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Punjab (PTB) · Quarter book test · Free

1st Year Principles of Accounting 3rd Quarter Book Paper

40 marks · 1 hour · 28 questions. Covers: 4 chapters (CHAP 10: Final Accounts: The Completion Of Accounting Cycle to CHAP 13: Financial Statements).

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1st Year Principles of Accounting 3rd Quarter Book Paper

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

Name: ____________Roll No: ________Class/Section: ________Date: ________Total marks: 40Time: 1 hour

Q1. Multiple choice questions (Attempt all · 12 × 1 = 12)

  1. 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

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

    1. Quick liability

    2. Deferred liability

    3. Contingent liability

    4. Current liability

  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. 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

  5. Net sales-cost of goods sold-operating expenses=?

    1. Net purchases

    2. Cost of goods sold available for sale

    3. Net operating income

    4. Gross profit

  6. The price of goods sold or service rendered to the customers is called:

    1. Sale

    2. Profit

    3. Expense

    4. Revenue

  7. Interest on drawings is:

    1. An asset

    2. A liability

    3. An expense

    4. A revenue

  8. Which one of the following is used to simplify work, to be done at the end of period:

    1. Balance sheet

    2. Income statement

    3. Bank statement

    4. Work sheet

  9. From the business point of view, interest on drawings is:

    1. An asset

    2. An expense

    3. A liability

    4. A revenue

  10. 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

  11. The debts, the recovery or realization of which is uncertain are known as:

    1. Bad debts

    2. Doubtful debts

    3. Provision for doubtful debts

    4. Loan

  12. Worksheet provides complete information for preparing:

    1. Income statement

    2. Position statement

    3. Financial statement

    4. Bank Reconciliation statement

Q2. Short questions (Attempt any 8 of 12 · 8 × 2 = 16)

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

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

  3. What is meant by allowance for doubtful debts?

  4. Define trading account.

  5. Define the accrual or mercantile system of accounting.

  6. What do you mean by work sheet?

  7. What is meant by income statement?

  8. Define net loss.

  9. Pass the adjusting entry for prepaid expenses?

  10. Why balance sheet is to be prepaid?

  11. What do you understand by the term “Prepaid Expenses”?

  12. Define Liquid or Quick liabilities?

Q3. Long questions (Attempt any 3 of 4 · 3 × 4 = 12)

  1. 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    

  2. 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

  3. The following trial balance was extracted from the books of Rahim on 31-12-2022:
    Adjustmenrs:
    (1) Closing stock Rs. 81,000.
    (2) Building is to be depreciated at the rate of 5% p.a. and furniture at the rate of 10% p.a.
    Prepare trading and profit and loss account and balance sheet.

    Particulars Debit Particulars Credit
      Rs.   Rs.
    Opening stock 58,000 Capital 100,000
    Building 100,000 Sales 421,000
    Purchases 286,000 Sundry creditors 120,000
    Sundry debtors 139,000 Purchases returns 21,000
    Sales returns 36,000    
    Carriage inward 6,000    
    Carriage outward 8,000    
    Salaries 16,000    
    Furniture 8,000    
    Cash in hand 5,000    
      662,000   662,000

  4. 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