprecation rate is 10%

 Prepare hire vendor Account and machine Account in the books of hire purchaser
 Show Machine A/c at the end of two years in balance sheet
Question # 3
The following are the extracts from draft balance sheet of Hammad & Company
Ltd. As on 30th June 2006.

Authorized Capital Rs.

50,000 Ordinary Shares of Rs.10 each 5, 00,000
Issued & paid up Capital
30,000 Ordinary Shares of Rs.10 each 3, 00,000
Reserve Fund 3, 00,000
Profit & loss A/c 60,000
The board of directors Recommended:
a) To issue bonus shares in the ratio of one bonus share for every four ordinary shares
held. For the purpose of bonus shares utilize profit & loss Account balance from general
reserve.
b) To issue right share a at 50% premium in the ratio of one right share for every four
ordinary shares held. The bonus shares will not be entitled for above right shares.

Question #4
A ltd. Issued 2000 debenture of Rs. 100 each pass the journal entries and balance seet in books if
1. Debenture are issued at par and redeem at par
2. Debenture are issued at discount and redeem at par
3. Debenture are issued at premium and redeem at par
4. Debenture are issued at par and redeem at 10% premium
5. Debenture are issued at discount and redeem at 5% premium
Question #5
K stores of Lahore has a branch at KRK. Goods are invoiced to the branch at selling price, being
20% profit on invoice price.Prepare Branch Account

Particular Rs.
Stock on 1st jan 2002 5000
Stock on 31st Dec 2002 6000
Debtors on 1st jan 2002 2800
Cash Sales 21600
Credit Sales 14000
Cash received on ledger Account 13200
Goods invoiced from head office 36400
Rent, Rates,etc 1600
Wages unpaid 1360
Sundry Expenses 320
Rent Still owing 31st dec 2002 140

Question #6

Following Expenditure is on contract of Rs. 600,000

Details Rs.
Material 120,000
Wages 164,400
Plant 20,000
Business charges 8600

Cash received on December 31st Rs. 240,000 after deduction of 20% retention money.
Material on Hand Rs. 10,000. Deprecation on plant @ 10%

Prepare Contract Account