retained earning 2nd year Question
Saturday, March 7, 2015
Shamim collegiate
HOUSE NO LA54 BLOCK 15 GULSHAN E MUSTAFA KARACHI
2nd yeardisposal of net income
Test for 2nd year commerce group
1)Shamim collegiate limited December 31 2015
The retained earning account of shamim collegiate company showed a credit balances of rs 165000 on dec 31 2015 the expense and revenue summary for the year ending on that date a net income of 145000 which is transferred to retained earning account the company decided on 31 as under
- to declare cash dividend of 50,000
- to appropriate rs 20,000 for sinking fund
- to appropriate rs 15000 for contingcies
- to establish reserve for building extension 30,000
required
give general journal entries
2)The retained earning account of Biek company .the expense and revenue summary for the year ending on that date a net income of 500,000
- to declare cash dividend of 100,000 and stock dividend 150,000
- to appropriate rs 25,000 for sinking fund
- to appropriate rs 15000 for contingcies
- to establish reserve for building extension 300,000 and plant extension 100,000
required
give general journal entries
3)the following balances uzma company LTD on dec 31 2015
authorized capital
500,000 ordinary share @10 each 50,00,000
Issued and paidup capital
450,000 ordinary share @10 each 4500,000
Retaining earning 255,000
On December 2015 the income summaryt showed credit balance of rs 650,000 at this date
to declare cash dividend 0.50 per ordinary share and stock dividend 10%
to appropriate rs 40,000 for contingcies
required
give general journal entries and net income of retaining earning
balance sheet