WAH COLLEGE OF ACCOUNTANCY

Principal of Accounting
B.Com-I
TIME ALLOWED:-3 HOURs
MARKS 100)

(TOTAL

Punjab University

Attempt any Five questions.

Sargodha University
Q.NO1 is compulsory,Attempt any four question from remaining questions.
Q. NO. 1)

Define the following:

a)

Book keeping

b)

Accountancy

c)

d)

Going Concern

e)

Dual aspect concept

f)

purchases

g)

Return inward

i)

Cash transaction j)

Assets

Q. NO. 2.
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
(k)
(l)
(m)
(n)
(o)

h)

Drawings

Non-monetary event

Pass journal entries for the following transactions.

Started business with the assets: Cash Rs.50,000, Stock Rs.20,000 and
Building Rs.30,000
Purchased furniture from Decent Furniture House costing
Rs.10000.
Goods were sold to Mehmood for Rs. 20000. He paid Rs 10,000
at the time of sale and promised to pay balance within two weeks.
Bought goods for Rs. 35,000 out of which goods of Rs. 5000 were
for owners house. Cash was paid for the whole amount.
A cheque for Rs.8500 was received from Mehmood in settlement
of his full account.
Sales were made to Saeed and Anwar for Rs. 16000 and 14000
respectively. Anwar paid cash for his purchases.
Following expenses were incurred
Repairs and maintenance Rs 1300, Electricity 700
Saeed returned goods amounting to Rs. 3000.
Paid for the following expenses:
Charity Rs 250. Salaries Rs 1700 and Commission Rs.750.
Owner has provided his personal bank account, having balance of
Rs.37000, for the business use only from now onward.
The account of Decent Furniture House was settled by issuing a
cheque of Rs. 9500.
Cheque of Mehmood was paid into bank.
One of our customers, Saeed was declared bankrupt. Weonly recovered Rs
8000 in respect of his account.
Goods having cost of Rs. 2500 were taken for the personal use of owner
whereas goods of Rs 360 were destroyed by fire.
Goods having list price of Rs 15000 were purchased for Rs 13500,for cash

WAH COLLEGE OF ACCOUNTANCY

(p)

Purchased a motor bike for business use for Rs 2300, paying a cheque of Rs
1000 and balance in cash.
(q)
Cash withdrawn from bank for business use Rs 5000.
Q. NO. 3.
Mr. Saqlain has started business by introducing a capital of Rs 200000 in the
form of cash Rs 100000, bank Rs 50000 and goods Rs 50000, on May 1, 2012. During the
month following transactions were made:
i) May 5: Sold goods to Ali for Rs 20000 terms 2/10-n/30
ii) May 8: Purchased building for Rs 50000.
iii) May 11: Goods purchased from Rehman of Rs 12000 @ 5%
trade discount
iv) May 13:Ali returned goods worth Rs 2000
v) May 16:Paid Rs 1500 for salaries and Rs 300 for stationery.
vi) May 25:Account of Rehman was completely settled after getting
5% cash discount
Required: Record all the transactions in journal, post them into ledgers
and prepare a trial balance.
Q. NO. 4. From the following particulars of Mr. Naseem, write up a double column cash
book:
2005
Rs.
May 1 Cash in hand
40000
May 1 Cash in Bank
30000
May 3 Goods sold for cash
9000
May 5 Goods bought for cash
18000
May 8 Received a cheque from Farooq and deposited into bank.
19600
May 10 Paid cheque to Zulfiqar
10000
May 13 Deposited into bank account
6000
May 18 Bank credited interest
365
May 21 Dividend collected by bank
4000
May 23 Withdrawn from bank for business
10000
May 23 Received a cheque from Nisar
9000
May 25 Paid cheque of Nisar into bank
May 26 Paid rent
7500
May 31 Bank debited bank charges
126
Q. NO. 5.: On 31st March, 2005, the Cash Book of Mr. Nadeem shows Rs Rs. 33456 as
bank balance. But it does not agree with the pass Book due to following matters:
1. The payment side of the Cash Book was under cast by Rs. 400.
2. A cheque issued for Rs.524 on 25th March was recorded in cash column.
3. A cheque of Rs. 600 deposited was recorded in cash column.
4. On 20th March the debit balance of 6,104 as on the previous day was brought forward as
a credit balance
5. Of the total cheques amounting to Rs. 46,056 drawn in the last week of March 2005,
cheques totaling Rs. 31,260 encashed in march.
6. Dividends of Rs. 1,000 collected by the bank were not entered in the cash book.
7. Trade subscription of Rs. 400 paid by the bank was not recoded
8. One outgoing cheque for Rs. 1,400 was recorded twice in the cash book.

WAH COLLEGE OF ACCOUNTANCY

Required: Prepare the Bank reconciliation statement with the help of revised Cash
book
Q.6

From the following particulars write up a Treble column Cash Book of

Mr. Naseem.

2008

Rs.

May 1:Cash in hand

20,000

May 1:Cash at bank

15,000

May 3:Goods sold for cash

4,500

May 5:Goods bought for cash

May 8:

9,000

Received a cheque form M. Farooq for Rs. 9650 in full settlement of

his dues Rs. 9,800 and deposited into the bank.

May 11:

Paid to Zulfiqar cash Rs. 5,000 and a cheque for Rs. 4,700 in full
settlement of his dues Rs. 10,000.

May 15:

Cash received from M.Kaleem Rs.4,900 in full settlement of his dues

Rs. 5,000.

May 17:
May 20:

Paid cash to Adnan Rs. 1,950 in full clearance of his dues Rs. 2,000.
Received a cheque form AsimTufail Rs. 3900 in full settlement of his
dues Rs. 4,000

May 25:

Bank credited interest

May 31:

Bank debited bank charges.

Q # 7. The following Trail Balance relates to ringo ring company .As on 31 march
2010.
Debit balances

Rs.

Credit Balances.

Rs.

Sundry Debtors
Plant
Furniture
Closing stock as at 31-032010
Rent and Taxes
Salaries
Office Expenses
Discount
Taxes
Cash in hand
Dock charges
Drawings
wages
Insurance

180,00
0

Capital
Loan
Gross profit
Sundry Creditors
Liabilities for Expenses
Discount
debentures

300,00
0

81,000
12,000
153,00
0

21,000
192,45
0
33,000

24,000

9,550

47,000

2,000

32,500

40,000

3,500
27,000
7,500

WAH COLLEGE OF ACCOUNTANCY

6,500
12,000
4,000
8,000

598,00
0

598,00
0

Required: Prepare Profit and Loss account and the Balance sheet

GOOD LUCK