Aiou Solved Assignments Code 444

AIOU Solved Assignment 1 Code 444 Spring 2017 for is totally ready and uploaded. The level students who are in third semester and need the aiou solved assignment 1 code 444 spring 2017. For all these students we have upload this assignment. In the  previous semesters we have also uploaded the solved assignment for the code 444. So to maintain this routine we have upload the aiou solved assignment 1 code 444 spring 2017.

AIOU Solved Assignment 1 Code 444 Spring 2017 B.COM

Q 1:  What is the difference between shares and debentures? Also, explain in detail the various types of shares and debentures, which may be issued by a Joint Stock Company.

Answer.    Definition:Justice Farewellas defined share in the following word,

“A share is the interest of the shareholder in the company; it is measured by the sum of money for the purpose of liability in the first place and of interest (dividend) in this condolencea company’s capital is divided into a number of equal parts called as a share”.

Nature of Share:

  1. The share of a company shall be movable property. It is transferable in the manner provided by the article of the company.
  2. The share capital no n refund able except in the case of winding up and reduction of capital.
  3. c. Each share in a company shall have distinctive numb

Class of Share:

Beforepassingofthecompanyordinance1948, accompany use to issue three types of shares.

  1. Ordinary Share.
  2. Preference Share.
  3. Deferred Share.

AIOU Solved Assignment 1 Code 444 Spring 2017 B A

The company’s ordinance no wallows the company to issue only one type of shares normally ordinary shares.

  • Ordinary Share: Are also called Equity Sh The holders of ordinary or Equity Shares are the real owners of the company .The ordinary shareholders have voting rights in the meetings of the company, they are entitled and receive dividend and are declared by the board of directors.The Equity Share capital cannot be redeemed during the life of the company.
  1. Preference Share: As the name suggest have certain preference on other types of shares. The preferences are as under.
  2. The first preference is for payment of dividend first paid to preference shareholder.
  3. In case of winding up the company, the preference shareholders have prior right in regard to repayment of capital.
  4. c. A fix rate of dividend is paid on preference share capital.
  5. Deferred Share: Is also called Founder’s Share we refuse to be issued to the promoters of the claims of all other shareholders had been not the deferred shareholders.

Definition:The Company’s Ordinance explains debentures in the following words; “Debentures includes Debenture Stock, bonds, terms, Finance Certificate(T.F.C)and any other security other then the share of a company with constituting a charge on the assets on the company or not.

A company may raise part of its capital by obtaining loans in the form of debentures. Debenture means too we a debt, “debenture is a security issues or allotted to the interest under the seal of the company who become creditors of the company”. A debenture may therefore be defined as a document issued by the company as an evidence of its debts .It contains a contract of the repayment of the principle sum of the interest at a specified date to the debenture holder.

Kinds of Debentures:

The debentures can be classified   of their issue by the company.

  1. Ordinary or Naked Debentures: The debentures, which are issued without any security for re payment, are known as Ordinary or Naked Debentures.
  2. Mortgage Debentures: Mortgage Debenture is one, which is secured by a mortgage

On the real property of thecompany.

  1. Redeemable Debentures: The debentures, which are re payable at the state time ,arecalled Redeemable Debentures.
  2. Irredeemable Debenture: A debenture, which is not payable during the life time of the issuing company, is called Irredeemable Debenture.
  3. Registered Debentures: A Registered Debenture id issued in the name of owner of

The debenture.

  1. Bearer Debentures: The Bearer Debentures, which does not show the name of owner the Bond.
  2. Equipment Trust Debenture: The debentures, which are issued of raise funds for

The purchase of new equipment of a business is called Equipment trust Debenture.

  1. Convertible Debentures: In certain cases, the company allows the debentures holders to count their debentures for the share of the company.


1.  Share Capital:     The company’s ordinance defines shares as   a share incapital of the company.A debenture is a certificate in datedness

Issued under the scale of the company.

2. Rights: The shareholder receives dividends when the   company earns theprofit.  They   suffer   financially when itsuffers losses.The right of debenture is to receive money at a fixed rate of interest. They can earn whit the profit or loss of company.
3. Voting: A shareholder is entitled to vote at the company’s general meeting.The debenture holder has no rights of voting at any meeting of the company.
4. Owner of the Company: The share holders except the Preference Shareholders are the owner of the company.The debentures are the creditors of the company and as   such they have no   claim on   the ownership of the company.
5. Return of the Capital: The shareholders are allowed to sale the share a will to other person but they are not paid back capital.The company gives an undertaking to pay back the capital along with the interest a stated time to the debenture.
6.  Management:     The shareholder manages the offers of the company through the created representatives called Board of Directors.The   debenture holders are   not entitled tointerfere in the management and the administration of the company as they are not the owner of the company.
7. Payment at the Winding up: In case the company is wind up the shareholder has a secondary claim of the return of money on the purchased shares.On winding up   of   the company, the   first propriety is to pay back the money to the debentureholder.
8. Islamic Sprits: The dividend paid to the shareholders depends upon the profit of the company. There are no fix errata of return on the shares of the company. Asmuch theyare Islamic in character.The company has to pay fix errata of interest to the bondholders whether the company makesany, which is basically against the Islam.

