Accounting Basics and Principles

Test No Contents
01 Chapter # 02 Nature and scope of business, Ch no 15 Middlemen

‫ کامرس کا مفہوم اور وسعت۔‬1 ‫سبق نمبر‬
02 Chapter # 03 Sole Trader ship , Ch no 14 Export Trade
‫ واحد ملکیتی کارو بار‬2 ‫سبق نمبر‬
03 Chapter # 04 Partnership
‫ شراکت‬3 ‫سبق نمبر‬
04 Chapter no 5,6, Joint stock company I,II,
‫ مشترکہ سرمایہ ساز کمپنی ۔‬4 ‫سبق نمبر‬
05 Chapter no 7 Joint stock company III
‫ مضاربہ و مشارکہ‬6 ‫ سبق نمبر‬، ‫ انجمن امداد باہمی‬5 ‫سبق نمبر‬
06 Chapter no 8 Corporative Society, Chapter no 13 Import Trade
‫ غیر ملکی تجارت‬8 ‫ سبق نمبر‬، ‫ ملکی تجارت‬7 ‫سبق نمبر‬
07 , Chapter # 09 Home Trade , Chapter no 10 Whole sale trade
‫ کاروباری کارندے‬9 ‫سبق نمبر‬
08 Chapter no 11 Retail trade
‫ تشہیر اور فروش کاری‬10 ‫سبق نمبر‬
09 Chapter no 16 Sales Promotion, Chapter no 17 Business finance
‫ کاروباری مالیا ت‬11 ‫سبق نمبر‬
10 Chapter no 18 Insurance
‫ بیمہ کاری‬13 ‫سبق نمبر‬
11 Chapter no 20 Warehousing
‫ کارو باری دفتر اور اسکا طریقہ کار‬15 ‫سبق نمبر‬
12 Chapter no 23 Office Machines Chapter no24 Filing

and indexing.
‫ کاروباری مراسلت‬19 ‫ ذخیرہ اندوزی سبق نمبر‬16 ‫سبق نمبر‬
Central College Multan
Test schedule for I.com (I)
Subject: Accounting
Class: I.COM PART I Time allowed: 1 Hr
Max. Marks: 30 Roll No: __________
Q.No.01 Encircle the best one. (6)
1. The pioneer of accounting is
(a) Arthur field house (b) Gitman
(c) William pickles (d) Lucas Pacioli
2. Book keeping provides the
(a) Primary information (b) Secondary information
(c) Final information (d) None of them
3. Cash invested by the owner is called;
(a) Asset (b) Capital
(c) Loan (d) Liabilities
4. A document given by the seller to the buyer for credit sale is called.
(a) Cash memo (b) Invoice
(c) Voucher (d) None of them
5. Owners and business are called
(a) Similar entities (b) separate entities
(c) Dependent entities (d) none of these
6. The term expenses and expenditures are
(a) Same (b) Different
(c) Opposite (d) None of these
Q No. 2 Answer the following short question (16)
1. What is book keeping?
2. What is an accounting cycle?
3. How many systems accounting has?
4. What is business?
5. What is capital?
6. What is trade discount?
7. What is term expenditure?
8. Define trading?
Q No. 3
Define accounting and discuss its function (8)
LEADERSHIP COLLEGES NETWORK

Test # 02, 2012
Subject: Accounting
1. Accounting principles are generally based on
a. Practicability b. subjectivity
c. Conveniences in recording d. All of the above
2. Universally accepted customs rules or traditions are called:
a. Accounting principles b. accounting rules
c. Accounting traditions d. accounting conventions
3. A person or enterprise to which a debt is owed
a. Account receivable b. account payable
c. Note payable d. Note receivable
4. Assets minus liabilities is
a. Profit b. Working capital
c. Capital d. Long term liabilities
5. Assets must equal to
a. Capital b. Liabilities
c. Liabilities + capital d. Liabilities + bank loan
6. Realization concept implies
a. The receipts of the order b. The delivery of the goods
c. The receipt of cash from customers d. None of them
Q.No. 2. Answer the following short question (14)

