SIR SYED INSTITUTE

of science commerce

PRINCIPAL OF ACCOUNTING PART-I 2015 Annual

TIME 30 minutes

(OBJECTIVE)

PAPER OF I.COM (1) (MCQS)

(1)Expenses paid by a business decrease:
(a) Cash (b) capital (c) cash and capital (d) none of these
(2)Resources owned by the business:
(a)Assets (b) Liabilities (c) Capital (d) Profit
(3)According to accounting equation capital is equal to:
(a)Assets +Liabilities (b) Expenses-Income(c) Liabilities-Assets (d) Assets-Liabilities
(4)The excess of Assets over the liabilities is called:
(a)Profit (b) Income(c) Capital (d) Equities
(5) Complete the missing amount in each of the following cases:
Assets

= Liabilities

99500

+ Owner Equity

50500

(6)The money with which proprietor starts his business is called

(a)Cash (b) Investment (c) Capital (d) Aid
(7)The art of recording transactions in a journal is called:
(a) Posting (b) Journalizing(c) Ledger entry (d) Compound entry
(8)Goods taken by the owner for personal use should be credited to:
(a)Sale account (b) Drawing account (c) Purchasing account (d) Cash account
(9)A bill of exchange is drawn by:
(a) Debtor (b) Creditor (c) Endorser (d) Endorsee
(10)The parties involves in case of discounting of bill:
(a) Two (b) Three (c) Four (d) None of these
(11)Bill payable account is a:
(a)Debtor (b) Creditor (c) Solvent (d) Insolvent
(12)Its is use to only record cash receipt and payments:
(a) Single column cash book (b) Double column cash book (c) Treble column cash book (d) Sale book
(13)Pass book is prepared by:
(a)Debtor (b) Creditor (c) Banker (d) Customer
(14)Unfavorable balance means:
(a)Credit balance in pass book (b) Credit balance of cash book
(c) Debit balance in bank statement (d) Both B and C
(15)Money can be deposited into bank, by means of:
(a)Cash book (b) Cheque book (c) pay-in slip book (d) pass book
(16)Gross profit is credited to:
(a)Trading account (b) Profit or loss account (c) Balance sheet (d)
None of these
(17)Net Profit is equal to:

MARKS: 15

SIR SYED INSTITUTE

of science commerce

PRINCIPAL OF ACCOUNTING PART-I 2015 Annual

TIME 30 minutes

(OBJECTIVE)

(a)Gross profit - Expense (b) Sale - cost of goods sold (c) Sale - Expense (d) Capital Expense
(18)Liquidity performance method is usually adopted by:
(a)Joint stock companies (b) sole Trader ship (c) Bank (d) Insurance companies
(SHORTS QUESTIONS)
(1)Define Business.
(2) What are Cash sales?
(3)Who are Debtors?
(4)Define Assets?
(5)What is Stock?
(6)Define the Term Drawing into Business.
(7)What is dual Aspect Concept?
(8)Make an Accounting Equation.
(9)What are non monetary events?
(10)Define the Term Account into Business.
(11)What is personal Account?
(12)Draw an Accounting cycle.
(13)How can we calculate Gross profit in trading account?
(14)What is balance sheet?
(15)What is Dishonor of cheque?
(16)Define Voucher?
(17)What are types of bank account?
(18)What is contra Entry?
(19)Define Purchase book?
(20)What is Debit note?
(21)How many parties are involves bill of exchange?
(22)What is Foreign bill?
(23)Define the term Days of Grace with an example.
(24)Who is a Drawee in bill of exchange?
(25)What is a bank?
(26)Define Double Column cash book.
(27)What is Renewal of bill of exchange?
(28)What is drawing with an example?

MARKS: 15

SIR SYED INSTITUTE

of science commerce

PRINCIPAL OF ACCOUNTING PART-I 2015 Annual

TIME 30 minutes

(OBJECTIVE)

MARKS: 15

(Problems)

Following is the trial balance of irfan Brothers as on 31 st December 2015

Debits

Rs.

Credits

Rs.

Drawing
Cash
Purchases
Goodwill
Stock(1-1-201)
Building
Freight
Debtors
Trading expense
Sales Return

3750
22500
6500
28500
24250
24000
250
15000
7000

Bank overdraft
Sales
Capital
Purchase Return
Bill payable

12500
65500
46250
750
7250

5000

13225
13225
0
0
Closing stock was valued at Rs.5000.Prepared Trading profit and loss account and balance sheet at that date.
(Q#2)From the following particulars prepare a Treble column cash book
1-DEC-2015
Cash in hand Rs.1500 and at bank Rs70000
2-DEC-2015
Received from Rameez Rs.9900, Discount allowed Rs.100.
3-DEC-2015
Deposit into the bank Rs.5000.
4-DEC-2015
Purchased goods for Rs.25000 and paid by cheque
5-DEC-2015
sold goods to Amir on credit Rs.7000
7-DEC-2015
Received from Amir a cheque for Rs.7000
8-DEC-2015
Sold goods for cash Rs.7000
9-DEC-2015
paid saleem Rs.9800 by cheque, discount received Rs.200
11-DEC2015
Paid telephone charges Rs.600
13-DEC-2015
Purchased goods for cash Rs.4000
19-DEC-2015
Withdraw from bank for business use Rs.10000
25-DEC-2015
Paid rent by cheque Rs.700
31-DEC-2015
stationary purchased for cash Rs.150
(Q#3)From the following particulars prepare a bank reconciliation statement as at 31 st December 2015
(1)Overdrawn as per cash book
(2)Interest on bank overdraft
(3)Cheque issued but not cashed
(4)Cheque paid in but not
(5)B/R discounted with the bank
(Q#4)On 1st September 2015, A
Rs.2200 at 2 month and 2nd for
The bills are honored by the A

Rs510
0
Rs.11
5
Rs.90
0
Rs.13
75
Rs.31
5

debited in pass book only

from bank
cleared by bank
in November but dishonored 31st December
owes B a sum of Rs.3000, he gives him two acceptances one for
Rs.800 at 3months .B endorses the 1st bill in the favors of his creditor C and the 2 nd bill to his bank for collection. Both
on due date. The bank charge Rs.20 as collection charges.

(Q5)Records the following transaction in Journal and post them into ledger and prepare a trail balance:
Rs.100
1-May2015
Business
started with cash
000
4-May2015
Goods
purchased from Anwar
Rs.300
7-May2015
Sold goods
to Rahim Bros
00
14-May2015
Paid
salaries
Rs.100
20-May2015
Commission received
00
25-May2015
Cash
received from Rahim Bros in full settlement
Rs.500
0
Rs.450
Rs.990
0