Redemption of Debentures means to discharge the liability on account of debenture. Debentures may be redeemed out of profit, out of capital or out of provision made for redemption. A company can redeemed its debenture by any of the following method.


Answer (a): Debenture-Definition:

Debenture is a type of debt instrument that is not secured by physical assets or collateral. Debentures are backed only by the general creditworthiness and reputation of the issuer. Both corporations and governments frequently issue this type of bond in order to secure capital. Like other types of bonds, debentures are documented in an indenture.

ABOUT AIOU Solved Assignment 1 Code 444 Spring 2017 FINE MORE


The holder of shares is known as shareholderthe holder of debentures is known as debenture holder
Debenture is the debt of the companyShare is the capital of the company
, debentures represent indebtedness of the companyThe shares represent ownership of the shareholders in the company
the income earned on debentures is interest.The income earned on shares is dividend
debentures are convertibleShares cannot be converted
Conversely, security charge is created for the payment of debentures.There is no security charge created for payment of shares
security charge is created for the payment of debenturesTrust deed is not executed in case of shares
Debentures can be issued at discount without any legal compliance.Shares are issued at discount subject to some legal compliance


Types of shares

A company may have many different of shares that come with different conditions and rights.

AIOU Solved Assignment 1 Code 444 Spring 2017 Types of Shares

There are four main types of shares

  • Ordinary shares are standard shares with no special rights or restrictions. They have the potential to give the highest financial gains, but also have the highest risk. Ordinary shareholders are the last to be paid if the company is wound up.
  • Preference shares typically carry a right that gives the holder preferential treatment when annual dividends are distributed to shareholders. Shares in this category receive a fixed dividend, which means that a shareholder would not benefit from an increase in the business’ profits. However, usually they have rights to their dividend ahead of ordinary shareholders if the business is in trouble. Also, where a business is wound up, they are likely to be repaid the par or nominal value of shares ahead of ordinary shareholders.
  • Cumulative preference shares give holders the right that, if a dividend cannot be paid one year, it will be carried forward to successive years. Dividends on cumulative preference shares must be paid, despite the earning levels of the business, provided the company has distributable profits.
  • Redeemable shares come with an agreement that the company can buy them back at a future date – this can be at a fixed date or at the choice of the business. A company cannot issue only redeemable shares.
  • Types Of Debentures
  • The major types of debentures are as follows:Types Of Debentures On The Basis Of Record Point Of Viewa. Registered Debentures
    These are the debentures that are registered with the company. The amount of such debentures is payable only to those debenture holders whose name appears in the register of the company.b. Bearer Debentures
    These are the debentures which are not recorded in a register of the company. Such debentures are transferable merely by delivery. Holder of bearer debentures is entitled to get the interest.

    2. Types Of Debentures On The Basis Of Security

    a. Secured Or Mortgage Debentures
    These are the debentures that are secured by a charge on the assets of the company. These are also called mortgage debentures. The holders of secured debentures have the right to recover their principal amount with the unpaid amount of interest on such debentures out of the assets mortgaged by the company.

    b. Unsecured Debentures
    Debentures which do not carry any security with regard to the principal amount or unpaid interest are unsecured debentures. These are also called simple debentures.


    AIOU Solved Assignment 1 Code 444 Spring 2017 Debentures Type

  • 3. Types Of Debentures On The Basis Of Redemption

    a. Redeemable Debentures
    These are the debentures which are issued for a fixed period. The principal amount of such debentures is paid off to the holders on the expiry of such period. These debentures can be redeemed by annual drawings or by purchasing from the open market.

    b. Non-redeemable Debentures
    These are the debentures which are not redeemed in the life time of the company. Such debentures are paid back only when the company goes to liquidation.


  • 4. Types Of Debentures On The Basis Of Convertibility

    a. Convertible Debentures
    These are the debentures that can be converted into shares of the company on the expiry of pre-decided period. The terms and conditions of conversion are generally announced at the time of issue of debentures.

    b. Non-convertible Debentures
    The holders of such debentures can not convert their debentures into the shares of the company.

    5. Types Of Debentures On The Basis Of Priority

    a. First Debentures
    These debentures are redeemed before other debentures.

    b. Second Debentures
    These debentures are redeemed after the redemption of first debentures.

