SEMESTER SPRING 2013

ADVANCED FINANCIAL ACCOUNTING(FIN611)

ASSIGNMENT NO. 02
DUE DATE: 26
TH
JUNE, 2013
MARKS: 20
ASSIGNMENT:
Assignment Question:
Saqib and Company has the following trial balance as on 31
st
December,
2012.


Land & Building
(cost Rs.100000)
Plant & Machinery
(cost Rs.112500)
Preliminary Expenses
Stock on 1
st
Jan 2012
Purchases
Salaries
General Expenses
Director Fee
Rs.
77500

85000

3750
16250
82500
12500
3750
750

Share Capital
General Reserve
Share Premium
Accumulated Profit
Bank Loan@6%
1
st
Dec2012
Sundry Creditors
Sales
Rs.
100000
25000
10000
6250

50000
8750
150000
Auditor fee
Wages
Manufacturing Expenses
Advertising
Custom Duty
Assets
Patent
Cash
500
15000
5000
5000
1250
15000
2500
3750
350000 350000
Adjustments:
1. The closing stock on 31
st
Dec3ember 2012 was Rs.13750.
2. The managing Director is entitled to a commission of 5% on net profit
before charging his commission.
3. General expenses include prepaid insurance of Rs.75.
4. A provision for Income tax to the extent of Rs.3750 is required.
5. Directors recommend dividend @5%.
6. Depreciation should be written off
Plant & Machinary10%
Land & Building 2%
7. Company has authorized capital of Rs.400000 of share Rs.10 each.
Requirements:
You are required to prepare Profit and loss account, Statement of Retained
Earnings, and Balance sheet of Saqib and company for the year 2012.

IMPORTANT:
24 hours extra / grace period 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.
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.


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.


Note related to load shedding: Please be proactive
Dear students!
As you know that Pre Mid-Term semester activities have started and load
shedding problem is also prevailing in our country. Keeping in view the fact,
you all are advised to post your activities as early as possible without waiting for
the due date. For your convenience; activity schedule has already been
uploaded on VULMS for the current semester, therefore no excuse will be
entertained after due date of assignments, quizzes or GDBs.