CAF-01 (FAR-1)
Correction of errors
Lecture # 6 (Rectification)
Lecture # 50 (Over All)
Class work:
1. Revision of BRS by following example:
Bank a/c
Bank statement
Date
Description
Dr. Cr. Bal.
1.1.12
Opening Balance
200 Cr.
29.1.12 Creditor M
60
140 Cr.
31.1.12 Closing Balance
140 Cr.
Required: Discuss un-presented cheques and also prepare BRS for the month of January 2012.
1.1.12
b/d
200
27.1.12
30.1.12
31.1.12
Creditor M
Creditor X
c/d
60
90
50
2. Revision of accruals and prepayments by following examples:
(i)
Mr. Qasim acquired a shop rent on 1 February 2011. Quarterly rent is Rs.9,000 and
rent for each quarter is paid in advance (i.e. on the 1st day of each quarter).
Required: Prepare rent a/c for the year ended 31 December 2011.
(ii)
Mr. Tayyab took a building on rent on 1 March 2012. Rent for the 12 months ending
28 February 2013 is paid on 1 March 2012. Annual rent is Rs.600,000 and year end is
31 December.
Required: Prepare rent a/c for the year ended 31 December 2012.
(iii) Abubakar acquired a house on rent on 1 June 2016 at an annual rental of 2,000,000
payable in arrears.
Required: Prepare rent a/c for the year ended 31 December 2016.
(iv) Abdul Basit acquired a property on rent in 2017. Rent for the 1st quarter is paid on 1
January 2017 and rent for the 2nd quarter is paid on 1 April 2017. Then rent for 10
months ending 30 April 2018 is paid on 2 July 2017. Rent per month is Rs.6,000.
Required: Prepare rent a/c for the year ended 31 December 2017.
3. Solved test 5 question 2 (Mint Mart);
Home work
1 Past paper 16 (Zeta Traders);
2 Solved past paper 15 (Sibi Brothers).
Umair Sheraz Utra, ACA
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