HI-AIMS COLLEGE OF COMMERCE AND MANAGEMENT SARGODHA

Mid Term Test 2013, I.Com Part-II

Paper: Principal of Accounting Total Marks: 20Time Allowed: 30 Min Objective

Q.No1: (20x1)

Each question has four possible answers mark tick on the answer, which you consider correct.

1) Single Entry System is a mixture of

a) Single Entry b) Double Entry c) No Entry d) All of the Above

2) In appearance, the statement of affairs is similar to a:

a) Balance sheet b) Profit and loss account c) Trading account d) Bank Reconciliation Statement

3) The closing balance of trade debtors can be located from:

a) Total debtors Account b) Bills receivable account c) Balance sheet d) Cash book

4) If the capital at the end is Rs. 60,000; and the fresh capital introduced during the year Rs. 5,000; capital in the beginning Rs. 90,000 then the amount of the net loss will be:

a) Rs. 30,000 b) Rs.35,000 c) Rs.40,000 d) Rs.25,000

5: The main source of income for non-trading concern is:

a) Subscriptions b) Donations c) Sales d) Dividends on investment

6: Income and expenditure account is prepared at the:

a) Start of the year b) mid of the year c) End of the year d) At the start and end of the year

7: Subscription Received in advance is:

a) An Income b) An assets c) Liability d) An expenditure

8: Excess of assets over liabilities is an indication of

a) Solvency b) Insolvency c) Deficiency d) Loss

9: Del-credere commission is allowed to cover:

a) Normal losses b) abnormal losses c) Loss due to bad debts d) None of three

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10: The unsold stock is valued at:

a) Original cost of the goods b) Market value of the goods

c) Original cost price + proportionate direct expense incurred by the both consignor and consignee

d) Cost or market price whichever is the lower.

11: For the expenses incurred by the consignee on the sale of goods will be credited in the book of the consignor:a) Cash account b) Consignee personal Account c) Consignment account d) None of the above

12: Consignee is:

a) A principal b) An Agent c) A debtor d) A creditor

13: Consignee account is to the nature of:

a) Personal Account b) Nominal account c) Real Account d) None of these

14: Registration of the firm is:

a) Legally necessary b) optional c) depends on the will of the partner

d) It depends upon the will of the employee

15) In case of banking business, the number of members must not exceed:

a) Ten b) Twenty c) twenty five d)fifty

16: Revaluation account is a:

a) Real account b) Personal account c) Cash account d) Nominal Account

17: Joint Stock Company is an artificial person created by:

a) Law b) Federal Govt. c) Registrar d) Employees

18: The liability of the shareholder of a public limited company is:

a) Unlimited b) Limited c) Compulsory d) none of these

19: A Prospectus for subscription of shares can be issued only by:

a) Public company b) A Private company c) Both public & private company d) none of these

20: The debentures which are payable to bearer, are termed as:

a) Non-transferable b) Registered debentures c) None-bearer debentures d) Bearer debentures

HI-AIMS COLLEGE OF COMMERCE AND MANAGEMENT SARGODHA

Mid Term Test 2013, I.Com Part-II

Paper: Principal of Accounting Total Marks: 100Time Allowed: 2:30 Min Subjective Pass Marks: 40

Q.No2: Define the Short Answer of the following questions (25x2)

Section I

Attempt any eight (8) Question:

1) What is pure Single entry system?

2) What is the difference b/w Balance Sheet and Statement of Affairs?

3) How closing capital is worked out under Single entry system

4) How the accounts of non-Trading Concerns are maintained?

5) Define the term Capital found?

6) Define endowment fund.

7) What is honorarium how it is treated?

8) What is deficit in non-Trading concern?

9) What is legacy?

10) Explain the treatment of entrance fee

11) Write down two main point of difference b/w Trading & Non trading concern?

12) Calculate the amount of fresh capital if opening capital is Rs. 10,000 drawing 2000 profit made during the year Rs. 4000 and capital at the end Rs. 25000.

Section II

Attempt any eight (8) Question

1) What is partnership deed?

2) Define the term Partner

3) Define the nominal partner

4) What is Quasi Partner?

5) What is the difference b/w Partnership and Co-ownership?

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6) What is meant by a fixed Capital in partnership?

7) Write down any three rules applicable in the absence of partnership deed.

8) Why usually new partner is admitted in partnership business.

9) What matters are settled on the admission of a new partner?

10) Define the dissolution by Notice

11) What is memorandum revaluation account?

