(ACC 2023) Xii Target Paper by Sir Irfan Jan

ACCOUNTMICS I.
COM(2) ACCOUNTING All subjects home tuitions available for

Prepared by Sir Irfan Jan TARGET PAPER I.COM, B.COM, BBA & M.A Economics
M.Phil. (Economics) YEAR-2023 Cell # 0347-3643211
2ND YEAR COMMERCE

PRINCIPLE OF ACCOUNTING
PREPARATION/SOLVED TARGET PAPER (2023)
By SIR IRFAN
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ACCOUNTMICS I.COM(2) ACCOUNTING All subjects home tuitions available for
IMPORTANT NOTE:
• PAID answers to this target paper are available.
• If any student desire to get answers of this paper contact sir Irfan via WhatsApp number
is 0347-3643211
To get the Answers (PDF) via WhatsApp: Click here
SHORT (QUESTIONS/ANSWERS)
Q#1: SINGLE ENTRY
Mr. Naseem maintains single entry records. The assets and liabilities of his business are under :
July 01, 2022 June 30, 2023

Cash 80000 150000
A/c receivable 20000 30000
Furniture ----- 25000
Machinery 110000 150000
A/c payable 30000 40000
Bank Overdraft 18000 --------
Data for adjustment on June 30, 2023

• He made an additional investment during the year Rs. 25000
• He withdrew cash Rs. 2500 per month during the year.
• Estimated allowances for bad debts Rs. 1250.
• Depreciation on fixed assets of ending balances 10% per year.
• Accrued interest on bank Overdraft Rs. 300.
Required:
Prepare a statement of profit & loss on June 30, 2023.
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Q#2: ISSUANCE OF SHARES & DEBENTURES

The following transactions were completed by Altaaf & co ltd:
01- Issued 75000 ordinary shares of Rs.10 each per share to the public payable in full on application. The
company received applications for 80000 shares. The company allotted the shares offered and refunded
the amount received in excess.
02- The company purchases Machinery at Rs. 480000 and issued vendors its own 43000 ordinary shares
of Rs. 10 each.
03- The company purchased an Office Equipment costing Rs.400000 and issued a sufficient number of
shares. The share had a market value of Rs.12 each.
04- Issued 1200 ordinary shares to the promoters for the services rendered by them at par.
05- Paid Rs. 10000 for the printing of shares certificate.
06- Decided to capitalize Rs.400000 against retained earnings and then issued shares at a premium of
Rs. 14.
07- Issued 42000 shares of Rs. 10 each to settled Debenture payable of Rs. 400000.
08-Received Rs.195,000 against issuance of 2,000, 12% debentures of Rs.100 each redeemable after 5
years at Rs.110 each
09- Issued 2000 debentures of Rs. 100 @ Rs. 95 redeemable after four years at Rs. 105 each.
10- Issued 5000 12% debentures of Rs. 100 each at Rs. 95 cash.
Required:
Record the above transactions in general journal.
Q#3: ACCOUNTING FOR NON-PROFIT CONCERN

A summary of cash receipts and payments of AL-NASSAR football club are as under:
Receipts Amount Payments Amount
Opening bal 50000 Salaries 120000
Subscription income 200000 Office Equipment 20000
Tuition fees 100000 Exams expense 50000
Donation 60000 Utility expense 10000
Entry test fees 20000 Printing & Stationary 20000
Postage & telegram 10000
Repair exp 5000
Closing bal 200000
Additional information on Dec 31, 2022

• Subscription arrear RS. 5000, Unearned Subscription Rs. 30000 and accrued Rs. 10000
• Outstanding salary Rs. 30000
• Prepaid utility Rs. 4000
• Depreciation expense on Equipment Rs. 3000
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Required:
Prepare income & expenditure account on Dec 31, 2022
Q#4: SINGLE ENTRY

The following information extracted from journal of Noman are under
1.1.2022 31.12.2022
Cash 3000 5000
A/c receivable 10000 15000
Merchandise inventory 20000 50000
Office equipment 15000 15000
Office furniture 20000 20000
A/c payable 8000 5000
Data for adjustment on Dec 31 2022:
• Additional investment Rs. 10000

• Withdrew Rs. 500 pm for personal use
• Depreciation expense 10% on fixed asset
• Rent Rs. 2000 pm outstanding since Nov 2022
Required:
Prepare Statement of Affairs whose Net income (Rs. 28500) on Dec 31 2022
Q#5: RETAINED EARNING

The following data were extracted from the balance sheet of Al-Mehran Company Limited on Dec 31,
2021
Authorized capital
200000 Ordinary shares of Rs. 10 each Rs. 2000000
Issued and paid up capital
100000 Ordinary shares of Rs. 10 each Rs. 1000000
Retained earning Rs. 150000
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On December 31, 2022, the income summary of the company showed Net Income of Rs. 300000
The following decisions were taken by the BOD of the company
a) To declared cash dividend of 15%
b) To appropriate Rs. 100000 for Plant Extension
c) To appropriate Rs. 50000 for Contingencies
d) To appropriate Rs. 50000 for Sinking funds
Required:
Give in General Journal to transfer net income into retained earning & General entries to
recoded BOD decisions
Q#6: DEPRECIATION (COST)
On Jan, 5 2022, Zaib & Co purchased a machine having a list price of Rs. 200000 subjects to a trade
discount of 4 %. The credit terms were 2/10, n/30. The payment was made on 18 Jan, and the following
expenses also incurred:
Sales Tax Rs.1840, Transportation in Rs. 4000, Insurance in transit Rs. 10000, Two-year fire insurance Rs.
6000, Octroi charges Rs. 900, During installation machine was repair cost Rs. 9000
Required:
1) Calculate cost of machine
2) Prepare necessary journal entries
Q#7: PARTNERSHIP – FORMATION
Alim, Badar and Salim formed a partnership contributing equal amounts of capital as shown below
Alim : Cash Rs. 15000 Office equipment Costing Rs. 90000 but partners agreed as Rs. 75000
Badar : Cash Rs. 50000 & Merchandise for the amount of balance
Salim : Machinery worth Rs. 80000 & balance in cash
Required:
Give in General Journal to record investment of each partners.
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Q#8: PARTNERSHIP – FORMATION

