Wah College of Accountancy

Name ________________

Signature of invigilator _______________

Signature of candidate ____________

Principle of Accounting HSSC-II

SECTION-A (MARKS 20)
TIME ALLOWED:- 25 MINUETE
Choose the best answer:
1. If the adjusted capital at the end is more than the capital in the beginning then the difference will be:
a) Gross profit

b) Gross loss

c) Net profit

d) net loss

2. If the capital in the beginning 1st jan 2004 Rs. 80,000; capital introduced on 1st may 2004 Rs. 20,000 rate
of interest per annum , then the interest on capital at 31st December will be,
a) 5600

b) 4800

c) 6000

d) 4000

3. If sold Rs. 350000: Commission on sale 15%, then the value of commission will be,
a) 42500

b) 402500

c) 42250

d) 40500

4. The term depreciation used with reference to

a) Tangibles asset

b) Intangible asset

c) Current asset d) Fixed asset

5. Scrap value is also known as:

a) Residual value

b) break up value

c) both a & b

d) None of these

c) both a & b

d) All of these

6. Depreciation is charged on ;
a) Only fixed assets

b) only current asset

7. If depreciation is not taken into the account the value of asset may be :
a) May b more

b) may b less

c) no change

d) may b more or less

8. when capitals accounts are fluctuating , than all the adjustments are made in:
a) Partners capital account b) partners loan account
current account

c) partners fixed account

d) partners

9. In the absent of agreement the interest on drawings will be charged @

a) 6%

b) 5%

c) 2%

d) no interest

10. A partner has a right to

a) Take part in the conduct of business

b) inspect the books of firm

c) Share in profits

d) all of these

Principle of Accounting I.Com-II

SECTION-B

Wah College of Accountancy

Give short answer s of the following: (any ten)

30

1) Statement of affairs

2) Double entry system

3) Depreciation

4) Depletion

5) Account of sale

6) Amortization

7) Intangible asset

8) Consignment

9) Perpetual Existence

10) Paid up capital

11) At Premium value

SECTION-C
Attempt any one Question

20

1 ) A and B are partner sharing profit and loss in the ratio of 5:3.The position of the firms on 31 December
2015 as follows
Assets

Liabilities

Plant

40000

Capital

-------

Stock

30000

30000

Sundry Debtor

20000

20000

Bill Receivable

10000

Sundry Creditor

Cash

7500

Bank Overdraft

15000
42500

107500

107500

C now joins them on this condition that he will share 3/4 the of the future profit. The balance of profits being
shared by A and B as 3:5.he will introduce Rs 40,000 by way of capital in cash and pays off the overdraft. He
also pays Rs 4000 by way of premium for goodwill of the business and this amount is to remain in business.
The partners agree to depreciate plant by 10% and raise a reserve against sundry debtors by 5%.You are asked
to journalize the entries in the books of the firm and the resultant balance sheet and also show how the
partners will share future profits.
2). Akif and Basit are partner sharing profit and loss in the ratio of 2:3.The position of the firms on 31
December 2015 as follows
Assets

Liabilities

Cash

42000

Capital

-------

Stock

44000

Akif

62000

Sundry Debtor

42000

Basit

70000

Machinery

66000

Sundry Creditor

96000

GoodWill

20000

Furniture

28000
242000

Profit and Loss

14000
242000

1. Furniture and machinery to be reduced by 15%.

2. The value of stick to be taken at Rs 48000.
3. Goodwill to be valued at Rs.26000 and Ahsan introduced Rs 32000 towards capital.
4. Outstanding rent amounted to Rs 1800.

Wah College of Accountancy

Prepare revaluation account; capital accounts of old partner cash account and balance sheet of the new firm.

SECTION-D
Attempt any three question

30

1) Sagheer is not writing his books properly. From the following information prepare a statement showing
profit or loss and statement of affairs for the year ending 30 th June, 2005.
1.7.2004

30.6.2005

Cash

900

2800

Debtors

22800

21400

Creditors

31200

28400

Stock

33400

37400

Bills receivables

30500

28800

Bank overdraft

40800

39200

Motor Vans

4200

4200

Furniture

3400

3400

Drawings Rs. 4800: Depreciate Furniture at 10%. Write off Rs. 800 on motor van. Provide Rs. 1000 as bad
Debts and 5% as reserve on debtors. Provide reserve of Rs 1600 on Bill receivables. Interest on capital is 10%
2) A transport company purchases 10 motor trucks at Rs. 90000 each on 1 st April , 2002 . On 1st October, 2004
one of the truck got an accident and was completely destroyed. Rs. 54000 are received from the insurer in full
settlement. On the same day another truck was purchased for the sum of Rs. 100000. The company wrote off
depreciation at 20% on original cost per annum and observed the calendar as its financial year. Give the motor
truck account from 2002 to 2004
3)

Ali Industries issued 5000 10% debentures of Rs 100 each .What entries will be passed:
1.
2.
3.
4.
5.

Debentures are issued at par and redeemable at par

Debentures are issued at 7% discount and redeemable at par
Debentures are issued at 8% premium and redeemable at par
Debentures are issued at par and redeemable at 4% premium
Debentures are issued at 5% discount and redeemable at 4% premium

4) Noor and sons sent the consignment to Yaqoob and Sons 5000 units for Rs 10 Each. Expenses paid by
consignor Carriage Rs 5000, Cartage Rs. 15000.Yaqoob accepted a draft for Rs 300000 as advance. Noor
received account of sale from Yaqoob and Sons, 3800 units were sold for Rs 20 on the basis of 5%
Commission on sale and also delCreder Commission 5%.account of sale gives detail that consignee spent Rs
5000 On freight and Rs 2000 for Rent. During transits 10 units destroyed due to Accident. Prepare
Consignment account and consignee account.