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# Basic Accounting Terms and Accounting Equation - Test No-1(2013-14) Notes | EduRev

## : Basic Accounting Terms and Accounting Equation - Test No-1(2013-14) Notes | EduRev

``` Page 1

PUNEET COLLEGE                                   PKL|CHD                           98155 – 00062                 www.facebook.com/puneetcollege
PUNEET COLLEGE
TEST NO – 1 (2013 – 14)
BASIC ACCOUNTING TERS AND
ACCOUNTING EQUATION
12
TH
MAY, 13
TIME – 1 Hr 30 Min            SET – 1            MM ? 46

Q 1: Mr. Chawla started a business of buying and selling of mobile phones and invested Rs. 5, 00, 000 on
1.4.2011.
On 20.4.2011 he paid Rs. 2, 00, 000 for the purchase of mobile phones and Rs. 75, 000 for furniture.
On 1.5.2011, he purchased some stationery for Rs. 10, 000 in cash and sold some mobile phones for
Rs. 1, 50, 000 on credit to Mr. Bhushan. After a period of one month, he purchased mobile phones of
Rs. 1, 60, 000 from Mr. Chaudhary. Expenses during the same period were Rs. 20, 000. On 31.7.2011
mobile phones worth Rs. 40, 000 were lost by fire.
During September 2011 to December 2011, a part of stock of mobile phones which costed Rs. 50, 000
was sold for Rs. 70, 000.
With the help of the above information, answer the following questions:-
1. What is the amount of capital with which Mr. Chawla started the business?
2. What is the total amount of expenses?
3. Who is the debtor for the business and what is the amount receivable from him?
4. Who is the creditor and what is the amount payable to him?
5. Give the name and cost of fixed asset bought by the business enterprise.
6. What is the total value of the goods purchased?     6

Q 2: What is the amount of net profit when merchandising cost = Rs. 21, 650; expenses of doing business
(operating expenses) = Rs. 480 and sales = Rs. 24, 900?     1
a. Rs. 2, 770  b. Rs. 3, 250  c. Rs. 47, 030  d. Rs. 21, 170.
Q 3: What is the amount of ‘expenses of doing business’ (operating expenses) when Sales = Rs. 1, 50, 000,
Gross Profit = Rs. 15, 000 Net loss = Rs. 4, 000?      1
a. Rs. 11, 000  b. Rs. 1, 31, 000  c. Rs. 19, 000  d. Rs. 1, 65, 000.
Q 4: What is net Profit?         1
Q 5: If sales Rs. 2, 00, 000. Gross profit is 1/4
th
on cost. Find out cost of goods sold.  2
Q 6: If cost is Rs. 4, 00, 000. Gross Profit is 28% on Cost. Find out sale.    2
Q 7:  Calculate stock at the end
Stock in the beginning
Cash sale
Credit sale
Purchases
Rate of Gross profit on cost
10, 000
30, 000
20, 000
35, 000
1/3
3
Q 8: Calculate Gross Profit when total purchases during the years are Rs. 8, 00, 000
Return outward Rs. 20, 000
Direct Expenses Rs. 60, 000
2/3 of the goods are sold for Rs. 6, 10, 000.       3
Page 2

PUNEET COLLEGE                                   PKL|CHD                           98155 – 00062                 www.facebook.com/puneetcollege
PUNEET COLLEGE
TEST NO – 1 (2013 – 14)
BASIC ACCOUNTING TERS AND
ACCOUNTING EQUATION
12
TH
MAY, 13
TIME – 1 Hr 30 Min            SET – 1            MM ? 46

Q 1: Mr. Chawla started a business of buying and selling of mobile phones and invested Rs. 5, 00, 000 on
1.4.2011.
On 20.4.2011 he paid Rs. 2, 00, 000 for the purchase of mobile phones and Rs. 75, 000 for furniture.
On 1.5.2011, he purchased some stationery for Rs. 10, 000 in cash and sold some mobile phones for
Rs. 1, 50, 000 on credit to Mr. Bhushan. After a period of one month, he purchased mobile phones of
Rs. 1, 60, 000 from Mr. Chaudhary. Expenses during the same period were Rs. 20, 000. On 31.7.2011
mobile phones worth Rs. 40, 000 were lost by fire.
During September 2011 to December 2011, a part of stock of mobile phones which costed Rs. 50, 000
was sold for Rs. 70, 000.
With the help of the above information, answer the following questions:-
1. What is the amount of capital with which Mr. Chawla started the business?
2. What is the total amount of expenses?
3. Who is the debtor for the business and what is the amount receivable from him?
4. Who is the creditor and what is the amount payable to him?
5. Give the name and cost of fixed asset bought by the business enterprise.
6. What is the total value of the goods purchased?     6

Q 2: What is the amount of net profit when merchandising cost = Rs. 21, 650; expenses of doing business
(operating expenses) = Rs. 480 and sales = Rs. 24, 900?     1
a. Rs. 2, 770  b. Rs. 3, 250  c. Rs. 47, 030  d. Rs. 21, 170.
