ALLAMA IQBAL OPEN UNIVERSITY, ISLAMABAD

(Department of Commerce)

ADVANCED ACCOUNTING (444)

CHECKLIST

SEMESTER: SPRING, 2023

This packet comprises the following material:

1. Course Outlines
2. Assignment No. 1, & 2
3. Assignment Forms (2 sets)

If you find anything missing in this packet. Please contact at the address given below:

The Mailing Officer,

Allama Iqbal Open University,
H-8, Islamabad.
Phone: 051-9057611-12

Muhammad Munir Ahmad

(Course Coordinator)

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 ALLAMA IQBAL OPEN UNIVERSITY, ISLAMABAD
(Department of Commerce)

WARNING
1. PLAGIARISM OR HIRING OF GHOST WRITER(S) FOR SOLVING
THE ASSIGNMENT(S) WILL DEBAR THE STUDENT FROM AWARD
OF DEGREE/CERTIFICATE, IF FOUND AT ANY STAGE.
2. SUBMITTING ASSIGNMENT(S) BORROWED OR STOLEN FROM
OTHER(S) ONE’S WILL BE PENALIZED AS DEFINED IN “AIOU
PLAGIARISM POLICY”.
06 Credit Hours Due Date 03 Credit Hours Due Date
Assignment-1 14-07-2023 09-08-2023
Assignment-1
Assignment-2 09-08-2023
Assignment-3 04-09-2023 29-09-2023
Assignment-2
Assignment-4 29-09-2023
Note: Tutorial Schedule and Rehnama-e-Tulba are available on AIOU website i.e.aiou.edu.pk
Course: Principles of Marketing (444) Semester: Spring, 2023
Level: B. Com/ BA Associate Degree
Please read the following instructions for writing your assignments. (SSC, HSSC &
BA Programme)
1. All questions are compulsory and carry equal marks but within a question, the
marks are distributed according to its requirements.
2. Read the question carefully and then answer it according to the requirements of the question.
3. Late submission of assignments will not be accepted.
4. Your own analysis and synthesis will be appreciated.
5. Avoid irrelevant discussion/information and reproducing from books, study guide
or allied material.
Total Marks: 100 Pass Marks (BA): 40
Pass Marks (AD): 50
ASSIGNMENT No. 1
(Unit 1-4)
Q. 1 Mr. Black of Islamabad sent 2,500 clocks to his agent Mr. White of Gilgit at a cost
price of Rs. 500 per clock on commission basis @ 10% on grass sales proceeds.
Mr. Black incurred expenses towards packing, transportation and insurance
amounted to 5% of the total cost price Mr. White of Gilgit paid an amount of Rs.
5,00,000 as advance to Mr. Black. Mr. White sent account sales containing the
detail that he has draft is also sent by consignee for the due to consignor. (20)
Required: Journalize the above transactions in the books of both parties and prepare the
necessary accounts.
Q. 2 Ali Corporation, having authorized capital of Rs. 2 million divided into 0.5
million shares of Rs. 4 each, took over the business of Zeeshan Ltd for Rs.
1.475 million. The details of assets and liabilities is as under: (20)
Land & Building Rs. 800,000 Plant & Machinery Rs. 400,000
Office Equipment 425,000 Bills Receivables 250,000
Account Payable 185,000 Loans 215,000
Q.3 Soban and Mehran entered into a joint venture to buy and sell laptops. Profits and
losses were to be shared equally. On 7th October 2022 Soban purchased three

