Financial Accounting Questions

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SEMESTER SPRING 2013 FINANCIAL ACCOUNTING (MGT101) ASSIGNMENT NO. 01 DUE DATE: 2nd May 2013 MARKS: 20
TOPIC TO BE TESTED : • Application of “Rules of debit and credit” LEARNING OBJECTIVES: • To develop an understanding for applying the rules of debit and credit

ASSIGNMENT QUESTION
On 1st March 2013, Mr. Adnan organized a business called A.R Rentals. Mr. Adnan’s new business was able to begin operations immediately by purchasing the assets and taking over the location of Ammar Rentals, an equipment rental business. Below are the transactions for the month of March 2013: Date 2013 March 01 Transactions Mr. Adnan deposited Rs. 900,000 cash in the name of his business - A. R Rentals in the bank.

March 01 Paid Rs. 90,000 to Mr. Irfan as three month’s advance rent for the rental yard and originally recorded this payment as an asset as per policy. March 01 Purchased for Rs. 280,000 all the equipment from Ammar Rentals and paid Rs. 170,000 cash and issued a 3 months note payable for Rs. 110,000. March 04 Purchased office supplies and office furniture from Ashar & Co. amounting to Rs. 5,000 and Rs. 50,000 respectively. March 08 Received Rs. 10,000 cash from Mukhtar Construction Co. as rent of equipment March 10 Sent an invoice for Rs. 5,000 to M/S ABC for rental services provided. March 17 Rs. 3,400 paid for maintenance of equipment to Raza & company

March 27 Bank charges of Rs. 150 deducted by bank from bank account of business March 30 Received a cheque of Rs. 10,000 from M/S ABC against rental services March 31 Paid salaries for the month of March amounting to Rs. 3,600

Required: Fill the appropriate boxes of table given below (1st transaction is given as sample attempt in the table)

Debit Date Accounts involved Rs. 2013

Credit Rs.

Applied Rule of Debit and Credit with respect to the nature of account

March 01

Bank Capital

900,000

Increase in asset a/c 900,000 Increase in Owner’s equity a/c

March 01

? ?

90,000

? 90,000 ?

March 01

? ? ?

280,000

? 170,000 ? 110,00 ?

March 04

? ? ?

5,000 50,000

? ? 55,000 ?

March 08

? ?

10,000

? 10,000 ?

March 10

? ?

5,000

? 5,000 ?

March 17

? ?

3,400

? 3,400 ?

March 27

?

150

?

?

150 ? 10,000 ? 10,000 ?

March 30

? ?

March 31

? ?

3,600

? 3,600 ?

IMPORTANT:
Grace period of extra 24 hours after the due date is usually available to overcome uploading difficulties. This extra time should only be used to meet the emergencies and above mentioned due dates should always be treated as final to avoid any inconvenience.

IMPORTANT INSTRUCTIONS
• Take help from internet for collecting the information. • Carefully watch relevant lectures and consult the relevant material from handouts along with recommended books. • Attempt the assignment by yourself and it will be entertained positively.

OTHER IMPORTANT INSTRUCTIONS: DEADLINE:
• Make sure to upload the solution file before the due date on VULMS. • Any submission made via email after the due date will not be accepted.

FORMATTING GUIDELINES:
• Use the font style “Times New Roman” or “Arial” and font size “12”. • It is advised to compose your document in MS-Word format. • You may also compose your assignment in Open Office format.

• Use black and blue font colors only.

REFERENCING GUIDELINES:
• Use APA style for referencing and citation. For guidance search “APA reference style” in Google and read various website containing information for better understanding or visit

http://linguistics.byu.edu/faculty/henrichsenl/apa/APA01.html

RULES FOR MARKING
Please note that your assignment will not be graded or graded as Zero (0), if: • It is submitted after the due date. • The file you uploaded does not open or is corrupt. • It is in any format other than MS-Word or Open Office; e.g. Excel, PowerPoint, PDF etc. • It is cheated or copied from other students, internet, books, journals etc. • Accounts...
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