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Accounting Paper

The document appears to be an exam for principles of accounting consisting of multiple choice and essay questions. The multiple choice section contains 20 questions testing concepts like single and double entry systems, accounting treatments for different business transactions, and definitions of accounting terms. The essay section has 3 compulsory questions and asks test takers to prepare income statements, analyze accounting records for organizations, do journal entries for share issuances and consignment transactions, and calculate profit/loss. It evaluates understanding of accounting principles and financial statement preparation.

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Maryam Tanveer
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62 views

Accounting Paper

The document appears to be an exam for principles of accounting consisting of multiple choice and essay questions. The multiple choice section contains 20 questions testing concepts like single and double entry systems, accounting treatments for different business transactions, and definitions of accounting terms. The essay section has 3 compulsory questions and asks test takers to prepare income statements, analyze accounting records for organizations, do journal entries for share issuances and consignment transactions, and calculate profit/loss. It evaluates understanding of accounting principles and financial statement preparation.

Uploaded by

Maryam Tanveer
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Roll No.

__________________
Principles of Accounting (Objective Type)
Time: 30 Minutes Marks: 20
Note: Write answers to the question on the objective answer sheet provided. Four possible
answers A, B, C&D to each question are given. Which answer you consider correct, fill the
corresponding circle A,B,C or D given in front of each question with marker or pen ink on the
answer sheet provided.
1. The system which does not observe the principles of double entry book keeping system is
called:
A) single entry system B) double entry system C) cash system
D) all these
2. Single entry system is generally followed by:
A) small business B) large business C) non trading concern
D) medium business
3. If debit side of income and expenditure account is greater than credit side, it represents.
A) loss B) profit C) deficit D) income
4. Due to legal restriction, which business cannot adopt single entry system?
A) sole trader B) partnership C) joint stock company D) all these
5. Subscription received in advance is a:
A) asset B) expense C) liability D) revenue
6. The basic objective of non-trading concern is:
A) profit B) welfare C) commission D) all these
7. Receipts and payments accounts is prepared to know.
A) profit B) loss C) income D) cash in hand
8. Outstanding subscription represents.
A) Assets B) Liability C) Expense D) Both A&C
9. Debentures are:
A) fixed assets B) current assets C) long term liability D) short term liability
10. Maximum number of members in private company are:
A) 10 B) 2 C) 50 D) 20
11. Discount on issue of shares being a loss of:
A) asset B) capital C) expenditure D) profit
12. Shareholders of company are called:
A) employees B) owners C) agents D) managers
13. Depreciation on plant, will be debited to:
A) plant B) cash C) depreciation D) loss
14. External cause/causes of depreciation is/are:
A) obsolescence B) efflux of time C) accident D) all these
15. The process of writing off intangible assets is called:
A) fluctuation B) depreciation C) depletion D) amortization
16. The accumulated depreciation is a:
A) contra asset B) expense C) revenue D) all these
17. Consignee is a/an
A) customer B) seller C) owner D) an agent
18. Commission is received on consignment by:
A) consignor B) consignee C) debtors D) creditors
19. Consignee debits accounts for expense:
A) consignor B) agent C) debtor D) creditor
20. Account sale is remitted to consignor by.
A) customer B) debtor C) consignee D) creditor
Roll No._________________
Principles of Accounting (Essay Type) Marks: 80
Time: 2:30 Hours

Section I
2. Write short answers of any five parts from the following. 2×5=10
i. What is meant by Donations? ii. What is meant by Honorarium?
iii. Define Consignment. iv. Write three examples of non-trading concern?
v. What is meant by entrance fee? vi. What are the cause of depreciation of assets?
vii. What is meant by direct expenses? viii. What is meant by depreciation?
3. Write short answers of any five parts from the following. 2×5=10
i. Define the diminishing balance method of depreciation?
ii. Explain the term “Depletion”. iii. Explain the term Account sale.
iv. Explain private limited company? v. Define Scrap Value.
vi. What is meant by over-riding commission? vii. Who are consignee and consignor?
viii. Define Joint Stock Company.

Section II
Note: Attempt any three questions from the following. 20×3=60
4. Hadi traders keeps his books on single entry system. His capital on 1st January 2011 was Rs,
40,000\=. During the year he borrows Rs, 10,000\= on 1st April 2011 at 5% p.a, (interest not yet
paid). He withdrew Rs. 700\= per month for his personal use. His position on 31st December
2011 was,
Cash Rs. 5000\=, stock Rs. 11000\=, Debtors Rs. 6000\=, Bills payable Rs. 5000\=,
Building Rs. 10,000\=,
Calculate profit or loss of Hadi Traders on 31st Dec, 2011.
5. The following is the receipt and payment account of Sahiwal litrary club for the year
ended on 31st December 2015.
Receipts Rs. Payments Rs.
Opening Balance 10,000 Salaries expense 12,000
Subscription 15,000 Repair expense 4,200
Entrance fee 6,000 Furniture 9,000

Legacy 12,000 Investment 7,000

Interest on investment Utilities Expenses


500 3,300
Misc. receipts 210 Misc. Expenses 1,300
Closing balance 6,910

Total 43,710 Total 43,710


Additional Information:
i. At the beginning of the year the club owned books of Rs. 10,000\=
ii. Subscription of Rs. 700\= was arrear at the beginning of the year and Rs. 800\= at the end of
the year.
iii. Interest on investment accrued Rs. 50\=
iv. Depreciation on furniture @ 10% p.a and write off books of Rs. 2500\=
v. Repair expense outstanding Rs. 200\=
Required: Prepare income & expenditure account for the year ended 31-12-2015
6. Karim Limited having and authorized capital of Rs. 50,00,000\= divided in to shares of Rs.
100\= each, issued 20,000\= shares to public at a premium of Rs. 10 and received 30,000
applications of 10,000 application refunded. Shares were allotted to 20,000 applicants.
Required: Pass the journal entries and prepare Balance Sheet.
7. On 1st January 2012, a firm purchased a machinery for Rs. 95,000\= and spent Rs. 5,000\= on
its installation. Assuming accounts are closed on 31st December every year and depreciation is
charged at the rate of 10% per annum on straight line method.
Required: Prepare machinery account for the 1st four years.
8. Kashif Radio House consigned 200 radio to Wasif & Co. @ Rs. 200\= each. Kashif paid Rs.
400\=, on freight the consignee is entitled to commission @ 10% of gross sales. Wasif & Co.
sent a draft of Rs. 10,000\= as advance to the consignor. Wasif & Co. sold all the radio @ Rs.
400\= each and submitted a final cheque with the account sale.
Required: Prepare Journal entries and consignment account in the book of consignor.

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