PRINCIIPLES OF ACCOUNTING HSSC-I

Sig. of Candidate. ---------------------------

Sig. of Invigilator--------------------------.

SECTION - A (Marks 20)

Time allowed: 25 Minutes
NOTE: - Section-A is compulsory and comprises pages 1-4. All
parts of this section are to be answered on the question paper
itself. It should be completed in the first 25 minutes
Deleting/overwriting is not allowed. Do not use lead pencil.
Q. I
Select the correct option i.e. A / B / C / D
(1)
What is meant by dual aspect?
A. Entry into two books

B. Entry in two dates

C.Entry into two accounts D. None of these

(2)
The amount invested into the business by the owner is called:
A. Cash account

B. Loss account

C. Capital account

D. None of these

(3)
What is meant by equity?
A. Capital + Creditors

(B). Assets + Liabilities

C. Capital + Assets

(D). Assets

(4)
Pass book is prepared by the
A. Customers

B. Bank

C. Guarantor

D. None of these
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(5)
What is meant by retirement of a bill under rebate?
A. Payment before due date
C. Dishonor of bill

B. Payment at maturity

D. Bill sent for collection

(6)
The term imprest system is used in:
A. Purchases book

B. Sales book

C. Cash book

D. Petty cash book

(7)
Expenses relating to sales are entered in:
A. Trading account
B.Profit and loss account
C. Receipt and payment account
D. Balance sheet
(8)
Provision for bad debts is made when:
A. Amount is large
B. Benefit taken during current period
C. Benefit in future
D. None of these
(9)
Prime function of accounting is to:
A. Record economic data
B. Provide information for future decision
C. Classify and record business transaction
D. None of these

(10)
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The cash or goods taken by the owner for personal use are called
A. Capital

B Drawings

C .Cash

D Purchases

(11)
The discount allowed during credit sales is called
A. Cash discount

B. Trade discount

C. Sales discount

D Purchases discount

(12)
A summarized record relating to a person is called
A. Actual account

B Real account

C. Nominal account

D Personal account

(13)
The properties owned by a business are called
A. Liabilities

B. Income

C. Assets

D Expenses

(14)
The amount payable by a business is called:
A. Liabilities

B. Income

C. Assets

D. Expenses

(15)
The realization concept implies:
A. The receipt of the order
B. The delivery of the goods
C. The cash receipt from debtors
D. None of these
(16)
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The cost concept applies only to the assets and not to.
A. Expenses

B Liabilities

C. Incomes

D. None of these

(17)
Furniture account is concerned with:
A. Real account

B Nominal account

C. Personal account

D None of these

(18)
Commercial banks provide facility of sending money from one place to
another through:
A. Cheques

B. Overdrafts

C. Bank drafts

D. None of these

(19)
What minimum number of parties is required in the case of bill of
exchange's
A. Two

B. Three

C. Four

D. Five

(20)
When is Trial Balance prepared?
A. After trading account

B. After balance sheet

C. Before trading account D. None of these

PRINCIPLES OF ACCOUNTING HSSC-I

Time allowed: 2:35 Hours
Total Marks Sections B and C:80
NOTE: - Sections 'B' and 'C' comprise pages 1-2 and questions
therein are to be answered on the separately provided answer
book. Answer any ten parts from Section 'B' and attempt any one
question from Section 'C
(Part-1)'
and three questions
from Section 'C
(Part-II)'.
Write your answers neatly and legibly.
SECTION - B (Marks 30)
Q. 2
Attempt any TEN parts. The answer to each part should not exceed3 to 4 lines.
(10 x 3 =30 )
(i) What are the main advantages of Double Entry System?
(ii) What is the difference between Cost and Expense?
(iii) Explain the term Account.
(iv) What do you mean by Equity?
(v) Differentiate between Book-keeping and Accounting.
(vi) Define the Normal or Proprietary account.
(vii) Distinguish between Journal and Ledger.
(viii) Distinguish between Stale and Post Dated cheques.
(ix) What are the main features of a Bill of Exchange?
(x) Define the term 'Bill Receivable' and 'Bill Payable'.
(xi) Explain the imprest system of Petty Cash.
(xii) What is a Bank reconciliation statement?