1. What is accounting equation?
2. What is accounting concept?
3. What is dual aspect concept?
4. What is going concern concept?
5. What is convention of conservatism?
6. What is convention of consistency?
7. What is accounting constrains?
Q No. 3 (10)
Show the effect of the following transactions on accounting equation
2010
Jan 1. Ali Taj started business with cash Rs. 200000
Jan 3. Purchase furniture for cash Rs. 15000
Jan 5. Purchase goods for cash 30000
Jan 7. Purchase goods on credit Rs 50000
Jan 12 Sold goods for cash Rs 20000 costing Rs 15000
Jan 20 Sold goods to Ali Taj Rs 25000 costing Rs 21500
Jan 25 Cash paid to creditor Rs 30000
Jan 28 Cash received from debtors Rs 20000
Jan 30 Paid rent Rs 3000
Jan 31 Paid salaries Rs 2000

Test # 03, 2012
Subject: Accounting
1: Personal accounts are related to
a. Assets and liabilities b. Real accounts
c. Nominal accounts d. Valuation account
2: Account relating to the persons or firms is called:
a. Personal accounts b. Real accounts
c. Nominal accounts d. None of them
3: A debit represents an increase in
a. An asset b. Equity
c. Liability d. Owner equity
4: Discount received is related to
a. Assts b. Revenue
c. Liability d. Expenses
5: Cash in kind of
a. Personal b. Real account
c. Nominal account d. All
Q No. 2 Answer the following short question (15)
9. Define the term account
10. What is personal accounts
11. What is real account
12. What is valuation account
13. Explain three rules of debit and credit for valuation account
14. Explains the rules of debit and credit for assets accounts
15. What are impersonal account
16. Explain the rules of debit and credit for withdrawals accounts
Q No. 3 (10)
The following transactions relates to the business of saqib traders.
i. Started business with cash 200000
ii. Purchased goods for cash 100000
iii. Sold goods to imran \& co 20000
iv. Bought furniture for cash 10000
v. Purchased goods from Aslam 50000
vi. Received cash from imran and co 20000
vii. Paid cash to Aslam 50000
viii. Paid salaries to staff 10000
ix. Paid rent for the month 1000
Required
Under traditional classification of accounts
i. What are two accounts
ii. Nature of accounts
iii. Reasons for debit and credit

Test # 04, 2012
Subject: Accounting
Q # 01: Encircle the correct answer: (06)
1: Explanation below entry is called:
(a) Entry (b) Narration
(c) Double Entry (d) None
2: Compound entry affected at least:
(a) Two accounts (b) Three accounts
(c) One accounts (d) Four accounts
3: Journal is prepared in:
(a) Columnar form (b) Vertical form
(c) Horizontal form (d) Row form
4: Goods returned to supplier should be credited to:
(a) Supplier account (b) Sales return account
(c) Purchase return account (d) Purchase account
5: Discount has:
(a) Two types (b) Three types
(c) Four types (d) Five types
6: Cash sale to Mr. A will be debited to:
(a) Mr. A account (b) Cash account
(c) Sales account (d) Goods account
Q # 02: Define the following: (14)
1. Journal
2. Entry
3. Casts and carry forwards
4. Why journal is also called as a “Day Book”
5. Write two advantages of journal?
6. Purpose of L/F column in Journal
7. Pass journal entry for goods worth Rs. 12000 were stolen
Q # 03: Journalize the following transactions in the books of Mr. Saleem. (10)
1. Purchased building for cash Rs. 25000
2. Purchas goods for cash Rs. 50000
3. Sold goods for cash Rs. 15000
4. Sold goods to B Rs. 10000
5. Paid salaries for Rs. 2000