Q 3: What is the amount of ‘expenses of doing business’ (operating expenses) when Sales = Rs. 1, 50, 000,
Gross Profit = Rs. 15, 000 Net loss = Rs. 4, 000?      1
a. Rs. 11, 000  b. Rs. 1, 31, 000  c. Rs. 19, 000  d. Rs. 1, 65, 000.
Q 4: What is net Profit?         1
Q 5: If sales Rs. 2, 00, 000. Gross profit is 1/4
th
on cost. Find out cost of goods sold.  2
Q 6: If cost is Rs. 4, 00, 000. Gross Profit is 28% on Cost. Find out sale.    2
Q 7:  Calculate stock at the end
Stock in the beginning
Cash sale
Credit sale
Purchases
Rate of Gross profit on cost
10, 000
30, 000
20, 000
35, 000
1/3
3
Q 8: Calculate Gross Profit when total purchases during the years are Rs. 8, 00, 000
Return outward Rs. 20, 000
Direct Expenses Rs. 60, 000
2/3 of the goods are sold for Rs. 6, 10, 000.       3

PUNEET COLLEGE                                   PKL|CHD                           98155 – 00062                 www.facebook.com/puneetcollege
Q 9: Give transaction which will
1. Decrease the asset and decrease the capital.
2. Increase the asset and increase the capital.
3. Decrease the assets and decrease the liabilities.
4. Increase the assets and increase the liabilities.      2

st
April, 2011 with the assets having value of Rs. 3,20,000
and liabilities owing to outsiders Rs. 20, 000. During the year, he suffered a loss of Rs. 30, 000 and
had withdrawn Rs. 30, 000 from his business. Calculate the value of its capital as on 31
st
march, 2012.
Also find the value of closing assets on that date.      3

Q 11: Neetu started a business with cash Rs. 1, 20, 000. In respect of his business, following transactions
were recorded:     Rs.
1. Purchased goods on credit   32, 500
2. Paid wages       2, 500
3. Withdrew for personal use   21, 600
4. Paid to creditors in full settlement  32, 000
5. Purchased furniture for     2, 510
6. Telephone charges paid   18, 000
Show an accounting equation on the basis of above transactions.    6

Q 12: From the following calculate net worth.
1. Creditors equity Rs. 1, 25, 000. 2. Total equity Rs. 2, 50, 000.   1

Q 13: Sanjay commenced business on 1.4.2010 with cash Rs. 8, 00, 000. The following transactions were
entered into by him during the year.
1. Opened a account in PNB with Rs. 80, 000.
2. Goods destroyed by fire costing Rs. 6, 000 (Selling price Rs. 6, 900).
3. Goods purchased from Ghanshyam Rs. 56, 000.
4. Donated goods costing Rs. 2, 000 to a charitable trust.
5. Received commission Rs. 4, 000.
6. Withdrew Rs. 7, 000 for personal use.
7. Sold goods to Harit (costing 8, 000) for Rs. 9, 800.
8. Received cheque from Harit of Rs. 9, 600 in full settlement.
9. Shares were purchased for Rs. 15, 000.
10. Rent paid for 15 months Rs. 60, 000.
Show an accounting equation and also prepare the balance sheet.    12

Q 14: Distinction between Book keeping and Accounting on the basis of Scope.   1

Q 15: Two example of Fictions Assets.        1

Q 16: What is Revenue expenditures.        1

Page 3

PUNEET COLLEGE                                   PKL|CHD                           98155 – 00062                 www.facebook.com/puneetcollege
PUNEET COLLEGE
TEST NO – 1 (2013 – 14)
BASIC ACCOUNTING TERS AND
ACCOUNTING EQUATION
12
TH
MAY, 13
TIME – 1 Hr 30 Min            SET – 1            MM ? 46

Q 1: Mr. Chawla started a business of buying and selling of mobile phones and invested Rs. 5, 00, 000 on
1.4.2011.
On 20.4.2011 he paid Rs. 2, 00, 000 for the purchase of mobile phones and Rs. 75, 000 for furniture.
On 1.5.2011, he purchased some stationery for Rs. 10, 000 in cash and sold some mobile phones for
Rs. 1, 50, 000 on credit to Mr. Bhushan. After a period of one month, he purchased mobile phones of
Rs. 1, 60, 000 from Mr. Chaudhary. Expenses during the same period were Rs. 20, 000. On 31.7.2011
mobile phones worth Rs. 40, 000 were lost by fire.
During September 2011 to December 2011, a part of stock of mobile phones which costed Rs. 50, 000
was sold for Rs. 70, 000.
With the help of the above information, answer the following questions:-
1. What is the amount of capital with which Mr. Chawla started the business?
2. What is the total amount of expenses?
3. Who is the debtor for the business and what is the amount receivable from him?
4. Who is the creditor and what is the amount payable to him?
5. Give the name and cost of fixed asset bought by the business enterprise.
6. What is the total value of the goods purchased?     6

Q 2: What is the amount of net profit when merchandising cost = Rs. 21, 650; expenses of doing business
(operating expenses) = Rs. 480 and sales = Rs. 24, 900?     1
a. Rs. 2, 770  b. Rs. 3, 250  c. Rs. 47, 030  d. Rs. 21, 170.