Irfan, Irshad and Imran agreed to form a partnership business with capital contribution in the form of
cash and in the ratio of 2:4:3 respectively. Irfan invests Rs.125000 as his share of capital contribution.
Required:
Find the investment of each partner and record in General Journal.
Q#9: PARTNERSHIP – DISTRIBUTION
James and David are partners having capital balances of Rs. 900000 and Rs. 600000 respectively. They
had agreed to the following term
a) James and David will be entitled to a monthly salary of Rs. 6000 and Rs. 3000 respectively
b) David will be allowed commission of Rs. 30000 per year
c) The remaining profit and loss will be divided the partners in the ratio of their capitals
d) Net loss of the firm during the year is Rs. 10000
Required:
i) Prepare Income distribution summary
ii) Give necessary entries in general journal regarding distribution of the net loss of the firm among the
partners
Q#10: PARTNERSHIP – DISSOLUTION

The Balance sheet of Ramda Traders were as under
Cash 27000 Accounts payable 54000

Other assets 315000 X’s capital 108000
Y’s capital 117000
Z’s capital 63000
342000 342000
X,Y & Z share profit and loss equally. They decided to liquidate their business
• Other assets were sold for cash Rs. 945000

• Liabilities were paid in full
• Liquidation expenses were paid in cash Rs. 9000
Mr. Z is personally insolvent
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Required:
Pass entries in general journal to record dissolution of partnership
Q#11: PARTNERSHIP – RETIREMENT
Zaid, Zaheer and Zahid were partners having capitals of Rs.200,000; Rs.300,000 and Rs.400,000
respectively, sharing profit and loss in the ratio of their capitals. Zahid was retiring from business and he
is facing a problem of insolvency.
Required:
Record the retirement of Zahid under the following cases separately:
i) Zahid was paid Rs. 450,000 (Old partners are agreed to reduce their capital)
ii) Zahid was paid Rs.500,000 (Use goodwill method)
iii) Zahid was paid Rs.430,000 (use the Bonus method)
Q#12: PARTNERSHIP – RETIREMENT
Affan , Amir and Armish were equal partners with capital balances of Rs.60000, Rs. 80000 and Rs. 30000
respectively. Affan retires from the partnership and the remaining partners continue the business. Before
the retirement of Affan, Assets were revalued and a gain of Rs. 30000 was transferred to the capital
accounts.
Required:
Prepare necessary entries to record the distribution of gain on revaluation and necessary entries related
to the retirement of Affan.
LONG (QUESTIONS/ANSWERS)
Q#1: DEPRECIATION
a) Define depreciation? State depreciation is a loss or an expense. Write any three differences between
capital expenditure and revenue expenditure.
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b) On October 1, 2019, Naeem & Co purchased Equipment at Rs. 250000 Equipment are depreciated using
the Reducing balance method. The useful life of the building is 10 years. The company accounting year
ended December 31 each year.
Required:
1-What is the amount of depreciation expense for 2019, 2020, 2021 & 2022
2-Set-up Allowances for depreciation account for the 4 years depreciation
3- Prepare balance sheet as on dec 31 2021
Q#2: DEPRECIATION
Santosh Ltd. purchased a machine on February 28, 2020 at a price of Rs.400,000/-. Its residual value was
estimated @ 20%. The life is to be estimated in 5 years, in unit 32000 and in hours 64000. The company's
year ended Dec. 31, each year:
Required:
Determine the depreciation on machine for 2020, 2021 and 2022 under the following:
(i) Working hours operated: (Year-2020, 1500 hours; year-2021 2500 hours and year 2022, 2000 hours).
(ii) Production units: (Year 2020, 7500 units, year 2021, 8500 units and year 2022, 6700 units).
(iii) Prepare adjusting entries under Working Hours method for year 2020 & 2022.
(iv) Prepare closing entries under the Units method for year 2020 & 2021.
Q#3: PARTNERSHIP – ADMISSION
Saad and Babber are partners having capitals of Rs.300,000 and Rs.200,000 respectively
and sharing profit and loss in the ratio of 3:2. They admitted Hassan with 1/5 share in the capital and profit
Required:
Record Hassan's admission in General Journal under the foll0wing cases separately:
i) Hassan invested Rs.100,000 cash, the capital of the firm will increase only by the Hassan's investment
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ii) Hassan invested equipment of 50,000, furniture 60,000 and sufficient cash
iii) Haasan invested Rs 150.000 and is credited with the entire amount.
ACCOUNTING MCQS (I.COM-2) CHAPTERWISE
CHAPTER# 1:
SINGLE ENTRY
SINGLE ENTRY – MCQS
1- If the opening capital is Rs.4125, ending capital is Rs. 2830 & drawing is Rs.825, then net income/loss
will be:
a) Rs.470 b) Rs.570
c) Rs.670 d) Rs.7700
2- This is the only tangible fixed asset, which is not changed to expense:
a) Building b) Machinery
c) Land d) Furniture
3- This does not appear in Income statement:
a) Sales b) Commission Income
c) Rent Expense d) Copyright
4- Receipts and payments accounts are a summary of the:
a) Cash book b) Purchase journal
c) Sales journal d) General journal
5- In single entry system, a statement composed of Assets, Liabilities and Capital is called:
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a) Profit/Loss statement b) Statement of Affairs
c) Statement of Retained Earnings d) Bank Statement
6- This does not appear in Balance sheet:
a) Building b) Cash
c) Goodwill d) Rent expenses
7- If gross profit is Rs. 80,000 (20% of cost of goods sold), the amount of sales is:
a) Rs. 400,000 b) Rs. 480,000
c) Rs. 520,000 d) Rs. 100,000
8- The amount of capital is computed by subtracting liabilities from:
a) Revenue b) Assets
c) Drawing d) Expenses
9- This is an intangible asset:
a) Automobile b) Tools
c) Goodwill d) Fixture
10- Unearned income show in Balance sheet:
a) Current assets b) Current liabilities
c) Non-current assets d) Owner's equity
11- This is a liability:
a) Advance from customer b) Loan to employee
c) Accrued rent income d) Advance to supplier
12- Capital at end — Capital at start =
a) Net Income b) Unadjusted Income/loss
c) Sales d) Commission income
13- If closing capital is Rs.10000, Additional investment Rs.6000, Drawings Rs.3600 and Profit during the
year is Rs.2,600 then the amount of capital at start was:
a) Rs.1700 b) Rs.3000
c) Rs.3700 d) Rs.5000
14- In single entry system, statement of assets, liabilities and capital is called:
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a) Income Statement b) Retained Earnings Statement
c) Statement of profit/loss d) Statement of affairs
15- Receipts and payments account is a summary of:
a) Cash book b) Purchase book
c) Sales book d) None of these
16- In appearance, the statement of affairs is similar to a:
a) Balance sheet b) Profit and loss account
c) Trading account d) Statement of retained earning
17- The opening statement of affairs is usually prepared to find out the figures of:
a) Cash in the beginning b) Capital at the beginning
c) Profit during the year d) Expenses during the year
18- If some additional capital ( fresh capital ) Rs. 5000 is injected during the year , closing capital will be
a) Increased by Rs. 5000 b) Decreased by Rs. 5000
c) Remain unchanged d) Multiply by Rs. 5000
19- This account does not appear in the balance sheet
a) Bank b) Purchase return & allowances
c) Bank overdraft d) Reserve for plant extension
20- This is an intangible Asset
a) Goldmines b) Office supplies
c) Patents d) Fixtures
(Hint: Intangible Assets are those assets which cannot be seen with eyes, Good will also in an
intangible asset while patents a government authority or license conferring a right or title for a set
period )
21- This is/ These are Natural resources
a) Machinery b) Patents
c) Trade mark d) Fisheries
22- Capital is also known as
a) Debtor b) External equities
c) Internal equities d) Bank
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23- Goodwill is shown in
a) Quick asset b) Fixed asset
c) Total assets d) None of these
24- This item is to be added to unadjusted profit in profit and loss statement in single entry:
a) Accrued income b) Accrued expense
c) Unearned income d) Depreciation expense
25- This account does not appear in the balance sheet:
a) Bank b) Purchase Return and Allowances
c) Bank Overdraft d) Reserve for Plant Expansion
26- The statement of affairs shows:
a) Capital b) Purchases Sales
c) Sales d) All of these
27- If closing capital was Rs.5000 additional investment Rs.3000, Drawing Rs.300 per month for 6
months and profit during the year was Rs.1300 then the amount start will be:
a) Rs.3800 b) Rs.2500
c) Rs.1700 d) Rs.1600
28- Capital at end — Gross Profit + Drawings =
a) Capital at start b) Interest on Loan
c) Net Profit d) Interest on Capital
CHAPTER# 2
ACCOUNTING FOR NON-PROFIT CONCERN
ACCOUNTING FOR NON-PROFIT CONCERN – MCQS

