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Appropriation Accounts Andy

This document provides accounting information and adjustments for five different companies, including trial balances, additional information, and instructions to prepare final accounts (trading and profit & loss accounts and balance sheets) for each. It asks the reader to use the data provided to complete final accounts for Abdul Hanan & Co., Faris Ali Qureshi & Bros., Amna Mushtaq Ahmed & Brothers, Muhammad Zain Ammar Safdar & Co., and Hashim & Ibrahim Enterprises. Adjustments include closing stock values, depreciation, provisions, prepaid/accrued items, and other accounting entries required to fully report on the financial position and performance of each company.

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Andrew Mwinga
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198 views26 pages

Appropriation Accounts Andy

This document provides accounting information and adjustments for five different companies, including trial balances, additional information, and instructions to prepare final accounts (trading and profit & loss accounts and balance sheets) for each. It asks the reader to use the data provided to complete final accounts for Abdul Hanan & Co., Faris Ali Qureshi & Bros., Amna Mushtaq Ahmed & Brothers, Muhammad Zain Ammar Safdar & Co., and Hashim & Ibrahim Enterprises. Adjustments include closing stock values, depreciation, provisions, prepaid/accrued items, and other accounting entries required to fully report on the financial position and performance of each company.

Uploaded by

Andrew Mwinga
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Problems # 1:

From the following particulars taken out from the books of Abdul Hanan & Co. You are required to prepare Trading and Profit & Loss
Account and Balance Sheet as at December 31st, 2019.

Adjustments:
(a) Closing stock Rs, 35,000.
(b) Provision for doubtful debts at 5% of sundry debtors.
(c) Depreciation furniture and machinery by 10%.
(d) Commission of Rs. 3,600 has been earned but not received till the closing of accounts.

Solution:
>>> For more detail see Final Accounts

Problems # 2:
From the following trial balance of Faris Ali Qureshi & Bros. and additional information, prepare Trading and Profit & Loss account and
Balance sheet for the year ended June 30th, 2019.

Additional Information
1. Depreciation furniture by 10% by written down method (WDM).
2. A provision for doubtful debts is to be created to the extent of 5% on sundry debtors.
3. Salaries for the month of June, 2019 amounting to Rs. 3,000 were unpaid which must be provided for. However, salaries included Rs. 2,000
paid in advance. Office expenses outstanding Rs. 8,000.
4. Insurance amounting to Rs. 2,000 is prepaid.
5. Stock use for private purpose Rs. 6,000 and closing stock Rs. 60,000.

Solution:
>>> Practice Final Accounts MCQs

Problems # 3:
The following Trial Balance of Amna Mushtaq Ahmed & Brothers on June 30th, 2020, Prepare Profit and Loss Account and Balance Sheet.

Adjustments:
 Stock at the end of year Rs. 5,200 and Three months Excise duties is due, but not paid Rs. 30.
 5 percent depreciation to be written-off on furniture and write-off further bad debts Rs. 70.
 The provision for bad debts to be Rs. 300 and provision for discount on debtor @ 2 % to be made.
 During the year machinery was purchased for Rs. 2,000, but was debited to Purchase account.

Solution:
>>> Try Final Account Quiz 1

Problems # 4:
The following are the balances taken from the books of Muhammad Zain Ammar Safdar & Co. on May 31st, 2020. You are required to
prepare Trading and Profit and Profit and Loss Account / Income Statement for the year ended May 31st, 2020 and Balance Sheet as on that
date.
Adjustments:
1. Depreciation furniture and machinery at 10% p.a.
2. Insurance is paid in advance to the extent of Rs. 200.
3. Reserve for discount is no longer required and is to be written back.
4. Closing stock is valued at Rs. 100,000.
5. Interest on bank loan is outstanding.

Solution:
>>> Practice for more understanding Final Account Quiz 2

Problems # 5:
The following Trial Balance of Hashim & Ibrahim Enterprises as on December 31st, 2019, Prepare Financial Statement in horizontal style.

Hashim and Ibrahim share profit and loss equally, other information is given below:
 Stock at the December 31st, 2019 was Raw material Rs. 4,000 and Finished goods Rs. 12,000.
 Outstanding expenses: Salaries Rs. 1,500; Carriage Rs. 2,100.
 Insurance paid for 15 months upto March 2020.
 Write-off Bad debts of Rs. 400 and Provision for bad debts @ 5 % of debtors.
 Goods withdrawn by Hashim for personal use Rs. 2,000.

Solution:

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