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Tuesday, December 28, 2010

Controlling and Costing Materials:Part 1


JOIN KHALID AZIZ
COACHING CLASSES
ICMAP STAGE 1,2,3,4
CA MODULE B & D
PIPFA
MA-ECONOMICS
0322-3385752



Effective materials management is essential in order to (1) provide the best service to customers, (2) produce at maximum efficiency, and (3) manage inventories at predetermined levels to stabilize investments in inventories.

Successful materials management requires the development of a highly integrated and coordinated system involving sales forecasting, purchasing, receiving, storage, production, shipping, and actual sales. Both the theory of costing materials and inventories and the practical mechanics of cost calculations and record keeping must be considered.

Costing materials present some important, often complex, and sometime highly controversial questions concerning the costing of materials used in production and -he cost of inventory remaining to be consumed in a future period. In financial accounting, the subject is usually presented as a problem of inventory valuation; in cost accounting, the primary problem is the determination of the cost of various materials consumed in production and a proper charge to cost of goods sold.





Procedures for Materials Procurement and Use:

Although production processes and materials requirements vary, the cycle of procurement and use of materials usually involves the following steps:

Engineering and planning determine the design of the product, the materials specifications, and the requirements at each stage of operations. Engineering and planning not only determine the maximum and minimum quantities to run and the bill of materials for given products and quantities but also cooperate in developing standards where applicable.

The production budget provides the master plan from which details concerning materials requirements are eventually developed.

The purchase requisition informs the purchasing agent concerning the quantity and type of materials needed.

The purchase order contracts for appropriate quantities to be delivered at specified dates to assure uninterrupted operations.




The receiving report certifies quantities received and may report results of inspection and testing for quality.

The materials requisition notifies the storeroom or warehouse to deliver specified time or is the authorization for the storeroom to issue material to departments.

The materials ledger cards record the receipt and the issuance of each class of materials and provide a perpetual inventory record.

Accounting procedures for materials procurement and use involve forms and records necessary for general ledger financial accounting as well as those necessary for costing a job, process or department, and for maintaining perpetual inventories and other statistical summaries. The purchase requisition, purchase order, receiving report, materials requisition, bill of materials, scrap report, returned materials report, materials ledger cards, and summary of materials used are some of the forms used for materials control under a cost system. The purchases journal, the cash payments journal, the general journal, and the general ledger control accounts are also used.

The discussion here is not based on any particular type or size of industry. It is, rather a general description of the accounting and controlling procedure involved in the procurement and use of materials. To understand the detailed procedure of purchasing, receiving stocking, and using materials

First-in-First-Out (FIFO) Costing Method
Average Costing Method
Last-in-First-Out (LIFO) Costing Method
Other Methods-Month end average cost, last purchase price or market price at date of issue, and standard cost.


FRESH CLASSES OF
ICMAP STAGE 1,2,3,4
CA MODULE B & D
PIPFA
MA-ECONOMICS
ACCA & CAT
INTER COMMERCE

CRASH CLASSES OF B.COM IN JUST 20 DAYS

KHALID AZIZ
0322-3385752
0312-2302870
COACHING CLASSES
ACCOUNTING OF ICMAP 1,2,3,4
CA.MOD A,B,C,D
PIPFA
CAT T1,T2,T3,T4,T5,T6,T7,T8
ACCA F1,F2,F3,F5,F8,P1,P7
ACCOUNTING O/A LEVEL
BBA
MBA
B.COM & M.COM
MICRO ECONOMICS & STATISTICS OF MA-ECONOMICS



EDUCATION IS OUR NATION'S SWORD

Wednesday, December 22, 2010

B.COM 2010 EXAMINATION REGULAR & PRIVATE DATE SHEET

PART 1

JAN 19 ISLAMIAT
21 PAK. ST
24 STATISTICS
27 I.T.B
29 ECONOMICS
FEB 1 ENGLISH
4 ACCOUNTING


PART 2

JAN 18 MANAGEMENT
22 OPTIONAL
28 ADV ACCOUNTING
31 ECO OF PAK
FEB 3 B.COMM
7 B.LAW


B.COM CRASH CLASSES IN JUST 20 DAYS

KHALID AZIZ
0322-3385752



FRESH CLASSES OF
ICMAP STAGE 1,2,3,4
CA MODULE B & D
PIPFA
MA-ECONOMICS
ACCA & CAT
INTER COMMERCE

CRASH CLASSES OF B.COM IN JUST 20 DAYS

KHALID AZIZ
0322-3385752
0312-2302870
COACHING CLASSES
ACCOUNTING OF ICMAP 1,2,3,4
CA.MOD A,B,C,D
PIPFA
CAT T1,T2,T3,T4,T5,T6,T7,T8
ACCA F1,F2,F3,F5,F8,P1,P7
ACCOUNTING O/A LEVEL
BBA
MBA
B.COM & M.COM
MICRO ECONOMICS & STATISTICS OF MA-ECONOMICS





EDUCATION IS OUR NATION'S SWORD

Saturday, December 18, 2010

IAS 31-INTERESTS IN JOINT VENTURES

Scope

IAS 31 applies to accounting for all interests in joint ventures and the reporting of joint venture assets, liabilities, income, and expenses in the financial statements of venturers and investors, regardless of the structures or forms under which the joint venture activities take place, except for investments held by a venture capital organisation, mutual fund, unit trust, and similar entity that (by election or requirement) are accounted for as under IAS 39 at fair value with fair value changes recognised in profit or loss. [IAS 31.1]

Key Definitions [IAS 31.3]

Joint venture: a contractual arrangement whereby two or more parties undertake an economic activity that is subject to joint control.

Venturer: a party to a joint venture and has joint control over that joint venture.

Investor in a joint venture: a party to a joint venture and does not have joint control over that joint venture.

Control: the power to govern the financial and operating policies of an activity so as to obtain benefits from it.

Joint control: the contractually agreed sharing of control over an economic activity. Joint control exists only when the strategic financial and operating decisions relating to the activity require the unanimous consent of the venturers.

Jointly Controlled Operations

Jointly controlled operations involve the use of assets and other resources of the venturers rather than the establishment of a separate entity. Each venturer uses its own assets, incurs its own expenses and liabilities, and raises its own finance. [IAS 31.13]

IAS 31 requires that the venturer should recognise in its financial statements the assets that it controls, the liabilities that it incurs, the expenses that it incurs, and its share of the income from the sale of goods or services by the joint venture. [IAS 31.15]

Jointly Controlled Assets

Jointly controlled assets involve the joint control, and often the joint ownership, of assets dedicated to the joint venture. Each venturer may take a share of the output from the assets and each bears a share of the expenses incurred. [IAS 31.18]

IAS 31 requires that the venturer should recognise in its financial statements its share of the joint assets, any liabilities that it has incurred directly and its share of any liabilities incurred jointly with the other venturers, income from the sale or use of its share of the output of the joint venture, its share of expenses incurred by the joint venture and expenses incurred directly in respect of its interest in the joint venture. [IAS 31.21]

Jointly Controlled Entities

A jointly controlled entity is a corporation, partnership, or other entity in which two or more venturers have an interest, under a contractual arrangement that establishes joint control over the entity. [IAS 31.24]

Each venturer usually contributes cash or other resources to the jointly controlled entity. Those contributions are included in the accounting records of the venturer and recognised in the venturer's financial statements as an investment in the jointly controlled entity. [IAS 31.29]

IAS 31 allows two treatments of accounting for an investment in jointly controlled entities – except as noted below:

proportionate consolidation [IAS 31.30]
equity method of accounting [IAS 31.38]
Proportionate consolidation or equity method are not required in the following exceptional circumstances: [IAS 31.1-2]


An investment in a jointly controlled entity that is held by a venture capital organisation or mutual fund (or similar entity) and that upon initial recognition is designated as held for trading under IAS 39. Under IAS 39, those investments are measured at fair value with fair value changes recognised in profit or loss.
The interest is classified as held for sale in accordance with IFRS 5.
A parent that is exempted from preparing consolidated financial statements by paragraph 10 of IAS 27 may prepare separate financial statements as its primary financial statements. In those separate statements, the investment in the jointly controlled entity may be accounted for by the cost method or under IAS 39.
An investor in a jointly controlled entity need not use proportionate consolidation or the equity method if all of the following four conditions are met:

1. the venturer is itself a wholly-owned subsidiary, or is a partially-owned subsidiary of another entity and its other owners, including those not otherwise entitled to vote, have been informed about, and do not object to, the venturer not applying proportionate consolidation or the equity method;
2. the venturer's debt or equity instruments are not traded in a public market;
3. the venturer did not file, nor is it in the process of filing, its financial statements with a securities commission or other regulatory organisation for the purpose of issuing any class of instruments in a public market; and
4. the ultimate or any intermediate parent of the venturer produces consolidated financial statements available for public use that comply with International Financial Reporting Standards.
Proportionate Consolidation

Under proportionate consolidation, the balance sheet of the venturer includes its share of the assets that it controls jointly and its share of the liabilities for which it is jointly responsible. The income statement of the venturer includes its share of the income and expenses of the jointly controlled entity. [IAS 31.33]

IAS 31 allows for the use of two different reporting formats for presenting proportionate consolidation: [IAS 31.34]

The venturer may combine its share of each of the assets, liabilities, income and expenses of the jointly controlled entity with the similar items, line by line, in its financial statements; or
The venturer may include separate line items for its share of the assets, liabilities, income and expenses of the jointly controlled entity in its financial statements.
Equity Method

Procedures for applying the equity method are the same as those described in IAS 28 Investments in Associates.