AIOU Solved Assignment 1 Code 444 Spring 2017 continue

Q #2 Ayala Corporation opens a branch at Multan on IST January, 2016Book of ayala corporation Multan branch a/c for the year ended 31st 2016


Goods sent to Multan branch (invoice price) 30937Cash sales


Closing balance




Less: goods returnedStocks 57750
By the branch (invoice prince) 10500298875Petty cash 62558375
Cash sent to branch for exp41250Debtors27500


Stock reverse (57750 *1/5)Goods sent to branch
General profit and less account2975298875*1/559775

Branch debtors Account

Balance b/d             –cash105875
Sale (credit)134750Discount1375
Balance c/d27500


Q#3 tanvir and zaheer entered into a joint venture to construct a building for a contract price of rs. 4000000. They agreed to share profits………….


Joint venture account

Joint book accountRsRs

Miscellaneous exp



Zaheer (taken over of various items)16800
Wages25400Joint bank account4000000
Supervisors19800Contact price
Building pass fit8700
Tanvir 1398040

Zaheer 599160


AIOU Solved Assignment 1 Code 444 Spring 2017Join Bank Account

Joint bank account

Tanvir (contribution)

Zaheer (contribution)



Joint ventures

(payment of cost)

Joint venture131400Tanvir on (ventures completion)1498240
Joint venture

(recipt of contact

4000000Zaheer (on venture completion)702360
Building passed fit8700

Zaheer account


Joint venture


16800Cash (contribution)120000
Joint venture

(on venture completion)

702360Joint venture( profit )599160


Tanvir account

Supervisor (paid)19800Cash (contribution)120000
Joint venture

(on venture completion)

1498140Joint venture( profit )1398040



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Advanced Accounting Code 444 Solved Assignment 2 spring 2017 is being uploaded for the students of B.Com Class. Advance accounting code 444 is offered in third semester so students needs in third semester advance accounting code 444 solved assignment 2 spring 2017. Advance accounting is very interesting and very knowledgeable subject. That’s why you could not ignore the advance accounting code 444 solved assignment 2 spring 2017. Due to the importance of advance accounting we are being uploaded the assignment of code 444 spring 2017.

Q#4 The aflac ltd has a nominal capital has a nominal capital of Rs 6 million divided into shares of aflac ltd trading and profit and loss for the year ended 31-de c2016.



Opening stock120000Sales6640000
Purchases2960000Closing stock156000
Wages 135680
Less: premises 10000125680
Gross profit c/d257360
Salaries23200Gross profit b/d257360
General exp27040Interest on govt securities3840
Dep on furniture1728
Depreciation of plant115200
Write of preliminary exp1600
Director fee9184
Bad  debts 3376
Add: provision 6960
Less: old provision 56004736
Interest on debenture28800
Net profit c/d49712

Advanced Accounting Code 444 Solved Assignment 2 spring 2017

Profit and loss appropriation account

Interim dividend paid12000Balance from last year23200
General reserve15000Current year profit49712
Final dividend73600
Provision for taxation20000Balance loss transferred to B/S47688


aflac ltd balance as on 31 dec 2016

Share capital and reverseFixed assets
Authorized capitalPremises 480000
600000 share @ Rs.100 each6000000Add: wages 1000490000
Issued subscribed paid up share capitalPlant and mach 576000

Less: dep 20% (11520

7360 share @ 100 each736000Furniture 11520
ReserveLess: dep (1728)


General reserve


55000Good will deferred cost40000
Balance loss47688Preliminary exp6400
Long term liabilitiesLong terms assets

4% government securities

Current assets

6% debenture480000Debtors 139200
Current liabilitiesLess: provision (6969)132240
 Bill payable60800Cash in hand13200
Final dividend73600Cash in bank63840
Interest on debenture14400Interest on govr securities3840
Sundry creditors800000Closing stock156000
Provision for taxation200000

Advanced Accounting Code 444 Solved Assignment 2 spring 2017B.Com / B. A.

Q 5 Jawadbrothers leases acar on is January 2016 that has fair values of RsAnnual rentals payable.



Pmt = 1500000  (PVIFA 12%,4)

Pmt = 150000 3.0373

Pmt = 493859.678

  1. b) Amortization schedule
End of yearloan paymentBeginning of year principalPayment

Interest                   principal

End of principal

The difference in the last years beginning and ending principal is due to rounding

Working notes

Interest = 1500000  = 180000

Principal = 493859.678-180000= 313859.678

End of year principal = 1500000-313859.678



  1. C)
1-1-16Lease receivable


Equipment 1500000

Un-earned interest revenue


Lease property 1500000

Lease liability 313859.678

Interest exp 180000

Cash 493859.678

Cash 493859.678

Lease receivable 493859.678

Depreciation 300000

Accumulation dep 300000


Un-earned interest revenue


Interest revenue


1-1-17Cash 493859.678

Lease receivable


Lease liability 351522.84

Interest exp 142336.84

Cash 4938859.678

Un-earned interest revenue


Interest revenue

Depreciation 300000

Accumulated dep 300000


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