Q 3: What is the amount of ‘expenses of doing business’ (operating expenses) when Sales = Rs. 1, 50, 000,
Gross Profit = Rs. 15, 000 Net loss = Rs. 4, 000?      1
a. Rs. 11, 000  b. Rs. 1, 31, 000  c. Rs. 19, 000  d. Rs. 1, 65, 000.
Q 4: What is net Profit?         1
Q 5: If sales Rs. 2, 00, 000. Gross profit is 1/4
th
on cost. Find out cost of goods sold.  2
Q 6: If cost is Rs. 4, 00, 000. Gross Profit is 28% on Cost. Find out sale.    2
Q 7:  Calculate stock at the end
Stock in the beginning
Cash sale
Credit sale
Purchases
Rate of Gross profit on cost
10, 000
30, 000
20, 000
35, 000
1/3
3
Q 8: Calculate Gross Profit when total purchases during the years are Rs. 8, 00, 000
Return outward Rs. 20, 000
Direct Expenses Rs. 60, 000
2/3 of the goods are sold for Rs. 6, 10, 000.       3

PUNEET COLLEGE                                   PKL|CHD                           98155 – 00062                 www.facebook.com/puneetcollege
Q 9: Give transaction which will
1. Decrease the asset and decrease the capital.
2. Increase the asset and increase the capital.
3. Decrease the assets and decrease the liabilities.
4. Increase the assets and increase the liabilities.      2

st
April, 2011 with the assets having value of Rs. 3,20,000
and liabilities owing to outsiders Rs. 20, 000. During the year, he suffered a loss of Rs. 30, 000 and
had withdrawn Rs. 30, 000 from his business. Calculate the value of its capital as on 31
st
march, 2012.
Also find the value of closing assets on that date.      3

Q 11: Neetu started a business with cash Rs. 1, 20, 000. In respect of his business, following transactions
were recorded:     Rs.
1. Purchased goods on credit   32, 500
2. Paid wages       2, 500
3. Withdrew for personal use   21, 600
4. Paid to creditors in full settlement  32, 000
5. Purchased furniture for     2, 510
6. Telephone charges paid   18, 000
Show an accounting equation on the basis of above transactions.    6

Q 12: From the following calculate net worth.
1. Creditors equity Rs. 1, 25, 000. 2. Total equity Rs. 2, 50, 000.   1

Q 13: Sanjay commenced business on 1.4.2010 with cash Rs. 8, 00, 000. The following transactions were
entered into by him during the year.
1. Opened a account in PNB with Rs. 80, 000.
2. Goods destroyed by fire costing Rs. 6, 000 (Selling price Rs. 6, 900).
3. Goods purchased from Ghanshyam Rs. 56, 000.
4. Donated goods costing Rs. 2, 000 to a charitable trust.
5. Received commission Rs. 4, 000.
6. Withdrew Rs. 7, 000 for personal use.
7. Sold goods to Harit (costing 8, 000) for Rs. 9, 800.
8. Received cheque from Harit of Rs. 9, 600 in full settlement.
9. Shares were purchased for Rs. 15, 000.
10. Rent paid for 15 months Rs. 60, 000.
Show an accounting equation and also prepare the balance sheet.    12

Q 14: Distinction between Book keeping and Accounting on the basis of Scope.   1

Q 15: Two example of Fictions Assets.        1

Q 16: What is Revenue expenditures.        1

PUNEET COLLEGE                                   PKL|CHD                           98155 – 00062                 www.facebook.com/puneetcollege
PUNEET COLLEGE
TEST NO – 1 (2013 – 14)
BASIC ACCOUNTING TERS AND
ACCOUNTING EQUATION
12
TH
MAY, 13
TIME – 1 Hr 30 Min            SET – 2            MM ? 46

Q 1: Mr. Chaudhary started a business of buying and selling of gift boxes with Rs. 3, 50, 000 as an initial
investment. Of which he paid Rs. 2, 00, 000 for the purchase of gift boxes and Rs. 50, 000 for
computer. He sold some of the gifts for Rs. 1, 50, 000 for cash and some other gifts for Rs. 75, 000 on
credit to Mr. Chawla.
Subsequently, he bought gift boxes of Rs. 1, 00, 000 from Mr. Shubham. In the first week of the next
month, there was a fire accident and he lost Rs. 50, 000 worth of gifts. Later on, some gifts which
costed Rs. 60, 000 was sold for Rs. 65, 000. Expenses paid during the same period were Rs. 5, 000.
