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Punjab (PTB) · Quarter book test · Free

1st Year Principles of Accounting 4th Quarter Book Paper

40 marks · 1 hour · 28 questions. Covers: CHAP 14: Capital And Revenue, CHAP 15: Rectification Of Errors.

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1st Year Principles of Accounting 4th 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. 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. 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

  3. 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

  4. The amount invested by the owner in the business to produce revenue is known as:

    1. Income

    2. Asset

    3. Capital

    4. Liability

  5. Credit purchases from Ahmad costing Rs.180 were entered in the books for Rs.810 the rectifying entry is:

    1. Debit suspense account

    2. Debit purchase account for Rs. 630 and credit Ahmad account for Rs. 630

    3. Debit Ahmad account for Rs. 630 and credit purchases account for 630

    4. None of these

  6. It is the price of goods sold or services provided by a business to its customers:

    1. Asset

    2. Cost

    3. Capital

    4. Revenue

  7. If a transaction has been completely omitted from the journal it will be considered:

    1. Error of commission

    2. Error of principle

    3. Error of omission

    4. None of these

  8. Transactions, having short-term effects are known as:

    1. Revenue transactions

    2. Capital transactions

    3. Non-monetary transactions

    4. Paper-transactions

  9. When two or more than two errors occurred on the opposite side of the account and cancelled the effect of each other are called:

    1. Errors of omission

    2. Compensating errors

    3. Errors of commission

    4. Errors of principle

  10. Which one of the following is appeared in the balance sheet?

    1. Revenue expenditure

    2. Capital expenditure

    3. Deferred expenditure

    4. Both b,c

  11. Errors which affect one account can be:

    1. Errors of principle

    2. Errors of posting

    3. Error of omission

    4. None of these

  12. Capital loss is shown in balance sheet on:

    1. Asset side

    2. Liability side

    3. Both a & b

    4. Credit side

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

  1. Differentiate between deferred revenue expenditure and capitalized expenditures.

  2. What are errors of trial balance?

  3. What is meant by deferred revenue expenditures?

  4. Define error of omission and error of commission.

  5. Distinguish between capital payments and revenue payments?

  6. The payment of wages for RS.750 was entered twice in the books by mistake. Pass the rectifying entry.

  7. Define deferred revenue expenditures?

  8. What is meant by error of posting?

  9. What do you mean by capital expenditure?

  10. Give two examples of errors of priciple.

  11. Distinguish between capital receipts and revenue receipts.

  12. Define error of principle.

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

  1. Rectify the following errors:
    (a) Sales book under-cast by Rs. 10,000.
    (b) Purchases book under-cast by Rs. 5,000.
    (c) Sales book overcast by Rs. 2,000.
    (d) Purchases book overcast by Rs. 3,000.

  2. State with reason whether the following items should be regarded as capital or revenue:
    (i) Wages paid for the installation of machinery.
    (ii) Payment made on purchase of furniture.
    (iii) Custom duty paid on machinery.
    (iv) Cost of air conditioning.
    (v) Profit earned on sale of fixed assets.

  3. The following errors were found from the Books of a firm. Pass the necessary entries to rectify them:
    (a) Rs. 168,000 paid for Wages to workmen for making show cases had been charged to the Wages A/c.
    (b) A sale of Rs. 36,000 has been passed through the Purchases Book. The customer’s account has, however been correctly debited.
    (c) A sale of Rs. 9,000 to Kabir Bros. was credited to their account.
    (d) Rs. 60,000 paid for the purchase of a Motor Cycle for a partner, had been charged to the miscellaneous expenses account.
    (e) A purchase of Rs. 1,392 had been debited to Supplier’s account as Rs. 1,264. The supplier was Sarwar.

  4. State with reason whether the following items of expenditures are capital or revenue:
    (a) Carriage paid on goods purchased.
    (b) Wages paid to workmen for construction of a new building.
    (c) Replacement cost of a worn-out part of plant.
    (d) Repair to furniture purchased second hand.
    (e) Addition and alternation made in the building.