1- Subscription received in advance will be shown in:
a) Cash Book b) Trial Balance
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c) Income Expenditure A/c d) Balance Sheet
2- In Non-profit concerns, the amount collected from members on regular basis is known as:
a) Subscription b) Donation
c) Loan d) Fees
3- Income & Expenditure account in a non-profit concern is substitute of:
a) Profit & loss account b) Cash book
c) Retained earnings d) Statement of affairs
4- In a non-profit concern, accumulated fund is a substitute of:
a) Liabilities b) Assets
c) Capital d) Revenue
5- Income and expenditure account, in nonprofit concerns, is similar to:
a) Exp. & Rev. Summary b) Balance Sheet
c) Statement of retained earning d) Cash book
6- The following is the summary of cash records prepared in non-profit earning concerns:
a) Receipt & payment A/c b) Cash book
c) Exp. & Rev. summary d) Bank statement
7- The credit balance of income and expenditure account represents:
a) Cash in hand b) Bank overdraft
c) Surplus of income over expenditure d) Surplus of expenditure over income
8- Nonprofit making organizations are established for:
a) Charitable & Religious purposes b) Profit
c) Manufacturing goods c) Trading concerns
9- In non-trading concerns, statement of affairs is used to mean the same as:
a ) P/L a/c b) Bank a/c
c) Balance sheet d) Trial Balance
10- Non-profit organizations are established for:
a ) Earning profits b) Trading purpose
c) Manufacturing goods d) Welfare purposes
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11- Example of non-profit making organization is:
a ) Fan factory b ) Sugar mill
c) Private college d) None of these
12- Amount received from any source by way of the gift non-profit organization is described as
a) Legacy b) Subscription
c) Donation d) Life time membership
13- When receipts side of non- profit concern are higher than payments, the difference will be
a) Loss b) Profit
c) Surplus d) Deficit
14- Subscription received in advanced will be shown in
a) Cash book b) Trail balance
c) Income & expenditure account d) Balance sheet
15- Excess of expenditure over income is called
a) Deficit b) Surplus
c) Both a & b d) Expenditure
16- The credit balance at end , in income and expenditure shows
a) Surplus b) Surplus
c) Both a & b d) Capital
17- This item is not an income in income in non profit concern
a) Government grant b) Donation
c) Interest on loan d) Subscription
18- The deficit balance in terms of Income & Expenditure account is best indicated by
a) Excess of Income over Expenditure b) Excess of receipt over payment
c) Excess of receipt over payment d) Excess of Expenditure over Income
19- This item is an income in non-profit concern
a) Asset b) Liability
c) Capital d) Subscription
20- This account appears in the income and expenditure account:
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a) Accrued Subscription b) Subscription Income
c) Subscription Received in Advance d) Subscription Payable
21- In non-profit organization, Accumulated fund means:
a) General fund b) Petty cash fund
c) Capital fund d) Investment fund
22- Non- profit organization includes
a) Schools b) Clubs c) Hospitals d) All of these
23- This item is an income in non-profit concerns:
a) Asset b) Liability c) Capital d) Subscription
CHAPTER# 3
DEPRECIATION
(1)Introduction & Miscellaneous
1- The process of Allocation of cost of tangible assets is
a) Amortization b) Depletion c) Depreciation d) Revaluation
2- Fixed Assets are normally shown in Balance sheet at:
a) Book value b) Market value c) Historical cost d) Scrap value
3- Accumulated Depreciation account is:
a) Current asset b) Intangible asset c) Contra asset d) Liability
4- Cost-Accumulated depreciation is equal to:
a) Book value b) Depreciable cost c) Market cost d) Retail cost
5- Accumulated depreciation shown in
a) Balance sheet on equities side b) Balance sheet under fixed side
c) Balance sheet under current side d) Income statement under operating expenses
6- In trial balance, the balance of the Accumulated Depreciation account is:
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a) Shown as a credit item b) Shown as a debit item
c) Sometimes shown as a credit, sometimes as a debit
d) Not shown, as it is deducted from related non-current asset
7- Land is annually depreciated at the rate of:
a) 10% b) 15% c) 20% d) None of these
8- All fixed assets are depreciated except:
a) Building b) Land c) Equipment d) vehicles
9- Fixed assets are usually used for:
a) A no. of years b) Five years c) One year d) Six months
10- Purchase of patent is a
a) Revenue expenditure b) Preliminary expense c) Capital expenditure d) None
11- This is the only tangible fixed asset, which is not changed to expense:
a) Building b) Machinery c) Land d) Furniture
12- Depreciation is such an expense:
a) Cash b) Non cash c) Accrued d) Payable
13- The expected realizable value of a fixed asset, at the end of its life, is called:
a) Book value b) Fixed value c) Salvage value d) Cost
14- This is subject to depreciation:
a) Land b) Goodwill c) Coal mine d) Machinery
15- The amount of depreciation charged on machinery will be debited to:
a) Machinery account b) Cash account
c) Depreciation account d) Depreciable cost account
16- The gradual decrease in the value of fixed asset is called:
a) Appreciation b) Depletion c) Fluctuation d) Depreciation
17- Depreciation is:
a) An income b) An expense c) A loss d) A liability
18- Depreciation means:
a) Decrease in the value of asset b) Increase in the value of an asset
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c) No change d) None of these
19- Depreciation is deducted from:
a) Asset b) Liability c) Expense d) Income
20- Depreciation of an asset should not exceed:
a) Original cost b) Depreciation value c) Market price d) Scrape value
21- Internal cause of depreciation are:
c) Depletion b) Wear and tear c) Both A & B d) Obsolescence
22- Amount of assets may rise or fall due to:
a) Depreciation b) Fluctuation c) Depletion d) Amortization
23- Depreciation may be ascertained exactly in case of:
a) Lease hold property b) Machinery c) Patent right d) None
24- Due to fluctuation in the market price, the value of an asset may:
a) Increase b) Decrease c) No change d) None
25- If the value of fixed assets increased by the passage of time is called:
a) Depreciation b) Appreciation c) Fluctuation d) Depletion
26- The process of writing of intangible assets, such as good will is called:
a) Depreciation b) Fluctuation c) Depletion d) Amortization
27- Which is intangible asset:
a) Goodwill b) Trade mark c) Copy right d) All of these
(2) Capital & Revenue Expenditure

