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1st Year Principles of Accounting Chapter 5 Test

1st Year · Principles of Accounting · Punjab (PTB)

Name: ____________Roll No: ________Class/Section: ________Date: ________Total marks: 30Time: 40 minutes

Q1. Multiple choice questions (Attempt all · 10 × 1 = 10)

Ledger is called the:
1. Book of final entry
2. Book of original entry
3. Book of compound entry
4. Book of single entry
The book in which transactions are finally recorded is called:
1. Journal
2. Ledger
3. Trial balance
4. Financial statement
Persons or institution are recorded in:
1. Nominal accounts
2. Real accounts
3. Personal accounts
4. Capital accounts
Which of the following normally has a credit balance?
1. Machinery account
2. Purchase account
3. Stock account
4. Sales account
Which of the following statement is true?
1. Assets=Liabilities-Capital
2. Capital=Assets + Liabilities
3. Assets-Liabilities=Capital
4. None of above
Accounts of assets normally have:
1. Debit balance
2. Credit balance
3. Zero balance
4. Both A,B
Left hand side of an account is called:
1. Debit side
2. Credit side
3. Both of Debit & Credit
4. None of these
Dividend received Rs:1500 from A will be posted to credit side of:
1. Cash account
2. Dividend account
3. A,s account
4. None of these
Transactions relating to incomes and expenditures are recorded in:
1. Real accounts
2. Property accounts
3. Nominal accounts
4. Personal accounts
Excess of credit over debit is called:
1. Debit balance
2. Credit balance
3. Opening balance
4. Closing balance

Q2. Short questions (Attempt any 6 of 8 · 6 × 2 = 12)

What are the rules for balancing an account?
Describe the process of balancing of accounts.
Define the term “Posting”.
What does Ledger Entry or Ledger Posting mean?
What is balancing?
What is debit balance?
What are the normal balances for Assets, Liabilities, Revenues and expenses and owner’s equity?
What are the methods of preparing Trial Balance?

Q3. Long questions (Attempt any 2 of 3 · 2 × 4 = 8)

Journalise the above transactions and post them into the ledger.

Mr. Saeed started his business with cash Rs. 130,000 and Building Rs. 240,000 on 1^st January, 2022. His transactions during the month were as follows:
Jan 2, 2022:      Purchased goods for cash Rs. 60,000.
Jan 5, 2022:      Sold goods for cash Rs. 44,000.
Jan 10, 2022:    Bought an iron safe for Rs. 8,000.
Record the following transactions in the journal, post in the ledger and prepare a trail balance.

March 01, 2022: Mr. Ajmal started business with Rs. 160,000 cash, Machinery worth Rs. 20,000 and Stock worth Rs. 80,000.
March 02, 2022: Deposited into bank Rs. 905,000.
March 03, 2022: Bought goods on Credit from Noor Sons Rs. 40,000.
March 06, 2022: Sold goods to Imran for Rs. 24,000.
March 08, 2022: Paid Travelling expenses Rs. 1,200.
March 13, 2022: Issued a cheque to Noor Sons of Rs. 99,600 in full settlement of his account.
March 16, 2022: Received cash from Imran Rs. 23,500 in full settlement of his account.
March 18, 2022: Bank charges made by cheque Rs. 150.
March 22, 2022: Goods sold for cash Rs. 12,000.
March 24, 2022: Paid rent of building by cheque Rs.600.
March 30, 2022: Interest received Rs. 800.
March 31, 2022: Paid carriage Rs. 1,600.
Record the following transactions in Journal and post them in ledger and prepare a trial balance:

May 1, 2022:     Business started with cash Rs. 200,000.
May 4, 2022:     Goods purchased for cash from Anwar Rs. 60,000.
May 7, 2022:     Sold goods to Rahim Bros Rs. 20,000.
May 14, 2022:   Paid salaries Rs. 10,000.
May 20, 2022:   Commission received Rs. 900.
May 25, 2022:   Cash received from Rahim Bros in full settlement Rs. 19,800.