Government Post Graduate College Samanabad Faisalabad

Monthly Test 2019- Accounting

Total Marks 10 Time 40 Mins
1. Which term is associated with "left" or "left-side"? What will usually cause an asset account to increase?
Debit Debit
Credit Credit
2. 6.
Which term is associated with "right" or "right-side"? What will usually cause the liability account
Debit Accounts Payable to increase?
Credit Debit
3. Credit
When cash is received, the account Cash will be 7.
Debited Entries to expenses such as Rent Expense are usually
Credited Debits
4. Credits
When a company pays a bill, the account Cash will 8.
be Entries to revenues accounts such as Service
Debited Revenues are usually
Credited Debits
5. Credits

Define:
1. Accounting Equation 6. Transaction
2. Accounting 7. Ledger
3. Drawings 8. Trial Balance
4. Tangible assets 9. Accounts payable
5. Owner’s Equity 10. Commission

Problem:
Creative Advertising, owned by Miss Abida Masood, provides advertising consulting services.
During January 2011, the following events occurred:
Jan. 2 Owner contributed Rs. 50,000 and a new computer costing Rs. 20,500 to start her
business.
Jan. 4 Office supplies were purchased on account for Rs. 4,000.
Jan. 10 Creative Advertising obtained 12% 5-year loan of Rs. 20,000 from the bank.
Jan. 12 Creative Advertising paid the utility bills for Rs. 2,750.
Jan. 15 Paid the Rs. 3,000 in Accounts Payable from the purchase of office supplies on Jan. 4.
Jan. 24 Advertising services completed in January were billed to clients Annies’ Flowers at Rs.
18,300.
Jan. 27 Creative Advertising received Rs. 5,500 from Annies’ Flowers, a client, as payment on
account.
Jan. 30 Miss Abida Masood withdrew Rs. 6,000 of cash for personal use.

Requirement: You are required to pass Journal Entry, post to appropriate general ledger account
and make a trial balance?