With the help of the above information, answer the following questions:
1. What is the amount of capital with which Mr. Chaudhary started the business?
2. What is the total amount of expenses?
3. Who is the debtor and what is the amount receivable from him?
4. Who is the creditor and what is the amount payable to him?
5. What are the fixed assets he bought?
6. What is the total value of the goods purchased?     6

Q 2: What is the amount of gross profit when opening stock = Rs. 18, 000, purchases = Rs. 78, 000, cost of
goods sold (merchandising cost) = Rs. 1, 06, 000 and sales = Rs. 1, 49, 000?   1
a. Rs. 53, 000  b. Rs. 43, 000  c. Rs. 17, 000 (Loss)         d. Rs. 53, 000 (Loss).

Q 3: What is the amount of gross profit when net purchases = Rs. 50, 000, Net sales = Rs. 80, 000 and Sales
returns = Rs. 10, 000?         1
a. Rs. 30, 000  b. Rs. 20, 000  c. Rs. 70, 000   d. Rs. 40, 000.

Q 4: What is gross profit?         1
Q 5: If Sale is Rs. 3, 00, 000. Gross Profit is 1/5
th
on cost. Find out cost of goods sold.  2
Q 6: If cost is Rs. 6, 50, 000. Gross profit is 30% on cost. Find out sale.    2
Q 7:  Calculate stock at the end
Stock in the beginning
Cash sale
Credit sale
Purchases
Rate of Gross profit on cost
20, 000
60, 000
40, 000
70, 000
1/4
3
Q 8: Calculate Gross Profit when total purchases during the years are Rs. 16, 00, 000
Return outward Rs. 40, 000
Direct Expenses Rs. 1, 20, 000
2/3 of the goods are sold for Rs. 12, 00, 000.      3
Page 4

PUNEET COLLEGE                                   PKL|CHD                           98155 – 00062                 www.facebook.com/puneetcollege
PUNEET COLLEGE
TEST NO – 1 (2013 – 14)
BASIC ACCOUNTING TERS AND
ACCOUNTING EQUATION
12
TH
MAY, 13
TIME – 1 Hr 30 Min            SET – 1            MM ? 46

Q 1: Mr. Chawla started a business of buying and selling of mobile phones and invested Rs. 5, 00, 000 on
1.4.2011.
On 20.4.2011 he paid Rs. 2, 00, 000 for the purchase of mobile phones and Rs. 75, 000 for furniture.
On 1.5.2011, he purchased some stationery for Rs. 10, 000 in cash and sold some mobile phones for
Rs. 1, 50, 000 on credit to Mr. Bhushan. After a period of one month, he purchased mobile phones of
Rs. 1, 60, 000 from Mr. Chaudhary. Expenses during the same period were Rs. 20, 000. On 31.7.2011
mobile phones worth Rs. 40, 000 were lost by fire.
During September 2011 to December 2011, a part of stock of mobile phones which costed Rs. 50, 000
was sold for Rs. 70, 000.
With the help of the above information, answer the following questions:-
1. What is the amount of capital with which Mr. Chawla started the business?
2. What is the total amount of expenses?
3. Who is the debtor for the business and what is the amount receivable from him?
4. Who is the creditor and what is the amount payable to him?
5. Give the name and cost of fixed asset bought by the business enterprise.
6. What is the total value of the goods purchased?     6

Q 2: What is the amount of net profit when merchandising cost = Rs. 21, 650; expenses of doing business
(operating expenses) = Rs. 480 and sales = Rs. 24, 900?     1
a. Rs. 2, 770  b. Rs. 3, 250  c. Rs. 47, 030  d. Rs. 21, 170.
Q 3: What is the amount of ‘expenses of doing business’ (operating expenses) when Sales = Rs. 1, 50, 000,
Gross Profit = Rs. 15, 000 Net loss = Rs. 4, 000?      1
a. Rs. 11, 000  b. Rs. 1, 31, 000  c. Rs. 19, 000  d. Rs. 1, 65, 000.
Q 4: What is net Profit?         1
Q 5: If sales Rs. 2, 00, 000. Gross profit is 1/4
th
on cost. Find out cost of goods sold.  2
Q 6: If cost is Rs. 4, 00, 000. Gross Profit is 28% on Cost. Find out sale.    2
Q 7:  Calculate stock at the end
Stock in the beginning
Cash sale
Credit sale
Purchases
Rate of Gross profit on cost
10, 000
30, 000
20, 000
35, 000
1/3
3
Q 8: Calculate Gross Profit when total purchases during the years are Rs. 8, 00, 000
Return outward Rs. 20, 000
Direct Expenses Rs. 60, 000
2/3 of the goods are sold for Rs. 6, 10, 000.       3

PUNEET COLLEGE                                   PKL|CHD                           98155 – 00062                 www.facebook.com/puneetcollege
Q 9: Give transaction which will
1. Decrease the asset and decrease the capital.
2. Increase the asset and increase the capital.
3. Decrease the assets and decrease the liabilities.
4. Increase the assets and increase the liabilities.      2

st
April, 2011 with the assets having value of Rs. 3,20,000
and liabilities owing to outsiders Rs. 20, 000. During the year, he suffered a loss of Rs. 30, 000 and
had withdrawn Rs. 30, 000 from his business. Calculate the value of its capital as on 31
st
march, 2012.