Separate Financial Statements of the Venturer

In the separate financial statements of the venturer, its interests in the joint venture should be: [IAS 31.46]

accounted for at cost; or
accounted for under IAS 39 Financial Instruments: Recognition and Measurement.
Transactions Between a Venturer and a Joint Venture

If a venturer contributes or sells an asset to a jointly controlled entity, while the assets are retained by the joint venture, provided that the venturer has transferred the risks and rewards of ownership, it should recognise only the proportion of the gain attributable to the other venturers. The venturer should recognise the full amount of any loss incurred when the contribution or sale provides evidence of a reduction in the net realisable value of current assets or an impairment loss. [IAS 31.48]

The requirements for recognition of gains and losses apply equally to non-monetary contributions unless the gain or loss cannot be measured, or the other venturers contribute similar assets. Unrealised gains or losses should be eliminated against the underlying assets (proportionate consolidation) or against the investment (equity method). [SIC 13]

When a venturer purchases assets from a jointly controlled entity, it should not recognise its share of the gain until it resells the asset to an independent party. Losses should be recognised when they represent a reduction in the net realisable value of current assets or an impairment loss. [IAS 31.49]

Financial Statements of an Investor

An investor in a joint venture who does not have joint control should report its interest in a joint venture in its consolidated financial statements either: [IAS 31.51]

in accordance with IAS 28 Investments in Associates – only if the investor has significant influence in the joint venture; or
in accordance with IAS 39 Financial Instruments: Recognition and Measurement.
Partial Disposals of Joint Ventures

If an investor loses joint control of a jointly controlled entity, it derecognises that invesgtment and recognises in profit or loss the difference between the sum of the proceeds received and any retained interest, and the carrying amount of the investment in the jointly controlled entity at the date when joint control is lost. [IAS 31.45]

Disclosure

A venturer is required to disclose:

Information about contingent liabilities relating to its interest in a joint venture. [IAS 31.54]
Information about commitments relating to its interests in joint ventures. [IAS 31.55]
A listing and description of interests in significant joint ventures and the proportion of ownership interest held in jointly controlled entities. A venturer that recognises its interests in jointly controlled entities using the line-by-line reporting format for proportionate consolidation or the equity method shall disclose the aggregate amounts of each of current assets, long-term assets, current liabilities, long-term liabilities, income, and expenses related to its interests in joint ventures. [IAS 31.56]
The method it uses to recognise its interests in jointly controlled entities. [IAS 31.57]
Venture capital organisations or mutual funds that account for their interests in jointly controlled entities in accordance with IAS 39 must make the disclosures required by IAS 31.55-56. [IAS 31.1]

Friday, December 17, 2010

B.COM KARACHI UNIVERSITY SYLLABUS

B.COM 1 & 2
ACCOUNTING, STATISTICS, ECONOMICS, ADVANCED ACCOUNTING, INCOME TAX LAW
JOIN SIR KHALID
0322-3385752
R-1173,AL NOOR SOCIETY, BLOCK 19, F.B.AREA, NEAR POWER HOUSE, KARACHI.

************************************************

UNIVERSITY OF KARACHI
REVISED SYLLABI 2006
BACHELOR OF COMMERCE
(B.COM. DEGREE)
FIRST STEP IN YOUR BUSINESS CAREER
Published by
Registrar
University of Karachi

Students enrolled in 2005
shall be examined according to
revised syllabus.