Test # 05, 2012
Subject: Accounting
1: If the debit side of the balance is bigger, then the balance is called as:
(a) Debit (b) Credit
(c) Positive (d) Negative
2: If the credit side of the balance is bigger, then the balance is called as:
3: If both sides of the account are equal then the ledger is called as:
(c) Positive (d) Zero/ Nil
4: Kings of the all books of accounts is called:
(a) Journal (b) Ledger
5: Trial Balance has the basic forms:
(a) One form (b) Two forms
(c) Three forms (d) Four Forms
6: A Trial balance is a:
(a) An Account (b) A statement
(c) A book (d) Journal
Q # 02: Write the answers of the following: (14)
1. Debtor’s Ledger
2. Creditor’s ledger
3. Folioing
4. Posting
5. Forms of Ledger
6. Methods of preparing ledger
7. Nil/ Zero balance Ledger
Q # 03: Mr. Zain started his new business and the following transactions occurred during the
month:
1. Started business with cash Rs. 225000
2. Purchased land for Rs. 72000
3. Purchase building for Rs. 48000
4. Purchase goods for Rs. 100000
5. Sold Goods for Rs. 25000 received Rs. 15000 and remaining later on.
6. Purchase goods on credit Rs. 20000
7. Sold Goods on Credit Rs. 18000
Required: make the journal entries and record them in the ledgers and prepare the Trial
balance under balance method (10)

Test # 06, 2012
Subject: Accounting

1: On opening bank account, bank issues to his client:
(a) Cheque book (b) Pass book (c) Both a& b (d) None of them
2: Commission of Bank draft is paid by:
(a) Bank himself (b) Purchaser of draft (c) Payee (d) All of the above
3: Crossing of a Cheque which contains the name of the particular bank is called:
(a) Regular Crossing (b) Irregular Crossing (c) General Crossing (d) Special Crossing
4: The Cheque which is returned by the bank is called:
(a) Cross Cheque (b) Bearer Cheque (c) Dishonor Cheque (d) Order Cheque
5: Now days what is issued inspite of pass book:
(a) Cheque Book (b) Pay in Slip (c) Bank Statement (d) None of these
5: The bank issues in the old days
(a) Cheque Book (b) Pay in Slip (c) Bank Statement (d) Pass Book
Q # 02: Answer the following questions: (14)

 Cheque
 Pass Book
 Current Account
 Different Kinds of Cheque
 Fix deposit Account
 Saving Account
 Cross cheque
Q # 03: On 1st Jan 2010 Waqas traders started business with Rs. 500000 of which Rs. 300000
was deposited into the bank. Following transactions are related to the Month of January: (10)
Jan02: Purchased furniture for Rs. 20000 and payment made by Cheque
Jan03: Purchased goods for cash Rs.50000
Jan05: Sold goods on credit to waseem Rs.60000
Jan06: Received Cheque from Waseem and deposited into the bank
Jan07: Withdraw from bank for office use Rs. 30000
Jan09: Purchase goods from Tahir Rs. 30000
Jan10: Paid Tahir by cheque by Rs. 29000 and received discount Rs. 1000
Jan12: Received a cheque from Akram and deposited into the Bank Rs. 20000
Jan15: Sold Goods for cash Rs. 35000
Jan16: Paid cash into bank Rs.35000
Jan18: Draw from bank for personal use Rs. 10000
Jan20: Purchase Machinery from Arshad for Rs.25000
Jan21: Purchased draft from Bank Rs. 25000 (Bank Commission Rs. 50) and send to Arshad
Jan22: Received from Shahid a postal order for Rs. 2000 and deposited in the bank.
Jan24: Paid salaries by cheque by Rs. 5000
Jan27: Bank charges debited by bank Rs. 100
Jan31: Paid rent by cheque Rs. 5000
Required: Make Journal Entries and prepare a Bank Account

Test # 07, 2012
Subject: Accounting
Q # 01 Encircle the Correct answer. (06)
1-Expense paid for current assets are called:
a) Revenue Expenditure b) Capital receipt c) Capital Expenditure d) Revenue payment
2- Amount spent on extension of building is:
a)Deferred Revenue Expenditure b) Capital Expenditure c) Capital receipt d) Revenue payment
3-Loss on fixed assets:
a) Revenue loss b) Capital loss c) Capital profit d) Revenue
4-Revenue profit earned on:
a) Sale of goods b) Sale of fixed assets c) Sale of copy right d) Deferred Revenue
5-Loss on raw material is:
a) Revenue loss b) Capital loss c) Capital profit d) Revenue
6-Replacement Cost of worn out machinery is:
a) Revenue expenditure b) Capital expenditure c) Capital profit d) Revenue
Q No. 02 Answer these Short Question. (14)

1-What are Capital Expenditures?
2-What is Revenue Expenditures?
3- Give any four examples of capital expenditures?
4-What are Capital Receipts?
5-What is Revenue Loss?
6-What is deferred revenue expenditures?
7-What is Revenue Payment?
Q No.03 State with reasons which of the following items are Capital or Revenue. (10)
 Cost of replacement of an old and worn out part of plant.
 Cost of Good will.
 Repair charges of machinery.
 Interest on loan borrowed for business.
 Legal expenses incurred on income appeal.

