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Punjab (PTB) · Chapter test · Free

2nd Year Principles of Accounting Chapter 1 TestAccounts from Incomplete Records

30 marks · 40 minutes · 21 questions. Covers: CHAP 1: Accounts from Incomplete Records.

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2nd Year Principles of Accounting Chapter 1 Test

2nd Year · Principles of Accounting · Punjab (PTB)

Name: ____________Roll No: ________Class/Section: ________Date: ________Total marks: 30Time: 40 minutes

Q1. Multiple choice questions (Attempt all · 10 × 1 = 10)

  1. In increased net worth method, profit or loss is calculated by preparing:

    1. Income and expenditure account

    2. Profit and loss account

    3. Statement of profit or loss

    4. Balance sheet

  2. The format sketch of statement of affairs is similar to:

    1. Trial balance

    2. Profit & loss account

    3. Balance sheet

    4. Income & Expenditure account

  3. Due to drawings made during the year, the closing capital will:

    1. Increase

    2. Decrease

    3. Constant

    4. Multiply

  4. In single entry system, statement of assets, liabilities and capital is called:

    1. Income statement

    2. Earning statement

    3. Statement of profit or loss

    4. Statement of affairs

  5. In single entry system the final accounts are prepared by means of statement of affairs:

    1. Correctly

    2. Effectively

    3. Wrongly

    4. Approximately

  6. In single entry system ledger contains the accounts of:

    1. Debtors, creditors and cash

    2. Wages and carriage

    3. Salaries and insurance

    4. Assets and liabilities

  7. If cash paid to creditors Rs.33075; returns outwards Rs.225; credit purchase Rs.67500; cash purchases Rs.25000, then the value of closing creditors will be;

    1. Rs.34300

    2. Rs.34500

    3. Rs.34200

    4. Rs.34000

  8. If the capital at the end Rs.45000; fresh capital introduced during the year Rs.15000; capital in the beginning Rs.32500; then the amount of loss will be:

    1. Rs.2500

    2. Rs.27500

    3. Rs.62500

    4. Rs.45000

  9. Single entry system contains:

    1. A daybook or general journal

    2. A cashbook

    3. Ledger accounts for individual customers and creditors

    4. All of above

  10. To calculate the true net profit or net loss in single entry system it is necessary that the amount of fresh capital should be subtracted from:

    1. Adjusted closing capital

    2. Closing capital

    3. Cash in hand

    4. Cash at bank

Q2. Short questions (Attempt any 6 of 8 · 6 × 2 = 12)

  1. Write the equations to calculate the value of adjusted capital (at the end) and profit or loss under single entry system.

  2. How many methods are available for the determination of profit or loss under single entry system?

  3. What is statement of affairs?

  4. What are the disadvantages of single entry system? (Any three)

  5. Clearly distinguish between single entry and double entry system of accounts.

  6. What do you understand by increased-net worth method of single entry system?

  7. Distinguish between statement of affairs and balance sheet.

  8. What do you understand by single entry system?

Q3. Long questions (Attempt any 2 of 3 · 2 × 4 = 8)

  1. Prepare a Trading Profit and Loss Account for the year ended 31st December, 2022 and a balance sheet as on that date.
    Mr. Tipu keeps his books under single entry system. The position of his business as on 1st Jan., 2022 was as under:
    Sundry creditors Rs. 17,000; Freehold premises, Rs. 50,000; stock Rs. 25,000; Sundry Debtors Rs. 20,000; Furniture Rs. 2,000. An abstract of Cash book is appended below:

    Receipts Rs. Payments Rs.
    Sundry Debtors 15,000 Overdraft ( 1.1.2016) 10,000
    Cash Sales 80,000 Expenses 50,000
        Drawings 3,000
        Sundry creditors 20,000
        Cash in hand 2,000
        Cash at bank 10,000
      95,000   95000

    The following additional information is available:
    Closing stock Rs. 30,000; Closing Debtors Rs. 25,000; closing creditor Rs. 12,000. No additions were made during the year to premises and Furniture account, but they are to be depreciated at 10% and 15% respectively. A bad debts reserve on 21/2 % is to be raised.

  2. Prepare trading and profit and loss account for the year ended 31st Dec., 2022 and the balance sheet as at that date.
    Arshad keeps his books by single entry system. He gives you the following information.

      1-1-2022 31-12-2022
      Rs. Rs.
    Cash in hand 500 -
    Cash at bank 2500 7000
    Debtors 7500 8000
    Stock in trade 45000 37500
    Furniture 5000 5000
    Creditors 15000 10000

    During the year he received Rs. 110000 from debtors and paid Rs. 75000 to creditors. He paid Rs. 21000 for wages which includes Rs. 200 per week to himself. He paid Rs. 10000 to sundry expenses. The creditors figure Rs. 75000 include Rs. 2500 for goods of his own use. He charges 10% depreciation on furniture.

  3. Sagheer is not writing his book properly. From the following information prepare a statement showing profit or loss and statement of affairs for the year ending 30th June, 2022.

      1.7.2021 30.6.2022
    Cash in hand 1,800 5,600
    Debtors 45600 42800
    Creditors 62400 56800
    Stock 66800 74800
    Bills receivable 61000 57600
    Bank overdrafts 81600 78400
    Motor van 8400 8400
    Furniture 6800 6800

    Drawings Rs. 9600; depreciate furniture at 10%. Write off Rs. 1600 on motor van. Provide Rs. 2000 as bad debts and 5% as reserve on debtors. Provide reserve of Rs. 3200 on Bills receivable.