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Punjab (PTB) · Half book test · Free

1st Year Principles of Accounting Second half Book Paper

50 marks · 1 hour 30 minutes · 35 questions. Covers: 7 chapters (CHAP 8: Cash Book And Bank Reconciliation Statement to CHAP 15: Rectification Of Errors).

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1st Year Principles of Accounting Second 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. 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. A liability depends upon certain future event is called:

    1. Quick liability

    2. Deferred liability

    3. Contingent liability

    4. Current liability

  3. 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

  4. 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

  5. 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

  6. The cash book is a:

    1. Subsidiary journal

    2. Ledger account

    3. Subsidiary journal and ledger

    4. Trial balance

  7. 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

  8. 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

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

    1. Sale

    2. Profit

    3. Expense

    4. Revenue

  10. 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

  11. 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

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

    1. Income

    2. Asset

    3. Capital

    4. Liability

  13. The term impress system is used in relation to:

    1. Cheque book

    2. Pay-in-slip book

    3. Cash book

    4. Petty cash book

  14. Interest on drawings is:

    1. An asset

    2. A liability

    3. An expense

    4. A revenue

  15. 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

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

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

  2. What are errors of trial balance?

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

  4. Differentiate between deferred revenue expenditure and capitalized expenditures.

  5. Define trading account.

  6. What is meant by allowance for doubtful debts?

  7. Define unpresented cheque.

  8. Define the accrual or mercantile system of accounting.

  9. Define error of omission and error of commission.

  10. What do you mean by work sheet?

  11. What is meant by deferred revenue expenditures?

  12. Define net loss.

  13. What is meant by income statement?

  14. How many books does a banker give to the customer at the time of first deposit?

  15. Pass the adjusting entry for prepaid expenses?

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

  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. 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

  3. 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    

  4. From the following particulars prepare a Bank reconcililation Statement of Mr. Irfan as on 31st March 2022 with the help of a revised cash book:

    (a) Bank overdraft as per the Cash Book Rs. 24,000
    (b) Rs. 80,000 worth of cheques were sent for collection and only Rs. 50,000 worth of cheques were collected up to 31st March
    (c) Out of cheques for Rs. 60,000 issued in March. Cheques of Rs. 36,000 were presented for payment
    (d) Bills discounted with the bank and dishonoured Rs. 60,000
    (e) A cheque for Rs. 10,000 entered in Cash Book (debit side) was not sent to the Bank for collection
    (f) Discount received Rs. 500 was entered in the Bank Column erroneously.

  5. 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