Test # 08, 2012
Subject: Accounting
Q # 01: Encircle the Correct answer. (06)
1-Purchase of machinery recorded in purchased Account:
a) Error of Principle b) Error of Commission c) Error of Omission d) Error of Posting
2- An amount paid to supplier is not recorded:
a) Error of Principle b) Error of Commission c) Error of Omission d) Error of Posting)
3- Goods purchased are recorded in furniture Account:
a) Error of Principle b) Error of Commission c) Error of Omission d) Error of Posting
4- Wrong addition is:
a) Error of Principle b) Error of Commission c) Error of Omission d) None
5-Sale of machinery are recorded in sale book:
a) Error of Principle b) Error of Commission c) Error of Posting d) Error of Omission
6-Rs 900 paid to Ali recorded in his account Rs.500
a) ) Error of Principle b) Error of Commission c) Error of Omission d) Error of Posting
1-What are Bookkeeping errors?
2-What are errors of principle?
3-What are of posting?
4- Give four examples of errors of Omissions?
5-What are Trial balance errors?
6- Define Errors of costing? Give two examples
7-What is suspense Account?
Q No.03 Give journal entries to rectify the following errors. (10)
(i) Salaries paid to a clerk Rs.20, 000 posted to misc.expense account
(ii) Rs.200 for carriage paid on furniture purchased debited to carriage account.
(iii) A sale of Rs.5000 to Yasser is recorded to purchase account.
(iv) A purchased of goods Rs.10, 000 from Aslam was recorded in sale book
(v) A sale of goods Rs.7, 500 from Usman is recorded in purchased return book.

Test # 09, 2012
Subject: Accounting
Test # 09
Q # 01: On 1st Jan, 2010 Naveed sold goods for Rs. 50000 to Nadeem and on the same date he
draws a bill for the amount on Nadeem, payable after 3 months, Nadeem accepted the Bill and
returned it to Naveed. On 4th Jan 2005, Naveed discounted the bill with his bank at 10 % per
annum. On the due date Nadeem paid his acceptance. Show the entries in the books of Naveed
and Nadeem. (10)
st
Q # 02: On 1 Feb 2009, Farrukh draws a two month bill for Rs. 50000 on Rashid. Rashid
accepted it and returned it Farrukh. Farrukh endorses it to his creditor Rehan on the 3 rd Feb
2009. On the due date Rashid met his acceptance.
Pass the journal entries in the books of Rashid, Farrukh and Rehan (10)
Q #03: On 1st March 2010, Ali sold goods worth Rs. 25000to Ahmed on account. Ali draws
one month bill for the amount on Ahmed. Ahmed accepts it and returned it to Ali on the same
day. On 25th March 2010, Ali sent the bill to his bankers for collection. On the due date the bill
is dishonored by Ahmed. Record the above transactions in the books of Ali. (10)

Test # 10, 2012
Subject: Accounting
Q #01: On 1st Jan 2009, Mohsin sold goods on credit to Junaid for Rs. 30000. On the request of
Junaid, Mohsin draws on him 4 bills for Rs. 10000, Rs. 8000, Rs. 7000, Rs. 7000 for one
month, two month, three month and four month respectively. Junaid accepted all the bills and
returned to Mohsin. On 2nd Jan2009, the first Bill was discounted with the bank at 10 % P.A.
On 15th Jan 2009, the second bill was endorsed in the favor of Abdullah. On 1 st Feb 2009, the
third bill was sent to bank for collection. The fourth bill was retained till maturity. On the due
date, first three bills were honored exception of the fourth bill and Mohsin paid Rs. 100 as
noting charges.
Pass the journal entries in the books of Mohsin and Junaid (10)
Q # 02: Jamil sold goods to Zahid for Rs. 40000 on 1st July 2010. On the same date, he draws a
bill on Zahid at 3 months for the amount. Zahid accepted the Bill and returned it to Jamil.
On 15th Aug, 2010, Zahid was declared as Insolvent and his estate paid a first and final
dividend 15 paisa in rupees on 15th, Sep, 2010.
Pass the Journal entries in the books of Zahid and Jamil (10)
Q # 03: A draws a three months bill for Rs. 12000 on b who accepts it and to Return to A. On
the same date he endorsed the bill to his creditor C. The Bill is dishonored on the due date and
C pays Rs. 100 as noting charges.
Pass the journal entries in the Books of A, B and C

