Questions for quizes of managementing accounting and class work and homework

Question: 1.Response the following transactions related to Bluebird Company that closes its        accounts on December 31 every year.

a.    Issued a Rs. 10,000, 90 day, 9% note on December 1, 2003.

b.    Issued a Rs. 10,000, 90 day note payable and received cash of Rs. 9,775 from city bank Lalitpur on December 31, 2003

         Required:  Prepare necessary entries in the books of Bluebird Company in parallel from for comparison purpose       on December 1, 2003, December 31, 2003 and March 1, 2004  

Question:2. Jaya Trading Company estimates its uncollectible accounts expenses to be 1% of     sales, Sales during 2003 were Rs. 125,000.

            Required: Prepare journal entries for the following transactions:

1.        The Company prepared the adjusting entry for uncollectible accounts for 2003

2.            On January 15, 2004, the company decided that the account for Bimal Pandey in the amount of Rs. 750 was uncollectible.

3.            On February 12, 2004, Bimal’s check for Rs. 750 arrived.

Question:3. A Rs.45,000, 90 day, 12% note dated June 15, 2004, was received by Jaya      Trading Company from Bijaya Trading Company in payment of its account.

                  Required: Prepare the journal entries in the record of Jaya Trading Company for each of the following:

1.    Jaya Trading Company received the note on June 15, 2004.

2.    Jaya Trading Company discounted the bill on July 15, 2004, at 10% at Citizen Investment Bank Ltd.

3.    Bijaya Company paid the note at maturity to Citizen Investment Bank Ltd.

4.    Assume that Bijaya Trading Company did not pay the note at maturity; Citizen Investment Bank Ltd. charged the note to Jaya Trading Company and charged a protest fee of Rs. 30. Jaya Company decided that the note was uncollectible.

Question:4. The following information is available for Kamal’s Enterprises on March 31, 2003

a.    The balance on the March 31, 2003, bank statement is Rs. 650,610

b.    Not included on the bank statement is a deposit made by Kamal late on March 31 is the amount of Rs.  42,300.

c.    A comparison between the cancelled checks listed on the bank statement and the company records indicated that the following checks are outstanding at March 31:No. 120 Rs. 4,292,No. 170 Rs. 30,700,No. 200   Rs. 1,058, No. 220 Rs. 7,567

d.    The bank acts as a collection agency for checks returned for insufficient funds. The March bank statement indicates that one such check amount of Rs. 4,500 was collected and deposited and a collection fee of Rs. 450 charged.

e.    Interest earned on the checking account and credited to Kamal’s account during March was Rs. 430. Miscellaneous bank service charges amounted to Rs. 2,200.

f.     A comparision between the deposits listed on the bank statement and the company’s books revealed that a customer’s check in the amount of Rs. 125,000 on the bank statement in March but was never credited to the customer’s account on the company’s account.

g.    The comparison of checks cleared as per the bank statement with those as per the books revealed that the wrong amount was charted to the company’s account for a check. The amount of the check was rs. 90,900. The amount charged against the company’s account.

Required: i.Prepare a bank reconciliation statement

  ii. Prepare the necessary journal entries o the books of Kamal Enterprises.