IMPORTANT NOTES
i) B.Com.(Two years degree course) will consist of Part-I and
Part-II
ii) Part-I will have Six papers of 100 Marks each.
iii) Part-II will have Six papers (including one optional) of 100
Marks each.
iv) The compulsory subject of Islamic Studies and Pakistan studies
shall be of 100 Marks with the following distributions.
a) Islamic Studies/(Ethics for Non Muslims)
………………………………………….. 60 Marks
b) Pakistan Studies
………………………………………….. 40 Marks
Total 100 Marks
Both sections (a and b) to be passed separately: The marks of both
section shall not be included in the division.
v) Pass Marks
Minimum passing marks shall be 40 percent in each subject but the
aggregate shall be 45%. Students securing less than 45 percent in
aggregate shall be declared failed.
vi) Class
a. Students securing 60 percent or more shall be placed in
the First Division.
b. More than 45% but less than 60% shall be placed in the
Second Division.
c. There will be no Third Division.
4
B. COM. PART-I
B. COM PART-I AND PART-II MODIFIED SYLLABUS 2006
Scheme of Studies: Marks
1. Paper I Islamic Studies/Ethics and
Pakistan Studies
100
2. Paper II Functional English
(Compulsory)
100
3. Paper III Introduction to Business 100
4. Paper IV Principles of Accounting 100
5. Paper V Business Mathematics and
Statistics
100
6. Paper VI Economic Analysis and Policy 100
5
B. COM. PART-II
1.Paper I Business Communication 100
2.Paper II Principles of Management 100
3.Paper III Economic Development of
Pakistan
100
4.Paper IV Advanced Accounting and Cost
Accounting
100
5.Paper V Business and Industrial Law 100
6.Paper VI Optional any one: 100
a) Auditing and Income Tax
Law
b) Introduction to Computer
Application in Business
c) Principles of Marketing
d) Principles of Insurance
e) Banking and Finance
6
B. COM. PART-I
PAPER-I (Section A):ISLAMIC STUDIES FOR MUSLIM
STUDENTS
1. The Holy Quran
The revelation of Ayat or the Verses.
2. Surah Hijrat
Introduction and Text of the Holy Quran
3. Surah Furqan
Introduction and text of the Holy Quran
4. Hadith and Sunnah of the Holy Prophet (PBUH)
Meaning and definition.
The difference between Hadith and Sunnah
5. Hijat-e-Hadith
Compilation, inscription and writing of hadith.
6. Text of Hadith.
Twenty selected Hadiths from “Riaz-us-Saliheen”
7. Monothism
a) The existence of God – Arrangements and effects of the
belief in one God.
b) Effects on personal life.
c) Effects on collective life.
8. Prophethood
- The necessity and importance of prophethood.
- The distinct qualities of the prophets and status of
prophethood – Faith in the finality of prophethood.
- The following of sunnah.
9. Life after death
10. Prayer
11. Zakat-concept and purpose.
12. Fasting (SAUM) individual and collective benefits.
Hajj – Significance – Nature – Manasik
Jehad – with knowledge, sword, wealth and with selves.
7
13. Study of the pure life of the Holy Prophet Makki and Madani
life.
Books Recommended:
1.Abdul Qayyum Natiq
(Sirat-e-Mustaqeem (English), 13th edition.2004
2.Abdul Qayyum Natiq
(Sirat-e-Mustaqeem (Urdu),
Tahir Sons Karachi. 13th edition, 2004.
3.Dr. Nasiruddin
Islamiat (Urdu),Ghazanfar Academy Pakistan
4.Prof.Mufti.Munib Ur Rahman
Islamiat , Graduation classes. Karachi: Urdu Bazar,2003.
8
B.COM. PART-I
PAPER-I(Section A):ETHICS
FOR NON MUSLIM STUDENTS
Ethics (compulsory) in lieu of Islamiat
For Non-Muslim students.
1. Meaning and Scope of Ethics.
2. Relation of Ethics with:
(a) Religion (b) Science (c) Law
3. Historical Development of Morality:
(a). Instinctive Moral Life.
(b). Customary Morality.
(c). Reflective Morality.
4. Moral Theories:
(a). Hedonism (Mill)
(b). Intuitionism (Butler)
(c). Kant’s Moral Theory.
5. Moral Ethics and Society.
(a). Freedom and Responsibility.
(b). Tolerance
(c). Justice
(d). Punishment (Theories of Punishment)
6. Moral Teachings of Major Religions:
a). Judaism
b). Christianity
c). Islam
7. Professional Ethics:
a). Medical Ethics
9
b). Ethics of Students
c). Ethics of Teachers
d). Business Ethics
REFERENCE BOOKS:
1.William Lille. An Introduction to Ethics.,
London Methuen & Co. latest
edition.
2.Titus, H.H. Ethics for Today.
New York: American Book, latest
edition.
3.Hill, Thomas. Ethics in Theory and Practice.
N.Y. Thomas Y. Crowel, latest
edition
4. Ameer Ali, S. The Ethics of Islam.
Culcutta: Noor Library
Publishers, latest edition
5. Donaldson, D.M. Studies in Muslim Ethics.
London: latest edition.
6. Sayeed, S.M.A.(Tr.) Ta’aruf-e-Akhlaqiat.
Karachi: BCC&T, Karachi
University of Karachi
10
B. COM. PART-I
PAPER-I(Section B):PAKISTAN STUDIES
1. Historical Background of Pakistan with special reference to
Ulema’s work and political awakening in the subcontinent. The
reformists Shaikh Ahmed Sirhindi, Shah Waliullah and others.
2. Creation of Pakistan, its problems and gradual development in the
fields of politics.
3. Constitutional evolution of Pakistan up to the current constitution
and its amendments.
4. Languages of Pakistan.
5. Cultural heritage of Pakistan.
6. Pakistan and the Modern World (Foreign Affairs).
7. Economic Progress of Pakistan from the 1970s, to date.
BOOKS RECOMMENDED:
1. I.H.Qureshi Short History of Pakistan.
Vol. IV, University of Karachi.
2. J.Hussain, History of the People of Pakistan.
Oxford University Press.(Latest
Edition)
3. Govt. of Pakistan Economic Survey of Pakistan.
(Annual)
4.S.Akbar Zaidi Issues in Pakistan’s Economy
Oxford University press. latest
edition.
5.Gul Shahzad
Sarwar
Pakistan studies. Qamar Kitab
Ghar Karachi, latest edition.
11
B.COM. PART-I
PAPER – I1: FUNCTIONAL COMPULSORY ENGLISH
Aims:
GENERAL
1. To develop the ability to communicate effectively.
2. To help students develop the ability to read effectively and
independently and intermediate proficiency level reading text
3. To help students acquire language skills progressively.
4. To help students develop intellectual abilities.
5. To make the experience of English language teaching and
learning more interesting.
6. To help students develop their English language proficiency to
a level from where they can pursue higher education through the
medium of English.
Specific Objectives:
A. Listening/Speaking Skills
To develop the ability to:
a. Comprehend spoken English inside and outside the classroom.
b. Express ideas/opinions on topics related to student’s lives and
experiences.
B. Reading (Comprehension) Skills
To enable the students to read a text:
a. To identify main idea/topic sentences.
b. To find specific information
c. To distinguish between relevant and irrelevant information
d. Prediction
e. Recognizing and interpreting cohesive devices.(link words)
f. Recognizing and interpreting the tone and attitude of the
author.
g. Interpreting charts and diagrams.
h. Recognizing and interpreting the rhetorical organization of a
text.
12
i. Distinguishing between facts and opinions.
C. Vocabulary Building skills
a. To guess the meaning of unfamiliar words through:
I. Context clues
II. Prefixes and suffixes
III. Idioms and phrasal verbs
IV. Logical connectors
b. To develop the ability to use a dictionary to:
I. Find out meaning of different words.
II. Check spellings
III. Check/find pronounciation of unfamiliar words.
D. Writing Skills
To be able to write:
a. Formal and informal letters
b. Job applications and curriculum vitae
c. Summaries
d. Paragraphs and Essays
e. Punctuation
E. Language structure/Grammar
I. Tenses
II. Prepositions
III. WH Questions and Yes/No Questions
IV. Voice (Active & Passive)
V. Direct to Indirect/Reported Speech
VI. Articles
VII. Conditionals
Reading Text
Howe, D.H. Kirkpatrick. T.A. and Kirkpatrick, D.L. Oxford English
for Undergraduates, Oxford University Press, 2004.
13
Grammar and Composition
Eastwood, John, Oxford Practice Grammar, New Edition with tests
and Answers, Oxford University Press, 2004.
14
B.COM. PART-I
PAPER-III: INTRODUCTION TO BUSINESS
BUSINESS:
Nature, scope and importance, Problem of business functions and
qualities of businessman. Business environment and social
responsibility. Role of business in economics systems. Business under
private and Public ownership.
FORMS OF BUSINESS ORGANIZATIONS:
Sole proprietorship, partnership-classification, Rights, Duties and
Liabilities of partners, Dissolution of partnership.
JOINT STOCK COMPANY:
Formation and incorporation. Memorandum and Articles of
Association, prospectus, Shareholders. Director, meetings and winding
up. Co-operatives.
COMBINATION:
Meaning and purposes, Types of combination, Holding and subsidiary
companies, Joint Venture Franchising and Trade Association.
MARKETING:
Basic concepts, importance, Marketing Mix. Product and its types,
product life cycle. Channels of distribution for consumer and industrial
Goods, Market segmentation, sales promotion and advertising,Ware
housing, Wholesaling and Retailing. Middlemen-Role and
classification. Pricing decision and strategy.
CAPITAL MARKET:
15
Nature of capital market, role and significance, operation and working
of Stock Exchange. Impact of Stock Exchange on economy of a
country. Investment Banking. Financing by leasing.
MAKING GOODS AND SERVICES AVAILBALE:
Types of business goods, inventory control, Purchasing
Transportation, Decisions and Policies, Marketing needs, Types of
warehouse, Advantages and functions of Warehousing. Distribution
Center.
INSURANCE AND BUSINESS RISKS:
Protection against risks, importance and types of insurance. Types of
risks and methods of holding risks.
PERSONNEL MANAGEMENT:
An introduction to Human Resources Management – Importance and
Application.
INTERNATIONAL BUSINESS:
Concepts, Advantages and disadvantages. Obstacles and constraints in
international trade. Types of Tariffs. Concept of Balance of Trade and
Balance of Payment. Nature, objectives and role of Multinational
companies in developing countries.
RECOMMENDED BOOK:
1. Koontz and Fulmer, A Practical Introduction to Business,
Richard D Irwin Inc.(USA) Revised Edition (latest year).
REFERENCE BOOKS:
16
1. Amin Khalid, Introduction to Business, Karachi: K.B.E
Book Bank 2004.
2. Khurhseed H. Siddiqui, Introduction to Business, Ghazanfar
Academy, Pakistan 2004.
3.Robert C. Appleby, Modern Business Administration,
Pitman Publishing latest edition .
4. Shoukat Ali, Introduction to Business,
Rehber Publisher, Karachi, (latest year)
5. Nisar-Ud-Din, Business Organization National
Publisher, Karachi 2003
6. W.A. Razzaqui Introduction to Business. Academic
Commerce Publications.
17
B.COM. PART-I
PAPER-IV: PRINCIPLES OF ACCOUNTING
1. Field of Accounting, Accounting Terminology, Principles and
Concepts, Introduction to Accounting Standards, Accounting Equation
(Balance Sheet Equation).
2. Recording Service and Merchandising Business Transactions,
General Journal and Special Journal, Purchase Journal, Sales Journal,
Cash Receipts, Cash Payments Journals, General Ledger, Subsidiary
Ledgers and Trial Balance.
3. Period End Adjustment: Accruals, Pre-Payments, Unearned,
Depreciation, Uncollectible, Inventory, Correction of Errors, Closing
Process, and Reversing Entries.
4. Preparation of Worksheet, Income Statement and Balance
Sheet.
5. Cash Control:- Bank Reconciliation Statement and Voucher
System.
6. Accounting for Accounts Receivable: Income Statement and
Balance Sheet Approach, Analysis and Aging of Accounts Receivable,
Allowance Method for Making Provisions, Write Off and Recovery of
Accounts Receivable, Advance from Customers.
7. Inventory Valuation:- Periodic System and Perpetual System:
Methods FIFO, LIFO, Average Methods, Gross profit and Retail Price.
8. Depreciation – Methods Straight Line, Units of Output,
Working Hours, Sum of the Years Digits and Fixed Percentage on
Declining Balance, Addition, Revision of Life, Disposal and Exchange
of Depreciated Asset.
18
9. Partnership Accounting: Formation, Plans of Profit/Loss
Distribution, Admission, Retirement/Death, Liquidation.
REFERECNE BOOKS:
1. Meigs and Meigs, Accounting the Basis for Business
Decisions, New York
McGraw Hill Book Company 9th Edition,
1993.
2. Niswonger and Fess, Accounting Principles, South Western
Company (latest Edition).
3. Meigs and Meigs, Accounting the Basis for Business
Decisions, New York
McGraw Hill Book Company 12th Edition,
Year 2003.
4. Dupree and Marder: Principles of Accounting, California,
Addison Wesley Publishing Company, latest edition.
5. Needles and Anderson: Principles of Accounting,
Houghton Mifflin Company, latest edition.
6. Philip E.Fess Accounting Principles. South Western
Company,14th Charless S. Warner Ed.1984
19
B.COM. PART-I
PAPER-V: BUSINESS MATHEMATICS AND STATISTICS
INSTRUCTION: PAPER Consists of THREE Sections
Attempt TWO questions from SECTION A from THREE questions.
Attempt TWO questions from SECTION B from THREE questions.
Attempt TWO questions from SECTION C from FOUR questions.
SECTION: A
BUSINESS MATHEMATICS (20 MARKS)
1. COORDINATE GEOMETRY
Distance between two points, slope of a straight line, Equation of
straight lines passing through two points, slope – intercept form, point
and slope form. Graph of quadratic equation, vertex and roots of the
equation.
2. CALCULUS
Idea of Limits, differentiation, rate of change, techniques in
differentiation, Polynomial and composite function. Addition, Product
and Quotient rule, Application of derivatives Marginal functions (cost,
demand, supply, profit, revenue). Optimization of simple function,
point of inflexion, maxima minima.
3. MATRICES AND DETERMINANTS.
Addition, subtraction, multiplication of matrices. Inverse of a matrix
(upto 3 x 3) Determinants; properties of determinants, Cramer’s Rule.
SECTION: B
ELEMENTARY STATISTICS (40 MARKS)
1. INTRODUCTION
Definition, scope limitation of statistics. Collection of primary and
secondary data. Presentation of Data; Frequency distribution,
20
cumulative and relative frequencies Simple and composite diagrams,