Test # 11, 2012
Subject: Accounting
Q # 01: Rehman receives a bill of exchange from Musa for Rs. 200 and discounted with his
banker for Rs. 190. On the bill becoming due Musa request Rehman to renew the bill and
added Rs. 5 to the new bill for interest.
Record the above transactions in the Rehman books (10)
Q # 02: A bill for Rs. 1600 is drawn by B& Co. on C and accepted by the later payable at his
bank. Show what entries would be passed in the books of B& Co. under each of the following
circumstances.
(1) If they retain the bill till maturity and realized it at end
(2) If they sent the same to their bank for collection
(3) If they discount it with their banker for Rs. 1580 (10)
Q # 03: Majid sold goods to Shahid for Rs. 50000 on 1st July 2005,. On the same date he draws
a bill on the Shahid at 3 months for the amount. Shahid accepted the bill and returned it to
Majid. On 15th Aug 2005Shahid was declared as insolvent and his estate paid a first and final
dividend of 50 paisa in rupees on 15th, Sep 2005.
Pass Journal entries in the books of Shahid and Majid.
Test # 12, 2012
Subject: Accounting
Q # 01 Encircle the Correct answer. (10)

Bills of exchange contain:
a) A promise to pay b) Order to pay c) A request to pay d) All of them
Bills of exchange drawn and accepted in same country:
a) Demand bill b) Trade bill c) Foreign bill d) In land bill
A person who draws bill of exchange is called:
a) Holder b) Payee c) Drawee d) Drawer
When the bill is written it is known as:
a) Retired b) Drawn c) Accepted d) None
Bills receivable book is a part of:
a) Journal b) Ledger c) Trial balance d) Balance sheet
Interest on renewal is a loss of:
a) Holder b) Payee c) Drawee d) Drawer
Noting charges are paid when bill is:
a) Met b) Discounted c) Dishonored d) None
For payment of bill grace days are:
a) 2 days b) 3 days c) 4 days d) 5 days
A person who accepts the bill is called:
(a)Debtor (b) Creditor (c) Payee (d) Endorser
A person who endorse the bill:
(a)Endorsee b) Endorser c) Payee d) Drawer
1- Define Bills of exchange?
2-What is Demand bills of exchange?
3-What is Endorsement of bills?
4- Give three advantages of bills?
5-What are Accommodation bills of exchange?
6- Define Days of Grace?
7-What is Insolvency?
8- What is Noting Charges?
9- What is retiring of bill?
10- What is Renewal of bill?

