AL-SYED College OF COMMERCE Final Term Examination Class: I.Com-I Roll. No.______ Subject: Accounting Time Allowed: 2hr10Min Paper Code: 70 Max. Marks: 70 Part-I Note: Out of Questions Nos.1, 2, 3, and 4 write any 25 (Twenty five) short answers. While writing answer write question No. carefully. (25x2)=50 1. Give answers of short questions: 1. What is meant by posting? 2. What is meant by pay-in-sl -slip? 3. Define bills of Exchequer. 4. What are contingent liabilities? 5. Steps of Renewal of B/E. 6. What is an Account? 7. Expe Expens nses es are are temp tempor orar ary y or perm perman anen entt Acco Accoun unt? t? 8. What What is the the natu nature re of Debt Debtor ors? s? 9. Writ Write e Acco Accoun unti ting ng equation. 2. Give Answers of of short questions: 1. What What is differ differen ence ce b/w bad bad debts debts and doubt doubtful ful debts? debts? 2. Write Write rules rules of Dr. Dr. and Cr. Adjus Adjustt meant? meant? 3. What What are the the effec effects ts of closin closing g stock stock? ? 4. What What are the the four four kind kinds s of B/E. B/E. 5. What What is contr contra a entry? 6. What is deff. b/w due date and maturity date? 7. Guess is PLS saving account? 8. What What are are the kind kinds s of journ journal? al? 9. Carria Carriage ge paid paid Rs. Rs. 5000 5000 but but carin caringl gly y desal desalted ted to commercial Accents? 3. Give Answers of of short Questions: 1. What What is accru accrual al system system of Accoun Accountin ting? g? 2. Quant Quantita itativ tive e transa transacti ction? on? 3. What What do you mean by Adjustments? 4. Attes ttesti tin ng entr entry y for for un-earn earne ed cash ash book? ok? 5 . Double colu olumn cash ash book? ook? 6. Def Defin ine e the the term erm trad trade e discount? What do you know about “Separate entity concept? 8. What is “Differed Revenue example? Give two examples. 7. 9. What are the purpose of financial accounting? 4. Give Answers of of short Questions: 1. Capi Capita tall prof profit it? ? 2. Defi Define ne the the term term “Deb “Debit it Note Note”. ”. 3. Writ Write e any any four four eruc eructt expenses? 4. What What is mean meantt by susp suspen ense se Acco Accoun unt? t? 5. Defi Define ne “Ret “Retur urns ns inur inured ed.” .” 6. What What do you you mean mean by “Marshalling”? 7. What What is erro errorr of omis omissi sion on? ? 8. What What is capi capita tall paym paymen ent? t? 9. What What do you you unde unders rsta tand nd by “imp “impre rest sted ed syst system em”? ”? (Part-II) Note: Note: Attempt Attempt any any three three question questions s from the the following followings: s: QNo.5: Aryad Sold on 1 st January, 2009 goods valued Rs. 12,000 and drew upon him a three months bills for the amount. Arshad accepted the bill and returned it to Aryad on Maturity, Arshad expressed his inability meet the bill and offered to pay. Rs. 4000 in cash and accepts a fresh bill for 3 months to cover balance plus interest at 5% p.a for three months at the due date this new bill was daily met by Arshad. Req: Pass Journal Entries in the books of both the parties. QNo.6: From the following information prepare a bank statement. i) Che Cheques paid aid in in bu but no not ree reed dited ited by ban bank k Rs Rs. 34 345/- ii) ii) Che Cheques issue sued bu but met met presen esentted Rs.53 .531/iii) iii) Coll Collec ecti tion on char charge ges s by bank bank Rs. 18/18/iv) iv) Inte Intere rest st on govt govt.. secu securi riti ties es dire direct ctly ly coll collec ecte ted d by bank Rs. 35/v)Pass book should balance of Rs. 2,717/QNo.7: State with reasons, which items are capital and which are revenue. a) Purc Purcha hase sed d good goods s for for resa resale le purp purpos ose e for for Rs. Rs. 30,0 30,000 00.. b) Old Old Mac Machi hine nery ry was was repa repair ired ed at at a cos costt of Rs. Rs. 2,000. c) Old Machin Machinery ery having having book book value of Rs. Rs. 40,000 40,000 was sold for for Rs. 37,000. 37,000. d) Amount Amount spent spent on the uniform uniform of factory factory workers. workers. e) Compensa Compensation tion paid to an employee employee for injury injury cussed cussed during his employment. QNo8: Rectify the following errors sensory journal, entries by passing