Pie diagram, Frequency Polygon, frequency curves. Histogram and
ogive.
2. MEASURES OF CENTRAL TENDENCY
All the measures of central tendency and their properties including
quartiles, deciles and percentiles, Graphical Determination median and
quartiles.
3. MEASURES OF DISPERSION
Absolute and relative measures: range, quartile deviation, mean
deviation standard deviation, variance. Skewness (moments not
required).
4. REGRESSIONS AND CORRELATION
Scatter diagram linear regression models (two variables) estimation
and forecasting. Idea of correlation, co-efficient of correlation and its
properties. Rank correlation.
5. INDEX NUMBER
Introduction, application of index number Price index (fixed and chain
relatives) Composite index number; weighted and unweighted. Special
type of index numbers (Laspeyre, Passche, Fisher and Marshall
Edgeworth).
SECTION: C
PROBABILITY & STATISTICAL INFERENCE
(40 MARKS)
1. COUNTING TECHNIQUES
Fundamental Principle. Permutation and combination.
2. PROBABILITY
Introduction, set theory, sample space, events. Equally likely, mutually
exclusive, exhaustive, independent and dependent events. Addition
and Multiplication laws of probability, conditional/ probability,
Mathematical expectation (only concept of mean).
21
3. PROBABILITY DISTRIBUTIONS
Random variable, Binomial, Poisson, Hyper Geometric and Normal
distributions.
4. SAMPLING
Concept of finite and infinite population. Simple random sampling
methods of drawing simple random samples from finite population
(with and without replacement), parameter and Statistics Standard
error. Central limit theorem. Sampling distribution of mean and
difference between two mean numerical proof of E (x) = μ .
5. STATISICAL INFERENCE
Point and Interval estimation of mean and difference between two
means for large and small samples. Null and Alternate Hypothesis.
Idea of Type I and Type II Error test concerning mean and difference
between two means for large and small samples (z and t tests). Chi
square statistic for goodness of fit test and test for independence in
contingency table:
BOOKS RECOMMENDED
i) Mr. Hamid A. Hakim Business Mathematics: 5th Edition
Karachi Meyori Matbooaat, 2004.
ii) Mr. S. Khurshid Alam Business Mathematics, 8th Edition
Karachi Rehber Publisher, 2004.
iii) Mr. Frank S. Budnick Applied Mathematics, International
edition, United States. Mcgraw Hill book, latest edition.
iv) Mr. Hamid A. Hakim Introductory Statistics for Economics
and Management: 5th Edition Karachi
Meyari Matbooaat, 2004.
v) Mr. Shahid Jamal Statistics Problem & Practices. Ahmed
Academy,2004
22
vi) Mr. S. Khurshid Alam Statistics Concept and Methods,
Karachi:
Rehber publisher, 2004.
vii) Mr. Ronald E. Walpole Introduction to Statistics,2nd Ed.
(Latest Edition).
23
B.COM. PART-I
PAPER-VI: ECONOMIC ANALYSIS AND POLICY
SECTION “A” (40 Marks)
1. INTRODUCTION
Basic concepts, Definition, Micro and Macro approach to Economic
analysis.
2. CONSUMER’S BEHAVIOUR ANALYSIS
a) Demand, function and functional equations of Demand.
b) Elasticity of Demand, Significance, Methods of Measurement
and its kinds.
c) Consumer’s Equilibrium – Cardinal and Ordinal approaches.
3. THEORY OF PRODUCTION
a) Factors of Production and their relative importance.
b) Firm and Industry.
c) Laws of Returns and Returns to Scale.
d) Production function – ISO – quants and ISO – Cost Curves.
e) Least cost factor combination.
f) Production possibility curve.
4. MARKET
a) Definition and brief classification.
5. FIRM’S COST AND REVENUE ANALYSIS
6. PRICE AND OUTPUT DETERMINATION OF A FIRM AND
INDUSTRY UNDER:
24
a) Perfect competition.
b) Monopoly.
c) Oligopoly.
d) Monopolistic competition.
MACRO ECONOMICS (PART B) (40 MARKS)
1. NATIONAL INCOME
a) Definition, concepts and its significance.
b) Methods of computing National Income.
c) DETERMINANTS OF NATIONAL INCOME.
i. Consumption and consumption function, its determinants,
Keynesian psychological law of consumption.
ii. Saving, propensity to save and factors determining saving.
iii. Investment-Meaning, kinds and its determinants – MEC
and rate of interest.
d. Cross-Section analysis and time series analysis of
consumption.
2. DETERMINATION OF INCOME & EMPLOYMENT
a. Meaning of Full Employment.
b. Kinds of un-employment.
c. Determination of Equilibrium level of National Income.
d. Keynesian theory of Income and Employment.
e. Inflationary and Deflationary gap.
f. Multiplier Doctrine, Acceleration Principle and Interaction of
Multiplier and Acceleration.
3. TRADE CYCLES
4. MONETARY POLICY AND FISCAL POLICY
25
ECONOMIC SYSTEMS (PART C ) (20 MARKS)
a. Definition.
b. Central Problems of an Economy
c. Different Economic Systems – Capitalism, Socialisum Mixed
Economy and Islamic Economic System – Their merits and de-merits
and Criticism.
d. Comparative Study of Different Economic Systems.
NOTE: Two questions are to be attempted from Micro and Macro
Economics each and one from Economic Systems.
BOOKS RECOMMENDED
1.Samuelson, P.A. Economics, (Mc Grow Hill) 16th
Edition, New York 1998.
2. C.E. Ferguson &
J.P. Gould
Micro – Economics Theory, 5th
Edition , Illineies, Richard D. Iamin
latest edition .
3. Edwin Mansfield Economics(principles, problems,
Decision). 7th editon New, York.
WW. Nortorn comp, latest edition.
4. J.K. Eastham An Introduction to Economic
Analysis, English University Press
Ltd. (latest year)
5. Nic Nigro, Robert
Haney Scott
Principles of Economics
Macmillan Publisher Co. Inc. New
York. (latest year)
6. Mc Conneoli Brue Economics (Principles, Problems
and policies).11 edition. New
York: McGraw Hill Comp.1990.
REFERENCE BOOKS:
26
1. Abdul Haleem
Khawja
Economic Theory, A.H.
Publishers, 22 – A1 – Fazal Market
Urdu Bazar, Lahore. (latest year)
2. M. Saeed Nasir A Text Book of Economis, ILMI
Kitab Khana Urdu Bazar Lahore
(latest year)
3. Khurhsid Siddiqui Economic System of Islam,
Karachi. Urdu Bazar,2002.
27
B. COM. PART-II
1.Paper I Business Communication 100
2.Paper II Principles of Management 100
3.Paper III Economic Development of Pakistan 100
4. Paper IV Advanced Accounting and Cost Accounting 100
5.Paper V Business and Industrial Law 100
6.Paper VI Optional any one: 100
a) Auditing and Income Tax Law
b) Introduction to Computer Application in
Business
c) Principles of Marketing
d) Principles of Insurance
e) Banking and Finance
28
B.COM. PART-II
PAPER – I: BUSINESS COMMUNICATION
1. COMMUNICATION
Definition, Process/Factors, Importance, Non-verbal Communication,
Planning steps, Business Writing Principles, Formal and Informal
languages.
2. ORGANIZATIONAL PLANS
3. OPENING AND CLOSING
4. LEGAL ASPECTS OF BUSINESS COMMUNICATION
5. BUSINESS LETTERS
Formats of Business letters
Kinds: Inquiry (product, Status, Candidate); Replies to Inquiries;
Order letter, Refusal to and cancellation of an order, Claim and
Adjustment (Positive and Negative); Job Letter; Sales Letter; Sales
Promotion Letter; Credit Application and Collection Letters.
6. INTER-OFFICE MEMOS
7. ADVERTISEMENTS
Job advertisement, Sales Discount Advertisement
8. BUSINESS REPORT
Definition, Classification, functions, importance, preparation steps;
Preparation of:
1) Memorandum Report, and (2) Letter Report
9. MARKET REPORT
29
Commodity and Capital Markets, Market Terms, Reproduction of
Technical Reports in non-technical language.
10. NON-WRITTEN COMMUNICATION
A) Speaking: i. Similarities and differences of oral and written
communication, ii) Steps for oral presentation, iii) Delivery
techniques.
B) Listening: I) Definition, Difference between hearing and listening;
ii) Reasons for poor listening; iii)Responsibilities of a good listener.
C) Leading and Participating: I) Definition of Leadership, ii) Kinds
of Leadership; iii) Planning Steps of Problem-solving Conference, iii)
Responsibilities of a leader during Problem solving conference.
D) Interviewing: i) Definition, ii) Responsibilities of interviewer and
interviewee, iii) Interview evaluation
Recommended Books
1. Herta A. Murphy,
Herbert W. Hildebrandt,
Jene P. Thomas
Effective Business
Communication, 7th Ed.
(Mc-Graw Hill Inc.),
2. Court Land L. Bovee,
Jhon V. Thill
Executive in Business
Communication, 4th Ed.
Mc-Graw Hill Inc.1999
3. Shirley Taylor Model Business Letters
and other Business
Documents, 5th Ed.
4. Muhammad Amin
Khalid
Business Communication.
K.Be Book Bank. Karachi,
2004 (latest Edition)
30
5. W.A.Razzaqui Business Communication
Academic Commerce
Publications
31
B. COM. PART- II
PAPER – II: PRINCIPLES OF MANAGEMENT
1. The Emergence of Business and Management Thought:
Concept of scientific management, Human Relation and
Administration, Universal functions of a Manager, qualities of a good
manager.
2. Effective Decision Making:
Process of Decision Making, Rational of Decision Making, preventing
the problem, Solving the problem. Japanese Decision Making, Group
ideas in decision making personal decisions, Guideline for effective
decision-making.
3. The Planning Process:
Activities involved in the process of planning, Choosing objectives,
Identify premises, Survey resources, Establish policies, Procedures and
rules. Establish budgets. Decide standards. Common reasons for
failure of plans.
4. Organization:
Organization and Organization bureaucracy, Basic elements of
organizing, Division of Labour, Delegation of Authority, Centralized Vs
Decentralized, Organization structure, Span of Control.
5. Motivations:
Concepts and Applications in Organization, Personality, Behavior and
Motivation, Need Theory, X & Y Theory, Two factor Theory, Human
Relations Theory and Money and Motivation Theory.
6. Staffing:
32
Staffing activities, determining needs in advance. Selection and
Recruiting, Orientation and training, performance appraisal, MBO as a
technique for appraisal, Compensation, Promotion, Termination.
7. The Questions of Authority. Concept of Authority in Management:
Sources of Authority, Line, Staff and Functional Authority.
8. Know Thyself (Understanding Human Psychology)
Basic Motives, Humanistic approach, Self actualizing person,
Importance of Self Acceptance and Accurate Self Image.
9. Leadership:
Manager as a leader, An elementary introduction to leadership
theories.
10. Group Dynamics:
Characteristics of a group, Reasons, Types and control.
11. Communications:
Factors, Process, Noise, Media’s Philosophies or Theories of
communication.
12. Concept of Control:
Control process, Control as a Feedback, Phases, Types, Budgetary
Control, Break-even analysis and Control through Ratios, Control
through R.O.I., Direct control through Key Results areas,
Characteristics of a good control system.
RECOMMENDED BOOKS:
1. Koontz Harald
Weihrich, Beins,
Management Mc-Graw Hill,
New York latest edition.2003
2. Fulmer, Robert M., The New Management, Mc-
Graw Hill, New York, year
33
2003.
REFERENCE BOOKS:
1. Amin Khalid New Management, K.B.E
Book Bank Karachi,2005
2. Dapt, Richad L. Management, 4th Ed. Fort
Worth, The Dryden.
3. Peter Druckerr F. An Introduction View of
Management Hamper’s
College Press New York, .
4. Khursheed H. Siddiqui Introduction to New
Management, 2nd Edition
Ghazanfar Academy, Karachi,
2003.
5. Syed Shoukat Ali New Management, Rehbar
Publisher’s Urdu Bazar
Karachi.
34
B. COM. PART – II
PAPER – III: ECONOMIC DEVELOPMENT
OF PAKISTAN
1. ECONOMIC DEVELOPMENT
a) Definition of Economic Development
b) Distinction between Economic Growth and Economic
Development.
c) Characteristics of a Developing Economy
d) Pre-requisites of Economic Development.
2) RESOURCES OF PAKISTAN AND THEIR ROLE:
a) Natural Resources.
b) Human Resources
c) Capital Resources.
3) AGRICULTURAL DEVELOPMENT:
a) Agricultural Sector and its role
b) Co-operative Farming
c) Agricultural Marketing
d) Agricultural Finance
e) Agricultural Taxation
f) Land-Tenure System and Land Reforms.
4) INDUSTRIAL DEVELOPMENT:
a) Development and Prospects
b) Localization of Industries and Public Investment
c) Large Scale, Small Scale and Cottage Industries
d) Industrial Finance
e) Industrial Policies
f) Land-Tenure System and Land Reforms.
35
5) FOREIGN TRADE:
a) Main Exports and Imports
b) Volume, Value and Trends in foreign Trade, Balance of Payments.
Import Substitution and Export Promotion Strategies
c) Regional and International Organizations – their Role towards
developing Economies with Special reference to Pakistan.
6) FOREIGN AID AND ECONOMIC ASSISTANCE:
Sources, Forms, Cost and benefits of Economic assistance
7) TRANSPORT AND COMMUNICATION:
Means and their role in the Economic Development of Pakistan.
8) BANKING AND FINANCE:
a) Role of Commercial Banks in Economic Development.
b) Money and Capital Markets and their Instruments.
c) Capital Formulation – Sources and Problems.
d) Role and Functions of State Bank in the economic
development of Pakistan.
9) BUDGETING:
a) Sources of Public Revenue and Heads of expenditure,
b) Budget formulation with special reference to Pakistan.
c) Deficit financing.
10) ECONOMIC PLANNING IN PAKISTAN:
a Objective, forms and instruments of Economic Planning with
special reference to current plan in Pakistan.
RECOMMENDED BOOKS
1) Khawaja Amjad ECONOMY OF PAKISTAN,
36
Saeed Institute of Business anagement,
Lahore
2) Waqar Ahmed &
Rashid Amjad
THE MANAGEMENT OF
PAKISTAN ECONOMY
Oxford University Press, 1947-
82.
3) S. Akbar Zaidi ISSUES IN PAKISTANS,
Economy, Oxford University
Pres, year 2003
REFERENCE BOOKS:
1) M. Saeed Nasir, ECONOMICS OF PAKISTAN
, Lahore: Imtiaz Syed Kamal
Hyder Publisher, year 2003
2) Abdul Haleem
Khawaja
ECONOMIC EVELOPMENT
OF PAKISTAN Khawaja &
Khawaja Publishing House,
Islamabad, Latest Edition.
3) Govt. of Pakistan Pakistan Economic Survey
(Latest)
4) M. Aslam Development Planning in
Pakistan.
5) Govt. of Pakistan The Five years Plan (Latest)
NOTE: Latest Edition of the recommended books.
37
B. COM. PART- II
PAPER IV: ADVANCED ACCOUNTING
AND COST ACCOUNTING
