BBSYDP

Paper: Accounting and Book Keeping Total Marks: 50

Q.1: !"oose t"e correct ans#er $or eac" $ro% t"e gi&en option: i) Discount on list price or catalogue price is known as: Sales discount Early settlement discount Purchases discount rade discount ii) !athematical error in the preparation o" ledger can #e detected with the help o": $inancial statements %eneral &ournal Special &ournals rial 'alance iii) (hich o" the "ollowing #est descri#es )Sales). *ld *""ice e+uipment !erchandise sold on cash only !erchandise sold on credit only !erchandise sold on cash and credit i,) -" an account shows a credit #alance that account represents: .e,enue /ia#ilities *wner0s E+uity 1ll o" the a#o,e ,) he process o" recording transactions in chronological order is called: Posting 2ournali3ing 'alancing rans"erring ,i) rial #alance can #e #est descri#e as: -t is a part o" "inancial statements -t shows a list o" #alances o" all accounts -t shows a "inancial per"ormance o" #usiness -t shows "inancial position o" #usiness

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,ii) he #alance #rought "orward in the 'ank 1ccount in the condition o" o,erdra"t is on the: De#it side 4redit side !ay #e on either side 5one o" the a#o,e ,iii) (hich o" the "ollowing is returns outwards: %oods purchased "rom suppliers %oods returned #y customers %oods taken #y customers %oods returns to suppliers i6) (hich o" the "ollowing is a contra entry7 4ash is deposited in to #ank 4ash is withdrawn "rom #ank "or o""ice use 4he+ue deposited in to #ank on any "uture date 1ll o" the a#o,e 6) (hich o" the "ollowing represents claims to economic resources7 1ssets8 #ut not lia#ilities or owner0s e+uity /ia#ilities and owner0s e+uity8 #ut not assets /ia#ilities8 #ut not assets or owner0s e+uity *wner0s e+uity8 #ut not assets or lia#ilities 6i) 1 che+ue issued #y you #ut not yet paid #y the #ank is called: Dishonored che+ue 4erti"ied che+ue 9npresented che+ue 9ncontrolled che+ue 6ii) (hich o" the "ollowing items in not responsi#le "or di""erences #etween cash #ook #alance and #ank statement7 -nterest gi,en #y #ank *utstanding che+ue Direct deposit #y customer E+uipment purchased on cash 6iii) Salaries paid .s. 1:8::: were posted to salaries account as .s.18:::. o recti"y the error8 the salaries account will #e: De#ited #y .s 1:8::: 4redited #y .s 1:8::: 4redited #y .s. ;::: De#ited #y .s. ;8:::

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6i,) (hich o" the "ollowing #est descri#es )Drawing): *wner in,ested cash into #usiness (ithdrew cash "rom #ank "or o""ice use 4ash and commodities taken #y owner "or personal use Deposited cash in to #ank 6,) -n accounting term8 )Purchases) means: 1ll items purchased on credit %oods purchased on cash only %oods purchased "or resale purpose %oods purchased on credit only 6,i) (hich o" the "ollowing is correct:. 4ompound entry re+uires at least two accounts Posting is done chronologically in &ournal De#it means le"t hand side "or e,ery ledger 4apital < 1ssets = 5et loss 6,ii) (hich o" the "ollowing is not an asset: 1ccount recei,a#le Prepaid e6pense 5ote recei,a#le 1ccount paya#le 6,iii) ransaction is only possi#le when there are: 1t least one party 1t least two parties !a6imum two parties 5ot more than three parties 6i6) (hich o" the "ollowing discount is gi,en on prompt payment: rade discount >uality discount 4ash discount 5one o" the a#o,e 66) (hich o" the "ollowing is a lia#ility: !achinery /oan "rom ? 'uilding 4ash Q.': Ans#er t"e $ollo#ing (uestions )rie$l*:

1. De"ine 1ccounting 2. State the rules o" De#it and 4redit 3. /ist the steps in,ol,ed in 1ccounting 4ycle 4. State the "undamental 1ccounting E+uation @. 5ame the main 4omponents o" 1ccounting Q.+: ,eneral -ournal: ,i&en: !uhammad 9mar started #usiness with a cash in,estment o" .s. @::8:::A and e+uipment .s. 1::8:::A. 4ash deposit into #ank "or #usiness account .s. 1::8:::A. Purchased merchandise on cash .s. B@8:::. Purchased merchandise on credit .s. C@8:::. 4ash sales .s. @:8:::A. 4redit sales .s. 2:8:::A= (ithdrew cash "rom #ank "or #usiness purpose .s. 2:8:::. (ithdrew cash "rom #ank "or personal use .s. 1@8:::A. Paid Salaries to the employess #y che+ue .s. C8:::A. .ecei,ed rent o" the #uilding in ad,ance o" .s. 1:8::: cash. .e(uired: .ecord the a#o,e transaction in %eneral 2ournal.