1- While computing the cost of plant asset, this will not be included:
a) Insurance in transit b) Fire insurance c) Transportation in d) Installation charges
2- Capital expenditures are recorded as:
a) Capital b) Expense c) Asset d) Revenue
3- This one of the following accounts is debited when capital expenditures are made:
a) Fixed Asset b) Expense c) Current Asset d) Liability
4- Purchase of fixed assets and expansion of fixed assets is:
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a) Revenue expenditure b) Capital expenditure c) Capital d) Expense
(3) Cost of fixed asset

1- The alternative term used for salvage value is:
a) Scrap value b) Market value c) Book value d) Depreciable cost
2- Depreciation is a process of:
a) Valuation b) Cost allocation c) Cash accumulation d) Appraisal
3- This is not recorded in the books of accounts:
a) Sales discount b) Sales Tax c) Purchase discount d) Trade discount
4- This is not included in machine cost
a) Installation charges b) Insurance in transit
c) Freight d) Income tax
5- Cost of machine includes:
a) 3 year fire insurance b) Insurance in transit
c) Trade discount d) Repair cost of damages during installation
6- Depreciable cost value of an asset under straight line method is:
a) Cost + Scrap value b) Cost + Market value
c) Cost — Scrap value d) Cost — Market value
7- Invoice price is determined thus:
a) List Price + Trade discount b) List Price - Trade discount
c) List Price + Cash discount d) List Price - Cash discount
8- The nature of insurance in transit is a:
a) Revenue expenditure b) Selling expenditure
c) Capital expenditure d) Operating expenditure
9- Discount availed , during concession period is knowns as
a) Trade discount b) Sales discount
c) Cash discount d) Quantity discount
(4) Methods
1- Under the straight line method, the annual depreciation charge
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a) Fluctuate b) Remain Constant c) Increase d) Decrease
2- Under the Diminishing Balance method every year, the depreciation charge:
a) Fluctuates b) Remains constant c) Increases d) Decreases
3- Under diminishing balance method, depreciation is calculated on
a) Fixed cost b) Depreciable cost c) Book value d) Scrape value
4- Cost of machine Rs.150000, scrape value Rs.20000, rate of depreciation 20 %. Calculate depreciation
under diminishing balance method:
a) Rs.20000 b) Rs.30000 c) Rs.40000 d) Rs.50000
5- Trade mark is annually depreciated at the rate of
a) 18% b) 40% c) 10% d) None of these
6- Another name of Straight line method is:
a) Reducing balance method b) Revaluation method
c) Fixed installment method d) Units of output method
7- Under diminishing balance method, the amount of annual depreciation expense:
a) Gradually decreases b) Gradually increases
c) Remains constant d) Does not change
8- Salvage value is not deducted from cost while computing depreciation under:
a) Machine hours method b) Units of production method
c) Diminishing balance method d) Sum of the year digit method
9- If cost of assets is Rs.53000, scrape value Rs.8000 estimated life 5 years the amount of depreciation
will be:
a) Rs.900 b) Rs.9000 c) Rs.1000 d) Rs.10000
10- When the cost of asset is Rs.100000, salvage value is Rs.10000 and depreciation is Rs.9000, What
will be the life of as asset
a) 9 years b) 10 years c) 9 months d) 10 months
Hint: Straight line method
Depreciation exp = cost – s.v/ useful life
100000 – 10000/?
90000/10 = 9000
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11- The annual depreciation per month is Rs.400, salvage value is Rs.2000 and life is 10 years. The cost
of asset would be
a) Rs.55000 b) Rs.30000 c) Rs.50000 d) Rs.40000
Hint: Straight line method
Depreciation exp = cost – s.v/ useful life
400x12 =? – 2000/10
4800 =? – 2000/10
4800 = 50000 – 2000/10
4800 =48000/10
IMPORTANT DEFINATIONS FOR CLEARING CONCEPTS