Also find the value of closing assets on that date.      3

Q 11: Neetu started a business with cash Rs. 1, 20, 000. In respect of his business, following transactions
were recorded:     Rs.
1. Purchased goods on credit   32, 500
2. Paid wages       2, 500
3. Withdrew for personal use   21, 600
4. Paid to creditors in full settlement  32, 000
5. Purchased furniture for     2, 510
6. Telephone charges paid   18, 000
Show an accounting equation on the basis of above transactions.    6

Q 12: From the following calculate net worth.
1. Creditors equity Rs. 1, 25, 000. 2. Total equity Rs. 2, 50, 000.   1

Q 13: Sanjay commenced business on 1.4.2010 with cash Rs. 8, 00, 000. The following transactions were
entered into by him during the year.
1. Opened a account in PNB with Rs. 80, 000.
2. Goods destroyed by fire costing Rs. 6, 000 (Selling price Rs. 6, 900).
3. Goods purchased from Ghanshyam Rs. 56, 000.
4. Donated goods costing Rs. 2, 000 to a charitable trust.
5. Received commission Rs. 4, 000.
6. Withdrew Rs. 7, 000 for personal use.
7. Sold goods to Harit (costing 8, 000) for Rs. 9, 800.
8. Received cheque from Harit of Rs. 9, 600 in full settlement.
9. Shares were purchased for Rs. 15, 000.
10. Rent paid for 15 months Rs. 60, 000.
Show an accounting equation and also prepare the balance sheet.    12

Q 14: Distinction between Book keeping and Accounting on the basis of Scope.   1

Q 15: Two example of Fictions Assets.        1

Q 16: What is Revenue expenditures.        1

PUNEET COLLEGE                                   PKL|CHD                           98155 – 00062                 www.facebook.com/puneetcollege
PUNEET COLLEGE
TEST NO – 1 (2013 – 14)
BASIC ACCOUNTING TERS AND
ACCOUNTING EQUATION
12
TH
MAY, 13
TIME – 1 Hr 30 Min            SET – 2            MM ? 46

Q 1: Mr. Chaudhary started a business of buying and selling of gift boxes with Rs. 3, 50, 000 as an initial
investment. Of which he paid Rs. 2, 00, 000 for the purchase of gift boxes and Rs. 50, 000 for
computer. He sold some of the gifts for Rs. 1, 50, 000 for cash and some other gifts for Rs. 75, 000 on
credit to Mr. Chawla.
Subsequently, he bought gift boxes of Rs. 1, 00, 000 from Mr. Shubham. In the first week of the next
month, there was a fire accident and he lost Rs. 50, 000 worth of gifts. Later on, some gifts which
costed Rs. 60, 000 was sold for Rs. 65, 000. Expenses paid during the same period were Rs. 5, 000.
With the help of the above information, answer the following questions:
1. What is the amount of capital with which Mr. Chaudhary started the business?
2. What is the total amount of expenses?
3. Who is the debtor and what is the amount receivable from him?
4. Who is the creditor and what is the amount payable to him?
5. What are the fixed assets he bought?
6. What is the total value of the goods purchased?     6

Q 2: What is the amount of gross profit when opening stock = Rs. 18, 000, purchases = Rs. 78, 000, cost of
goods sold (merchandising cost) = Rs. 1, 06, 000 and sales = Rs. 1, 49, 000?   1
a. Rs. 53, 000  b. Rs. 43, 000  c. Rs. 17, 000 (Loss)         d. Rs. 53, 000 (Loss).

Q 3: What is the amount of gross profit when net purchases = Rs. 50, 000, Net sales = Rs. 80, 000 and Sales
returns = Rs. 10, 000?         1
a. Rs. 30, 000  b. Rs. 20, 000  c. Rs. 70, 000   d. Rs. 40, 000.

Q 4: What is gross profit?         1
Q 5: If Sale is Rs. 3, 00, 000. Gross Profit is 1/5
th
on cost. Find out cost of goods sold.  2
Q 6: If cost is Rs. 6, 50, 000. Gross profit is 30% on cost. Find out sale.    2
Q 7:  Calculate stock at the end
Stock in the beginning
Cash sale
Credit sale
Purchases
Rate of Gross profit on cost
20, 000
60, 000
40, 000
70, 000
1/4
3
Q 8: Calculate Gross Profit when total purchases during the years are Rs. 16, 00, 000
Return outward Rs. 40, 000
Direct Expenses Rs. 1, 20, 000
2/3 of the goods are sold for Rs. 12, 00, 000.      3

PUNEET COLLEGE                                   PKL|CHD                           98155 – 00062                 www.facebook.com/puneetcollege
Q 9: Give at least one example each of the following effects.
