Punjab College Gujrat Campus Roll # ________

Preparation Test # 06 March 2021 Name

Class: I.Com –I Max. Marks:
40 Subject: Accounting

Time Allowed:1 hrs & 20mints

Q1. Short questions all the questions carry equal marks (15*2=30)
1. Define days of grace.
2. Bill of exchange.
3. Define Maturity.
4. Difference between inland bill and trade bill.
5. Define renewal of bill.
6. Define dishonored of bill.
7. Define endorsement of bill.
8. Define promissory note.
9. Noting charges.
10. Define tenor
11. Accommodation bill
12. Define payee
13. Foreign bill
14. Rebate
15. Define Acceptance of bill
Q3. Solve following Mcqs’. (10*1=10)
i. Bill of exchange is
(a) An unconditional order (b) a promise (c) A conditional order (d) a regret
ii. Expenses paid in advance is
(a) An expense (b) an income (c) an asset (d) a liability
iii. A person who owes money to the business is called
(a)Debtor (b) creditor (c) shareholder (d) owner
iv. Cash and personal accounts are maintained in
(a) Simple entry system (b) double entry system (c) Multiple entry system (d) none of these
v. In the absence of an agreement profits and losses are divided by partners is ratio of
(a) Capital (b) time devoted by partners (c) equally (d) their drawings
vi. Dividend received Rs. 1500 from A will be posted to credit side of
(a) Cash account (b) dividend account (c) A’s account (d) None of these
Vii . When a drawer discount a bill,he debits:
(a)Bank account (b) interest account (c) Drawee account (d) Bill receivable account
Viii Business receive discount from its
(a) Creditors (b) debtors (c) partners (d) owners
Ix Interest on renewal of a bill is an expense to the
(a) Acceptor (b) Drawer (c) Endorsee (d) Endorser
X .A person who owes money to the business is called
(a)Debtor (b) creditor (c) shareholder (d) owner

(Good Luck)