1) Depreciation:
The gradual and permanent decrease in the efficiency, quality, quantity or value of the asset expressed
in the money because of its usage or passage of time.
2) Depreciation Expense:
A part of fixed asset which is charged as depreciation in the profit and loss account of current
accounting period.
3) Accumulated Depreciation:
The sum of depreciation of several years relating to a particular asset.
OR
The total cost of an asset charged as expense in different accounting period.
4) Causes of Depreciation:
1-Tear & Wear 2-Depletion 3-Obsolescence
4-Fluctuation 5-Expiry of time
5) Why Depreciation is charged:
Depreciation is charged to ascertain the true profit or loss, cost of production, true value of asset and
replacement of asset.
6) Depletion:
Recording of exhaustion of natural resources due to use.
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OR
Decrease in the value of wasting assets is called depletion.
Example: Mines, Oil Wells, Quarries & Forests.
7) Amortization:
The decrease in the value of intangible assets such as patents, copy rights and good will.
8) Tangible Assets:
The assets which have physical existence and can be touched and seen.
OR
Assets having physical form.
Example: Machinery, Land & Building.
9) Intangible Assets:
The assets which have no physical existence and cannot be touched.
OR
Assets having no physical form.
Example: Good Will, Copy Rights & Trade Mark.
10) Reserve:
The portion of the profit which is not paid to the proprietor, but it is kept to meet losses.
Example: Reserve Fund, General Reserve & Secret Reserve
CHAPTER# 4
PARTNERSHIP
4(A) MCQS-FORMATION
1- Partnership is formed under the act of.
a) 1984 b) 1932 c) 1912 d) 1962
2- The person contributing for partnership are called:
A Shareholders b) Partners c) Sole proprietors d) Promoters
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3- Persons, who have entered into a partnership, are collectively called:
a) Agent b) Partners
c) Shareholders d) Promoters
4- The liability of partner in partnership is.
a) Limited b) Unlimited
c) Limited to the extent of capital d) None of these
5- The partner who is not known to public as partner.
a) Minor partner b) Major partner
c) Nominal partner d) None of these
6- In case of banking business, the number of partners must not exceed.
a) Ten b) Twenty c) Thirty d) Fifty
7- A partner who takes an active part in the management of the firm is called:
a) Active partner b) Sleeping partner c) Nominal partner d) Quasi partner
8- For a firm point of view, interest on capital is.
a) Income b) Expense c) Asset d) Both A&B
9- A written partnership agreement is called:
a) Partnership Act b) Partnership Registration
c) Partnership Certificate d) Partnership Deed
10- Rent, paid to a partner for his building in which business is being operated, will be debited to:
a) Rent expense A/c. b) Drawing A/c.
c) Current A/c. d) Capital A/c.
11- Number of partners in a partnership firm may be
a) Maximum Two b) Maximum Ten c) Maximum One Hundred d) Maximum Fifty
12- For the formation of partnership, the minimum number of individuals required is:
a) Two b) Five c) Ten d) Forty
13- This account is not include in newly formed business
a) Account receivable b) Cash
c) Allowance for bad debts d) Allowance for depreciation
22 | P a g e
14- In the account of a partner.
a) Will always have a credit balance b) Will always have a debit balance
c) May have debit or credit d) None of these
15- Assets brought by partners are recorded at.
a) Face value b) Book value c) Agreed value d) Market value
4(B) PARTNERSHIP – DISTRIBUTION OF INCOME/LOSS