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 laptops for Rs. 30,000. Rs 35,000 and Rs. 40,000 respectively. He bought a special
cabinet costing Rs. 7500, which he fixed for one of the laptops. On 31 st October
2022 he sold two of the seats for Rs. 65,000 each paying the proceeds into his
private bank account. (20)
On 15th November 2022, he sold the other set for Rs. 50,000 which amount he paid
over to Mehran who paid into his Bank Account.
On 6ht October 2022, Mehran purchased a laptop set for Rs. 35,000 having incurred
expenditure of Rs. 2000 on repairing, sold it on 14th October, 2022 for 45,000 paying the
proceeds into his own bank account. This set developed mechanical trouble and on 26th
October, 2022, Mehran agreed to take the set back at a price of Rs. 28,000 which he paid
out of his bank account. The set was still unsold at 30 th November 2022and it was agreed
that Mehran should take it over his personal use at av valuation of Rs. 25,000. Soban
incurred Rs. 3000 as showroom charges and Mehran incurred Rs. As travelling and
postage. You are required to prepare (a) the account of joint venture with Soban as it
would appear in the books of Mehran and (b) Memorandum joint venture Account
showing the net profit.
Q.4 A company carries on business through five departments, G, S, W, C, and F
the trail balance as at 31st December, 2022 was as follows: (20)
G S W C F
Opening Stock Rs. 12,500 Rs. 7,500 Rs. 6,250 Rs. 10,000 Rs.
11,250
Purchased (Net) 125,000 75,000 25,000 65,000 85,000
Sales (Net) 120,000 52,500 23,750 57,500 75,000
Closing Stock 15,000 10,000 8,750 12,500 13,750
The opening and closing stocks have been valued at cost. The expenses, which are
to be charged to each department in proportion to the cost of goods sold in the
respective departments, are as follows:
Salaries and Commission Rs 15,000
Rent & rates 4,000
Mucilaginous Expense 3,000
Insurance 1,500
Required: Show the final result and percentage on sales in each department and also the
combined result with percentage to sales.
Q. 5 Describe the inter-branch transection. What is the best method of dealing with
these types of transections? (20)
Total Marks: 100 Pass Marks (BA): 40
Pass Marks (AD): 50
ASSIGNMENT No. 2
(Units: 5–9)
Q. 1 What do you know about Hire purchase system? Explain and differentiate it from
Instalment sale system. (20)
Q.2 Define the term lease and describe the criterion to identify the finance lease. (20)
Q.3 From the following data Of A manat Corporation, you are required to calculate
(i)Current Ratio (ii) Acid Test Ratio (iii) Assets Turnover Ratio (iv) Inventory
turnover Ratio (v) Debater Velocity (vi) Creditor Velocity. (20)

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 Sundry Creditors 100,800 Provision for Taxation 47,250
Loose tools 12,600 Bills Payable 91,350
Net Credit Purchase 567,000 Marketable securities 25,200
Closing stock 166,950 Cash 31,500
Net Credit sales 793,800 Bank 25,200
Provision for bad debts 6,300 Bills Receivable 47,250
Opening Stock 148,050 Account Receivables 132,300
Q.4 Following Balances are extracted from Green Company on 31 st December 2022.
You are required to prepare Trading Profit and loss Account, Profit and
loss Appropriation Account and the Balance Sheet. (20)
Particulars Debit (Rs) Credit (Rs.)
Stock Ist January 500,000 -
Accounts Receivable 500,000 -
Plant & Machinery 250,000 -
Wages 125,000 -
Salaries 50,000 -
Ordinary Share Capital - 1,250,000
Freeholds Premises 750,000 -
Accounts Payables - 250,000
General Reserve - 500,000
Travelling Expenses 312,500 -
Purchases 2,500,000 -
Sales - 3,750,000
Cash 762,500 -
Total (Rs.) 5,750,000 5,750,000
The stock on 31 December was at Rs. 625,000. It was resolved to (a) write 15%
deprecation on plant and Machinery (b) Reserve 20% of Accounts Receivables
(c) place rs. 250,000 t Bonus Fund for Staff (d) place Rs. 312,500 to General
Reserve Fund € provide 5% dividend on ordinary shares and (f) to carry the
balance forward.
Q.5 On Ist January, 2005 a company issued 20,000 10% Debentures of Rs. 100 each
redeemable at par after 15 years. The term of issue, however provided that the
debentures could be redeemed by giving 6 months’ notice at any time after 5 years at a
premium of 4% either by payment in cash or by allotment of preference shares and/or
other debentures according to the option of the debenture-holders. (20)
On Ist April, 2020 the company informed the debenture-holders to redeem the
debentures on Ist October, 2020, either by payment in cash or by allotment of 8%
preference shares of Rs. 100 each at Rs. 130 per shares or 7% 2 nd Debentures of
Rs. 100 each at Rs. 96 per debenture.
Holders of 12,000 debentures accepted the offer of 8% preference shares, holders
of 6,000 debentures accepted the offer of 7% 2 nd Debenture and the rest
demanded cash. Give entries recording the above redemption.