PART I: ADVANCED ACCOUNTING -60%
1. Accounting for Companies: Issuance of Shares and Bonds,
Appropriation of Retained Earnings, Declaration and Payment of
Dividends, Financial Statements in accordance with International
Accounting Standards.
2. Accounting for Companies: Absorption, Amalgamation and
Reconstruction.
3. Fund/Cash Flow and Financial Statement Analysis:
Fund Flow Analysis, Cash Flow Statement (Indirect Method):
Financial Statement Analysis - Tools of Analysis, Dollar/Rupees and
percentage Change, Trend percentage, Component Percentage,
Common Size Financial Statements and Ratios, Interpretation.
4. Head Office and Branch Accounting: Recording of Reciprocal
Transaction, Billing of Merchandise at Cost and Above Cost,
Reconciliation, periodic adjustments, Closing Process, Financial
Statement.
5. Accounting for Installment sales under Perpetual Systems,
Defaults and Repossessions, Recognition of Realized Gross Profit,
Reporting of Relevant Accounts on Financial Statement.
RECOMMENDED BOOKS:
1.Simon and Kerrenbrock: Advanced Accounting, 4th
Edition, South Western
38
Publishing Company, Latest
Edition.
2. Meigs and Meigs, Accounting the Basis for
Business Decisions, New
York McGraw-Hill Book
Company 9th Edition.1993
3.Meigs and Meigs: Accounting the Basis for
Business Decisions, New
York McGraw-Hill Book
Company 12th Edition. 2003.
4.Meigs Ealter B. &
Jhonson:
Advanced Accounting,
McGraw-Hill Toronto,
Canada. latest edition
.
39
PART II: COST ACCOUNTING - 40%
1. Accounting for Manufacturing Concern: Cost Accounting
Concepts, Classification of Cost, Statement of Cost of Goods
Manufactured, Income Statement, Closing Entries.
2. Job Order Costing under Perpetual System.
3. Process Costing: Procedure of Process Costing (FIFO Method)
Cost by Department, Product Flow, Cost of Production Report.
4. Standard Costing: Computing and Recording Materials
quantity and Price Variances, Labour Time (Efficiency) and Wage
Variances, Factory Overhead (One Way) Variance.
RECOMMENDED BOOKS:
1. Meigs & Johnson Accounting: The Basis for Business
Decision. Sixth Edition, Latest Year.
2. Jams A. Cashin, Cost Accounting, 9th Ed. Auckland McGraw
Hill, 1981. Ralph S. Polimeni.
3. Matz,Usry, & Hamer Cost Accounting, Planning & Control, 9th
Ed. South Western Publishing Co. Ohio, latest edition.
4. Nasiruddin, Cost Accounting (latest Edition), Aziz
Publishers Urdu Bazar Lahore, 2002-2003
5. S. Qavi Ahmed, Cost Accounting, Latest edition, Latest Year.
40
B.COM.PART-II
PAPER-V: BUSINESS AND INDUSTRIAL LAW
BUSINESS LAW- 70 MARKS
I. LAW OF CONTRACT
Introduction and definition of contract, Essentials of a valid contract,
void agreements, contingent of the contract, Discharge of contract,
Quasi contracts, Indemnity and Guarantee, Bailment and Pledge,
Agency.
II THE SALE OF GOODS ACT
Define goods and its classification, Distinction between sale and
agreement to sell, price, conditions and warranties, Transfer of
property, Transfer of title, unpaid seller and his rights, Delivery and its
rules, Auction sale.
III. THE PARTNERSHIP ACT
Definition of partnership & Determination at will, Rights and duties of
Partner(s) implied authority of a partner, position of a Minor Partner,
Dissolution of Partnership, Registration and effect of non-registration
of the firm.
IV. THE NEGOTIABLE INSTRUMENTS ACT
Introduction, meaning, requirements characteristics of negotiable
instruments, Definition and Distinction of Promissory notes, Bill of
Exchange and cheque. Crossing – object and kinds, A brief
introduction of endorsement, Negotiation, presentment, Acceptance
and Dishonor. Discharge from liability.
V. SECURITIES
41
A brief Introduction of Mortgages, changes and Hypothecation.
VI. CARRIAGE OF GOODS.
Common Carrier. Essentials of a Common Carrier, Rights, and Duties
of a common Carrier. Restricted Liability of Railway Carriage as
common carriage and by Sea.
42
INDUSTRIAL LAW- 30 MARKS
I. THE FACTORIES ACT
Definitions, certifying surgeon and inspector, their powers and duties,
provisions relating to Health, safety and welfare, hours of work and
holidays, special provisions regarding employment of women and
children/Adolescent.
II. INDUSTRIAL RELATIONS ORDINANCE
Definitions, Trade union and its registration, collective Bargaining
agent, unfair labour practices, method of settlement of Industrial
disputes labour courts, strike and lockout.
III. WORKMEN’S COMPENSATION ACT
Meaning of the terms Accident and arising out of and in the course of
Disablement, Employer’s liability, when Employer is not liable to pay
compensation.
REFERENCE BOOKS:
Chaudhry A. G. Mercantile Law in Pakistan,. Pakistan
Publishing House, Karachi, Latest Edition.
Khawaja Amjad Saeed. Mercantile Law of Pakistan
Accountancy& Taxation Services Institute, Lahore. (Latest Ed.)
Khalid Mahmud Cheema, Business Law, Syed Mobin Mahmud Co.
Lahore. Govt. of Pakistan. Relevant Acts and Ordinances (Latest Ed.)
I.R. Hashmi. A Manual of Mercantile Law. (Latest Ed.)
M.C. Shukla. A manual of Mercantile Law, 11th revised
edition S. Chand and Co. (Pvt) Ltd. 1989.
Luqman Baig. Business Law, Ghazanfar Academy
Pakistan, Karachi 1995.
43
W.A.Razzaqui Business and Industrial Law Academic
Commerce Publications
RECOMMENDED BOOKS:
1. Khawaja Amjad Saeed, Mercantile and Industrial
Law of Pakistan Lahore,
Institute of Business
Management, 1999.
2. Hashmi I.R. & Rafiq
Ahmed,
A manual of Mercantile
Law including Industrial
Law, Karachi, Union Book
Stall, 1968.
44
B.COM. PART-II
OPTIONAL (A)
PAPER-VI:AUDITING AND INCOME TAX LAW
PAPER VI “A”
Section A AUDITING MARKS 60
I. Origin of auditing definition of auditing, Scope of audit,
limitations of audit.
II. Audit and investigation.
III. Qualities of an auditor, objects of an audit.
IV. Types of audit according to organization structure:- statutory
audit, private audit, Government audit, Internal audit, from practical
point of view:- Annual or Final audit, Balance sheet audit, Partial
audit, Interim audit, Management audit.
V. Audit Program, advantages of audit program.
VI. Audit working papers, purposes of working papers,
Characteristics of good working papers, Ownership of working papers.
VII. Evidence in auditing, Types of evidence, difficulties in the
collection of audit evidence.
VIII. Audit technique, Types of audit technique, Audit techniques
and related audit evidence, Audit standards and procedures,
Commencement of audit, Appointment, rights, duties and liabilities of
auditor.
IX. Internal control Features of effective internal control, Auditor’s
interest in internal control, Divisible profit, Effects of wrong
calculation of profit.
45
X. Auditor’s report, Clean and Qualified audit report.
SECTION “B”
INCOME TAX LAW 40 MARKS
Int roduct ion, Income Tax author i t ies, sel f assessment
scheme, income exempt f rom tax, Computat ion of total /
taxable income and tax payable of an individual salaried
person income, including rental income from property.
RECOMMENDED BOOKS SECTION “A”
1.R. K. Mautz: Fundamentals of auditing,
John Wi l ley and sons Inc.
New York.
2.Wal ter.W. Bigg: - Practical audit ing
(Publ ishers) Ltd. London.
3.Wal ter. B.
Meigs.E. John
Larson
Principle of audi ting And
Robert f . Meigs Richard D.
Irwin Inc. Homewood
Il l inois.
RECOMMENDED BOOKS SECTION “B”
1.Khwaja Ajmal
Saeed
Income Tax Law ,with practical
problems Accountancy and
Taxation Services Institute
P.O.Box 1164 (Latest – Edition).
(latest year)
2.Luqman Baig:- Income Tax Law Ghazanfer
Academy, Pakistan (Latest –
Edi t ion) .( latest year )
46
B. COM. PART - II
Optional (b)
PAPER –VI: INTRODUCTION TO COMPUTER
APPLICATION IN BUSINESS
1. INTRODUCTION TO COMPUTER AND DATA PROCESSING:
Digital and Analog Computers, Desk top and Lap-top Computers,
Number System, ASCII and EDCDIC Codes.
2. COMPUTER HARDWARE:
Central Processing Unit, RAM, ROM, Special-purpose memories,
Computer Word, Clock-seed, Input/Output, Devices & media.
3. COMPUTER SOFTWARE:
System and Application Software, Operating System, Utility
programme, Programming languages, High-level, low-level,
procedural & non-procedural languages, Object-oriented and data base
query languages, compiler, Interpreter and assembler. Application
software packages.
4. INTRODUCTION TO DATA PROCESSING:
Definition, Analog and digital transmission, modes of data
transmission, Modulation / Demodulation, Communication channels,
Network topologies.
5. OFFICE AUTOMATION APPLICATIONS:
Word Processing Spread Sheet, E-mail, Voice-mail, FAX, Desk-top
publishing internet etc. COMPUTER BASED INFORMATION
47
SYSTEMS; MIS, Accounting Information System, Decision Support
System (DSS), Export System (ES).
BOOKS RECOMMENDED:
1. Robert A. Szymanski, Introduction to Computer &
Information System
2. Raymond Mcleod Jr. Management Information
System, 6th Ed. (Prentice Hall
International Editions
3. Richard D. Irwin Computer and Information
System, 1995.
48
B. COM. PART – II
(Optional (c)
PAPER – VI: PRINCIPLES OF MARKETING
1. Marketing: Nature and scope, marketing functions, importance,
concept and evolution of marketing.
2. Environment and Information System: Micro and Macro roles:
Responding to the marketing environment. Marketing information
system and research process.
3. Study of Consumer Behavior: Characteristics affecting
consumer behavior. Buyer decision process.
4. Target Marketing: Measuring current market demand and
forecasting future demand. Market segmentation and market
Targeting.
5. Product Planning and Development: The meaning of Product
and Classification; new Product Planning product life cycle, Product
mix, Branding Labeling and Packaging decisions.
6. Pricing: Factors affecting price decision, Pricing approaches.
Pricing strategy.
7. Channels of Distributions: Nature and types of Middlemen and
Distribution channels. Selecting the channels. Retailing: nature, types
and importance of retailing; Wholesaling: Types of wholesalers;
Trends in wholesaling. Importance of storage. Transportation means
merits and demerits.
8. The Promotion: Nature and purpose of promotion. Steps in
developing effective communication for marketing. Advertising,
Direct selling and Personal selling. Sales promotion tools. Publicity
49
and Public relation concepts. Brief plan for Advertising and Personal
selling process.
9. Marketing Management: meaning and nature: Building
customer relationship through satisfaction, value and quality,
Evaluating marketing performance.
10. Services Marketing: Nature and importance of services,
marketing strategies for service firms.
RECOMMENDED BOOK:
1. Stanton, William J
and Walker Brach
Fundamentals of Marketing,
(9th Ed. New York Walker
Brach McGraw Hill, 1994
REFERENCE BOOKS:
1. Kotler, Philip &
Amstrong,
Principles of Marketing 6th Ed.
London, Prentice Hall, 1994.
2. Evans, Joel R and
Berman Barry.
Marketing 4th Ed. New York
Mc-Millan 1990
3. Etze, Walker, Staton, Marketing, 6th edition New
York, McGraw Hill, USA,
(latest year)
50
B. COM. PART – II
(Optional (d)
PAPER – VI: PRINCIPLES OF INSURANCE
2. Risk, its treatment, Fundamentals.
3. Principles of Insurance, Uses of Insurance, Types and
Organization including mutual reciprocals. Stock companies.
4. Bloyds, Association.
5. Government Insurance and Relative Position of Private
Insurance.
6. Insurance Contract/Policy.
7. Conditions Warranties.
8. Government regulation for insurance industry.
RECOMMENDED BOOKS:
1. Pakistan Insurance Act 1993 as amended to date.
2. Riegel, R. Miller D. and
William S. A.
Insurance Principles and
Practices, (Prentice Hall)
(latest year)
3. Chartered Insurance
Institute London,
Elements of Insurance
(latest year)
51
B. COM. PART – II
(Optional (e)
PAPER – VI: BANKING AND FINANCE
BANKING:
Definitions and kinds of Bank. Importance and functions of a
commercial Bank, sources of Funds, Features of current, Saving and
Fixed accounts credit instruments.
BANK LOANS ADVANCES:
Loans, cash credit, overdraft, discounting of Bills. Loans at call and
short notice Letter of credit, mortgage, principles of lending.
ISLAMIC BANKING:
Nature of Riba, usury and interest, prohibition of Riba, rationale of
current Saving and investment accounts, Distinction between Islamic
and international based Banks.
CENTRAL BANKING:
Nature objects and functions of a central Bank. The constitutions and
functions of STATE BANK OF PAKISTAN as Government Banking
Agent and Controller of Credit.
FINANCE:
Definition, kind and importance of Finance, sources of business funds
creditor’s funds and owner’s funds, their characteristics, advantages
and disadvantages, Short, Intermediate and Long term finance and
specialized financial institutions (PICIC, ICP, NIT, ADBP).
ISLAMIC MODES OF FINANCING:
52
Consumer finance: Qarz-e-Hasna, trade Finance, Markup, Musharika,
Purchase of Trade Bills, Bal Salam, Leasing, Hire purchases,
investment Finance, Masharika, Mudaraba and Rent Sharing.
WORKING CAPITAL:
Definition, importance, kinds, factors governing the working capital
and sources of working capital.
RECOMMENDED BOOKS:
1. Israr H. Siddiqi Practice and Law of Banking in
Pakistan, 6th edition Royal Book
Co. Karachi, 1998
2. Samuelson P.A. Economics, Mc-Graw Hill 16th
Ed. N.Y. 1998.
3. Saeed Nasir Money Banking and Credit,
Imtiaz Publishers Lahore. (latest
year)
4. Shahid Siddiqui Islamic Banking, Royal Book,
Karachi 1994.
5. Khurshid H.
Siddiqi,
An Introduction to Banking and
Finance, Ghanzafar
Academy Karachi year 2004.
6. Roger LeRoy
Miller
Modern Money and Banking 3rd
Ed. (Relevant Part) Mc David D.
Vanhoose Graw Hill.1985
7. Ziauddin Ahmed Money and Banking in Islam,
International Centre for Research
in Islamic Economics, King
53
Abdul Aziz University, Jeddah.
(latest year)
8. M. Najatullah
Siddiqi
Issues in Islamic Banking, The
Islamic Foundation London Road
Leicester, U.K, 1983.
9. Muhammad Amin
Khalid,
Banking and Finance, K-Be
Book Bank Karachi.2004

