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Principles of Accounts Def.

This document appears to be an exam for a Principles of Accounting course consisting of 10 multiple choice questions. It provides instructions that the exam is closed book, calculators and supplies cannot be shared, and all questions must be answered. The questions cover a range of accounting topics like depreciation, trade and cash discounts, sales tax, reconciling a cash book to a bank statement, distinguishing between capital and revenue expenditures, and calculating credit purchases. The exam is out of 100 marks and wishes students best of luck.

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Samra Saeed
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93 views1 page

Principles of Accounts Def.

This document appears to be an exam for a Principles of Accounting course consisting of 10 multiple choice questions. It provides instructions that the exam is closed book, calculators and supplies cannot be shared, and all questions must be answered. The questions cover a range of accounting topics like depreciation, trade and cash discounts, sales tax, reconciling a cash book to a bank statement, distinguishing between capital and revenue expenditures, and calculating credit purchases. The exam is out of 100 marks and wishes students best of luck.

Uploaded by

Samra Saeed
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Sir Saad Bashir

University of Karachi
Principles of accounting
BSEF 3rd Year –
Completion time – 2 Hours
Marks100
Note: No talking during class
Sharing of calculators, Pen and other stationery not allowed.
All Questions are compulsory
NAME: _____________________________________

Section A (13 Marks Questions)


Q1) On july 1 2014 Tom bought a machine for $15,500. He depreciates machinery at a rate of 20% per annum on the
reducing balance basis. A full year’s depreciation is charged in the year an asset is purchased. His year end is 31
October. What is the depreciation charge on the machine for the year to 31 october 2016?
Q2) Jack buys goods worth $6,200 from Jill. On $3,000 worth he gets trade discount of 15%, no trade discount is
available on the rest. However Jack always make sure that he pays within 10 days in order to obtain Jill’s settlement
discount of 4%. How much will jack pay Jill?
Q3) Janice buys a dress costing $130, shoes costing $70 and a jacket costing $190. These are all gross figures, inclusive
sales tax of 20%. How much total in sales tax has Janice paid?
Q4) Andrew buys goods with a list price of $7,200 on which he receives 20% trade discount. His supplier offer 5%
discount for payment within 10 days. Andrew pays half of the invoiced amount within ten days and balance three
weeks later. What is the total amount of money that he will pay for this order?
Q5) Gemma is recording her cash book to the bank statement. Her cash balance is $2,357 and the balance on her
statement is $25 overdrawn. She finds the following differences, bank charges $23 and direct debit totaling $100 have
not been posted to the cash book, there are unpresented cheques of $234, she paid in a batch of cheques has two days
ago totaling $2.503 and these have not yet been credit to her account, a cheque she paid in last week for $80 has been
dishonored. What will the reconciled balance be?
Q6) Anwar makes sales in the quarter $34,800 including sales tax at 20%. His total purchases net of sales tax are
$8,510. How much should he pay to the govt.?
Q7) Joe buys goods worth $3,500 from Eddie. On $2,000 worth he gets trade discount of 20%, no trade discount is
available on the rest. However joe always makes sure that he pays within 10 days in order to obtain Eddie’s settlement
discount of 5%. How much will joe pay to Eddie?
Q8) your company petty cash imprest is of $750, this to be increased to $800. At the end of the month the cash in hand
was $57 and receipts and vouchers totaled $673. In addition the cash box contained an IOU from a member of staff
for $20. How much cash is withdrawn from the bank to restore and increase the imprest?
Q9) Give 5 Examples of Capital expenditure and 5 examples of Revenue expenditure
Q10) At 1 november 2014 Brian owed $28,754 to his suppliers. During the year he paid his suppliers a total of
$185,844. At 31 october 2015 he owed $26,189. What was the value of Brian’s credit purchase in the year to 31
october 2015?

BEST OF LUCK

pg. 1

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