Test # 13, 2012
Subject: Accounting
Q # 01: On April 01, 2009 Shanza Magsi had cash on hand Rs. 150000 and cash at bank Rs.
50000. Record the following transactions in the triple column cash book and also post them
into ledgeRs.
Apr 01: Paid into bank Rs. 75000
Apr 02: Sold goods for cash Rs. 40000
Apr 08: Receive a cheque from Hamid Rs. 70000
Apr 10: Deposit into bank the cheque received from Hamid
Apr 13: Issue a cheque for goods purchased Rs. 45000
Apr 16: Withdrew from bank cash for office use Rs. 50000
Apr 18: Receive a cheque from Shahid Rs. 14500, allowed him discount Rs. 500
Apr 21: Withdrew cash from bank for personal use Rs. 20000
Apr 24: Issue a cheque in favor of Arshad Rs. 19000 and discount received Rs. 1000
Apr 27: Shahid Cheque paid into bank
Apr 28: Paid rent by cheque Rs. 10000
Apr 30: Paid salaries expenses Rs. 20000 (10)
Q # 02: From the particulars of Zain Traders ascertain the bank balance as would appear in the
cash book as on 31 December, 2009.
(10)
1. Balance as per bank statement as on 31 December, 2009, overdraft Rs. 75000
2. Cheques amounting to Rs. 25000 were deposited into bank but still not credited into bank.
3. Cheques amounting to Rs. 36000 were issued but still not presented into bank.
4. Bank charges Rs. 300 are debited in the pass book but yet not enter in the cash book
5. A customer who owes Rs. 45000 directly deposit into the bank
6. Bank charges Rs. 1500 as an interest on over draft not yet enter in the cash book.
Q # 03: From the particulars of Ahmed Traders prepare the bank reconciliation statement as
on 31 December, 2009.
1. Bank balance as per accounting record Rs. 50000
2. Bank balance as per bank statement Rs. 45400
3. Cheque deposited into the bank but not yet credited Rs. 15000
4. Cheque issued but not yet paid by bank Rs. 10000
5. Interest on deposit credited by bank but not recorded in the cash book Rs.500
6. Bank charges debited in the bank statement but in the cash book Rs. 100

Test # 14, 2012
Subject: Accounting
Q #01: From the following transactions of Shan Book centre write two column cash book.
(10)
Jan 01: Balance of cash in hand Rs. 35000
Jan 02: Paid Rs. 3000for purchase of furniture
Jan 03: Paid cash for purchase of goods Rs. 10000
Jan 06: Receive cash Rs. 9500 from Tariq in settlement of Rs. 10000
Jan 08: Paid for stationary Rs. 200 and rent Rs. 1000
Jan 12: Sold goods for cash Rs. 15000
Jan 18: Drew cash for the personal use Rs. 5000
Jan 20: Paid cash to Ali Rs. 14000 and received discount Rs. 1000
Jan 30: Paid salary to clerk Rs. 1000
Q # 02: Form the following transactions Ch and company prepared the petty cash book on the
basis of the Imprest system.
(10)
Jan 01: Received cash from cashier Rs. 100
Jan 02: Purchase stationary Rs. 5
Jan 05: Paid for Postage Rs.2
Jan 07: Paid for tea and cigarettes Rs. 4
Jan 09: Paid for cartage Rs. 6
Jan 12: Paid for telegram Rs. 7
Jan 15: Paid for railway Rs. 12
Jan 20: Purchase biscuits Rs. 8
Jan 23: Paid for Registered postal Rs. 10
Jan 26: Paid for printing letters Rs. 9
Jan 28: Paid for Wages Rs. 3
Jan 30: Paid for Misc expenses Rs. 15
Q # 03: Answer the following questions: (05)

1. Give the sketch of the single column cash book
2. Give the sketch of the Double column cash book
3. Give the sketch of the Triple column cash book

Test # 15, 2012
Subject: Accounting
Q # 01: From the following transactions of Hussain, prepare the Bills receivable book and post
them into the ledger accounts:
(10)
Apr 01: Acceptance received from Farrah at 2 m/d Rs. 8000
Apr 08: Drew a bill on Sumera at 3 m/d Rs. 10000
Apr 15: A bill for 1m/d for Rs. 5000 is drawn on Sana
Apr 22: Samina gives her acceptance for 4m/d Rs. 16000
Apr 29: Drew a bill on Sonia at 3m/d for Rs. 7000
Q # 02: From the following data prepare the bank reconciliation statement of Ahmad traders as
on 31st Dec. 2001.
(10)
1. Balance as per Cash Book Rs. 20320
2. Balance as per bank statement Rs. 17560
3. Interest debited by bank Rs. 1000 was not recorded in cash book
4. Service charges debited by bank Rs. 300 not recorded in the cash book
5. Cheque outstanding Rs. 11640
6. Deposits of Rs. 3200 on 31st December not shown on the bank statement
7. A customer directly deposited Rs. 3000 into the firm’s account, which was not recorded in the
cash book
8. A cheque of Rs. 11800 deposited into bank was wrongly credited into the bank statement
9. Cheque dishonored by bank Rs. 2400
10. A cheque of Rs. 1600 issued in settlement of a creditor was wrongly entered in cash book as Rs.
1000
Q # 03: On 31 Mar, 2006 the bank statement of Mrs. Ashen Zahra showed the credit balance
of Rs. 11000. She request from you to reconcile her bank statement balance with her cash book
balance with the help of following information:
(10)
1. Cheques amounting to Rs. 3750 were deposited into bank but only cheque of Rs. 250 had not
been cleared up to 31 March.
2. Cheques amounting to Rs. 4000 were issued but only cheque of Rs. 2500 had been presented
for payment in the bank.
3. Bank had given the debit of Rs. 45 for sundry charges
4. Bank had received directly from customers Rs. 1600
5. Dividend for Rs. 500 had been recorded in the bank statement only.

