Viqar-Un-Nisa Noon Girls Higher Secondary Institute

Paper: Principles of Accounting Maximum Marks: 90

I.Com Part 1 Pass Marks: 40
Time:
Sections A is compulsory and attempt any three questions from section B

Section A
Q # 1 Define any ten from following (10x2)

1) Goodwill 6) Drawings 11) Ledgers

2) Assets 7) Cash Book 12) Trading Account
3) Balance Sheet 8) Creditors 13) Transaction
4) Bank Reconciliation 9) Capital expenditure 14) Balance c/d
5) Revenue expenditure 10) Bank overdraft 15) Prepayment

Q # 2  the appropriate option (5x2)

1 Which transaction is recorded in the sales ledger?

A cash sales
B cheque paid to a creditor
C cheque received from a debtor
D sale of fixed assets

2 Y allows X trade discount of 25% and cash discount of 5% if invoices are paid within 30 days.
X purchases goods with a list price of $1200 from Y.
Which amount will be entered in X’s purchases journal?
A $840
B $855
C $900
D $1200

3 A business keeps a three column cash book. How is the total of the discount column on the debit
side posted?
A credit Discount Allowed account
B credit Discount Received account
C debit Discount Allowed account
D debit Discount Received account

4 A cash book has separate columns for bank and cash transactions. On 1 August the balance on
the Bank account was $1000. Transactions during August were:
Cash paid into bank $200 Cheque drawn for office cash $50
What was the balance on the Bank account at the end of August?
A $750 B $850 C $1150 D $1250

5 Which account will have a credit balance?

A carriage inwards
B carriage outwards
 C discounts allowed
D discounts received

Section B
Q # 1 - Prepare a triple column Cash Book form the following particulars: (20)
1. Opening balance Cash Rs.80, 000 Bank overdraft Rs. 75,000
2. Drawn from bank for personal use Rs. 22,000
3. Cash purchases Rs. 10,000
4. Cheque given to Sam Rs.7, 500
5. Wages paid by cash Rs. Rs. 12,000
6. Credit sales to Rajan Rs. 18,000
8. Received from Rani Rs. 9,800: discount Rs. 200
10. Cash withdrawn for private use Rs. 6,000
12. Cheque received from Rajan 17,500 in full settlement of his bill and the Cheque is deposited in the bank on
15th Jan.
15. Old furniture sold for Rs. 750
16. Credit purchases from Shyam Rs. 16,000
17. Income tax paid Rs. 3,250
20. Rent paid Rs. 15,000
21. Cash sales Rs. 16,000
22. Deposited in bank Rs. 5,000
25 cash given to Shyam Rs. 15950 discount Rs. 50
30 sales tax paid by Cheque Rs. 2,2,50
31 Interest on investments received Rs. 2,000.
Q # 2-The cash book of Mr. Raman has been showing an overdraft balance of Rs. 14,000 on 31-12-2004,
whereas on the same date, his pass book showing a favourable balance of Rs. 4,270. He is requesting you to
reconcile the above balances through a suitable statement: (20)
1. Out of the Cheques issued for Rs. 10,600 in December 2004 only Cheques for Rs. 3,000 were cashed.
2. A Cheque received from a customer Rs. 1,700 has been debited in cash book, but forgotten to be sent to bank.
3. Cheques amounting to Rs. 5,000 were deposited into bank, but Cheques worth Rs. 4,800 only were collected
before reconciliation date.
4. The debit side total of Rs. 8,000 in the cash book has been carried and posted as Rs. 8,000 in the next page.
5. A Cheque for Rs. 10,000 has been sent to the bank for collection but omitted to record in the cash book.
6. Interest on investment Rs. 1500 has been collected by the bank, the same has not been recorded in the cash
book
7. Bank charges Rs. 50, insurance premium Rs. 200 and interest on overdraft Rs. 400 have been debited in the
pass book only.
Q # 3-From the following information prepare final accounts of Mr. Zahid for the year 31-12-2006 (20)
Q # 4- (20)