PRC 4 ITA feedback may 2022

ITA feedback and some questions from paper on 19-05-2022

1. Chapter 2 of book, theory question of shifting returns into which account?
2. Chapter 2 of book, theory question of debit note and credit not shifting to which returns book?
3. Chapter 6 of book, find the depreciation expense of an asset whose cost is 25 m with residual value 2 m with Reducing balance method for first two years. Afterwards company shifted towards SLM method with residual value 3 m and useful life of remaining 6 years. Find depreciation expense.
4. Chapter 7 of book, theory question, Which one gives a greater answer? a: FIFO b: Weighted Average
5. Chapter 5 of book, Find the closing allowance if the opening allowance is given, closing receivables is given and allowance is increased by Rs. ______.
6. Chapter 10 of book, Find the cash book balance after adjustments if Bank charges are not recorded in cash book, cheques remains unpresented, cheque issued to supplier was under casted.

Some Adjustments of MTQ
1. Rent and insurance includes an amount of Rs. 180,000,000 which was paid to buy a photocopier machine as on 1 May 2021 on the rent of Rs. 95,000 paid quarterly and in addition 0.50 per copy and 50,000 copies were done till 31 December 2021.
2. Closing inventory includes a value of another goods purchased.
3. An amount paid for office repair and maintenance was paid by owner’s own pocket.
4. Property, plant, equipment includes a balance amount of additional furniture purchased. Depreciation for balance amount is 15% on reducing balance method.
5. Make an allowance on receivables, where general allowance % is given and specific allowance value and % is also given.

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