SECTION C (Marks 50)

Note: Attempt any ONE Question (Marks 20)
Q no. 3
From the following Particulars prepare a trading, profit and loss account and
balance sheet for the year ended 31 12 2007
Particulars

Amount (dr)

Capital

Amount (Cr)
13,705

Building

6,000

Purchases / Sales

21,750

Carriages

275

Discount

1,300

Travelling Expenses

500

Wages

7,000

Salaries

2,000

Repairs

105

Furniture

200

Debtors / Creditors

3,250

Cash at Bank

2,000

Cash in hand

750

30,000

2,100

Adjustments:
(a) Salaries and wages are outstanding Rs. 255 and Rs. 72 respectively
(b) Goods costing Rs. 1o5 were taken away by the proprietor for his personal use
but no entry was made in the books
(c) The stock in hand on the 31 st December was valued at Rs. 6.075
Q no.4
From the following particulars prepare a triple column cash book for the month of jan.
2008
Jan. 2008
1

Cash in hand Rs. 15,000/- and at bank Rs. 7,000/6

Cash sales Rs. 900

Cash paid into bank Rs. 500

Purchased Goods for Rs. 2,500/- and paid by cheque

Goods sold to Aslam for Rs. 7,000/-

Received a cheque from Aslam amounting to Rs. 6,950/- Discount Allowed Rs.
50/-

Aslam Chaque paid into the bank

Paid Electric Charges in Cash Rs. 500/-

Withdrew from Bank for business use Rs. 2,000/-

10

Paid outstanding Bill of Mr. Rashid by cheque Rs. 1,450 Discount Received

Note: Attempt any THREE questions. (3 x 10 = 30)

Q. 5
On 1st Jan 2008 Ahmad sold goods to Bashir for Rs 9000/- and drew three bills of Rs
300( each for one month, two months and three months, respectively Bashir
accepted them and returned to Ahmad. Ahmad retained the first bill with him,
discounted the second bill from bank for Rs.2950/- and endorsed the third bill to Karim.
Show what entries should be passed r t,)(books of all the parties if the bills are
dishonoured on due dates
Note:Dates must be considered.
Q. 6
From the following particulars prepare bank reconciliation statement of M/S Shabbir
anti . c:
A. Balance as per Bank Statement (Cr)

Rs. 9,000

B. Cheques issued but not presented

Rs.

15,000

C. Bank charges made by bank

Rs.

500

D.Cheques deposited but not credited

Rs. 1.500

E.Bank credited interest in the pass book

Rs. 150

F.Wrong credit given by bank

Rs.300

Q. 7
State with reasons whether the following be considered as capital or revenue expend
'u
a. Interest on debentures issued by the company.
b.Interest paid to bank on the loan taken for purchase of machinery
c. Compensation paid to workers for injuries during an accident
d. Damages paid due to breach of a contract for supply of goods
e. Premium paid on preference and ordinary shares.
f.Preliminary expenses paid in the formation of a company
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Q. 8
Record the following transactions in the Jouranl, post into the Ledger and prepare a Trial
Balance

Jan 1 Ahmad started business with cash Rs.100,000/Jan 2 Deposited cash into bank Rs.60,000/-.
Jan-3 Purchased goods for cash Rs.5,000/-.
Jan 4 Purchased goods from Akbar on credit Rs. 10,000/-.
\Jan 5. Sold goods for cash Rs, 15,000/-,
Jan 6 Sold goods on credit to Aslam for Rs 6,000/-.
Jan 7 Purchased building Rs.20.000/- and paid by cheque
Jan 8 Paid salaries in cash Rs.5,000/-.