1- In the absence of any agreement regarding sharing of profit/loss, it will be distributed among the
partners:
a) In average capital ratio b) In ending capital ratio
c) In beginning capital ratio d) Equally
2- Current Accounts of the partners are operated/opened when the capitals:
a) Increase b) Decrease c) Fluctuate d) Are Fixed
3- Partners' current accounts are a part of:
a) Income statement b) Current assets c) Fixed assets d) Owners' equities
4- By its nature, a partner's current account is:
a) Fixed asset b) Current asset c) Long term liability d) Owner's equity
5- Under fixed capital method, profit / loss is transferred to
a) Capital A/c. b) Current A/c. c) Income summary A/c. d) Bank A/c.
6- These accounts are involved in profit/loss distribution among the partners applying fixed capital
method:
a) Cash &income summary b) Cash & partner’s current accounts
c) Income summary & partner’s current accounts d) Income summary & partner’s capital accounts
7- Drawing of the partners are:
a) Debited to profit & loss account b) Credited to profit & loss account
c) Debited to capital account c) Credited to capital account
8- This is prepared under the fixed capital method:
a) Capital Account b) Current Account
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c) Capital Account & Current Account d) None of these
9- If the partnership makes loss during the financial year, this is:
a) Credit to the partners' drawings account b) Debit to the partners' salaries account
c) Debit to the partners' current account d) Credit to the partners' current account
10- If in the partnership deed regarding sharing of P/L is silent the profit and loss shall be distributed
through:
a) Profit and loss distributed on beginning capital b) Profit and loss distributed on ending capital
c) Profit and loss distributed equally d) Profit and loss distributed on average capital
11- In this account profit/ loss of partner is transferred under the fluctuating capital method:
a) Partner's capital account b) Partners current account
c) Partners income account d) Partner's retained earning account
12- In the absence of agreement, partners are not entitled to
a) Salary b) Commission c) Both a & b d) None of these
13- Partner’s Drawing account is closed by
a) Transfer to Capital or Current account debit side b) Transfer to Capital account credit sides
c) Transfer to Current account credit side d) Transfer to income summary account
14- This is not a part of profit/loss sharing scheme:
a) Interest on partner's capital b) Salary to partner
c) Commission to salesmen d) Commission to partner
15- This account is maintained under fixed capital approach in profit and loss distribution
a) Realization account b) Revaluation account
c) Current account d) Income and summary account
4 (C) ADMISSION-MCQS
1- On the admission of a new partner:
a) Old firm is dissolved b) Both old and partnership and firm are dissolved
c) Old partnership is dissolved d) Neither partnership nor a firm dissolved
2- At the time of admission, old partner's capital will remain the same in:
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a) Bonus to old partners b) Bonus to new partner
c) Goodwill to new partner d) Goodwill to old partner
(Hint: Old partners are not ready to reduce their capital balances means goodwill method)
3- At the time of Admission of a new partner, when the old partners do not agree to reduce their capital,
it means:
a) Goodwill to new partner b) Goodwill to old partners
c) Bonus to old partners d) Bonus to new partner
(Hint: Old partners are not ready to reduce their capital balances means goodwill method)
4- A and B are partners with equity ratio 1 : 2. After admission of C for 11/4 interest in the total capital,
the equity ratio of A, B and C will be:
a) 1 : 2 : 2 b) 2 : 3 :3 c) 1 : 2 : 3 d) 1 : 2 : 1
(Hint: Fraction of C is 11/4 in new partnership firm, 1: 2 is the ratio of A & B respectively, Total fraction
is 4 , 1 & 2 of A & B . So Interest of C will be 4 . And ratio will be 1:2:1)
5- In case of admission under bonus method, total capital of the firm increases by the amount:
a) Equal to new investment b) More than new investment
c) Less than new investment d) Equal to old investment
6- The new partner is credited by his entire amount of investment under:
a) Goodwill method b) Bonus method c) Revaluation method d) Purchase of interest
7- At the time of admission of a new partner, when the old partners agree to reduce their capitals
a) Goodwill to new partner b) Goodwill to old partners
c) Bonus to old partners d) Bonus to new partners
8- Old partners do not reduce their capital under:
a) Goodwill method b) Revaluation method
c) Bonus method d) Direct purchase method
9- If Mr. A is admitted by purchasing 1/3 capital interest of Mr. B, this method is called:
a) Purchase of interest b) Bonus c) Goodwill d) Revaluation
10- The entire amount of new partner's investment is to be credited
a) Bonus Method b) Goodwill Method c) Purchase Method d) Revaluation Method
11- In admission of new partner:
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a) The partnership agreement is amended b) The partnership agreement remains the same
c) Nature of business is changes d) None of these
12- Goodwill is valued when.
a) When business is started b) When loss in suffered
c) When one year of business is completed d) When a partner is admitted or retired
13- When new partner is admitted in partnership this process is called.
a) Retirement b) Admission c) Dissolution d) None of these
4(D) MCQS-LIQUIDATION
1- Realization account is temporarily used in place of:
a) Expenses Account b) Revenue Account
c) Capital Account d) Liabilities Account
(Hint: Capital account is used for recording loss/gain on realization)
2- The profit of loss resulting from the realization account is transferred to:
a) Assets b) Partners' Capital a/c c) Realization account d) Bank account
3- If the partner is solvent, his deficiency is met by:
a) Himself b) Remaining partner c) All partners d) The Firm
(Hint: solvent partner means deficiency is made up by partner himself in the form of additional cash)
4- In liquidation, when a partner's share of loss is higher than his capital balance, this is known as:
a) Solvency b) Deficiency c) Loss d) Gain
5- Realization account may be opened in case of:
a) Admission b) Retirement c) Dissolution d) Formation
6- When partnership is dissolved, the final task is:
a) Payment of liabilities b) Payment to partners
c) Payment of expenses d) Payment to employees
(Hint: In dissolution of partnership, when we made last entry to settled partners account by paying
cash)
7- If assets are sold at more than book value, realization account will be:
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a) Credited b) Debited c) Not recorded d) None of these
(Hint: Gain on sold of Assets, represented by credit of realization account)
8- The summary of events or transactions, at the time of dissolution of partnership firm, is called:
a) Income distribution summary b) Liquidation summary
c) Expense and revenue summary d) Income summary
9- Account, which is operated at the time of dissolution of partnership firm, is:
a) Revaluation b) Reaffirmation c) Realization d) Income summary
10- Realization account is used to close this account:
a) Asset b) Revenue c) Expense d) Drawings
11- If nothing is stated in partnership agreement, the loss of insolvent partner is borne by the:
a) Same partner b) Remaining partner c) Third party d) Insurance company
12- If assets valuing Rs.58999/- are sold for Rs.58900/- then
a) Loss of Rs.100/- b) Loss of Rs.99/- c) Gain of Rs.100/- d)Gain of Rs.99/
13- In case of liquidation of a firm, assets are:
a) Donated b) Distributed c) Sold d) Revaluated
14- The partnership is dissolved due to.
a) Insolvency of partners b) Completion of specific purpose
c) Expiry of specific period d) All of these
15- In case of dissolution, the payment of unrecorded liability is debited to.
a) Realization account b) Liability account
c) Revolution account d) Cash account
16- On firm’s dissolution, this one of the following account should be prepared as the last
a) Realization account b) Partner’s capital account
c) Cash account d) Partner’s loan account
17- In the event of dissolution of a partnership firm, the provision for doubtful debts is transferred to
a) Realization account b) Partners capital account
c) Sundry Debtors account d) None of these
18- Unrecorded liability, when paid on dissolution of a firm is debited to
27 | P a g e
a) Realization account b) Partners capital account
c) Liabilities account d) None of these
19- Other assets were sold Rs.750000 at a loss of Rs.150000. The book value of asset is
a) Rs.600000 b) Rs.900000 c) Rs.500000 d) Rs.150000
Hint:
Book value of as asset 600000
Less: Sale of asset (750000)
Loss on sale of asset 150000
20 – Loss or Gain on realization is transferred to
a) Credit Account b) Partner’s capital account
c) Asset Account d) Debtors account
21- At the time of liquidation, remaining cash is to be distributed among the partners:
a) On beginning capital ratio b) On ending capital ratio
c) As per ending capital balance at end d) Equally
22- In case of insolvency of a partners , his/her capital deficiency is borne by
a) Creditor b) Debtors c) Himself/ Herself d) Other solvent partners
23- In liquidation of a firm, the assets of the firm are
a) Purchased b) Sold c) Distributed d) Donated
4(E)MCQS-RETIREMENT
1- Revaluation means:
a) Assets are revalued b) Liabilities are revalued
c) Equities are revalued d) Assets and Liabilities are revalued
2- When retiring partner receives higher amount against his actual capital, then his retirement is at:
a) Goodwill b) Bonus c) Revaluation d) Realization
3- Revaluation loss of assets will be debited to:
a) Liability account b) Asset account
c) Partners capital account d) Cash account
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(Hint: When we distributed Loss on revaluation , we debited capital accounts and credited revaluation
account)
4- All accumulated losses are transferred to the capital accounts of all partners in case of retirement in:
a) Capital ratio b) New profit sharing ratio
c) Sacrifice ratio d) Old profit sharing ratio
5- If the remaining partners purchases capital of remaining partners, the total capital of the firm after his
retirement:
a) Increases b) Remain constant c) Decreases d) Fluctuates
6- If one of the partners, whose capital is Rs. 40,000/- with a 1/3 share, is paid Rs. 55,000 at the time of
retirement, the goodwill of the firm will be:
a) Rs. 45,000/- b) Rs. 65,000/- c) Rs. 75,000/- d) Rs. 85,000/-
7- This is irrelevant item in income summary account of a partnership firm:
a) Partner’s current account b) Partner’s capital account
c) Interest on partner’s capital d) Revaluation-gain
8- In the case of retirement of a partner, full goodwill is credited to the accounts of:
a) All partners b) Only retiring partner c) Only remaining partners d) None of these
9- In case of taking over of any asset by a partner is debited to.
a) Realization A/c b) Revaluation A/c c) Partner’s capital A/c d) None of these
CHAPTER# 5
CORPORATION
5(A) SHARES AND DEBENTURES-MCQS

