Skip to content
p.paperbanao.
Continue

Punjab (PTB) · Full book test · Free

1st Year Principles of Accounting Full Book Paper

75 marks · 2 hours 30 minutes · 39 questions. Covers: 14 chapters (CHAP 1: Introduction to CHAP 15: Rectification Of Errors).

Your school name

1st Year Principles of Accounting Full Book Paper

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

Name: ____________Roll No: ________Class/Section: ________Date: ________Total marks: 75Time: 2 hours 30 minutes

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

  1. Wages paid for the erection of a machine debited to wages account is an example of:

    1. Error of omission

    2. Error of commission

    3. Error of principle

    4. None of these

  2. Ahmad, a account is an example of:

    1. Personal account

    2. Real account

    3. Nominal account

    4. None of these

  3. The accounting system in which accounting entries are made on the basis of amount having become due for payment or receipt, is called:

    1. Cash system

    2. Accrued or mercantile system

    3. Outstanding system

    4. None of these

  4. 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

  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. On way of avoiding errors in the permanent accounting records is to use a form which is called:

    1. Bank statement

    2. Trial balance

    3. Balance sheet

    4. Work sheet

  7. The cash book is a:

    1. Subsidiary journal

    2. Ledger account

    3. Subsidiary journal and ledger

    4. Trial balance

  8. An expenditure which is completely exhausted with in the current accounting period is known as:

    1. Deferred expenditure

    2. Revenue expenditure

    3. Future expenditure

    4. Non-recurring expenditure

  9. Ledger is called the:

    1. Book of final entry

    2. Book of original entry

    3. Book of compound entry

    4. Book of single entry

  10. The inflow of assets in return for services performed or products delivered during a period is :

    1. Asset

    2. Revenue

    3. Noncurrent asset

    4. None of these

  11. Modern accounting is based on:

    1. Matching concept

    2. Dual aspect concept

    3. Cost concept

    4. Going concern concept

  12. A liability depends upon certain future event is called:

    1. Quick liability

    2. Deferred liability

    3. Contingent liability

    4. Current liability

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

    1. Debtor

    2. Creditor

    3. Solvent

    4. Insolvent

  14. Goods returned to Ahmad should be debited to:

    1. Sales return account

    2. Ahmad account

    3. Purchase return account

    4. Purchase account

  15. A sale of Rs.1000 to Farid, was credited to his account, it will affect:

    1. Sales account

    2. Farid account

    3. Cash account

    4. Both a,b

Q2. Short questions (Attempt any 12 of 18 · 12 × 2 = 24)

  1. Define trading account.

  2. What are the advantages of worksheet? (any two)

  3. What are the rules for balancing an account?

  4. Define cross cheque.

  5. What is bills receivable book?

  6. Define the term “Journal”.

  7. Define unpresented cheque.

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

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

  10. What are errors of trial balance?

  11. What is meant by allowance for doubtful debts?

  12. Differentiate between deferred revenue expenditure and capitalized expenditures.

  13. What will be the adjusting entry for provision for discount on creditors?

  14. Define debtor.

  15. Define net loss.

  16. What do you mean by work sheet?

  17. Describe the process of balancing of accounts.

  18. Define drawee.

Q3. Long questions (Attempt any 4 of 6 · 4 × 9 = 36)

  1. 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.

  2. 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.

  3. Ascertain the cost of goods sold from the following particulars:

        Rs.
    (i) Opening Merchandise Inventory 19,500
    (ii) Purchases (gross) 150,000
    (iii) Purchases Discounts 3,500
    (iv) Purchases returns and allowances 2,900
    (v) Freight Inwards 2,900
    (vi) Custom duty and clearing charges 2,700
    (vii) Closing Merchandise Inventory 30,900

  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. 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.

  6. From the following Trial Balance of Ahmed & Co. Prepare a ten column work sheet for the year ended 31st December 2022:
    Adjustments:
    (1) Merchandise inventory on December 31, 2022 was Rs. 105,000.
    (2) Depreciation on furniture @ 10% p.a.
    (3) Rent unexpired Rs. 6,000.
    (4) Commission earned but not received Rs. 3,000.

    Accounts Name Dr. Rs. Cr. Rs.
    Cash in hand 15,000  
    Account Receivables 42,500  
    Furniture & Fixtures 90,000  
    Merchandise inventory (01-01-2015) 60,000  
    Goodwill 60,000  
    Accumulated Depreciation on Furniture & Fixture   9,000
    Bank Overdraft   27,500
    Ahmad's Capital   95,000
    Mortgage loan   60,000
    Sales less returns   232,500
    Commission earned   15,000
    Purchases less returns 145,00  
    Rent Expense 24,000  
    Mics. Expenses 2,500  
      439,000 439,000