DAR-E-ARQAM GIRLS COLLEGE SARGODHA

TEST NO 1 (CH 1)
Class:-2nd year Subject:-P.O. Accounting
Marks:-20Time Allowed:-
Q#1 MCQs (1 ×6=6) A B C D
Single entry Double entry
We cannot prepare trial balance and a&b barter system
1 system system
precise balance sheet under

income earning profit & loss statement of

In single entry system. Statement of
2 statement statement account affairs
assets liabilities and capital is

net worth is equal to assets – liabilities – liabilities +

3 capital + assets
liabilities assets capital
In single entry system final account
4 are prepared by means of statements Correctly Effectively Wrongly Approx
of affairs
Personal Nominal
5 In single entry we maintain only Real accounts None of these
accounts accounts
In appearance, statement of affairs is Trading Profit & loss
6 Balance sheet Trial balance
similar to account account

Q#2:- Give short answers of any ten. (2*4=8)

i- What is double entry system?
ii- What is statement of affairs?
iii- Calculate the values of sales if opening stock is Rs. 30,000. Purchases Rs. 2, 80,000,
closing stock Rs. 20,000. Gross profit on sales is 15%?
iv- What are disadvantages of single entry system?

Q#2:- Solve all these problems. (6 marks)

Mr Amir Ali maintains books under single entry system. The following information is given an under:

Capital on January 1, 2018 Rs. 16,000

Capital on December 31,2018 Rs. 18200

Drawings made during the year Rs. 5000

Capital introduced in July 2018 Rs. 3000

Required: - Work out his profit & loss for the year 2018.
DAR-E-ARQAM GIRLS COLLEGE SARGODHA
TEST NO 2 CH2
Class:-2nd year Subject:-P.O. Accounting
Marks:-20

Q#2:- Give short answers of any ten. (2*6=12)

1. What is meant by nonprofit making concerns?
2. What is income and expenditure account?
3. What is special subscription?
4. What do you mean by Legacy?
5. what is capital fund?
6. what is meant by life membership fee?

Q#2:- Solve all these problems. (8 marks)

Given below is the receipts and payments account of the eagle club for the year ending 31 st
December 2015.
Balance B/d Rs. 10,250 Salaries Rs. 6000
Subscriptions general expenses Rs.7,50
2014 Rs. 4000 Drama expenses Rs.4500
2015 Rs.20,500 News papers etc Rs.1500
2016 Rs. 6000 Municipal taxes Rs.400
Donations Rs. 5,400 Charity Rs.3500
Proceeds of drama
Rs. 9,500 Investments Rs.20,000
tickets
Sale of waste papers Rs. 450 Electricity charges Rs.1450
Balance C/d Rs. 9000
47,100 47,100

Prepare the club’s Income and Expenditure Account for the year ended 31 st December
2015.

And its balance sheet as on the date after taking the following information into account.

a- There are 500 members each paying an annual subscription of Rs. 50

b- Municipal taxes amounting to Rs. 400 per annum have been paid upto 31 st march 2016. And
Rs.500 for salaries is outstanding.
c- Buildings stood in the books at Rs. 50,000 and it is required to write off deprecition at 5%
d- 3% interest has accrued on investment for 5 months
DAR-E-ARQAM GIRLS COLLEGE SARGODHA
TEST NO 3 CH 3
Class:-2nd year Subject:- P.O. Accounting
Marks:- 20 Time Allowed:-
Q#1:- Give short answers in following. (12)
i- What is consignment?
ii- Define Del-Commission?
iii- What is an account Sales?
iv- What do you understand by proforma invoice?
v- Show the formula to calculate the value of adjusted per unit cost in case of normal loss?
vi- Give the journal entry for expenses paid by consignee in the consignor books?
vii- Define overriding commission?
Q#2:- Solve these problems. (8)
i- On 1st January 2015, Mohsin Coal Company of Quetta consigned to Ramzan limited of
Lahore 10,000 tons of coal. The cost of coal was Rs 40 per ton and railway charges were
Rs 10. Per ton. On 25th February an account sales was received from Ramzan limited
showing that 5000 tons of coal sold at Rs. 80 per ton. Sales expenses Rs 4000, insurance
Rs 1000. Commission 5% on sales. The agent enclosed a bill for the sale proceeds less
expenses and reported a shortage of 100 tons on the whole consignment. Show the
consignment account in the books of Mohsin Coal Company and prepare necessary
ledgers.

.
DAR-E-ARQAM GIRLS COLLEGE SARGODHA
TEST NO 4 CH 4
Class:-2nd year Subject:- P.O.Accounting
Marks:- 50 Time Allowed:-

Q#1:- Give short answers in following. (12)

i- Define J.S.C.
ii- Define debenture.
iii- What is over subscription?
iv- What is under subscription?
v- What is under writing commission?
Q#2:- Solve these problems.(5+5=10)
i- A company issued 20,000 shares of Rs 10 each 2 general public at 10 % premium.
Applications were received for 35,000 shares. Shares were allotted and money was
refunded to the applicants of 15,000 shares. Record the above the transactions in the
books of the company and draft the balance sheet
ii- Passs the journal entries for the issuance of debentures
a- 6,000 debentures of Rs 1,00 each issued at par for cash.
b- 5,000 debentures of Rs 1,00 each at discount of Rs 5 per cash.
c- 4,000 debentures of Rs 1,00 each at 10% premimum for cash.
d- To a vendor from whom furniture was purchased for Rs 50,000. 55,000 debentures
of Rs 10 each issued for settlement.
Issuance of Rs 1,80,000 debentures as collateral security for a loan of Rs 1,50,000 from bank
DAR-E-ARQAM GIRLS COLLEGE SARGODHA
TEST 5 CH 5