1- A joint stock company is owned by:
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a) Shareholders b) Debenture holders c) Board of directors d) Employees
2- This is classified in a balance sheet as a current liability:
a) Debenture b) Prepaid expense c) Preference shares d) Dividend payable
3- Bonus share is paid
a) Stock b) Cash c) Property d) Interest
4- The amount of share capital with which a company is registered is called:
a) Called up capital b) Issued capital c) Authorised capital d) Paid up capital
5- Owners of a Public limited company are called:
a) Directors b) Promoters c) Liquidators d) Shareholders
6- Debentures payable account is:
a) Current Liability b) Owners equity c) Long term liability d) None of these
7- A public limited company is managed by the:
a) Board of Directors b) Board of Governors c) Creditors d) Debtors
8- Profit distributed to shareholders known as:
a) Interest b) Net income c) Dividend d) Commission
9- The nominal value printed on the face of share is called:
a) Market value b) Retail value c) Cost value d) Par value
10- On allotment of shares the account credited is:
a) Share Application b) Share Capital c) Share Allotment d) Share Discount
11- Share of a public limited company is:
a) Transferable b) Non-transferable c) Refundable d) Non-refundable
12- This is shown in the shareholder's equity section of balance sheet:
a) Debentures payable b) Dividend payable
c) Unclaimed dividend d) Share premium
13- Profit, appropriated for some specific purpose, is called:
a) Reserve b) Revenue c) Discount d) Asset
14- Initial expenses like legal fees, cost of printing and remuneration to promoters are recorded under:
a) Legal expense b) Statutory expense
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c) Contingencies expense d) Preliminary expense
15- The alternative term used for authorized capital is:
a) Subscribed Capital b) Paid capital c) Issued capital d) Nominal capital
16- As a result of declaration of stock dividend, shareholder's equity:
a) Increase b) Decrease c) Remain unchanged d) Fluctuate
17- This is not shareholders equity:
a) Debentures b) Ordinary shares c) Preferences shares d) Share premium
18- General reserves is/are classified as:
a) Asset b) Expense c) Liabilities d) Shareholder's equity
19- Reserve accounts are part of:
a) Shareholder equity a/c. b) Assets account
c) Liability account d) Expense account
20- This is shown in the shareholder’s equity section of balance sheet are:
a) Debtors of the Co. b) Owners of the company
c) Creditors of the Co. d) Promoters of the Co.
21- The excess amount on issue of share price, over the par value is called:
a) Discount b) Retained Earning c) Liability d) Share Premium
22- The term Debentures means:
a) Short term loan b) Capital c) Long term loan d) None of these
23- Cash dividend is paid by the issuance of:
a) Pay order b) Bank draft c) Bonus shares d) Dividend Warrant
24- Unclaimed dividend is/are:
a) Income b) Liabilities c) Assets d) Capital
25- In case of under subscription, the balance shares are purchased by
a) Shareholders b) Promoters c) Underwriters d) Directors
26- Share premium is classified as:
a) Revenue b) Asset c) Owner’s equity d) Expense
27- In the name of a joint stock company the word limited must be written because it is limited by
31 | P a g e
a) Assets b) Revenue c) Liabilities d) Expenses
28- The amount mentioned in Memorandum of Association is called
a) Authorized capital b) Subscribed capital
c) Issued capital d) Reserves capital
29- Debentures are the certificate of
a) Receipts of loan acknowledgement b) Medical for company’s employees
c) Ownership d) None of these
30- The excess on issue of share price over par value, is called
a) Discount b) Premium c) Retained earning d) None of these
31- Unclaimed dividend is /are
a) Income b) Liabilities c) Assets d) Capital
32- Profit paid to the shareholders is called
a) Gain b) Profit c) Dividend d) Commission
33- Declared cash dividend is company's:
a) Asset b) Current liability c) Revenue d) Long term liability
34- Debenture-holders of a company are its:
a) Creditors b) Suppliers c) Customers d) Owner
35- Company declares dividend out of:
a) Capital b) Expenses c) Retained Earnings d) Cash
36- A public Ltd. Company is formed by its:
a) Board of Directors b) Promoters c) Auditors d) Underwriters
37- By nature a debenture is a/an:
a) Asset b) Liability c) Capital d) Expense
38- Stock dividend to be distributed is:
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a) Asset b) Liability c) Shareholder's equity d) None of these
39- The total amount of capital of a company, divided into small units, is/are:
a) Debentures b) Shares c) Dividends d) Net income
40- If company receives share applications more than the offered shares, this is called:
a) Equal subscription b) Under subscription c) Over subscription d) Lower subscription
41- The amount of capital, mentioned in memorandum of association, is called:
a) Authorized capital b) Subscribed capital c) Issued capital d) None of these
(Hint: The amount of which the partnership/joint stock company registered is called Authorized capital)
42- The person who takes the initiative in the matter of formation of the company is known as:
a) Promoter b) Shareholder c) Director d) Registrar
43- The expenses incurred in the formation of a company is called:
a) Indirect expenses b) Revenue expenses c) Selling expenses d) Preliminary expenses
44- The normal balance of the debenture account is
a) Debit b) Credit c) Neither Dr. d) Nor Cr.
45- Maximum number of members in a private company is
a) 2 b) 10 c) 50 d) 20
46- Share capital is always credited with
a) Market value b) Book value c) Par value d) None of these
47- The liability of the shareholder of a public companies is:
a) Unlimited b) Limited c) Compulsory d) None of these
48- Company ordinance:
a) 1932 b) 1984 c) 1947 d) 1973
49- The joint stock company is formed under companies:
a) 1925 b) 1932 c) 1984 d) 2001
50- The audit of company account is:
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a) Optional b) Compulsory c) Contingent d) None of these
51- The official signature of company is called:
a) Prospectus b) Shares c) Common seal d) Debentures
52- Minimum number of member in private company are:
a) 3 b) 7 c) 2 d) 20
53- Company formed by means of charter is called:
a) Public Ltd. Company b) Private L.td. Company
c) Chartered Company d) Statutory Company
54- Company created by special order of king or queen or royal charter is called:
a) Chartered Company b) Statutory Company
c) Company limited by guarantee d) Company limited by shares
55- Memorandum of association is important document of:
a) Partnership b) Sole proprietorship c) Cooperative society d) Company
56- The charter of the company containing the objectives is called:
a) Articles of association b) Prospectus
c) Memorandum of association d) None of these
57- A document evidencing indebtness of the company is called:
a) Debenture b) Shares c) Bill of exchange d) Cheque
58- If a share of Rs.10 is issued at 10% premium, price of share will be:
a) Rs.9 b) Rs.12 c) Rs.11 d) Rs.10
59- The price of a share which is quoted on stock exchange is called
a) Market value b) Book value c) Face value d) Par value
60- Discount on issue of shares is a / an:
a) Revenue loss b) Capital profit c) Revenue profit d) Capital loss
5(B) RETAINED EARNING-MCQS