1. Decrease in assets, decrease in liabilities.
2. Decrease in assets, decrease in owner’s capital.
3. Increase in one liability, decrease in another liability.
4. Decrease in liabilities, increase in owner’s capital.     2

Q 10: Calculate the amount withdrawn by Sunil (Proprietor) and total assets in the following case:
He started business with cash of Rs. 1, 50, 000 as on 1
st
April, 2011. During the year, he suffered a
loss of Rs. 20, 000. On 31
st
March, 2012 his capital stood at Rs. 1, 20, 000, Bills payable at Rs. 10, 000
and bank Loan at Rs. 10, 000.        3

Q 11: Arun commenced a business on 1
st
April, 2011 with cash Rs. 7, 00, 000. Besides this, the following
transactions were entered into by him during the year:
1. Goods purchased from Sunil Rs. 28, 000.
2. Opened a new account in SBI with Rs. 1, 00, 000.
3. Securities (investments) were purchased for Rs. 10, 000.
4. Sold goods to Harilal (costing Rs. 6, 000) for Rs. 6, 700.
5. Received cheque from Harilal of Rs. 6, 600 in full settlement.
6. Withdrew Rs. 5, 000 for personal use.
7. Donated goods costing Rs. 1, 000 to a charitable trust.
8. Received commission Rs. 2, 000.
9. Goods destroyed (sale price Rs. 3, 000) during flood costing Rs. 2, 500.
10. Rent paid for 15 months Rs. 90, 000.
Show an accounting equation on the basis of above transactions. Also prepare the Balance sheet.
12
Q 12: Smart started business with cash Rs. 2, 00, 000. In respect of his business. Following transactions
were recorded:
1. Purchased furniture for Rs. 5, 200.
2. Purchased goods on credit Rs. 65, 000.
3. Paid salary Rs. 6, 000.
4. Telephone charge paid Rs. 10, 000.
5. Withdrew for personal use Rs. 33, 200.
6. Paid to creditors in full settlement Rs. 63, 000.
Show an accounting equation.        6

Q 13: From the following calculate net worth.
1. Total equity Rs. 5, 00, 000   2. Creditors equity Rs. 2, 50, 000  1

Q 14: What is the difference between Book keeping and Accounting on the basis of objective  1

Q 15: Two examples of Wasting Assets.        1

Q 16: What is Deferred Revenue Expenditure.       1

Page 5

PUNEET COLLEGE                                   PKL|CHD                           98155 – 00062                 www.facebook.com/puneetcollege
PUNEET COLLEGE
TEST NO – 1 (2013 – 14)
BASIC ACCOUNTING TERS AND
ACCOUNTING EQUATION
12
TH
MAY, 13
TIME – 1 Hr 30 Min            SET – 1            MM ? 46

Q 1: Mr. Chawla started a business of buying and selling of mobile phones and invested Rs. 5, 00, 000 on
1.4.2011.
On 20.4.2011 he paid Rs. 2, 00, 000 for the purchase of mobile phones and Rs. 75, 000 for furniture.
On 1.5.2011, he purchased some stationery for Rs. 10, 000 in cash and sold some mobile phones for
Rs. 1, 50, 000 on credit to Mr. Bhushan. After a period of one month, he purchased mobile phones of
Rs. 1, 60, 000 from Mr. Chaudhary. Expenses during the same period were Rs. 20, 000. On 31.7.2011
mobile phones worth Rs. 40, 000 were lost by fire.
During September 2011 to December 2011, a part of stock of mobile phones which costed Rs. 50, 000
was sold for Rs. 70, 000.
With the help of the above information, answer the following questions:-
1. What is the amount of capital with which Mr. Chawla started the business?
2. What is the total amount of expenses?
3. Who is the debtor for the business and what is the amount receivable from him?
4. Who is the creditor and what is the amount payable to him?
5. Give the name and cost of fixed asset bought by the business enterprise.
6. What is the total value of the goods purchased?     6

Q 2: What is the amount of net profit when merchandising cost = Rs. 21, 650; expenses of doing business
(operating expenses) = Rs. 480 and sales = Rs. 24, 900?     1
a. Rs. 2, 770  b. Rs. 3, 250  c. Rs. 47, 030  d. Rs. 21, 170.
Q 3: What is the amount of ‘expenses of doing business’ (operating expenses) when Sales = Rs. 1, 50, 000,
Gross Profit = Rs. 15, 000 Net loss = Rs. 4, 000?      1
a. Rs. 11, 000  b. Rs. 1, 31, 000  c. Rs. 19, 000  d. Rs. 1, 65, 000.
