Ministry of Manpower Directorate General of Technological Education NIZWA COLLEGE OF TECHNOLOGY DEPARTMENT OF BUSINESS STUDIES A FINAL EXAMINATION-SEMESTER-II, 2014-2015 BAAC 1102: PRINCIPLES OF ACCOUNTING STUDENT NAME STUDENT ID NO. SECTION INSTRUCTIONS TO THE CANDIDATES All the questions are compulsory and MUST be answered Use only PEN for writing answers. Writing in Pencil is not allowed except for diagrams. Double answers will not carry any marks. Diploma First year Day &Date Sunday, 12 th April 2015 Time 09:00 am - 11:00 am Question Number Total Marks Marks Secured I. True or False 8x1=08 II. One Word Answer 6x1=06 III. Multiple Choices 6x1=06 IV. Short Questions 4x4=16 V. Long Questions 2x7=14 TOTAL 50 TOTAL MARKS SECURED IN WORDS Marked by : : Checked by : Signature : Signature : Date : Date :
I. OR (8 x1= 8 Marks) (Please [ ] Mark the correct Answers) 1. Subsidiary book is a book of secondary or final entry. 2. A cash book is both a journal and a ledger. 3. Carriage outward will show a debit balance. 4. Profit from buying and selling is called gross profit. 5. Balance sheet is an account. 6. Assets are properties owned by the business. 7. Assets are used for generating income. 8. Journal is prepared directly from voucher. II. ONE WORD ANSWER (Marks will be reduced for spelling mistakes) (6 x1 =6 Marks) 1. A brief description about the transaction is called Answer: 2. The classification of accounts takes place in Answer: 3. The process of recording transactions in the journal is called Answer: 4. A system in which main journal is divided into a number of separate journal is called Answer: 5. In which book, fixed assets returned by the trader to supplier is recorded. Answer: 6. In which book, salary paid is recorded Answer: Page 2 of 11
III. MULTIPLE CHOICES (Please [ ] Mark the Correct Answer) (6 x1 = 6 Marks) 1. Purchase of fixed assets for credit will be recorded in A. Purchases day book B. Cash book C. Journal Proper D. Purchases Returns book 2. Cost of goods sold is A. Opening stock +Credit Purchases + Purchases Expenses- closing stock B. Closing stock + Credit Purchases + Purchases Expenses -opening stock C. Opening stock+ Total Purchases + Purchases Expenses- closing stock D. Opening stock + Net purchases + Purchases Expenses closing stock 3. Which of the following statement is correct A. A Trial balance is another ledger account B. A trial balance is a list of balances of all accounts in the ledger. C. A trial balance is the list of all entries in the accounts D. None of the above 4. Accounting entries for recording the payment of a telephone bill are A. Debit Cash and Credit Telephone expense account B. Debit capital and credit cash account C. Credit cash account and debit Telephone expenses account D. None of the above Page 3 of 11
5. Drawings will A. Increase capital B. Decrease Capital C. No effect on capital D. None of the above 6. Example of an outside liability A. Capital B. Bank Loan C. Assets D. Purchases IV. SHORT QUESTIONS (Answer all questions) (4 x4 =16 Marks) Answer. a 1. Answer the following questions. a. Write any four objectives of preparing trial balance? (2 Marks) b. Write any four differences between journal and ledger. (2 Marks) Page 4 of 11
Answer. b Journal Ledger 1 1 2 2 3 3 4 4 2. From the following ledger balances in the business of Mr. Al Harthy, prepare a trial balance as on 31 st Dec 2014. ( 4 Marks) Purchase 11,000 Carriage inward 250 Carriage outward 250 Purchases Returns 1,000 Loan 6,600 Rent Paid 400 Sales 15,000 Sales Returns 600 Capital 16,200 Drawings 1,000 Notes Payable 4,800 Notes Receivable 8,000 Furniture 16,100 Cash in Hand 6,000 Answer: Account Name Debit (RO) Credit (RO) Page 5 of 11
3. Prepare a cash book from the following transactions in respect of Mr. Mohsin Haider for the month of Dec 2014. (4 Marks) 1/12/2014 Started business with cash RO 12,000 8/12/2014 Purchased goods for cash RO 4,500 10/12/2014 Sold goods for cash RO 9,800 15/12/2014 Sold goods to Salem Ro 6,200 18/12/2014 Salem Returned goods RO 200 22/12 /2014 Took a loan from Sohar Bank RO 3,000 26/12/2014 Repaid loan from Sohar Bank RO 500 27/12/2014 Received cash from Salem RO 2,200 28/12/2014 Salary Paid RO 1,800 29/12/2014 Rent Paid RO 1,200 Answer: Dr CASH BOOK Cr Date Receipts Amount Date Payments Amount 4. Following is the journal entries in the books of Abdul Jaleel, prepare the book of ledger and find the balance of the accounts. (4 Marks) Date Particulars LF Debit(RO) Credit(RO) 1/9/14 Debit: Purchases Credit: Mazin (Purchased goods for credit) 6,300 6,300 Page 6 of 11
13/9/14 Debit: Idris Credit: Sales (Sold goods) Answer: 12,000 12,000 Dr Cr Date Account Name JF Amount Date Account Name JF Amount Dr Cr Date Account Name JF Amount Date Account Name JF Amount Dr Cr Date Account Name JF Amount Date Account Name JF Amount Dr Cr Date Account Name JF Amount Date Account Name JF Amount Page 7 of 11
V. LONG QUESTIONS (2 x 7 = 14 Marks) (Answer all questions.) 1. Prepare an income statement for the year ending 31 st Dec 2014 from the books of Mr. Abdul Khader. (7 Marks) Stock on 1-1-2014 18,000 Stock valued on 31-12-1014 38,000 Wages 6,000 Carriage inwards 500 Carriage outward 1,200 Cash sales 56,000 Cash purchases 42,000 Credit sales 126,000 Credit purchases 84,000 Returns inwards 1,000 Returns outwards 3,000 Rent paid 4,800 Discount received 1,500 Salary paid 3,600 Answer: Particulars Business of Name of statement: For the year ended Amount (RO) Page 8 of 11
2. Prepare a statement of Financial Position of the business of Mr. Ahmed Kabeer for the year ended 31 st Dec 2014. (7 Marks) Drawings 1,000 Cash in hand 2,000 Long term loans 25,000 Goodwill 20,000 Debtors 17,000 Bills receivable 13,000 Land and building 28,000 Profit 12,000 Creditors 8,000 Machinery and Furniture 32,000 Closing stock 28,000 Bank overdraft 30,000 capital 60,000 Bills Payable 6,000 Page 9 of 11
The Business of Statement of As at Particulars Amount (RO) Page 10 of 11
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