Punjab Group of Colleges Roll No:__________

Samundri Campus Name: ____________

Section: ___________

Paper: Principles of Accounting Class: I.Com Part I

Time: 60 Minutes Marks: 60_________
Note: Choose only one option (A, B, C or D) for each MCQ in first 30 minutes. After given time, MCQ’s paper will
be collected back. Cutting, Erasing, Double Marking is NOT ALLOWED in this paper.
Question No. 1
S.N Question A B C D

1 The legal tenure of the bill is 100 days 90 days 80 days 70 days

2 Usually in a bill of exchange there are Three parties Four parties Five parties Six parties

3 The bill of exchange is drawn by Creditor Debtor Banker Customer

4 A bill of exchange contains Request Order A promise All of these

5 The journal folio is recorded in the Journal Ledger Final account None of these.

Assets normally shows Debit balance Credit Zero balance None of these.
6
balance
7 Bank reconciliation is a Journal Ledger Cash book Statement

Bank reconciliation is prepared by the Banker Customer Auditor Chartered

8
accountant
Errors which affect profit and loss relate Real account Personal Nominal account None of these
9
to account
Bank does not issue cheque book of Current Saving Fixed deposit PLS account
10
account account account
Error of posting affects Two accounts Three One account Four accounts
11
accounts
Any difference in trial balance is Sales account Purchase Profit account Suspense
12
transferred to account account
The specimen ruling of journal is divided Three columns Four columns Five columns Six columns
13
into:
A statement or list of balances of all Journal Ledger Cash book Trial Balance
14 ledger accounts to find out the accuracy of
record is called:
If an account shows a debit balance that Expense Asset Loss All the three
15
account represents
16 Noting charges are paid as a result of Renewal Dishonor Retirement Endorsement

Bad debts are debited to Debtors Creditors Bad debts Trading account
17
account account account
18 Bill of exchange is signed by the Drawee Drawer Third party None of these

Endorsement of a bill means to Dishonor of the Honor of the Transfer the bill Renewal of the
19
bill bill to third party bill
20 Bank reconciliation is a part of the Pass book Ledger Journal Cash book

A summary of transactions relating to a Accounting Book keeping Account Accountancy

21
person or thing
22 The document issued for credit sales is Voucher Invoice Cash memo Price list

According to which concept business and Business man Going Separate entity Cost concept
23
owner has separate entity concern concept
24 Invoice is prepared by the Buyer Seller Both a and b None of these

Generally accounting equation is a base of Trail balance Trading Cash account Balance sheet
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account
Sold goods costing Rs. 1,500 for Rs. 1,000 1,500 1,750 250
26
1,750 will increase owners equity by Rs.
The account relating to persons or Real account Nominal Personal account Cash account
27
institutions are called account
28 Books of original entry is Journal Ledger Trial balance Trading account

29 In general journal, amount columns are 1 2 3 4

Written explanations below each journal Entry Narration Double entry Compound
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entry is called entry
Income received in advance but not Unearned Outstanding Accrued Income None of these
31
earned is called: Income Income
 Punjab Group of Colleges Roll No:__________
Samundri Campus Name: ____________
Section: ___________

Manufacturing expenses are debited to: Balance sheet Profit & Loss Trading account None of the
32
account three
The book which contains a classified Journal Ledger Trial balance Balance sheet
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record of all transactions is known
Negotiable instruments includes Cheque Bill of Promissory note All of these
34
exchange
35 Subsidiary books are parts of Journal Ledger Cash book Pass book

Purchase of assets on account is recorded Purchase General Cash payment Special journal
36
in journal journal journal
37 Crossing makes the cheque Unsafe Acceptable Unacceptable Safe

The term imprest system is associated Cash book Ledger Petty cash book Three column
38
with cash book
39 For the business capital is Asset Income Liability Expense

The balance sheet is prepared to know Net profit Gross profit Profit and loss Financial
40
account position
41 Normal loss is Controllable Avoidable Unavoidable All of these

42 Drawing is deducted from Capital Sales Purchases Assets

If asset is sold less than book value it is Revenue loss Capital loss Revenue Capital
43
expenditure expenditure
Revenue expenditures are presented in Cash account Balance sheet Pass book Profit and loss
44
account
If an income omitted to be recorded it will Overstate the Understate Both a and b No affect on
45
profit the profit profit
Debit balance of suspense account will be Asset side Liabilities Both a and b None of these
46
shown in side
47 The word “suspense” means Artificial Certainty Insufficient Uncertainty

Purchase of furniture recorded in purchase Principle Omission Commission Compensating

48
day book is error of
The term “accounting” and “book keeping Opposite Different Same All of these
49
are
Discount which is not recorded in the Small discount Big discount Cash discount Trade discount
50
books of accounts is
Branch of accounting which provides Managerial Tax Financial All of these
51 information for internal decision makers accounting accounting accounting
of business is called
A written evidence in support of a Invoice Journal Voucher Memo
52
business transaction is called
53 Liabilities plus owner’s equity are equal to Liabilities Assets Incomes Expenses

Cash account is a kind of Personal Nominal Real account None of these

54
account account
Compound entry affects al 2 3 4 5
55
least….accounts
In case of retirement of bill, the rebate is Drawee Drawer Bank Payee
56
expense for
A cash book is a Subsidiary Ledger Trial balance Statement
57
journal
58 Purchase journal is used to record to Cash purchases Cash sales Credit purchases Credit sales

59 A favorable balance of pass book is called Debit Credit Negative All of these

Bank reconciliation statement shows Love Doubt Agreement Disagreement

60
causes of