1- In the Balance Sheet of a limited company, the Retained Earnings account is shown under the heading
of:
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a) Current assets b) Current liability c) Non-current assets d) Stockholder equity
2- Disposal of Net Income of a Joint Stock Company is the utilization of:
a) Retained Earnings b) Net Income c) Net Loss d) Cash
3- When the Net Income is transferred to Retained Earnings account, this account is debited to:
a) Retained Earning b) Sinking fund c) Expense & Revenue summary d) General Reserve
4- Net income of the company at end of the year must be transferred to:
a) Shareholders account b) Retained earnings a/c
c) Debenture account d) Capital Account
5- Stock dividend to be distributed is
a) Asset b) Liability c) Capital d) Expense
6- The distribution of profit of a company in the form of cash is called
a) Cash dividend b) Stock dividend c) Property dividend d) None of these
7- This account is not closed at the end of accounting period
a) Retained earning b) Purchases c) Sales d) None of these
8- Disposal of Net Income of a joint stock company is utilization of
a) Retained earning b) Net Income
c) Net loss d) Cash
9- The periodic distribution of profit, by a company in the form of cash, is called
a) Stock dividend b) Liquidating dividend
c) Cash dividend d) Property dividend
10- This account is deducted from retained earning account
a) Proposed dividend b) Rent expense c) Sales d) Prepaid salaries
11- The term “retained earning” represents
a) Reserves b) Liabilities
c) Accumulated profit d) Net income for the year
12- Profit / Loss of a company is transferred to its:
a) Retained earning a/c. b) Share Capital account
35 | P a g e
c) Profit and loss account d) Bank account
14- The account "retained earning" represents:
a) Reserve b) Un-appropriated profit
c) Net profit for the current period d) Liabilities
15- The following account will be debited for recording declaration of dividend by a company:
a) Dividend payable b) Share capital
c) Retained earnings d) Preliminary expense
16- By its nature, preliminary expense is:
a) Asset b) Liability c) Owner's equity d) Expense
17-Reserves are created out of:
a) Retained earnings b) Current liabilities c) Current assets d) Long term liabilities
18- Profits of a company are called:
a) Net Income b) Liabilities c) Retained Earnings d) Dividends
19- When net income is transferred to retained earnings account this account is debited:
a) Retained earnings account b) Reserve for plant extension
c) Expense and revenue summary account d) Share premium
20- The company declared dividend out of
a) Capital b) Expenses c) Cash d) Retained earnings
36 | P a g e

(ACC 2023) Xii Target Paper by Sir Irfan Jan

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ACCOUNTMICS I.

COM(2) ACCOUNTING All subjects home tuitions available for

2ND YEAR COMMERCE

To get the Answers (PDF) via WhatsApp: Click here

July 01, 2022 June 30, 2023

Data for adjustment on June 30, 2023

Q#2: ISSUANCE OF SHARES & DEBENTURES

Q#3: ACCOUNTING FOR NON-PROFIT CONCERN

Additional information on Dec 31, 2022

Prepare income & expenditure account on Dec 31, 2022

Q#4: SINGLE ENTRY

Cash 3000 5000

A/c receivable 10000 15000

Merchandise inventory 20000 50000

Office equipment 15000 15000

Office furniture 20000 20000

A/c payable 8000 5000

Data for adjustment on Dec 31 2022:

• Additional investment Rs. 10000

Q#5: RETAINED EARNING

200000 Ordinary shares of Rs. 10 each Rs. 2000000

Issued and paid up capital

100000 Ordinary shares of Rs. 10 each Rs. 1000000

Retained earning Rs. 150000

The following decisions were taken by the BOD of the company

a) To declared cash dividend of 15%

b) To appropriate Rs. 100000 for Plant Extension

c) To appropriate Rs. 50000 for Contingencies

d) To appropriate Rs. 50000 for Sinking funds

Q#6: DEPRECIATION (COST)

1) Calculate cost of machine

2) Prepare necessary journal entries

Q#7: PARTNERSHIP – FORMATION

Salim : Machinery worth Rs. 80000 & balance in cash

Give in General Journal to record investment of each partners.

Q#8: PARTNERSHIP – FORMATION

Find the investment of each partner and record in General Journal.

Q#9: PARTNERSHIP – DISTRIBUTION

b) David will be allowed commission of Rs. 30000 per year

d) Net loss of the firm during the year is Rs. 10000

i) Prepare Income distribution summary

Q#10: PARTNERSHIP – DISSOLUTION

Cash 27000 Accounts payable 54000

• Other assets were sold for cash Rs. 945000

Mr. Z is personally insolvent

Pass entries in general journal to record dissolution of partnership

Q#11: PARTNERSHIP – RETIREMENT

Record the retirement of Zahid under the following cases separately:

ii) Zahid was paid Rs.500,000 (Use goodwill method)

iii) Zahid was paid Rs.430,000 (use the Bonus method)

Q#12: PARTNERSHIP – RETIREMENT

2-Set-up Allowances for depreciation account for the 4 years depreciation

3- Prepare balance sheet as on dec 31 2021

Q#3: PARTNERSHIP – ADMISSION

ACCOUNTING MCQS (I.COM-2) CHAPTERWISE

3- This does not appear in Income statement:

a) Sales b) Commission Income

c) Rent Expense d) Copyright

4- Receipts and payments accounts are a summary of the:

a) Cash book b) Purchase journal

c) Sales journal d) General journal

a) Profit/Loss statement b) Statement of Affairs

c) Statement of Retained Earnings d) Bank Statement