ALLAMA IQBAL OPEN UNIVERSITY, ISLAMABAD
(Department of Commerce)
BASICS OF ACCOUNTING (1339)
CHECKLIST
SEMESTER: Spring, 2025
This packet comprises the following material:
1. Textbook (one)
2. Assignment No. 1, 2
3. Assignment Forms (2 sets)
In this packet, if you find anything missing from the above-mentioned material,
please contact us at the address given below:
The Mailing Officer,
Mailing Section, Block No. 28,
Allama Iqbal Open University,
H-8, Islamabad.
Phone: 051-9057611-12
ASIA BATOOL
(Course Coordinator)
ALLAMA IQBAL OPEN UNIVERSITY, ISLAMABAD
(Department of Commerce)
[
WARNING
1. PLAGIARISM OR HIRING OF A GHOSTWRITER (S) FOR SOLVING
THE ASSIGNMENT(S) WILL DEBAR THE STUDENT FROM THE
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 PENALISED AS DEFINED IN
“AIOU PLAGIARISM POLICY”.
ASSIGNMENT SUBMISSION SCHEDULE
6 Credit Hours Due Date 3 Credit Hours Due Date
Assignment 1 12-06-2025 Assignment 1 --
Assignment 2 08-07-2025 08-07-2025
Assignment 3 31-07-2025 Assignment 2 --
Assignment 4 20-08-2025 20-08-2025
Note: Tutorial Schedule and Rehnama-e-Tulba are available on AIOU
website i.e. aiou.edu.pk
Course: Basics of Accounting (1339) Semester: Spring, 2025
Level: FA/I. Com
Please read the following instructions for writing your assignments. (SSC, HSSC
& BA Programmes)
1. All questions are compulsory and carry equal marks but within a question
the marks are distributed according to its requirements.
2. Read the question carefully and then answer it according to the requirements
of the questions.
3. Late submission of assignments will not be accepted.
4. Your own analysis and synthesis will be appreciated.
5. Avoid irrelevant discussion/information and reproducing from books, study
guide of allied material.
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Total Marks: 100 Pass Marks: 40
ASSIGNMENT No. 1
(Units: 1–4)
Note: You are required to solve all questions if you are unable to understand any
question of assignment, do seek help from your concerned tutor. But
remember that tutors are not supposed to solve the assignment questions for
you.
Q. 1 Fill in the Blank. (20)
a. The main objective of any ______________ is to earn profit and expansion.
b. All those economic activities other than business aimed to earn profit are
called. ___________
c. _____________ is the voluntary association of more than one person who
contributes money and talent to carry on a business.
d. ______________ is a business unit that is legally separate from its owners.
e. The investment of cash or other assets in the business by the owner is called
___________.
f. Economic event that can be objectively measured in terms of money is
called ______________.
g. Withdraw of cash or other assets from business by the owner for personal
use is called __________________.
h. Purchase is of two types’ _______________ and ________________.
i. ____________ Discount is not written in the books of accounts.
j. Liabilities are the claims against the ____________ of the business.
k. The written evidence of a transaction is called ____________.
Q. 2 Identify the correct and incorrect statements. (20)
i. In bookkeeping there is no importance of proper records. R/W
ii. There is no relation between transaction and bookkeeping. R/W
iii. Trading institutions can find out their profit or loss by bookkeeping. R/W
iv. Due to complexity manufacturing institutions can work without an
Accountant. R/W
v. Business institutions have no direction from the government to keep proper
books of accounts. R/W
vi. Business does not mean all those activities aim to earn profit. R/W
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vii. Medical practice is an occupation, not a business. R/W
viii. In partnership only a single person is the owner of the business. R/W
ix. A single organization is also called a sole proprietorship. R/W
x. Payment of salaries to employees is also a transaction. R/W
Q. 3 Mr. Hamza started his own business. He executed the following transaction in the
first month of his business. (20)
2024
April 01: Mr. Naeem started business with cash Rs.250, 000, Furniture.
Rs.200, 000 and building Rs.800, 000.
02: Opened a bank account with cash of Rs.80, 000.
03: Paid Rs.1, 000 for office expenses.
05: Purchased stationary for office use Rs.50.
07: Bought goods from Mr Zahid for Rs.15, 000, paying cash
Rs.5, 000 and balance after one month.
10: Withdraw cash from the bank for office use Rs.8000.
13: Sold goods to Tanveer & Co for Rs.15, 000 and paid carriage Rs 200 for
delivery.
21: Cash received from Tanveer & Co Rs.2, 000.