Class:-2nd year Subject:- P.O.Accounting

Marks:- 50 Time Allowed:-
Q# Choose correct option A B C D
1 (20×1=20)
1 Depreciation is an Expense Revenue Liability Capital

2 The gradual decrease in the Appreciation Depreciatio Construction Reconstructi

efficiency of an asset is called n on
3 Internal causes of Wear and Depletion Obsolescenc A and B
depreciation tear e
4 The physical deterioration in Depletion Obsolescen Wear and Accident
asset due to use in business ce tear
5 Depreciation is charged on Fixed assets Current Both fixed All of these
only assets and current

Q#2:- Give short answers in following (any six).(6*2=12)

i. What is internal depreciation?
ii. Define wasting assets.
iii. Define obsolescence.
iv. Define external depreciation.
v. What is efflux of time?
vi. What is wear and tear?
vii. Define term depreciation?
Q#2:- Solve any THREE problems. (MARKS: 15+15+14=44)
i- On 1 july 2014 Aslam purchased a second hand machine for Rs 18,000 and spent Rs
2,000 on its repair and installation. On 30 th june 2017 the machine was disposed off for a
sum of Rs 13,600. Assuming the books are closed on 31th December each year a taking
thje rate of depreciation at 10 % p.a on diminishing balance. Show the machinery
account.
ii- On 1st july 2013. Basharat purchased a machinery for Rs 60,000. Depreciation is to be
provided for at 10% on straight line method each year. On 31 st October 2015. Machinery
for sold for Rs 24,000 as they became useless on the same date he purchased a new
machinery for Rs. 20,000. Prepare machinery account from 2013-2016 Accounts are
closed on 31st December every year.
iii- A &B are partners sharing profits & losses in the proportions of 3:2 with capitals of
Rs.10,000 each. Each partner is entitled to 5% interest on his capital. B is entitled to a
salary of Rs 150 per month. During the year 2015, the drawings of the partners in
anticipation of their shares of profit & salary are A-Rs 1,000 & B-Rs 1,000. The profits for
the years prior to calculation of interest on capital but after charging salary of partner
amounted to Rs 8,000. The above figure of profit is before charging depreciation at 7.5 %
on furniture valued at Rs 5000 and writing off a bad debt of Rs 150. Your required to
prepare partners accounts
(i) Where capitals are fixed
(ii) Where capitals are fluctuating
iv- A,B, & C, are partners with capital of Rs 20,000. Rs 10,000. & Rs 6,000. Respectively and
shares profits & loses equally. The net profit for the year 2017 before charging interest
on capitals amounted to Rs 10,800. Show the amount of each partner gain from the firm
(a) If no interest is calculated of capital

Where 5% on interest on capital is brought into account. Before adjustment of profits

DAR-E-ARQAM GIRLS COLLEGE SARGODHA
TEST 6 CH 6

Class:-2nd year Subject:- P.O.Accounting

Marks:- 20 Time Allowed:-
Q# Choose correct option A B C D
1
1 The partnership act is 1932 1912 1962 1984
2 A partner has right to Take part in Inspect the Share in All of these
the conduct books of profit
of business the firm
3 In the absence of an Be paid Not be paid Be paid Paid salaries
agreement, partners shall salaries salaries salaries to to all
those who partners
work for the
firm
4 The amount of loan advanced Partners Partners Partners None of
by a partner to partnership is capital drawing loan account these
transferred to account account
5 Current accounts of the fluctuating Fixed Either fixed Variable
partners should be opened or
when the capital are fluctuating
6 In the absence of an 5% 6% 8% None of
agreement, interest on these
drawing is to be charged by
the firm at the rate of

Q#3:- Give short answers in following . (8)

i. Define partnership
ii. What is meant by fixed and fluctuating capital in partnership
iii. What are the rules which are applicable in the absence of agreement partnership
iv. What is journal entry for drawings in cash in partnership
Q#2:- Solve this (6)
1. A,B, & C, are partners with capital of Rs 20,000. Rs 10,000. & Rs 6,000. Respectively and shares
profits & loses equally. The net profit for the year 2017 before charging interest on capitals
amounted to Rs 10,800. Show the amount of each partner gain from the firm
(i) If no interest is calculated of capital
(ii) Where 5% on interest on capital is brought into account. Before adjustment of
profits
DAR-E-ARQAM GIRLS COLLEGE SARGODHA
TEST 5 CH 5

Class:-2nd year Subject:- P.O.Accounting

Marks:- 20 Time Allowed:-
Q# Choose correct option A B C D
1 (20×1=20)
1 Depreciation is an Expense Revenue Liability Capital

2 The gradual decrease in the Appreciation Depreciatio Construction Reconstructi

efficiency of an asset is called n on
3 Internal causes of Wear and Depletion Obsolescenc A and B
depreciation tear e
4 The physical deterioration in Depletion Obsolescen Wear and Accident
asset due to use in business ce tear
5 Depreciation is charged on Fixed assets Current Both fixed All of these
only assets and current

Q#2:- Give short answers. (5*2=10)

i. What is internal depreciation?
ii. Define wasting assets.
iii. Define obsolescence.
iv. Define external depreciation.
v. What is efflux of time?
Q#2:- Solve problem. 5
v- On 1 July 2014 Aslam purchased a second hand machine for Rs 18,000 and spent Rs
2,000 on its repair and installation. On 30 th June 2017 the machine was disposed off for a
sum of Rs 13,600. Assuming the books are closed on 31th December each year a taking
the rate of depreciation at 10 % p.a on diminishing balance. Show the machinery
account.