Thursday, December 16, 2010

B.COM SUBJECTS KARACHI UNIVERSTY


B.COM 1

ACCOUNTING
STATISTICS AND BUSINESS MATHS
ECONOMICS
INTRODUCTION TO BUSINESS
ENGLISH
PAKISTN STUDIES
ISLAMIAT

B.COM 2

ADVANCED & COST ACCOUNTING
BUSINESS LAW
MANAGEMENT
BUSINESS COMMUNICATION
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Monday, December 13, 2010

MA-ECONOMICS KARACHI UNIVERSITY RESULT 2009 DELAYED

KARACHI UNIVERSITY KA MA-ECONOMICS KA RESULT BARAEY 2009 EXAMS AIKBAAR PHIR DELAY HOGAYA HAY.YE JAMIA KARACHI KE KAI SAALON SAY CHALI ATI HUI NA AHLI HAY..RESULT MAY TAKHIR KE WAJA SAY PREVIOUS KAY STUDENTS,FINAL KI TAYARI SHURU NAHI KARSAKTAY AUR FINAL WALAY BEHTAR JOB YA JIS WAJA SAY BE MASTERS KAR RAHAY HOTAY HAIN US KI TAKMIL NAHI KAR PATAY...MAGAR IS SAY KARACHI UNIVERSITY KE INTEZAMIA KO KOI LAINA DAINA NAHI.WO TO APNI RIWAYAT KI PASDARI KAR RAHAY HAIN.

