ALLAM IQBAL OPEN UNIVERSITY, ISLAMABAD
(Department of Business Administration)
***
WARNING
1. PLAGIARISM OR HIRING OF GHOST WRITER(S) FOR SOLVING
THE ASSIGNMENT(S) WILL DEBAR THE STUDENT FROM AWARD
OF DEGREE/CERTIFICATE, IF FOUND AT ANY STAGE.
2. SUBMITTING ASSIGNMENT(S) BORROWED OR STOLEN FROM
OTHER(S) AS ONE’S OWN WILL BE PENALIZED AS DEFINED IN
“AIOU PLAGIARISM POLICY”.
Course: Principles of Accounting (8401) Semester: Spring, 2023
Level: BBA (4 Years)
ASSIGNMENT No. 1
Total Marks: 100 Pass Marks: 50
Instructions: You must answer the questions in your own words. Copying from books
is not permissible. Give supporting calculations where necessary.
Q. 1 (a) What is the importance of study of accounting? (20)
(b) Discuss the main features of any two of the financial statements?
Q. 2 Write short notes on the following: (20)
Accounting Equation Realization Concept
Cost Concept Petty Cash
Q. 3 From the following trial balance, prepare income statement and Balance Sheet for
the year ended on 31st Dec 1989 and balance sheet as on that date. (20)
1
Debit Rs. Credit Rs.
Wages 2,000
Cash 6,650
Bank 1,500
Inventory 850
Sundry Debtors 2,700
Insurance 1,800
Patent rights (4 years unexpired) 2,000
Advertisement 1,200
Machinery 7,500
Sundry Creditors 2,500
Commission 2,200
Bad Debts 1,500
Loan 6,500
Common stock 10,000
Sales 15,000
Discount 1,200
Purchases 8,000
Salaries 1,000
Electric charges 500
Telephone charges 700
Rent 1,000
Return outward 1,500
38,900 38,900
Adjustments:
i. Prepaid insurance amounts to Rs.200
ii. Unpaid advertisement expenses Rs.400
iii. Machinery is to be depreciated @ 10%
iv. Unearned commission Rs.200
v. Accrued salaries Rs.200
vi. Closing inventory is Rs.7,500
Q. 4 Concord Products uses a perpetual inventory system. On January 1 the Inventory
account had a balance of Rs.84,500. During the first few days of January the
following transactions occurred: (20)
Jan. 2 Purchased merchandise on credit from Smith Company for Rs.9,200.
Jan. 3 Sold merchandise for cash, Rs.22,000 The cost of this merchandise was
Rs.14,300.
(a) Prepare entries in general journal form to record the above transactions.
(b) What was the balance of the inventory account at the close of business
January 3?
Q. 5 Far Corners Imports sells a variety of merchandise to retail stores on open account,
but it insists that any customer who fails to pay an invoice when due must replace it
with an interest-bearing note. The company adjusts and closes its accounts at
2
December 31. Among the transactions relating to notes receivable were the
following: (20)
Sept. 1 Received from a customer (Party Plus) a nine-month, 9% note for
Rs.42,000 in settlement of an account receivable due today.
June 1 Collected in full the nine-month, 9% note receivable from party Plus,
including interest.
Pass journal entries
ASSIGNMENT No. 2
Total Marks: 100 Pass Marks: 50
This assignment is a research-oriented activity. You are required to obtain information
from a business/commercial organization and prepare a report of about 1000 words on
the issue allotted to you to be submitted to your teacher for evaluation.
You are required to select one of the following issues according to the last digit of your
roll number. For example, if your roll number is P-3427180 then you will select issue # 0
(the last digit): -
ISSUES:
0- Inventory Management
1- Accounting Receivable
2- Accounting Information System
3- Accounting for Plant Assets (Acquisition & Disposal)
4- Accounting for Merchandizing Business
5- Partnership Accounting
6- Accounting for Non-profit Organization
7- Accounting for Bank Reconciliation
8- Accounting for Cash & Short-term Investment
9- Application of International Accounting Standard
The report should follow the following format:
1. Title page
2. Acknowledgements
3. An abstract (one-page summary of the paper)
4. Table of contents
5. Introduction to the issue (brief history & significance of issue assigned)
6. Practical study of the organization (with respect to the issue)
7. Data collection methods
8. SWOT analysis (strengths, weaknesses, opportunities & threats) relevant to the
issue assigned
9. Conclusion (one-page brief covering important aspects of your report)
10. Recommendations (specific recommendations relevant to issue assigned)
11. References (as per APA format)
12. Annexes (if any)
GUIDELINES FOR ASSIGNMENT # 2:
1.5 line spacing
Use headers and subheads throughout all sections
3
Organization of ideas
Writing skills (spelling, grammar, punctuation)
Professionalism (readability and general appearance)
Do more than repeat the text
Express a point of view and defend it.
WORKSHOPS
The workshop presentations provide students opportunity to express their communication
skills, knowledge & understanding of concepts learned during practical study assigned in
assignment # 2.
You should use transparencies and any other material for effective presentation. The
transparencies are not the presentation, but only a tool; the presentation is the
combination of the transparencies and your speech. Workshop presentation
transparencies should only be in typed format.
The transparencies should follow the following format:
1) Title page
2) An abstract (one-page summary of the paper)
3) Introduction to the issue (brief history & significance of issue assigned)
4) Practical study of the organization (with respect to the issue)
5) Data collection methods
6) SWOT analysis (strengths, weaknesses, opportunities & threats) relevant to the
issue assigned
7) Conclusion (one-page brief covering important aspects of your report)
8) Recommendations (specific recommendations relevant to issue assigned)
GUIDELINES FOR WORKSHOP PRESENTATION:
Make eye contact and react to the audience. Don't read from the transparencies or
from report, and don't look too much at the transparencies (occasional glances are
acceptable to help in recalling the topic to cover).
A 15-minute presentation can be practiced several times in advance, so do that until
you are confident enough. Some people also use a mirror when rehearsing as a
substitute for an audience.
WEIGHTAGE OF THEORY & PRACTICAL ASPECTS IN ASSIGNMENT # 2 &
WORKSHOP PRESENTATIONS
Assignment # 2 & workshop presentations are evaluated on the basis of theory & its
applicability. The weightage of each aspect would be:
Theory: 60%
Applicability (practical study of the organization): 40%
