Punjab College Gujrat Campus Roll # ________

Preparation Test #04 March 2020 Name

Class: I.Com –I Max. Marks: 40
Subject: Accounting Time Allowed:1 hr& 20

Mints.
Q 1. Define following terms: (5*2=10)
i. Define Ledger
ii. What is trail balance
iii. Define posting
iv. What is credit balance?
v. Define accounting cycle.
Q 2. Journalize the following transactions and prepare ledger accounts. (20)
1) Started business with cash Rs. 100,000
2) Deposit cash into bank Rs. 40,000.
3) Bought good Rs. 20,000 from Mr. A on credit
4) Goods sold to Mr. B on credit for Rs. 30,000
5) Paid salaries Rs. 1500.
6) Goods Rs. 1000 taken away by the owner for household purpose.
7) Goods distributed as free samples Rs. 5000
Q5. Solve following Mcqs’. (10*1=10)
i. All those goods which are lying unsold in a business are termed as:
(a) Revenue (b) expense (c) stock (d) sale
ii. Purchased goods on credit increase the
(a) creditors (b) debtors (c) customers (d) none of these
iii. Which of following statement is true:
(a) Assets = liabilities - capital (b) capital = assets + liabilities
(c) Assets – liabilities = capital (d) none of these
iv. Different stages of accounting cycle
(a) Document (b) recording (c) summarizing (d) all of above
v. How many legal basic documents of a public company are?
(a) two (b) three (c) four (d) five
vi. Journal is called book of
(a) Original entry (b) first entry (c) preliminary entry (d) all of these
Vii.An entry which is recorded on both side of cash book
(a) Simple entry (b) compound entry (c) combined entry (d) contra entry
Viii.When cash or goods taken away by owner should be debited to
(a) Cash (b) goods (c) purchases (d) drawings
Ix.A dealing between two persons is called
(a) Transaction (b) Introduction (c) meeting (d) business
X.The arithmetical accuracy of books of accounts is verified through:
(a)Journal (b) Leader (c) trail balance (d) cash book
(Good Luck)