THEORY GROUP COACHING SYSTEM

MID-TERM EAXMINATION 2020-2021

ACCOUNTING–XI
Time Allowed : 3 hours
SECTION A
MULTIPLE CHOICE QUESTIONS
QUESTION NO 1:
(1) All cash receipts and cash payments are recorded in:
(A) Purchase book (B) Sales book (C) Debt book (D) Cash book
(2) Which of the following discount is given on prompt payment?
(A) Cash discount (B) Trade discount (C) Quantity discount (D) none of the above.
(3) Single column cash book is used for recording:
(A) Cash and bank transactions (B) Cash and bank and discount transactions
(C) Cash transactions (D) None of the above
(4) Which of the following columns of cash book are totaled and not balanced at month end?
(A) Cash column and bank column (B) Cash column and purchase discount column
(C) Cash column and sales discount column (D) Purchase discount column and sales discount column
(5) Which of the following is contra entry?
(A) Cheque received and deposited into bank on same day (B) Withdrew cash from bank for business use
(C) Sold goods for cash (D) Owner invested cash into business
(6) The balance on the debit side of the bank column in cash book indicates:
(A) Cash at bank (B) Cash in hand
(C) The total amount withdrawn from the bank (D) The total amount deposited into bank
(7) The cash book is:
(A) Statement (B) Financial statement (C) Ledger (D) Subsidiary journal
(8) Contra entry is appeared on both sides of
(A) Petty cash book (B) Cash book (C) Sales journal (D) General journal
(9) The book is used to record all credit purchases is called:
(A) Purchase return book (B) Cash book (C) Purchase book (D) Sales book
(10) A cheque received from a customer and not deposited into bank on same day will be entered on:
(A) Cash column of receipt side (B) Bank column of receipt side
(C) Cash column of payment side (D) Bank column of payment side
(11) Purchased furniture for cash, entry would be recorded:
(A) Receipt side of the cash book (B) Payment side of the cash book
(C) Both side of the cash book (D) General journal
(12) In double column cash book makes the record of:
(A) Cash and bank transactions (B) Cash and bank and discount transactions
(C) Cash transaction (D) none of the above
(13) Which of the following columns of cash book are balanced at the end of the month?
(A) Cash column and sale discount column (B) Cash column and purchase discount column
(C) Cash column and bank column (D) Bank column and purchase discount column
(14) Sold goods for cash, entry would be recorded:
(A) Receipt side of the cash book (B) Payment side of the cash book
(C) Both sides of the cash book (D) Petty cash book
(15) Discount deducted from the list price list is called:
(A) Credit discount (B) Cash discount (C) Series discount (D) Trade discount
(16) Paid office rent, entry would be recorded:
(A) Receipt side of the cash book (B) Payment side of the cash book
(C) Both sides of the cash book (D) Petty cash book
(17) The balance of bank column of cash book:
(A) Always shows debit balance (B) Always shows credit balance
(C) Shows debit or credit balance (D) None of the above
(18) All transactions, related to credit sales recorded in:
(A) Sales return book (B) Cash book (C) Purchase book (D) Sales book
(19) The triple column cash book makes the record of:
(A) Cash and bank transactions (B) Cash and bank and discount transaction
(C) Cash transaction (D) none of the above
(20) Cash was found over, entry would be recorded:
(A) Receipt side of the cash book (B) Payment side of the cash book
(C) Both sides of the cash book (D) Petty cash book
 SECTION B
NOTE: Attempt any FOUR of the following 50 MARKS

QUESTION NO 2:
State the rules of debit and credit in terms of increase and decrease in the values of assets, liabilities, proprietorship,
revenue and expenses
QUESTION NO 3:
A study of cash transactions related with the business bank account for April revealed the following:
• Overdraft balance as per bank statement Rs.25000
• Balance as per cash book Rs.15000
• Uncleared check Rs.35000
• Unpresented check Rs.5000
• Direct payment by bank for bills payable Rs.8000.
• Direct deposits by customers Rs.3000.
• Check issued by manager Rs.16000 recorded in counterfoil Rs.11000.

Required:
Prepare bank reconciliation statement as on April 30th
QUESTION NO 4:
For any seven of the following accounts, state whether it is an Assets, Liability or Owner’s
Equity
(i) Office equipment (vi) Accounts receivable
(ii) Capital (vii) Accounts payable
(iii) Office supplies (viii) Salaries payable
(iv) Office supplies
(v) Merchandise inventory
QUESTION NO 5:
Transactions of ALI & Co are listed below:
• Razzaq started business with a cash investment of Rs.45000 and equipment (in the shape of calculator and
computer) valued at Rs.80000.
• Purchased merchandise on account from Qadir Rs.16000 and for cash Rs.80000.
• Sold merchandise for cash Rs.21000 and on account Rs.6800.
• Retuned merchandise to Qadir Rs.900.
• Merchandise returned by customer Rs1300
• Deposited into the bank Rs.14700.
• Paid rent Rs.3000 and commission Rs.2200.
• Withdrew from bank Rs.5100 for personal use.
• Paid to Qadir Rs.4900 (discount Rs.100).

REQUIRED:
Enter in the general journal to record the above transaction.
QUESTION NO 6:
Mr. Shahzad uses three-column cash book. On April 1, 2012 he had cash in hand Rs.40000/- and balance at bank
Rs.50000/- (bank overdraft) the during the month he completed the following transaction:
April 01: Cash sale Rs.60000/-
April 03: Received a cheque for Rs.15000 from a customer Raja, deposited into bank in full settlement of his account
Rs.16000/
April 05: Mr. Ahsan settled his account of Rs.18000/- after a discount of Rs.1000/- through cheque
April 09: Deposited Mr. Ahsan’s cheque into bank
April 18: Paid salaries by cheque Rs.11000/-
April 25: Drew cash for personal use Rs.1000/-
April 30: Drew from bank for office use Rs.4000/-

REQUIRED:
Record the above transactions in three column cash book
QUESTION NO 7:
On comparison of cash book (bank column) and the bank statement of Aslam traders for the month of July 2009,
revealed the following:
• Balance as per bank statement on July 31, 2009 was Rs.57000
• Balance as per cash book on July 2009 but not presented Rs.15000.
• Checks issued during July 2009 but not presented Rs.15000.
• Bank charges not entered in cash book Rs.500.
• Locker rent debited by bank not recorded in cash book Rs.3500.
• Profit credited Rs.1500 and tax debited Rs.150 by bank not recorded in cash book.
• Checks deposited on July 30, 2009 not shown in bank statement Rs.5000.
• Direct deposit by a customer Rs.6650.

Required:
Prepare bank reconciliation statement as on July 31, 2009.

SECTION C 30 MARKS

QUESTION NO8.
M/s Sardar Traders uses three column cash book in their business. The following transactions relate to the month of
March.
March 01: Balance: cash on hand Rs.35000 and cash at bank Rs.45000
March 02: Sold merchandise for cash Rs.19000
March 08: Received a cheque from Mr. Anis for Rs.14500 and allowed him discount of Rs.400. the cheque was
deposited in bank on same day.
March 14: Deposited cash into bank Rs.17000
March 18: Purchased merchandise for cash Rs.7000
March 24: Withdrew cash from bank for office use Rs.12000
March 30: Paid salaries by cheque Rs.7500
March 31: Withdrew cash for personal use Rs.5500

REQUIRED:
Enter the opening balance and record the above transactions in cash book

Balance the cash book on March 31, bringing down the cash and bank balance on April 1