SIIT College of Commerce

Send-Ups

Subject: Principles of Accounting Marks: 75

Class: I.Com 2 Time: 3:00

Name: ___________________
Roll No. ___________________

OBJECTIVE TYPE
MCQs: Encircle the right option:

1. Abnormal loss occurs due to:

a) Loss by fire b) Accident c) Theft d) All of these

2. Consignee
a) Bear expenses or loss b) Share profit on consignmen c) Receive commission d) All of these

3. Goods sent on consignment is a nature of

a) Personal account b) Nominal account c) “a” and “b” d) Real account

4. In consignor book, the payment of expenses by consignee should be debited to:

a) Consignment account b) Consignor account c) Cash account d) Expense account

5. It is paid to consignee if he takes the risk of bad debts:

a) Commission b) General Commission c) Ordinary Commission d) Delcredre Commission

6. Under Diminishing balance method, the amount of depreciation gradually:

a) Decrease b) Increase c) Constant d) None of these

7. Depreciation of an asset should not exceed:

a) Original cost b) Depreciable value c) Market price d) Scrap value

8. Decrease in the value of an asset due to change in habit or taste of people:

a) Efflux of time b) Accident c) Obsolescence d) Wear and tear

9. Which one of the asset is to be appreciated in value:

a) Land b) Building c) Furniture d) Machinery

10. Depreciation is an:

a) Expense b) Income c) Liability d) Asset

11. Both aspects of a transaction must be recorded in:

a) Double entry system b) Single entry system c) Barter system d) Islamic system

12. In single entry system, statement of assets, liabilities and capital is called:
a) Statement of affairs b) balance sheet c) Earning statement d) Profit or loss statement

13. Single entry system is generally adopted by:

a) Small Businesses b) Large Businesses c) Medium Businesses d) All of these

14. How many methods are available to calculate profit under single entry system:
a) One b) Two c) Three d) Four

15. Net worth is equal to:

 a) Assets - Liabilities b) Assets + Liabilities c) Liabilities + Capital d) All Above

Class: I.Com 2 SIIT COLLEGE OF COMMERCE Marks: 75

P.O.Accounting SEND-Ups Time: 3:00hrs

SUBJECTIVE TYPE

Attempt all Short Answers from each section (18x2=36)

Section-A Section-B Section-C

1. Define Consignment.
2. Define Abnormal Loss.
3. Define Delcredre
Commission.
4. Define overriding
Commission.
5. Difference b/w Consignment
inward & Consignment outward
6. Difference between
Consignor and Consignee
1. Define Depreciation.
2. Define Wasting Assets.
3. Define the term “Wear and
tear”?
4. Difference between Depletion &
Amortization.
5. What is break up value?
6. Define Obsolescence?
1. Define single entry system
2. Define Statement of affairs.
3. Define increased net worth
method
4. What are the advantages of
single entry system?
5. Opening balance of capital is
Rs.100/- closing balance of
capital is Rs. 1000/, Drawings Rs.
100, calculate net profit/loss
during the year.
6. Define conversion method

Attempt All Long Questions:( 3x8=24)

Q No. 1

“A” started business on 1-1-2005 with capitals of Rs. 60000. During the year ‘A’ introduced Rs.10000 as
additional capital on 1-07-2005. He withdraw Rs.500 p.m. for household expenses from profits. Capital on
31-12-2005 is Rs. 100000. Interest on capital is to be allowed @ 10%.

Calculate the Profit or Loss for the year ending 31-12-2005

Q No. 2

Aqeel sent on consignment 10 refrigerator to Sufyan costing Rs.10000 each, and paid transportation charges
Rs.1000. Consignee spent Rs.2000 for storage and insurance.
Sufyan sold all the refrigerators at Rs.12000 each. Consignee settled the account after
Deducting 15% commission on sale.
Required: Prepare Consignment account in the books of Aqeel .

Q No. 3

A firm purchased machinery for Rs. 70000 on 1 stjuly 2002. They spent 8000 on its installation. Prepare the
machinery account for the first four year under straight line method. Depreciation is written off at 10% per
annum.
Good Luck !!!