i) ii) iii) iii) iv)
A sale of Rs . 496 to Ashraf was entered in the sales ledger as Rs. 694. Ashraf A/c was however correctly debited. A bill received from Salman & Co. fro repair are to furniture Rs. 200 was unerringly entered in purchases book. An item item of Rs. Rs. 400 4000 0 relat relating ing to pre prepai paid d rent rent was was omitte omitted d to be broug brought ht for for wor word. d. An item item of pur purch chase ase of Rs. 1,510 1,510 was was ente entere red d in the purc purcha hases ses accou account nt at at Rs. Rs. 150 150
v)
A sales Return of Rs. 1,000 were not passed through the sale returns book, though goods were duly taken into the book stock. QNO9: Following is the Trial Balance of Sardar Muhammad Co. as on 31 st Dec. 2009 Debt Rs. Credit Rs. Goodwill 260 Capital 1,850 Cash 900 Bank overdraft 500 Stock (01-01-06) 970 Sales 2,620 Rent 210 Creditors 240 Purchases 1,140 Purchases Returns 30 Building 960 Bills payable 50 Debtors 600 Freight 10 Trade Exp. 70 Sales Returns 20 Drawings 150 5,290 5,290 Adjustments: i) Closing stock Rs. 200 ii) Prepaid rent Rs. 20 iii) Depreciate Building @ 5% Prepare trading & profit cross account and balance sheet for the year ending 31 st Dec. 2009. Required:
AL-SYED College OF COMMERCE Final Term Examination
Class:
I.Com-I Roll. No.______ Subject: Accounting Time Allowed: 20Min Paper Code: 70 Max. Marks: 15 Objective Note: Write answers to the questions on the objective answer sheet provided. You have four choices for each objective type question as A, B, C and D. The choice which you think is correct; fill the circles in front of that question number. Use marker or pen to fill the circles. Cutting or filling two or more circles will result in zero mark in that question. Attempt as many question as given in objective type question paper and leave others blank. 1. (a) 2. (a) (c) 3. (a) 4. (a) 5. (a) 6. (a) these 7. (a) profit 8. (a)
Interest on renewal of a bill is on income to the Acceptor (b) Drawee (c) Received cash from Azhar will effect Cash and Owens equity Cash and creditors Pass book is prepared by: Debtors (b) Creditors (c) Drawings are deducted from Sales (b) Income Expenses Net profit is transferred to Creditors (A/c) (b) purchases (A/c) (c) Heavy advertisement for new planet Deffeed Revenue expenditure (b) Capital (c)
Drawer (b) (d)
Favorable balance of bank statement is Cr. Balance (b) Dr. Balance
(c)
(d)
Capital
Drawings (A/c)
(d)
Both a and b
Zero balance
customer (d)
Revenue Expenditure (d)
If any income omitted to be recorded it Overstate the profit (b) Under state the profit (c)
None of these
Cash and goods Cash and Debtors
Banker (c)
(d)
Capital (A/c) None of
(d) No effect on
(d)
A, b, c
9. (a) 10. (a) (c) 11. (a)
A cash (A/C) always shares: Debit balance (b) Credit balance (c) Both a Dr. and Cr. (d) Net balance Debit signifies Increase in Asset (A/c) (b) Decrease in liability (A/c) Decrease in capital (A/c) (d) All of above Salaries paid to Mr. Shahbaz should be debited Salaries (A/c) (b) Mr. Shehbaz (c) Cash Account (d) Bank Account 12. A trader whose assets exceed from his liabilities is called: (a) Debtors (b) Creditors (c) Solvent (d) Insolvent 13. A bills of exchange is drawn by: (a) Debtors (b) Creditors (c) Endorser (d) Endorsee 14. A table lost by fire should be debited to: (a) Table Account (b) Furniture Account (c) Lost by fire (d) Purchases Account 15. Bank for collection is a (a) Permanent Account (b) Fixed Account (c) Numerical Account (d) Temporary Account 16. Goodwill patient copyright are: (a) Wasting Assets (b) Intangible Assets (c) Fictitious Assets (d) rued Assets 17. Stock in trade is (a) Current assets (b) Non current assets (c) Dutch assets (d) A liability 18. Bad debts are business: (a) Liabilities (b) Expenses (c) Revenue (d) Assets 19. Net profit is always: (a) Equal to gross profit (b) More than gross profit (c) Less than gross profit (d) None of these 20. Dr. Balance if (a) Dr. > Cr. (b) Dr. > Cr. (c) Dr. = Cr. (d) None of these
