vu mgt611 Mid Term Subjective Solved Past Paper No.2

vu mgt611 Business & Labor Law Solved Past Papers

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Question 1: A house journal is a publication produced by an organization in order to inform and entertain its _____ publics.

Answer:

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Question 2: What do you understand by Press Relations in PR?

Answer:

Press Relations is part of PR
Press Relations and PR are polar opposites.
PR is a part of Press Relations.
Press Relations and PR are synonymous.

Question 3: If

Original cost of fixed asset Rs. 500,000
Accumulated Depreciation Rs. 166,667
Revalued amount of fixed asset Rs. 600,000

Required:

asset
Calculate the Written down value and Surplus on revaluation of fixed

Answer:

Revalued amount 600,000-(500000-166667)=266667
WDV= 500,000-166667=333333

Question 4: If the capitals of the partners are fixed, Pass Journal Entries for the following:

. Drawings made by partner
. Excess drawn amount is returned by partner
. Profit distribution among partner

Answer:

1)	Partner's Current A/c	DEBIT	Cash/Bank A/c	CREDIT
2)	Cash/Bank	DEBIT	Partner's Current A/c	CREDIT
3)	Profit & Loss A/c	DEBIT	Partner's Current A/c	CREDIT

Question 5:

Mr. Hassan is a partner in a partnership firm. His capital on July 1, 2001 was Rs. 400,000. He invested further capital of Rs. 150,000 on March 01, 2002. Markup rate is @6% p.a. The financial year of such a business is from 1st July to 30th June.

Required: You are required to calculate his markup on Capital at the end of 30th June 2002.
a) Capital invested on july 1 2001 = 400,000
Markup rate on 400,000 = 6% of 40,000 = 24,000
b) Further capital introduced / invested = 150000 on March 1, 2002
Markup rate = 6% of 150000 = 9000 x 4/12 = 3000
Total mark up rate = a + b = 24000 + 3000 = 27000

Answer:

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Question 6: On 01-01-2007, the provision for doubtful debts a/c stood at Rs. 12,000 (credit balance). In 2007, the bad debts are amounted to Rs. 10,000. The debtors on 31-12-2007 are amounted to Rs. 3, 20,000 and a provision for doubtful debt to be maintained @ 5%.
Required:
Show Journal entries and also show how the items will appear in Profit and Loss account and Balance sheet. (Show complete working where it is necessary)

Answer:

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Question 7: Pass the rectifying entries to correct the following errors:
Mr. "Ali" purchased goods of Rs. 1,500 on cash, but omitted to enter in the books of accounts.
An amount of Rs. 5,000 received from Mr. Amir, was credited to the account of Mr. Ameer.
Goods returned worth Rs. 500 to Mr. "B" wrongly debited to sales Account.
A purchase of goods from Mr. "B" of Rs. 400 has been wrongly debited to Furniture Account.
Furniture purchased on cash Rs. 8,000 posted as purchases.

Answer:

Rectification of Errors

Error 1.

A purchase of goods of Rs. 1,500 on cash was omitted by mistake
Rectification Entry on the date of discovery:
Debit: Purchase Account 1,500
Credit: Cash Account 1,500

Error 2

Debit: Mr. Amir 5,000
Credit: Mr. Ameer 5,000
Debit: Mr. Amir 5,000
Credit: Mr. Ameer 5,000

Error 3

Goods returned worth Rs. 500 to Mr. "B" wrongly debited to sales Account.
Debit: Mr. B Account Rs. 500
Credit: Sales Account Rs. 500

Question 8: Prepare Cash and Capital Accounts with the help of given Journal entries.
CASH A/C (IN STATEMENT FORM)

Date	Detail	Debit	Credit	Balance
01/01/08	CAPITAL A/C	50000	0	50000 DR
02/01/08	FURNITURE A/C	0	10000	40000 DR
03/01/08	PURCHASES A/C	0	30000	10000 DR
05/01/08	SALES A/C	40000	0	50000 DR
06/01/08	SALARIES A/C	0	5000	45000 DR
	TOTAL	90000	45000	45000 DR

If Accumulated profit brought forward has credit nature, what will be its treatment?
Fixed Assets at WDV + working capital = ?

Answer:

1. If Accumulated profit brought forward has credit nature, what will be its treatment?

It will be added in net profit for the year
It will be subtracted from the net profit for the year
It will be deducted from current Assets
It will be added in current assets

2. Fixed Assets at WDV + working capital = ?

Total shareholders equity
Net capital employed
Long term loan

Question 9: Prepare Profit and Loss Account for the year ending 31st December 2007 from the Trial Balance and adjustments of MS Company given below:
Adjustments:
Depreciate machinery and furniture @20%p.a.
Outstanding Salaries Rs. 2,000
Insurance paid in advance Rs. 500
Maintain @5% reserve for doubtful debts on debtors.
Closing Stock was valued at Rs. 60,000

Answer:

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Question 10: Record the following transactions in the General Journal.

Date	Transactions
Jan 1, 2007	Mr. Asghar started business with cash Rs. 1, 00,000.
Jan 2, 2007	Opened bank account with amount Rs. 50,000.
Jan 4, 2007	Purchased goods for cash Rs. 15,000.
Jan 9, 2007	Payment made to Karachi store (Creditor) Rs. 15,000 by cheque.
Jan14, 2007	Goods returned to Karachi store worth Rs. 1,500.
Jan22, 2007	Goods sold for cash Rs. 2,000.

Answer:

DEBIT ENTRIES

Bank account	Rs.50,000
Purchased goods for cash	Rs.15,000
Payment made to Karachi store (Creditor)	Rs. 15,000 by cheque
Goods returned to Karachi store worth	Rs. 1,500
Credit balance	20500