12) Differentiate b/w dissolution of partnership and dissolution of firm?

Section III

Attempt any 9 Question:

1) What is outward consignment?

2) What is the relationship b/w Consignor and Consignee?

3) What is over-reading Commission?

4) What is account sale?

5) Give the Examples of direct expenses. (Any three)

6) Pass the general journal entry when Consignee taken over the goods for personal use.

7) What is Chartered Company? Give Example

8) What is company limited by guarantee?

9) What is meant by Subsidiary company?

10) What is meant by Statement in lieu of prospectus?

11) What is Subscribed Capital?

12) Show general entry when Shares are taken up by directors.

13) Pass general journal entry when debentures are issued at premium for cash.

Attempt any three questions from the following comprising equal marks (10*3)

Q.No3:

On1st January, 2005 the position of Retailer who has not kept full double entry records stood as following: Cash in hand Rs. 345: Cash at bank Rs. 5,537; Stock Rs. 5,690 Sundry debtors Rs. 3,275; Furniture Rs. 210 Sundry Creditors Rs. 3,457. His position at end was found to be as under:Cash in hand Rs. 450 cash at bank Rs. 2,430; Stock Rs. 4,680; Sundry Debtors Rs. 4620; Furniture Rs. 250; Sundry Creditors Rs. 4,350 During the year he had drawn from the business Rs. 6,500 out of which Rs. 5,600 was spent in purchasing a motor truck for the business. Prepare a statement showing his Profit for the year ended 31st December, 2005 (i) providing 10%depreciation on furniture and motor truck (ii) writing off Rs. 120 as actual bad debts and (iii) making a 5% reserve for likely bad debts.

Q.No4:

On 1st March 2008 Ali of Faisalabad sent 1,000 cases of crockery @ Rs. 160 each to Imran of Multan to be sold on his behalf and his risk. He is entitled to a commission of 7 ½% and del-credere commission @2 ½%. He incurred Rs. 4,500 as expenses. Rs. 3,000 advance has been received against consignment from the consignee. Imran sent an account sale closing that 500 cases have been sold for Rs, 200 each and another 400 cases @ Rs. 210 each he has incurred unloading expenses etc. Rs. 750 and selling expenses Rs. 1,000.He sends a cheque for the net amount due.Required: Give ledger Accounts in the books of Ali.

Q.No5:

On 1st January, 2005, A and B enter into partnership with contribution of Rs. 20,000 and Rs. 15,000 respectively and sharing profit in the ratio of 3:2. B is to be allowed a salary of Rs. 4,000 per year. Interest on capital is to be allowed at 5% per annum. During the year A withdrew Rs. 3,000 and B Rs. 6000 interest on drawing being a Rs.70 and B Rs. 50. Profit in 2005 before the above noted adjustments were Rs. 10,580. Show how the profit is to be distributed. Also show the capital Accounts under: (a) Fluctuating capital method (b) Fixed capital method.

Q.No6:

Shalimar limited company was registered with an authorized capital of Rs. 10, 00,000 divided into 10,000 shares of Rs. 100 each. One Jan 1 2006, Company issued 8,000 shares in the following g Manner:

a) 2,000 Shares to directors for cash b) 5,000 shares to the general public c) 1,000 shares to promoters against preliminary expenses.

On 15 January 2006, Company received application form the General public for 7,000 Shares. The Shares were allotted and the excess application money of 2,000 shares was refund. Pass the Journal Entries in the book of the Shalimar Company and prepare the Balance Sheet.

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Q.No7:

Form the following Receipts and payment of the club and the subjoined information prepare an income and Expenditure Account for the year ended 31st December 2005:

Receipts Rs. Payments Rs.2005 2005To Balance 600 By Rent 10,400To Entrance fee 1,100 By Stationery 6,136To Subscription By Wages 10,6602004 400 By Billiard Table 7,8002005 33,800 By Repair 1,6122006 600 By interest 3,000To Lockers Rent 1,000 By Balance 4,792To special Subscription 31st DecemberFor Minister’s Party 6,900Total 44,400 44,400

(a) Locker Rent Rs. 120 referred to 2004 and Rs. 180 still owing.(b) Rent Rs.2,600 pertained to 2004 and Rs. 2,600 is still due.(c) Stationery Rs.624 related to 2004 still owing Rs. 728.(d) Subscription unpaid for 2005 Rs. 936.(e) Special subscription for Minister‘s party outstanding Rs. 1,100.