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1st Year Principles of Accounting Chapter 9 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)

A liability depends upon certain future event is called:
1. Quick liability
2. Deferred liability
3. Contingent liability
4. Current liability
The price of goods sold or service rendered to the customers is called:
1. Sale
2. Profit
3. Expense
4. Revenue
It is prepared to determine the gross profit or gross loss:
1. Trading account
2. Profit or loss account
3. Balance sheet
4. None of these
Net profit is transferred to:
1. Creditor’s account
2. Debtor’s account
3. Drawing account
4. Capital account
Goodwill, patent, copyright and trade mark are:
1. Wasting assets
2. Intangible assets
3. Fictitious assets
4. Liquid assets
Gross profit equals to:
1. Net profit minus expenses
2. Sales minus closing stock
3. Purchases minus closing stock
4. Sales minus cost of goods sold
All the expenses connected with the management of the business are called:
1. Office expenses
2. Selling expenses
3. Financial expenses
4. Other expenses
Gross profit is credited to:
1. Trading account
2. Profit or loss account
3. Balance sheet
4. None of these
Closing stock is recorded in:
1. Income statement only
2. Trading account only
3. Profit or loss account only
4. Trading account and balance sheet
Assets which have no market value are called:
1. Wasting assets
2. Fictitious assets
3. Intangible assets
4. Tangible assets

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

Define trading account.
Define net loss.
Define Liquid or Quick liabilities?
Define final account.
Define gross loss.
Show the complete “Accounting cycle”.
Define income statement.
How many types of current liabilities are there?

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

Prepare the profit and loss account of Mr. Ajmal for the year ended 30-06-2022 from the following information:

Particulars	Rs.	Particulars	Rs.
Gross profit	44,900	Office electricity charges	550
Salaries & Wages	1,300	Bad Debts	640
Insurance	950	Office rent	1,250
Audit fee	740	Discount received	740
Discount allowed	450	Dividend received	900
Bank charges	1,640
Commission paid	400

Prepare a trading and profit and loss account for the year ended 30^th June 2022: Closing stock was valued at Rs. 10,000.

	Debit Rs.	Credit Rs.
Cash	12,982
Debtors	3,470
Creditors		19,500
Plant	61,300
Custom duty	8,590
Salaries	7,850
Trucks	46,600
Bank Loan		16,830
Furniture	36,000
Sales		179,900
Purchases	79,200
Capital		60,852
Repairs	4,390
Insurance	16,700
	277,082	277,082

(a) Prepare a Trading Account for the year ended 31-12-2022.
(b) Prepare a revised Trial Balance after preparation of Trading Account.
The following Trial Balance was extracted from the books of Salman on 31-12-2022.

Particulars	Dr.	Particulars	Cr.
	Rs.		Rs.
Opening stock	116,000	Capital	200,000
Building	200,000	Sales	842,000
Purchases	572,000	Sundry Creditors	240,000
Sundry debtors	278,000	Purchases Returns	42,000
Sales returns	72,000
Carriage inward	12,000
Carriage outward	16,000
Salaries	32,000
Furniture	16,000
Cash in hand	10,000
	13,24,000		13,24,000