B.COM EXAMS KU.2010 DELAYED




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Saturday, December 11, 2010

Difference between capital and revenue expenditures

Difference between capital and revenue expenditures affects the fundamental principle of correct accounting. Proper adjustments are necessary before preparation of the final accounts. All items of capital and expenditure will find place in the balance sheet whereas all items of revenue expenditure will be included in the profit and loss account. If any incorrect adjustment or allocation is made between these expenditures, this will falsify the final results as disclosed by the revenue account or the balance sheet.

Capital Expenditures:

Expenditure means the amount spent. Any expenditure incurred for the following purposes is capital expenditure:

For acquiring fixed assets such as land, building, plant and machinery, furniture and fitting and motor vehicles. These assets should not be acquired with a view to resell them at a profit but to retain in the business. The cost of fixed asset would include all expenditure up to the asset becomes ready for use.

For making improvement and extensions to the fixed asset e.g., additions to buildings.

For increasing the earning capacity of a business or for reducing the cost of manufacture, administration or distribution in a business e.g., expenditure incurred in removing the business to a central locality or compensation paid to retrenched employee.

For raising capital monies for the business such as brokerage paid for arranging loans, discount on issue of shares and debentures, underwriting commission etc.

All capital expenditures represent either an asset or liability and are shown in the balance sheet.

List of Capital Expenditures - (Examples of Capital Expenditures):
The following is a list of the usual items of capital expenditures:

Cost of goodwill.

Cost of freehold land and building and the legal charges incurred in this connection.

Cost of lease.

Cost of machineries, plants, tools, fixtures, etc.

Cost of trade marks, patents, copy rights, designs, etc.

Cost of car, lorry etc.

Cost of installation of lights and fans.

Cost of any other assets acquired by way of equipment.

Erection cost of plant and machinery.

Cost of addition to existing assets.

Structural improvements and alteration in the existing assets.

Expenses for developments in case of mines and plantations.

Expenses for administration incurred during construction and equipment of any industrial enterprise.

Expenses incurred in experimenting which finally result in the acquisition of a patent or other rights.


Revenue Expenditures:

Expenditures will be treated as revenue expenditures if it is incurred for the following purposes:

Expenditure for purchasing floating assets i.e., assets meant for resale at a profit or for being converted into saleable goods, such as the cost of goods, raw materials and stores.

Expenditures incurred by maintaining assets in proper working order e.g., repairs to plant and machinery, building furniture and fittings etc.

Expenditures incurred for meeting day to day expenses of carrying on a business e.g., salaries, rent, rates, taxes, stationery, postage etc.

All revenue expenditures have to be deducted from the income earned by the firm. That is to say, all revenue items will be taken to the profit and loss account.

List of Revenue Expenditures - (Examples of Revenue Expenditures):
The following is a list of the usual items of revenue expenditures:

Expenses incurred for the ordinary administration and carrying on the business.

Expenses for repairs, renewals and replacement of permanent assets.

Cost of goods for resale.

Cost of raw materials and stores acquired for consumption in course of manufacturing.

Wages paid for manufacture of products for sales.

Expenses for the manufacture and distribution of the finished goods.

Loss from wear and tear and obsolescence of assets.

Depreciation of lease.

Interest on loans borrowed for business.

Loss from sale of fixed assets.

Fees for renewal of patent rights, etc.

Up-keep and maintenance of motor car and van.

Maintenance of fan and lights.

Book value of assets discarded or totally damaged or destroyed by fire or other reasons.

Difference Between Capital and Revenue Expenditures:

Following is the difference between capital and revenue expenditures.

Capital Expenditures Revenue Expenditures
1 Its effect is long term i.e., it is not exhausted within the current account year. Its benefit is enjoyed in future year or years also. In a word, its effect is reduces gradually. 1 Its effect is temporary, i.e., it is exhausted within the current accounting year.

2 An asset is acquired or the value of an asset is increased as a result result of this expenditure. 2 Neither an asset is acquired nor the value of an asset is increased.

3 It does not occur again and again - it is non-recurring and irregular. 3 It occurs repeatedly - It is recurring and regular.

4 Generally, it has physical existence i.e., it can be seen with eyes. 4 It has no physical existence, i.e., it cannot be seen with eyes.

5 This expenditure improves the position of the concern 5 This expenditure helps to maintain the concern

6 A portion of this expenditure is shown in the trading and profit and loss account or income and expenditure account as depreciation. 6 The whole amount of this expenditure is shown in trading and profit and loss account or income and expense account. But deferred revenue expenditures and prepaid expenses are not shown.

7 It appears in balance sheet until its benefit is fully exhausted. 7 It does not appear in balance sheet. Deferred revenue expenditure, outstanding expenditure, outstanding expenses and prepaid expenses, however, temporarily shown in the balance sheet.

8 It does not reduce the revenue of the concern. Purchase of fixed assets does not effect revenue. 8 It reduces revenue. Payment of salaries to employees decreases revenue.

Capital and Revenue Receipts, Payments, Profits and Losses:

Capitalized and Revenue Receipts:
Receipts refer to the actual amounts of cash received. They can be either of capital nature or revenue nature.

Capital receipts include the following:

Capital brought in by the proprietor at the commencement and any additions made subsequently.

Money borrowed from partners, bankers, private individuals etc.

Money received by the sale of fixed assets.

Money received on account of capital profit.

Revenue receipts include the following:

Money received by the sale of floating assets - by sale of goods.

Money received on account of some revenue profit.

Capital and Revenue Payments:
Definition and Explanation:
Capital payment is an amount paid on account of some capital expenditure and a revenue payment is an amount actually paid on account of some revenue expenditure. Expenditure is the full amount incurred whether paid or not, whilst payments refer to the amount actually paid.

Example:
If a building is purchased for $20,000 from X and $10,000 is paid in cash and the remaining sum to be paid after six months; $20,000 is capital expenditure, but $10,000 is only capital payment. Similarly if goods are purchased from X for 30,000 and $15,000 is paid in cash; $30,000 is revenue expenditure but only $15,000 is revenue payment.

Capital and Revenue Profits:
Definition and Explanation:
Capital profit means a profit made on the sale of a fixed asset or profit earned on raising monies for the business. For example a building purchased for $20,000 is sold for $25,000 the profit $5,000 thus made is a capital profit.

Revenue profit on the other hand is a profit made by the business e.g., profit on the sale of goods, income from investments, commission earned etc.

Whenever, capital profit is made it should either be transferred to the capital account of the proprietor or credited to capital reserve account which would appear as a liability on the balance sheet. But capital profits should in no case be transferred to profit and loss account because it is non-trading profit. Revenue profits on the other hand should be transferred to profit and loss account because they arise out of regular trading operation.

Capital and Revenue Losses:
Definition and Explanation:
Capital loss means a loss made on the sale of a fixed asset or a loss incurred in connection with the raising of money for business. Capital loss may be shown as an asset in the balance sheet. But as this asset is a fictitious nature, it would would advisable to write off it.

Revenue loss, on the other hand, is the loss incurred in trading operations such as loss on the sale of goods. Revenue losses are charged to profit and loss account of the year in which they occur.

More About Capital and Revenue Expenditures:

Capitalized or Deferred Revenue Expenditures:
Where a certain revenue expenditure incurred is of such a nature that its benefit is likely to be spread over a certain number of years, or where it is of non-recurring and special nature and large in amount, in such circumstances, instead of debiting the entire amount to the profit and loss account of the year in which it has been incurred, it may be spread over a number of years, a proportionate amount being charged to each year's profit and loss account. The remaining portion of the expenditure is carried forward and is known as capital expenditure or or deferred revenue expenditure and is shown as an asset in the balance sheet. Item such as preliminary expenses, cost of issue of debentures are examples that may be classified under this head.

Exceptions to General rules:
There are certain expenses which are usually of a revenue in nature but under certain circumstances they become capital expenditures. The following are the examples of expenses which are usually revenue but under certain circumstances become capital.

Legal Charges:
These are, as a rule, revenue charges, but legal charges incurred in connection with the purchase of a fixed asset are capital expenditures as they form an additional cost of the asset acquired.

Wages:
Wages are ordinary a revenue expenditure. But in a manufacturing business where the firm's own men are employed in making of fixed asset, the wages paid for such purpose would be capitalized. For example if the firm's own men are employed in making extension to the factory building or in erection of plant or manufacturing tools for own requirements. the wages and salaries paid to the persons are not revenue but capital expenditures.

Brokerage and Stamp Duty:
Normally these are revenue expenditures, but brokerage paid on acquisition of a property and stamp duty involved thereon can be capitalized.

