Q:3:- Cost of Goods Sold Statement

Rs.
Sales
Less: Cost of Goods Sold
Opening raw material
Add: Purchases
Cost of material available for use
Less: Ending raw material
Cost of material used
Add: Direct labor cost
PRIME COST
Add: Factory overhead cost
Total Factory Cost
Add: Opening WIP
Cost of goods to be manufactured
Less: Ending WIP
Cost of goods manufactured
Add: Opening finish goods
Cost of goods available for sale
Less: Ending finish goods
Cost of Goods Sold
GROSS PROFIT
Less: Operative expenses
Selling expenses
General expenses
NET INCOME

Rs.
808600

42000
210850
252850
(43550)
209300
188400
397700
75600
493300
47500
540800
(49250)
491550
71300
562800
(71150)
(491700)
316900
114250
71050

(185300)
131600

Q:4:Store Ledger Card (LIFO)

Date Description
Purchases
Unit @
1
Balance b/f
9
Sales
12
Purchases
50
28
18

Rs

Sales
Purchases

80

26

2080

24

Purchases

90

20

1800

30

Sales

220

Store Ledger Card (Average)

Date Description
Purchases
Unit @
1
Balance b/f
9
Sales
12
Purchases
50
28
18
Sales
23
Purchases
80
26
24
Purchases
90
20
30
Sales
Total
220

Rs

60

30

1800

50
90

28
30

1400
2700

90
80
10
380

20
26
30

1800
2080
300
20
10080 20

1400

23

Total

Sales
Unit @

5280

Rs

Sales
Unit @
60

1400
140
2080
1800
180
5280 380

Balance
Unit @
180 30
120 30
120 30
50
28

Rs
5400
3600
3600
1400

30
30
80
30
80
90

30
30
26
30
26
20

900
900
2080
900
2080
1800

30

600
600

Balance
Rs
Unit @
180 30
30
1800
120 30
170 29.41
29.41 4117.4 30
29.41
110 26.93
200 23.81
23.81 4285.8 20
23.81
10080 20

Rs
5400
3600
5000
882.6
2962.6
4762.6
476.2
476.2
1

Q:5:Income & Expenditure Account

Expenditures
Rs
Salaries
12000
(+) outstanding
500
12500
Laundry charges
500
Drug expenses
19500
Diet expenses
3000
Surgery & dispensary
5000
Rent
6000
(-) prepaid
(200)
5800
Office expenses
1000
Depreciation on Building
1400
Depreciation of Office
1000
TOTAL
130000

Income
Interest
(-) advance
Subscription
(-) advance
Donation
Receipts from patients
Miscellaneous

Rs
2000
(100) 1900
16000
(3500) 12500
12500
4500
1000

Deficit

17300

TOTAL

130000

Q:6:-

General Journal
Date Description

Dr

a)

10000

b)

Salary
Capital _ Saeed
Capital _ Khan
Interest on capital
Capital _ Saeed
Capital _ Khan
Income & Expense account
Interest on capital
Salary
Share of profit
Capital _ Saeed
Capital _ Khan
Income & Expense account
Share of profit

Cr
6000
4000

8000
5000
3000
18000
8000
10000
4500
2250
2250
4500
4500

Statement of Income Distribution

Description
Saeed
Khan

Total

Balance

Net Income
Salary
Interest on capital
Profit
TOTAL

22500
10000
8000
4500
45000

22500
12500
4500
-0-

6000
5000
2250
13250

4000
3000
2250
9250

Q:7:-

General Journal
Date Description

Dr

a)

15000

Cash
Capital _ R

a)

b)

Cash
Goodwill
Goodwill
Capital _ P (2/3)
Capital _ Q (1/3)
Revaluation
Plant & Machinery

Cr
1500

6000
6000
6000
4000
2000
3500
3500
2

b)
c. )
d)
e)

Revaluation
Inventories
Revaluation
Allowance for bad debts
Building
Revaluation
Capital _ P
Capital _ Q
Cash
Revaluation
Capital _ P
Capital _ Q

Revaluation account
Description
Amount
Inventories
Plant & machinery
Allowance for bad debts

2000
3500
485

Balance c/d

4015

TOTAL

10000

2000
2000
485
485
10000
10000
4000
2000
6000
4015
2677
1338

Description

Amount

Building

10000

TOTAL

10000

Balance sheet
ASSETS
Cash at bank (1200 + 21000 6000)
Account receivable (9700 485)

Rs
16200
9215

Merchandise inventory (20000

2000)
Plant & machinery (35000 3500)
Building (50000 + 10000)
TOTAL

18000
31500
60000
134915

EQUITIES
Account payable
Capital P (30000 + 4000 4000
+ 2677)
Capital Q (20000 +2000 2000
+ 1338)
Capital _ R

Rs
65900
32677

TOTAL

134915

21338
15000

Q:8:-

Cost Re sidual.value
years.of .useful .life
42000 2000
= Rs. 8000

Annual _ Depreciati on...

Depreciation Schedule of Plant

Year

Cost of the asset

1996
1997
1998
1999
2000

42000
42000
42000
42000
42000

Annual
depreciation
8000
8000
8000
8000
8000

Accumulated
depreciation
8000
16000
24000
32000
40000

Book value of the

asset
34000
26000
18000
10000
2000

Q:9:1

S n
r 1
C
1

4096 4
= 1

160000
0.25
= 1 0.0256
= 1 0.4
Year
1997
1998
1999
2000

= 0.6 or 60%

Cost of the
Rate of
asset
depreciation
160000
60%
160000
60%
160000
60%
160000
60%

Amount of
depreciation
96000
38400
15360
6144

Accumulated
depreciation
96000
134400
149760
155904

Book value
of the asset
64000
25600
10240
4096

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