Question No.1, Abdullah Bill of Exchange
Omer account is debited while crediting sales account for the goods sold to omer.
Cash received from omer, debit cash account while credit to omer a/c
Biils Receivable account is debited by Rs. 14,000
Question No.2 Hamza Bank Reconciliation Statement
Items to be added in passbook
- Unrepresented cheques
- Interest and dividend received by the bank
Items to be deducted from pass book
- Interest on overdraft paid by bank
- Uncredited cheques
- Bank charges charged by the bank
- Cheque omitted to bank
Question No.3 Sania Trading and Profit and Loss Account
Incorporate adjustments for Out standing salary and taxes, Prepaid insurance, Accrued interest, Depreciation on Motor car, Furniture and provision for bad debts.
Question No.4 Rectification of Errors
- Provide Rectification General Entries,
- Make suspense account
- Demonstrate effects on profits
Question No.5 Suleman Statement of Affairs
Find Net profit during the year after making the adjustments in capital balances.
Prepare Realization Account, calculate the profit or loss after closing all the assets and liabilities accounts except cash. Transfer any balance amount to the capital.
Where Partners' Capital Accounts are Fixed
Where Partners' Capital Accounts are Fluctuating