Advanced Accounting ADC/B.Com UoK — University of Karachi 2024
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Literary criticism
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this paper consists of 60 marks but now we have 35 marks paper.
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Can you please tell me more past papers please because my exams are starting from next week
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Did you provide the past papers of the science of society uos?
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Paper text
EXAMINATIONS DEPARTMENT
UNIVERSITY OF KARACHI
B. COM. PART - II (REGULAR/EXTERNAL) "ANNUAL EXAMINATIONS - 2024"
A.D.C. PART - II (REGULAR/EXTERNAL) "ANNUAL EXAMINATIONS - 2023-24"
PAPER - : "ADVANCED ACCOUNTING"
Time Allowed: THREE Hours
Max. Marks: 100
Instructions: (1) Attempt any FIVE questions (2) All questions carry equal marks.
(3) Answers Without necessary computations will not be accepted.
Q-1 COMPANY ACCOUNTING -- ABSORPTION:
The balance sheet of ASKAR COMPANY as on December 31, 2024 was as under:
CREDIT BALANCES
Paid up Capital
60,000 shares of Rs.10 each
600,000
General Reserves
60,000
Retained Earnings
60,000
All. For Dep.
20,000
All. For Bad Debt
5,000
Long term Loan
70,000
Accounts Payable
25,000
TOTAL
840,000
DEBIT BALANCES
Preliminary Exp.
45,000
Building
450,000
Merchandise Inventory
150,000
Accounts Receivable
67,000
Cash
128,000
TOTAL
840,000
The ASKARI COMPANY was absorbed by ABIS COMPANY On the following terms:
1) All the assets and liabilities (except cash & long term loan) were taken over by the absorbing company at book values.
2) ASKARI COMPANY received 80,000 shares of Rs.10 each and cash payment of Rs.80,000 from the absorbing company.
3) ASKARI COMPANY Paid the liquidation expenses amounting to Rs.50,000 and long term loan at book values.
REQUIRED:
a) Compute the amount of Purchase Consideration.
b) Pass the necessary journal entries in the books of ASKARI COMPANY And books of ABIS COMPANY.
Q-2 INSTALLMENT SALES:
BADAR LTD. use perpetual inventory system for recording merchandise and uses installment method for recognizing
profit. The summary of transactions for the years ended December 31, 2022 and December 31, 2023 are as follows:
2022
2023
Installment Sales
800,000
600,000
Collection in respect of 2022 installment sales
400,000
150,000
Collection in respect of 2023 installment sales
525,000
Purchase of merchandises on account
600,000
500,000
Operating expenses
75,000
170,000
Payment made against accounts payable
350,000
500,000
Merchandise in hand at the end of years
50,000
38,000
REQUIRED: Record the above transactions in General Journal for the years ended December 31, 2022 and 2023 including
adjusting and closing entries.
Q-3 BRANCH ACCOUNTING:
ALI IMRAN COMPANY establish a branch at Khairpur. The Head Office and Branch transactions are as under
HEAD OFFICE TRANSACTIONS
BRANCH TRANSACTIONS
Purchased merchandise on account
Rs.90,000
Purchased merchandise on credit from local market
Rs.25,000
Remitted cash to Branch
40,000
Merchandise received from Head Office
75,000
Merchandise Shipped to Branch at cost
75,000
Sold merchandise for Cash
60,000
Paid Branch Salaries
15,000
Sold merchandise on credit
15,000
Paid Branch Accounts payable
26,000
Paid Head office account payable
15,000
Collected Branch Accounts Receivable
18,000
Purchased Furniture on cash
14,000
REQUIRED: Give the necessary reciprocal journal entries in the books of Head Office and Branch.
Q-4 AMALGAMATION:
WARIS LTD. And WAQAS LTD. carrying on similar businesses entered into a contract to merge their businesses and
formed a new company called WARIS & WAQAS LTD. Following are the balance sheets of both companies:
WARIS LTD.
EQUITIES
ASSETS
Share Capital:
Land
Rs.500,000
50,000 shares of Rs.10 each
Rs.500,000
Machinery
180,000
Allowance for Depreciation Machine
9,000
Inventory
200,000
Accounts Payable
191,000
Bank
62,000
Retained Earnings
50,000
TOTAL
Rs.10,00,000
TOTAL
Rs.10,00,000
WAQAS LTD.
EQUITIES
ASSETS
Share Capital:
Property
460,000
60,000 shares of Rs.10 each
600,000
Machinery
100,000
Accounts Payable
100,000
Inventory
90,000
Reserves
100,000
Accounts Receivable
100,000
Retained Earnings
20,000
Bank
70,000
TOTAL
820,000
TOTAL
820,000
It is agreed that fully paid shares of Rs.10 will be issued by new company to each amalgamating company, equal to the
value of their net assets.
REQUIRED:
(i) Give necessary Journal Entries in the books of new company.
(ii) Prepare Balance Sheet of WARIS & WAQAS LTD.
Contd.....Pg/2
