Roll No: Answer Sheet No: _________________

Signature of Candidate: _________________ Signature of Invigilator: ______________

PRINCIPLES OF ACCOUNTING HSSC-I

SECTION – A (Marks 20)
Time Allowed: 25 Minutes PRE-BOARD 2019
NOTE: Section – A is compulsory and comprises pages 1 – 2, All parts of this section are to be answered on the
Question paper itself. It should be completed in the first 25 minutes and handed over to the invigilator.
Deleting/overwriting is not allowed. Do not use lead pencil.
Q.1 Circle the correct option i.e. A/B/C/D. Each question carries one mark.
i. Book keeping provides the
A. Primary function B. Secondary function
C. Final information D. All of these
ii. Any legal activity which is done for the purpose of earning profit is called:
A. Trust B. Society
C. Business D. None of these
iii. It takes place when assets or services are acquired:
A. Revenue B. Cash discount
C. Discount allowed D. Discount received
iv. Resources owned by the business:
A. Assets B. Liabilities
C. Capital D. Profit
v. When cash is pad to creditors, it will decrease
A. Cash B. Capital
C. Debtor D. None of these
vi. Received cash from Azhar will affect:
A. Cash and owner equity B. Cash and creditors
C. Cash and debtors D. Cash and goods
vii. Stationary account is an example of:
A. Expense B. Loss
C. Consumable asset D. None of these
viii. Ahmed’s account is an example of:
A. Personal account B. Real account
C. Nominal account D. None of these
ix. Debit the increase in:
A. Assets, Expenses B. Assets, Revenue
C. Assets, Liabilities D. Both b & c
x. Debit signifies:
A. Increase in asset account B. Decrease in liability account
C. Decrease in capital account D. All of these
xi. A table lost by fire should be debited to:
A. Table account B. Furniture account
C. Loss by fire account D. Purchase account
xii. Good taken by the owner for personal use should be credited to:
A. Sale account B. Drawing accounts
C. Purchases account D. Cash account
xiii. A trial balance is a:
A. Balance sheet B. A rough draft of the final accounts
C. List of the balances in the ledger D. None of these
xiv. The account is a simplest form of a:
A. Journal B. Ledger
C. Trial Balance D. Final account
 xv. Accounts of assets normally have:
A. Debit balance B. Zero balance
C. Credit balance D. Both a & b
xvi. Pass book is prepared by:
A. Debtor B. Creditor
C. Banker D. Customer
xvii. The favorable balance of bank statement is:
A. Credit balance B. All of these Debit balance
C. Zero balance D.
xviii. Cash account is a:
A. Personal account B. Nominal account
C. Real account D. None of these
xix. Errors of omission affects:
A. One account B. Two accounts
C. Three accounts D. None of these
xx. Errors which affect one account can be:
A. Errors of principle B. Errors of posting
C. Errors of emission D. None of these
 PRINCIPLES OF ACCOUNTING HSSC-I
PRE-BOARD 2019

Time Allowed: 2:35Hours Total Marks Section B and C: 80

NOTE: Section “B” and “C” comprise pages 1 – 2 and questions therein are to be answered on the separately
Provided answered book. Answer all the questions from Section ‘B’ and Section ‘C’. Use supplementary
Answer sheet i.e. Sheet – B if required. Write your answers neatly and legibly.

SECTION – B (Marks 30)

Q.2 Attempt any TEN parts. The answer to each part should not exceed 3 to 4 lines. (10 x 3 = 30)
i. Define Accounting.
ii. Define Matching concept.
iii. Differentiate between trade discount and cash discount.
iv. Differentiate between narration and journalizing.
v. Define posting.
vi. Difference between nominal account and personal account.
vii. Differentiate between cheque books and pay in slip.
viii. Define un-credit cheque.
ix. Define suspense account.
x. Expalin error of casting.
xi. Differentiate between monitory event & non-monitory event.
xii. What are the stages of Accounting Cycle?

SECTION – C (Marks 50)

(PART – I)
Note: Attempt any TEN parts. The answer to each part should not exceed 20
Q.3

(PART – II)
Note: Attempt any THREE questions: (3 x 10 = 30)
Q.4 Prepare accounting equation on the basis of the following:
i. Started business with cash Rs. 120,000.
ii. Purchased furniture for cash Rs. 20, 000.
iii. Paid rent Rs. 2000.
iv. Purchased goods on credit Rs. 30,000.
v. Sold goods for Rs. 50,000 for cash costing Rs. 20,000.
Q.5 Record the following transactions in the journal plan, post into the ledger and prepare a Trial Balance:
Jan 1 Ahmed started business with cash Rs. 100,000.
Jan 2 Deposited cash into bank Rs. 60,000.
Jan 3 Purchased goods for cash Rs. 5,000.
Jan 4 Purchased goods from Akbar on credit Rs. 10,000.
Jan 5 Sold goods for cash Rs. 15,000
Jan 6 Purchased building Rs. 20,000.
Jan 7 Paid salaries in cash Rs. 5,000.

Q.6 From the following particulars are certain by the account of Saeed and son’s as on 31st December, 2016.
a) Balance as per cash book Rs. 50,000.
b) Check issued but not presented for the payment into the bank Rs. 7000.
c) Bank charges appeared in bank statement Rs. 100.
d) Dividend received by the Bank Rs. 6000.
e) Check deposited into the bank but not credited by the bank Rs. 5000.
f) Interest on investment collected by the bank Rs. 350.
Required prepare a bank reconciliation statement.

Q.7 Pass journal entries to rectify the following errors.

a) Purchase return book has been under passed by Rs. 100.
b) Sales book has been over cost Rs. 200.
c) Goods sold to ‘A’ were recorded in the ‘B’ account Rs. 500.
d) Purchase furniture for Rs. 8000 posted to purchases account Rs. 1000.
e) Trade expenses of Rs. 180 posted in the ledger Rs. 810.
f) Paid cash to Nazia Rs. 2000 was wrongly recoded to Shazia account.