SUPERIOR COLLEGE M.B.

DIN Name ____________

Phases Test (2019) I COM P1 Roll #_____________
Subject: ACCOUNTING (T # 5) Total Marks:30
Q #1 Encircle the correct answer (4*1=4)

Sr# Statement A B C D
1 Net profit is equal to: Gross profit – Sales – Cost of Sales – Capital –
Expenses Goods Sold Expenses Expenses

2 The accounting system in which accounting Cash system Accrual or outstanding None of these
entries are made on the basis of amount mercantile System
become due for payment or receipt is called: system

3 If the closing stock appears in Trial Balance Profit or loss Trading A\c Balance Sheet Fianl A\c
it is taken only to the: A\c

4 Marshaling of balance sheet means Totaling of Totaling of Ordering of Excess of

assets liabilities assets and assets over
liabilities liabilities

Q #2 Define the followings (3*2=6)

1. Balance Sheet
2. Marshalling
3. Adjustment
Q#3 From the following balances taken from the books of Yaqoob, prepare trading and profit and loss
account for the year ended 31st December, 2015 and balance sheet as on that date: (20 marks)
Particulars Rs. Particulars Rs.
Capital 27000 Rent 1250
Returns inward 1500 Furniture 2500
Sales 87500 Rates & taxes 750
Purchases 50000 Discount allowed 1250
Returns outward 500 General expenses 7500
Commission 18750 Debtors 14000
Custom duty 3750 Stock 11250
Creditors 13250 Cash at bank 14000
Cash in hand 1750
Adjustmetns:
I. Prepaid rent Rs.250
II. Outstanding commission Rs.1250
III. Closing stock Rs.12500
IV. Depreciation on furniture at rate 7.5% p.a.
Best of LUCK…..!