24: Issued a cheque of Rs.1, 000 for advertisement
28: Withdraw from bank Rs.8, 000 for personal use.
31: Goods amounting to Rs.500 were given as charity.
Required: You are required to prepare an Accounting Equation for the month.
Q. 4 Akber Ali informs you that the transactions occurred during May 2024, the first
month of business operations. (20)
May 1. Akber Ali transferred Rs. 15000 cash from a personal bank account and
equipment with a value of Rs. 4000 to his business.
1. A property was acquired for Rs. 39000, alongside land costing Rs. 20000. An
initial payment of Rs. 5000 was made in cash, with a note payable issued for
the balance.
2. Premium for property insurance was paid in the amount of Rs. 1500 for May.
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3. Supplies costing Rs. 500 and equipment costing Rs. 6000 were purchased on
account.
15. Cash received for professional services performed, Rs. 5600; other clients
were billed for services in the amount of Rs. 2430.
16. Paid cash to creditors on account, Rs. 1800.
20. Returned portion of the supplies costing Rs. 240 since they were not of the
proper grade.
22. Received Rs. 1880 cash from clients on account.
31. Paid utility bill, Rs. 500.
31. Paid monthly salaries, Rs. 3000.
31. Recorded additional amount owed by clients for services performed in May,
Rs. 4900; payment is due within 30 days.
You are required to:
a) Prepare the General Journal
b) Ledger Accounts
c) Trial Balance
Q. 5 Define the journal and describe the subsidiary journal with examples of each
journal. (20)
Total Marks: 100 Pass Marks: 40
ASSIGNMENT No. 2
(Units: 5–9)
Q. 1 Enter the following transactions in the Sales Book and post them into the Ledger.
(20)
July 2013
1: Sold goods to Bashir & Sons Rs.5150/-.
10: Goods sold to Zamir & Co. Rs.7125/-.
15: Forwarded goods to Nazir Rs.1850/-.
20: Delivered the Second instalment of goods to Bashir & Sons Rs.2150/-.
25: Sold goods to Nazir Rs.1575/-.
31: Sold goods to Ahmad’s sons Rs.350/-
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Q. 2 From the following particulars, prepare a Bank Reconciliation Statement of Mr.
Khalid as of 30th April 2018 with the help of a revised Cashbook. (20)
a) Balance as per Cashbook Rs.50000/-.
b) Balance as per Bank Statement Rs.60000/-.
c) Cheques amounting to Rs.16000/- were deposited into the bank out of which
only cheques amounting to Rs.10000/- were credited up to 30th April 2018.
d) Out of cheques for Rs.12000/- issued in April, only cheques amounting to
Rs.7000/- were presented for payment.
e) Mr Humza directly deposited an amount of Rs.11200/-.
f) The bank credited Interest Rs.500/- into the account.
g) Bank charges of Rs.700 that appeared in the bank statement were not recorded in
the cashbook.
Q. 3 Define the final accounts and describe their components and elements. (20)
Q. 4 Based on the trial balance of Mubeen & Brothers, please prepare the final
account for the year ending 30th September 2024. (20)
Particulars Debit Credit
Capital Account – 16,500,000
Drawings 1,500,000 –
Plant & Machinery 6,300,000 –
Office Furniture 750,000 –
Sundry Debtors and Creditors 6,375,000 2,220,000
Advances 1,500,000 –
Purchases and Sales 14,250,000 26,700,000
Returns inwards & outwards 270,000 330,000
Rent 577,500 –
Postage & Telegram 97,500 –
Wages 1,800,000 –
Manufacturing Expenses 555,000
Opening Stock 1,800,000 –
Cash in Hand and at Bank 1,852,500 –
Printing & Stationery 126,000 –
Commission 774,000 –
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Carriage Inward 430,500 –
Salary 2,097,000 –
Motor Van 3,195,000 –
Investments 1,500,000 –
TOTAL 45,750,000 45,750,000
th
Stock in hand on 30 September 2024 was Rs. 2,040,000
Q. 5 Fashion Textiles gives the following transactions of their firm during the year
2018, you are required to classify the transactions into capital or revenue. (20)
a) Rs. 2,500 spent on purchasing a tyre for their lorry.
b) They had old machinery of value Rs.10,000 was sold for Rs.9,500.
c) They received Rs.5000 towards dividends from their investments in
shares.
d) They were able to sell cotton ‘T’ shirts (cost Rs. 1,200) for Rs.1,500.
e) Rs.600 was spent on the alteration of machinery to reduce power
consumption.