Test # 16, 2012
Subject: Accounting
Q.No 01 Encircle the Correct answer. (10)
1-Cash account is related to the:
a) Personal account b) Artificial personal account c) Nominal account d) Real account
2- Purchase of machinery is recorded in:
a) Journal book b) Purchase book c) Cash book d) Sales book
3- What will be the amount in the term of 2/10, n/30?
a) 2% b) 10% c) 15% d) 30%
4- Cash received from Ali are recorded in:
a) General journal b) Cash payment journal c) Cash receipt journal d) None
5-Kind of cash book are:
a) One b) two c) Three d) All
6-Bank charges and interest are recorded in:
a) L/F column b) Bank column c) Discount column d) Cash column
7- Balance of petty cash book is:
a) Liability b) Revenue c) Expense d) Assets
8- Favorable bank balance means:
a) No one b) 3 Debit balance of cash book c) Credit balance of cash book d) Debit balance of pass book
9- The amount of Rs.1000 is debited twice in bank:
a) Rs.1000 Deducted b) Rs.2000 Deducted c) Rs.2000 Add d) Rs.1000 Add
10- Purchased book is maintained to record:
a) Sold goods b) Machinery purchase c) Cash purchase d) Credit Purchases
1- Define Bills of exchange?
2- What are Demand bills of exchange?
3- What is Endorsement of bills?
4- Give three advantages of bills?
4- What are Accommodation bills of exchange?
6- Define Days of Grace?
7- What is Insolvency?
8- What is Noting Charges?
9- What is retiring of bill?
10- What is Renewal of bill?

Test # 17, 2012
Subject: Accounting
Q # 01: Ascertain the net Profit of the Mehran general Store from the following figures
for the year ended 30th June 2009.
(10)
Debits Amount Credits Amount
Purchases 100000 Sales 150000
Opening Stock 25000 Purchase return 8000
Sales return 5000 Commission Cr. 400
Insurance 500 Closing Stock 20000
Carriage 300 Bills Payable 7500
Wages 600 Furniture 6000
Trade Expenses 900
Discount 200
Cash 10000
Interest 450
Q # 02: Following is the trial balance of Ro man traders on 31 st December 2009. Prepare a
trading and Profit and Loss Account and balance on the date after taking the in to the
adjustments: (20)
Opening Stock 5760 Sales 98780
Purchases 40675 Return Inward 500
S. Debtors 14500 Capital 7100
Cash In hand 540 S.Creditors 6300
Cash at bank 2630
Return inward 680
Wages 10480
Fuel and Power 4730
Carriage on Sales 3200
Carriage on Purchases 2040
Buildings 30000
Freehold land 10000
Machinery 20000
Patents 7500
Salaries 15000
General Expenses 3000
Insurance 600
Drawings 5245
Total 176580 176580
Adjustments:
1. Stock in hand on 31 December 2009 is Rs. 6800
2. Machinery to be depreciated at 10 % and patents at 15%
3. Salaries for the month of December 2009 amounting Rs. 1500 unpaid
4. Prepare insurance Rs. 85