Q 4: What is net Profit?         1
Q 5: If sales Rs. 2, 00, 000. Gross profit is 1/4
th
on cost. Find out cost of goods sold.  2
Q 6: If cost is Rs. 4, 00, 000. Gross Profit is 28% on Cost. Find out sale.    2
Q 7:  Calculate stock at the end
Stock in the beginning
Cash sale
Credit sale
Purchases
Rate of Gross profit on cost
10, 000
30, 000
20, 000
35, 000
1/3
3
Q 8: Calculate Gross Profit when total purchases during the years are Rs. 8, 00, 000
Return outward Rs. 20, 000
Direct Expenses Rs. 60, 000
2/3 of the goods are sold for Rs. 6, 10, 000.       3

PUNEET COLLEGE                                   PKL|CHD                           98155 – 00062                 www.facebook.com/puneetcollege
Q 9: Give transaction which will
1. Decrease the asset and decrease the capital.
2. Increase the asset and increase the capital.
3. Decrease the assets and decrease the liabilities.
4. Increase the assets and increase the liabilities.      2

st
April, 2011 with the assets having value of Rs. 3,20,000
and liabilities owing to outsiders Rs. 20, 000. During the year, he suffered a loss of Rs. 30, 000 and
had withdrawn Rs. 30, 000 from his business. Calculate the value of its capital as on 31
st
march, 2012.
Also find the value of closing assets on that date.      3

Q 11: Neetu started a business with cash Rs. 1, 20, 000. In respect of his business, following transactions
were recorded:     Rs.
1. Purchased goods on credit   32, 500
2. Paid wages       2, 500
3. Withdrew for personal use   21, 600
4. Paid to creditors in full settlement  32, 000
5. Purchased furniture for     2, 510
6. Telephone charges paid   18, 000
Show an accounting equation on the basis of above transactions.    6

Q 12: From the following calculate net worth.
1. Creditors equity Rs. 1, 25, 000. 2. Total equity Rs. 2, 50, 000.   1

Q 13: Sanjay commenced business on 1.4.2010 with cash Rs. 8, 00, 000. The following transactions were
entered into by him during the year.
1. Opened a account in PNB with Rs. 80, 000.
2. Goods destroyed by fire costing Rs. 6, 000 (Selling price Rs. 6, 900).
3. Goods purchased from Ghanshyam Rs. 56, 000.
4. Donated goods costing Rs. 2, 000 to a charitable trust.
5. Received commission Rs. 4, 000.
6. Withdrew Rs. 7, 000 for personal use.
7. Sold goods to Harit (costing 8, 000) for Rs. 9, 800.
8. Received cheque from Harit of Rs. 9, 600 in full settlement.
9. Shares were purchased for Rs. 15, 000.
10. Rent paid for 15 months Rs. 60, 000.
Show an accounting equation and also prepare the balance sheet.    12

Q 14: Distinction between Book keeping and Accounting on the basis of Scope.   1

Q 15: Two example of Fictions Assets.        1

Q 16: What is Revenue expenditures.        1

PUNEET COLLEGE                                   PKL|CHD                           98155 – 00062                 www.facebook.com/puneetcollege
PUNEET COLLEGE
TEST NO – 1 (2013 – 14)
BASIC ACCOUNTING TERS AND
ACCOUNTING EQUATION
12
TH
MAY, 13
TIME – 1 Hr 30 Min            SET – 2            MM ? 46

Q 1: Mr. Chaudhary started a business of buying and selling of gift boxes with Rs. 3, 50, 000 as an initial
investment. Of which he paid Rs. 2, 00, 000 for the purchase of gift boxes and Rs. 50, 000 for
computer. He sold some of the gifts for Rs. 1, 50, 000 for cash and some other gifts for Rs. 75, 000 on
credit to Mr. Chawla.
Subsequently, he bought gift boxes of Rs. 1, 00, 000 from Mr. Shubham. In the first week of the next
month, there was a fire accident and he lost Rs. 50, 000 worth of gifts. Later on, some gifts which
costed Rs. 60, 000 was sold for Rs. 65, 000. Expenses paid during the same period were Rs. 5, 000.
With the help of the above information, answer the following questions:
1. What is the amount of capital with which Mr. Chaudhary started the business?
2. What is the total amount of expenses?
3. Who is the debtor and what is the amount receivable from him?
4. Who is the creditor and what is the amount payable to him?
5. What are the fixed assets he bought?
6. What is the total value of the goods purchased?     6

Q 2: What is the amount of gross profit when opening stock = Rs. 18, 000, purchases = Rs. 78, 000, cost of
goods sold (merchandising cost) = Rs. 1, 06, 000 and sales = Rs. 1, 49, 000?   1
a. Rs. 53, 000  b. Rs. 43, 000  c. Rs. 17, 000 (Loss)         d. Rs. 53, 000 (Loss).

Q 3: What is the amount of gross profit when net purchases = Rs. 50, 000, Net sales = Rs. 80, 000 and Sales
returns = Rs. 10, 000?         1
a. Rs. 30, 000  b. Rs. 20, 000  c. Rs. 70, 000   d. Rs. 40, 000.

