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Punjab (PTB) · Half book test · Free

1st Year Principles of Accounting First half Book Paper

50 marks · 1 hour 30 minutes · 35 questions. Covers: 7 chapters (CHAP 1: Introduction to CHAP 7: Special Journals).

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1st Year Principles of Accounting First half Book Paper

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

Name: ____________Roll No: ________Class/Section: ________Date: ________Total marks: 50Time: 1 hour 30 minutes

Q1. Multiple choice questions (Attempt all · 15 × 1 = 15)

  1. A trader whose assets exceed from his liabilities is called:

    1. Debtor

    2. Creditor

    3. Solvent

    4. Insolvent

  2. Purchased goods on credit and for cash will affect:

    1. Cash and goods

    2. Cash and creditors

    3. Cash, creditors  and owner’s equity

    4. Cash, goods and creditors

  3. Goods returned to Ahmad should be debited to:

    1. Sales return account

    2. Ahmad account

    3. Purchase return account

    4. Purchase account

  4. Ledger is called the:

    1. Book of final entry

    2. Book of original entry

    3. Book of compound entry

    4. Book of single entry

  5. Which book is used to record all credit purchases?

    1. Purchases book

    2. Purchase returns book

    3. Cash book

    4. Debit note book

  6. Ahmad, a account is an example of:

    1. Personal account

    2. Real account

    3. Nominal account

    4. None of these

  7. Modern accounting is based on:

    1. Matching concept

    2. Dual aspect concept

    3. Cost concept

    4. Going concern concept

  8. Accommodation bills are drawn, accepted and endorsed:

    1. Without any consideration

    2. For quarter consideration

    3. For some consideration

    4. None of these

  9. When there is no question of meeting the value of a transaction, it will be known as:

    1. Cash Transaction

    2. Credit Transaction

    3. Paper Transaction

    4. None of these

  10. Discount received from Ali should be debited to:

    1. Discount received account

    2. Ali account

    3. Discount account

    4. Discount allowed

  11. The book in which transactions are finally recorded is called:

    1. Journal

    2. Ledger

    3. Trial balance

    4. Financial statement

  12. All the bills given to the creditors are recorded in:

    1. Creditor’s book

    2. Bill payable book

    3. Bill receivable book

    4. Bank book

  13. A summary of transactions relating to a person or thing:

    1. Accounting

    2. Book-keeping

    3. Account

    4. Accountancy

  14. A type of business in which a merchant purchases goods and sells it in the same position is called:

    1. Trading concern

    2. Service concern

    3. Manufacturing concern

    4. None of these

  15. A bill from the point of view of a debtor is called:

    1. Bill acceptable

    2. Bill receivable

    3. Bill payable

    4. None of these

Q2. Short questions (Attempt any 10 of 15 · 10 × 2 = 20)

  1. What are the rules for balancing an account?

  2. Define cross cheque.

  3. Define debtor.

  4. Rules of debit & credit for liabilities, revenue & capital?

  5. Liabilities of a business Rs:150,000 which are 0.25 of proprietorship what will be the amount of: a)Assets  b) Capital.

  6. What is bills receivable book?

  7. Define the term “Journal”.

  8. Describe the process of balancing of accounts.

  9. Define drawee.

  10. Define accountancy.

  11. Define “Real or Property accounts”.

  12. If assets Rs, 80000 and liabilities Rs, 50,000, identify the amount of capital.

  13. Define “Cash Book”, or “Cash Journal”.

  14. Calculate 10% trade discount on sales of Rs 50000.

  15. Define the term “Posting”.

Q3. Long questions (Attempt any 3 of 5 · 3 × 5 = 15)

  1. Prepare accounting equation on the basis of the following:

    (a) Mr. Ferooz started business with Goods Rs. 40,000, Building Rs. 100,000 and Cash Rs. 110,000.
    (b) Purchased goods on account for Rs. 30,000.
    (c) Sold goods on account for Rs. 40,000.
    (d) Cash of Rs. 20,000 deposited into bank.
    (e) Paid cash to supplier of goods Rs. 20,000.
    (f) Paid telephone bill Rs. 4,000 by cheque.

  2. Pass journal entries and show account of Ferooz in the books of Roshin.

    Ferooz for mutual accommodation draws a bill for Rs. 15,000 on Roshin at three months. Ferooz gets the bill discounted by his banker for Rs. 14,625 and remits Rs. 4,875 to Roshin. On maturity Ferooz is not able to send the amount due to Roshin, to enable him to meet the bill. He, however, accepts a bill for Rs. 18,750 which is discounted by Roshin for Rs. 17,625. Roshin meets his acceptance and remits Rs. 900 to Ferooz. Before the due date of the bill Ferooz becomes insolvent and a dividend of 60 paisa in the rupee is received from his estate.

  3. Make the analysis of the following transactions and record them in various accounts by applying the rules of debit and credit.

    July 01, 2022: Invested Rs. 200,000 cash, building Rs. 150,000 and furniture Rs. 50,000.
    July 04 20225: Purchased goods for cash Rs. 88,000 subject to trade discount @ 10%.
    July 07 2022: Purchased goods from Ali & Sons for Rs. 10,000.
    July 12, 2022: Sold goods on account to Zain Rs. 16,000.
    July 15, 2022: Received cash from Zain Rs. 15,6000, discount allowed Rs. 400.
    July 16, 2022: Paid Ali & Sons against account Rs. 9,500, discount received Rs. 500.
    July 18, 2022: Goods taken away by the owner Rs. 7000.
    July 21, 2022: Paid salaries Rs. 1,000, Rent Rs. 1,200 and repairing charges for Rs. 800.
    July 30, 2022: Received commission Rs. 2,400.
    July 31, 2022: Goods distributed as free samples Rs. 2,000.

  4. Record the following transactions in journal.

    Oct 01, 2022:    Umar started business with a capital of Rs. 148,000.
    Oct 02, 2022:    Purchased goods for Rs. 28,000 on credit from Amjad.
    Oct 10, 2022:    Sold goods to Aslam for Rs. 18,000.
    Oct 14, 2022:    Cash given to Amjad Rs. 27,600 and received discount Rs. 400.
    Oct 19, 2022:    Received cash from Aslam Rs. 17,600 in full settlement of account.

  5. 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 1st 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.