Freight and Carriage:
This is revenue charge, but freight and carriage paid on newly acquired plant or fixed assets are capital expenditures.

Advertising:
Ordinarily amount expended on advertising is revenue charge but the cost of special advertising undertaken for the purpose of introducing a new line of goods may be capitalized.

Development Expense:
In concern like collieries, mines, tea, rubber etc., all expenses incurred during the period of development are treated as capital.

Preliminary Expenses:
These are the expenses incurred in connection with the formation of a public company. These expenses although are revenue in nature but are allowed to be capitalized and can be shown as an asset in the balance sheet.





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Thursday, December 9, 2010

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Sunday, December 5, 2010

Khula-Family Laws and Judicial Perceptions by Mrs. Rashida Mohammad Hussain Patel


A large number of Ulema even today, refuse to recognize Khula granted by courts
without the consent of the husband as a valid divorce. Confusion is caused by two
parallel and conflicting interpretations of the Islamic Law. On one hand, there is the
statutory law and interpretation by the Superior Courts of Pakistan and on the other, is
the archaic interpretation as preached by the Ulema and supported by their fatwas
(opinion).

PROCEDURE FOR KHULA

Formerly in the case of Khula, women had to face the same stress delay and difficulties
as in cases for dissolution of marriage on other grounds such as cruelty or nonmaintenance.
The husband usually refused to grant Khula to the wife and in order to
defeat this right, the husband claimed huge compensation for Khula, often making false
allegations of having given the wife huge sums in the shape of jewelry and property and
even claiming the property in the name of the wife as belonging to him. This placed a lot
of strain on the judges for such cases required heavy sifting of evidence thus leading to
lengthy procedures.

President General Musharraf has tried to curb this through amendments to the Family
Law Courts Act dated 1st of October, 2002. Presently in cases of Khula, the procedure
has been shortened and simplified. When the wife files a case for dissolution of
marriage, the court issues notice to the opposite party being the husband. If he fails to
appear after the due process of posting and publication, the court can proceed with the
case ex-parte. In case where the husband or his representative appear, he is required to
file a written statement following which the court has to fix a date for pre-trial
proceedings for reconciliation.
The amendments require that “the family court in a suit for dissolution of
marriage, if reconciliation fails, shall pass Decree for dissolution of
marriage forthwith and shall restore to the husband the mehr received by
the wife in consideration of the marriage at the time of marriage.”
This change in the procedural law has brought much needed relief to suffering wives
who had to bear insurmountable delays or long drawn out legal battles for the
enforcement of their right of Khula.
The consequences of Khula differ from that of Talaq by the husband since following a
Khula,

the ex-husband and the ex-wife can remarry without the necessity of any
intervening marriage to another person by the wife, as required for under the doctrine of
Halala which is recognized by most jurists.


Khula’ and issues relating to it.

There are many ways of separation between the spouses (zaujayn). One of these ways is Khula’. Where the husband considers that it is impossible for him to continue the wedlock, he has the right to give divorce. Likewise where the wife considers that it is extremely difficult for her to pull on with the marital tie with her husband, she has the right to get Khula’. However, this is not the only distinction between divorce (talaq) and’ that one is the right of the man and the other is the right of the woman. Rather, there is a basic difference between the two. The divorce (talaq) takes place the moment a man utters some specific words. However the Khula’ does not take place by mere statement of the woman or her demand for Khula’. Rather there is a method for its taking place.
Literal Meaning of Khula’
Literally, the word "Khula’ " means to bring out a thing from another thing. The definition of nikah is to intermingle a thing into the other, to pierce a thing into another, to absorb a thing into another. The Khula’ is opposite to it. Its meaning is otherwise. This word has been made to convey the sense of separation and parting.30
Khil`at is that dress or garment which is put of by an emperor from his own person and bestowed upon any one among his subjects or taxpayer. Thus khil`at is that clothing which is put of by a person from his body. As a separation takes place on account of Khula’ the same has been so termed.
Legality of Khula’
The validity of Khula’ is proved on the authority of both the Holy Qur’an and Sunnah. The Holy Qur’an says:
It is not lawful for you (men), to take back any of your gifts (from your wives), except when both parties fear that they would be unable to keep the limits ordained by Allah if ye (judges) do indeed fear that they would be unable to keep the limits ordained by Allah, There is no blame on either of them if she gives something for her freedom.31
30. Sa`di, Abu Habib, Al-Qamus al-Fiqhi lughatan wa istilahan, Karachi, Idarah al-Qur'an wa al-`Ulum al-Islamiyyah, p.120.
31. Al Quran 2:229.
30
From this verse, two kinds of Khula’ are known. Firstly, any of the spouses (zaujayn) may apprehend that it is difficult to keep the limit of Allah during the wedlock and consequently they part from each other. Secondly, the person vested with authority among the Muslims like a judge (qadi) who considers that the limits of Allah will be broken if separation is not ordered. In such an apprehension the judge may order dissolution of marriage (nikah) on payment of some compensation by the woman to the husband.
In this verse to obtain Khula’ the mention of payment of compensation by the woman is absolute. For detailed injunctions (ahkam) the Sunnah provides guidance. The incident of Thabit bin Qays is mentioned in the Sahih of Imam Bukhari and Sunan of Imam Nisa'i.
The words of the hadith show that two of his wives did not like his countenance as his colour was black and his stature was short. One of his wives, namely, Jamilah bint Abi Salul brought her suit for dissolution of marriage (nikah) in the Court of the Messenger of Allah. After hearing the pleas put forth by her, the Messenger of Allah asked her: Was she prepared to return the garden that had been given to her by Thabit bin Qays. She replied in the affirmative. On that the Messenger of Allah directed her to return the said garden to her husband and directed her husband to accept it and give him a single divorce.32 Similar is the incident of the other wife of Hadrat Thabit bin Qays (Allah’s Pleasure be on him).
Why the woman has not the right of khula` of the same nature as the man has the right of divorce?
To understand this thing it is essential that the basis of nikah is kept in mind which has been termed as Ihsan (a fort) and the man has been termed as Muhsin (One who builds the fort) and the woman has been termed as Muhsinah (the protected one in the fort). It is the man who lays the foundation of the family. It is he who is responsible to pay dower (mahr) to the woman. It is he who is responsible for the food, clothes and shelter and other social needs of the woman. It is he who is to bear the expenses of the maintenance and upbringing of his children. Thus for a family unit he alone is answerable in all manners. So, logically it becomes necessary that he should possess rights in relation to those duties. When he is the Master of the house, he has arranged and put in order everything according to his will and liking.

32. Al-Bukhari, Kit b al-Talaq, Bab al-Khula`, ibid

Those under his care and command must proceed subject to his will and desire. Among other grounds this is also one ground on the basis of which the man has been vested with the right to give divorce (talaq).
Khula’ By Mutual Consent
This is the reason that the process of Khula’ does not become complete by the mere intention, desire or will of the woman. Rather, it has certain circumstances which are mentioned below.
Firstly, there may be a circumstance that a woman demands Khula’ from her husband and the husband immediately gives his Khula’ and makes no demand from her.33
Secondly, there may be a circumstance that a woman demands Khula’ from her husband and the husband also demands some compensation for the upsetting of his marital life and the woman agrees to pay it to her. This compensation cannot exceed the total value of the dower (mahr) of the woman. (see Al-Quran 2/229 and Bukhari and Muslim).
Thirdly, there may be a circumstance that the woman demand Khula’ and the man accepts it willingly. If he demands the dower (mahr) paid by him to her to be returned to him and the woman is willing to do so, the Khula’ may take place.
Khula’ By the Decree of Court
The aforesaid three forms of Khula’ are dependent upon the mutual consent of the parties. Where the Khula’ is not by any one of these three ways and the woman insists that she is to get separation and the man does not agree to it then the woman has a right to lodge a claim for dissolution of marriage (nikah) on the basis of Khula’ before the Court.
At the trial the judge is responsible for two things. Firstly, to examine and consider as to whether there is apprehension of breaking of limits of Allah by any party. Secondly, the judge should hear the stand point of the woman and know the will of the woman. A judge is not expected of anything more. He cannot give a verdict against the stand of the woman.
Where any one of the above two situations are proved, the judge must order separation (Khula’). Where the woman is fulfilling

33. Al-Quran 2:229.

all the conditions of grant of Khula` the judge cannot give any other decision except that of separation (Khula’).
Here a question may arise that if the judge is bound to give a particular kind of decision in a suit for Khula’ then what is the use of judicial proceedings?
The answer is that with regard to Khula’ we have before us a clear question of law. There is no scope for any deviation from the injunctions (ahkam) of Allah and the Messenger of Allah. The only thing which a judge is responsible to see is the question of fact. May be the grievances of the woman be such as may be redressed after the hearing given to by the judge. In such a situation the judge may direct the other side to redress those grievances. The reason is that in the Islamic system of justice it is not the success or failure of either party at the trial. Rather, it is to keep all elements of the society at their proper place for the discharge of their respective functions. Where the judge can remove the grievances of the woman and she is also satisfied with such order there is no reason to cause separation between spouses (zaujayn).
Where after all efforts, sermons, advices, and using all possible means to maintain the family life between the spouses (zaujayn) the woman insists for separation (Khula’) the judge has the power to order the woman to pay back the dower which she had received at the time of Nikah to the husband and then order dissolution of marriage (nikah) on the basis of Khula’. Except this, the judge has no more power in such a case.

After Khula

Khula’ is equal to a single irrevocable divorce (talaq ba'in). A man has no right to revoke it. As the Khula’ is according to the will of the woman. Hence the question of its revocation does not arise. Hence it is considered equal to an irrevocable divorce. However, if the woman agrees to remarry the same man she can with the consent of the man remarry with him.

Dr Shahzad Iqbal Sham
Assistant Prof. Sharia Academy, International Islamic University, Islamabad

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