Q 4: What is gross profit?         1
Q 5: If Sale is Rs. 3, 00, 000. Gross Profit is 1/5
th
on cost. Find out cost of goods sold.  2
Q 6: If cost is Rs. 6, 50, 000. Gross profit is 30% on cost. Find out sale.    2
Q 7:  Calculate stock at the end
Stock in the beginning
Cash sale
Credit sale
Purchases
Rate of Gross profit on cost
20, 000
60, 000
40, 000
70, 000
1/4
3
Q 8: Calculate Gross Profit when total purchases during the years are Rs. 16, 00, 000
Return outward Rs. 40, 000
Direct Expenses Rs. 1, 20, 000
2/3 of the goods are sold for Rs. 12, 00, 000.      3

PUNEET COLLEGE                                   PKL|CHD                           98155 – 00062                 www.facebook.com/puneetcollege
Q 9: Give at least one example each of the following effects.
1. Decrease in assets, decrease in liabilities.
2. Decrease in assets, decrease in owner’s capital.
3. Increase in one liability, decrease in another liability.
4. Decrease in liabilities, increase in owner’s capital.     2

Q 10: Calculate the amount withdrawn by Sunil (Proprietor) and total assets in the following case:
He started business with cash of Rs. 1, 50, 000 as on 1
st
April, 2011. During the year, he suffered a
loss of Rs. 20, 000. On 31
st
March, 2012 his capital stood at Rs. 1, 20, 000, Bills payable at Rs. 10, 000
and bank Loan at Rs. 10, 000.        3

Q 11: Arun commenced a business on 1
st
April, 2011 with cash Rs. 7, 00, 000. Besides this, the following
transactions were entered into by him during the year:
1. Goods purchased from Sunil Rs. 28, 000.
2. Opened a new account in SBI with Rs. 1, 00, 000.
3. Securities (investments) were purchased for Rs. 10, 000.
4. Sold goods to Harilal (costing Rs. 6, 000) for Rs. 6, 700.
5. Received cheque from Harilal of Rs. 6, 600 in full settlement.
6. Withdrew Rs. 5, 000 for personal use.
7. Donated goods costing Rs. 1, 000 to a charitable trust.
8. Received commission Rs. 2, 000.
9. Goods destroyed (sale price Rs. 3, 000) during flood costing Rs. 2, 500.
10. Rent paid for 15 months Rs. 90, 000.
Show an accounting equation on the basis of above transactions. Also prepare the Balance sheet.
12
Q 12: Smart started business with cash Rs. 2, 00, 000. In respect of his business. Following transactions
were recorded:
1. Purchased furniture for Rs. 5, 200.
2. Purchased goods on credit Rs. 65, 000.
3. Paid salary Rs. 6, 000.
4. Telephone charge paid Rs. 10, 000.
5. Withdrew for personal use Rs. 33, 200.
6. Paid to creditors in full settlement Rs. 63, 000.
Show an accounting equation.        6

Q 13: From the following calculate net worth.
1. Total equity Rs. 5, 00, 000   2. Creditors equity Rs. 2, 50, 000  1

Q 14: What is the difference between Book keeping and Accounting on the basis of objective  1

Q 15: Two examples of Wasting Assets.        1

Q 16: What is Deferred Revenue Expenditure.       1

PUNEET COLLEGE                                   PKL|CHD                           98155 – 00062                 www.facebook.com/puneetcollege
+1 ACC TEST NO – 01 BASIC ACCOUNTING TERMS &
ACCOUNTING EQUATIONS SOLUTION SET – 1 (12
TH
MAY, 2013)

Ans 1:
1. Rs. 5, 00, 000
2. Rs. 30, 000
3. Mr. Bhushan Rs. 1, 50, 000
4. Mr. Chaudhary Rs. 1, 60, 000
5. Furniture Rs. 75, 000
6. Rs. 3, 60, 000.

Ans 2: GP  = 24, 900 – 21, 650 = 3, 250
NP = 3, 250 – 480 = 2, 770
Ans: (a)

Ans 3: (c)

Ans 4:

Ans 5: Rs. 1, 60, 000 [GP = 40, 000; COGs = 1, 60, 000]

Ans 6: Rs. 5, 12, 000 [GP = 1, 12, 000; Sales = 5, 12, 000]

Ans 7: Sales = 1 + 1/3 = 4/3
4/3 = 1  X ¾ X 50, 000 = 37, 500
37, 500 = 10, 000 + 35, 000 + 0 + CS
CS = 45, 000 – 37, 500 = 7, 500.
GP = Rs. 12, 500; COGS Rs. 37, 500; Cost Rs. 7, 500.

Ans 8: COGS = OS + NP + DE – CS
= Nil + 7, 80, 000 + 60, 000 – 2, 80, 000 = 5, 60, 000
GP = 6, 10, 000 – 5, 60, 000 = 50, 000.
Cost Rs. 2, 80, 000; COGS Rs. 5, 60, 000; GP Rs. 50, 000

Ans 9: 1.    Drawings or Stock / Assets sold at a loss or any other example.
2. Fresh Capital or Goods sold at a profit.
3. B/P or Creditors or Loan Paid.
4. Loan taken or Goods purchased on credit.

Ans 10: Opening Capital  = 3, 20, 000 – 20, 000 = 3, 00, 000
Closing Capital  = 3, 00, 000
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