HSSC-I

Principles of Accounting
Section A (20 Marks)
Time allowed: 25 Minutes
Section-A is compulsory. All parts of this
section are to be answered on this page and
handed over to the center superintendent.
Deleting/overwriting is not allowed.
Do not use lead pencil
‫حصہ اول لازمی ہے۔ ا س کے جوابات اسی صفحہ پے دے کرناظم مرکز کے‬
‫حوالے کریں۔ کاٹ کر دوبارہ لکھنے کی اجازت نہیں۔‬
‫لیڈ پنسل کا استعمال ممنوع ہے۔‬
Answer sheet No: ……………………….
‫ہر سوال کے سامنے دیئے گئے کریکولم کے مطابق درست دائرہ کو ُپر کریں۔‬
Q1) Fill the relevant bubble against each question according to the curriculum. Candidate Sign:
………………..
S. Question: A B C D A B C D
N
O
1 Book-keeping provides Primary Final Secondary All of above
the function information function
2 A person from whom Debtor Creditor Banker Owner
credit purchases are
made is called
3 According to this Going Business Cost Concept Realization
concept business and Concern Entity Concept
owner both have Concept Concept
separate identities.
4 A person to whom the Creditor Proprietor Debtor Investor
goods or services are
sold on a credit basis is
known as
5 All events which are Kilograms Money Quality Quantity
related to business are
measured in
6 Sold goods costing Rs. 250 1500 1750 3250
1500 for Rs 1750 will
increase the owner’s
equity by Rs
7 Expenses paid by Cash Capital Cash & None of
business will decrease Capital above
8 According to Assets + Expenses – Liabilities + Assets –
accounting equation Liabilities Income Assets Liabilities
 capital is equal to
9 Debit the increase in Assets & Assets & Assets & Assets &
Revenues Expense Capital Liabilities
10 Goods purchased from Purchase Babar Goods Cash
Babar will be debited to Account Account Account Account
11 Repairs Account is an Loss Consumable Expense None of
example of asset above
12 Discount allowed is an Asset Expense Income Liability

13 Business transaction At least one At Least two Maximum Maximum

affects account accounts two accounts three
accounts
14 Goods taken by the Sales Drawings Purchase Cash
owner for personal use Account Account Account Account
should be credited to
15 Credit signifies Increase in Increase in Increase in All of the
liability Revenue Capital above
16 Salaries paid to Zubair Cash Account Salaries Zubair None of
should be debited to Account Account above
17 Which of the following Assets = Capital = Assets = None of
statements is true Liabilities – Assets + Liabilities – above
Capital Liabilities Capital
18 Left side of the ledger Credit Side Debit Side Both Debit All of the
account is called and Credit above
Sides
19 Accounts of Revenue Debit Credit Both Debit & None of the
normally have Balance Balance Credit above
Balance
20 Accounts of Assets Debit Credit Both Debit & None of the
normally have Balance Balance Credit above
Balance
 Principles of Accounting
Time Allowed: 2.35 Hours Total Marks:80

Answer the questions in Section ‘B’ and ‘C’ at the place specified for it therein on
NOTE: the separately provided E-Sheet. No supplementary answer sheet will be provided.
Write your answers neatly and legibly.

SECTION – B (Marks, 10 x 03 = 30)

Q 2. Attempt any TEN parts. The answer to each part should not exceed 3 to 4 lines.

i) Define Accounting
ii) Define the following.
a) Real Accounts b) Nominal Accounts
iii) Explain these concepts of accounting.
a) Dual aspects of accounting b) Materiality Concept
iv) Define Trade and Cash Discounts
v) State the formula of the accounting equation.
vi) What are the rules of debit and credit for assets, liabilities, expenses, and revenues?
vii) What is the going concern concept?
viii) What are the stages of the accounting cycle?
ix) Define Assets and income.
x) Define business transactions.
xi) Define Purchase returns.
xii) Define the term Owner’s Equity.

SECTION C (50 Marks)

Part-I
Note: Attempt ANYONE (1 x 20 = 20)

Q 3. From the following entries prepare the Journal, Ledger, and Trial balance.
Mar 01: Mr. Ajmal started the business with Rs. 160,000 Cash, Machinery worth Rs. 20,000
and Stock worth Rs. 80,000.
Mar 04: Deposited into bank Rs. 90,000.
Mar 09: Bought goods on credit from Noor Sons Rs. 40,000.
Mar 14: Sold goods to Imran for Rs. 24,000.
Mar 25: Issued a cheque to Noor & Sons of Rs. 39,600 in full settlement of his account.
Mar 30: Received cash from Imran Rs. 23,500 in full settlement of his account.

Q 4. On 1st January 2022 the balance of M/S Khan Bros are as follows:
Assets Liabilities + Owner’s Equity

Cash Rs 25,000 Capital Rs 134,000

Debtors Rs 17,000

Stock Rs 22,000

Machinery Rs 70,000

Rs 134,000 Rs 134,000

Transactions during the month of January are as follows:

Jan 01. Purchased goods for cash Rs.4,000 subject to a trade discount of 10%.

Jan 05. Sold goods for cash Rs. 12,000 costing Rs.10,500.

Jan 15. Goods sold on credit Rs.5,000 costing Rs.4,000.

Jan 18. Goods returned by a customer Rs. 2,000 costing Rs.1,900.

Jan 24. Cash received from debtor Rs.14,000.

Jan 30. Depreciation on machinery Rs.1,400.

Required: Show the effect of the above transactions on the accounting equation.

SECTION C

(Part-II)
Note: Attempt any THREE questions (3 x 10 = 30)

Q 5. Explain the following accounting concepts.

1- Cost Concept
2- Consistency Concept
3- Accounting period Concept
4- Separate entity Concept
5- Realization Concept

Q 6. Prepare the accounting equation on the basis of the following:

1- Mr. A started the business with goods Rs.40,000, Building Rs. 100,000 and Cash Rs. 110,000.
2- Purchased goods on account Rs. 40,000.
3- Cash Rs. 20,000 deposited into the bank.
4- Paid cash to the supplier of the goods Rs 20,000.
5- Paid telephone bill Rs. 4,000 by cheque.

Q 7. Post the following entries into Journal and prepare ledger accounts.

1- Business started with cash Rs. 200,000.

 2- Goods purchased for cash Rs. 60,000.
3- Sold goods to Rahim Rs. 20,000.
4- Paid Salaries Rs. 10,000.
5- Commission received Rs. 900.
6- Cash Received from Rahim Rs. 19,800.

Q 8. State effect of each transaction on Assets, Liabilities, Income and Expenses

Cash + Machinery + Goods + A/C = Creditors + Owner’s

Receivable Equity
8850 + 7450 + 6000 + 7350 = 8550 + 21100
a) + 3750 = +3750
8850 + 7450 + 9750 + 7350 = 12300 + 21100
b) +3850 +3850 =
12700 + 7450 + 9750 + 3500 = 12300 + 21100
c) -2700 -2700 (Drawings)
10000 + 7450 + 9750 + 3500 = 12300 + 18400
d) +7350 -5250 +2100 (Profit)
17350 + 7450 + 4500 + 3500 = 12300 + 20500
e) -7350 -7350
10000 + 7450 + 4500 + 3500 = 4950 + 20500

-------------GOOD LUCK-------------