Test # 18, 2012
Subject: Accounting
Q # 01: Ascertain the net Profit of the Mehran general Store from the following figures for the year
ended 31st December 2006.
(15)
Drawings 150 Capital 1850
Goodwill 260 Bank overdraft 500
Cash 900 Sales 2620
Opening Stock 970 Creditors 240
Rent 210 Purchase Return 30
Purchases 1140 Bills payable 50
Building 960
Debtors 600
Freight 10
Trade Expenses 70
Sales Return 20
Total 5290 5290
Additional Information:
1. Closing Stock Rs. 200
2. Prepaid Rent Rs. 20
3. Depreciation on the building @ 5%
4.
Q # 02: Following is the trial balance of Khan Traders on 31 st December 2003. Prepare a trading and
Profit and Loss Account and balance on the date after taking the in to the adjustments:
(15)
Opening Stock 3800 Capital 10000
Purchases 12900 Purchase Return 400
S. Debtors 14895 Creditors 10800
Plant and Machinery 1140 Sales 17406
Salaries 470
Rent Rate and taxes 352
Repairs 100
Wages 2580
Drawings 1260
Bank 850
Cash 259
Total 38606 38606
Adjustments:
1. Stock in hand on 31 December 2003 is Rs. 2050
2. Machinery to be depreciated at 10 % P.A.
3. Repair Rs. 50 and wages Rs. 660 outstanding.
4. 5% interest to be given on the capital

Test # 19, 2012
Subject: Accounting
Q # 01. Encircle the correct answer. (10)
1: Direct expense is related with:
(a) Sales (b) Capital
(b) Assets (d) Purchases
2: Drawing is deducted from:
(a) Purchases (b) Sales
(c) Capital (d) Account payable
3: All indirect expenses are recorded in:
(a) Balance Sheet (b) Profit & Loss Account
(c) Trading Account (d) Capital A/c
4: Supplies on hand is:
(a) An Expense (b) An Asset (c)A Revenue (d) A Liability
5: Outstanding expenses increase:
(a) Expenses (b) Income (c) Gross Profit (d) Net Profit
6: Adjustments effects on:
(a) Profit & Loss Account (b) Trading Account
(b) (c) Balance Sheet (d) Income Statement & Balance sheet
7: Prepaid Insurance is a:
(a) Liability (b) Assets (c) Capital (d) None
8: Carriage paid on the goods purchased is a:
(a) Direct expense (b) Indirect expense (c) Operating expense ( d) General expense
9: Accrued income should be shown as:
(a) Liability (b) Profit (c) Assets (d) Expense
10: Unearned income is a:
(a) Liability (b) Profit (c) Assets (d) Expense
Q # 02: Answer the Short Question. (20)

1. Accrued Revenues
2. Prepaid Expenses
3. Direct Expenses
4. Unpaid Expenses
5. Bad debts Expenses
6. Trading Account
7. Profit and Loss Account
8. Current assets
9. Intangible Assets
10. Drawing

Accounting Basics and Principles

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Test No Contents

01 Chapter # 02 Nature and scope of business, Ch no 15 Middlemen

12 Chapter no 23 Office Machines Chapter no24 Filing

LEADERSHIP COLLEGES NETWORK

Q.No. 2. Answer the following short question (14)

LEADERSHIP COLLEGES NETWORK

LEADERSHIP COLLEGES NETWORK

LEADERSHIP COLLEGES NETWORK

LEADERSHIP COLLEGES NETWORK

Q # 01: Encircle the correct answer: (06)

Q # 02: Answer the following questions: (14)

LEADERSHIP COLLEGES NETWORK

Q No. 02 Answer these Short Question. (14)

LEADERSHIP COLLEGES NETWORK

LEADERSHIP COLLEGES NETWORK

LEADERSHIP COLLEGES NETWORK

LEADERSHIP COLLEGES NETWORK

Q # 01 Encircle the Correct answer. (10)

LEADERSHIP COLLEGES NETWORK

LEADERSHIP COLLEGES NETWORK

Q # 03: Answer the following questions: (05)

LEADERSHIP COLLEGES NETWORK

LEADERSHIP COLLEGES NETWORK

LEADERSHIP COLLEGES NETWORK

LEADERSHIP COLLEGES NETWORK

LEADERSHIP COLLEGES NETWORK

Q # 02: Answer the Short Question. (20)

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