Re Mock-POA Paper 3

Ms Aamna purchased a machine worth Rs 150,000 with credit term 2/10, n/30. If the payment is made on 15th day, then the billed price will be

• Rs 135,000

• Rs 147,000

• Rs 150,000

• Rs 153,000

Which of the following equation is CORRECT?

• Cost of goods sold + opening inventory = purchases – closing inventory

• Cost of goods sold + closing inventory = purchases – opening inventory

• Cost of goods sold + purchases = closing inventory + opening inventory

• Cost of goods sold + closing inventory = purchases + opening inventory

16. Ms Alishba is a car showroom owner. She bought a new model of Toyota car on cash for business use.

Ms Alishba will be treating the new car as a/ an

• asset.

• capital.

• liability.

• expense.

16. Mr Ashar bought a motor vehicle on credit for his personal use. He recorded the entry in both non-current asset (fixed asset) account and trade payables (account payables) account.

The accounting principle followed in the above transaction by Mr Asher is known as

• matching.

• dual aspect.

• consistency.

• going concern.

• A

• B

• C

• D

Mr Asif is a fruit seller. He sold 1 kg apple for Rs 150 on cash. The account heads that would be affected from the above transaction are

• cash and sales.

• cash and apples.

• trade payables (account payables) and cash.

• trade receivables (account receivables) and sales.

• A

• B

• C

• D

16. Mr Saleem bought goods on credit from Alpha Publications for Rs 50,000.

The above transaction will be posted by Mr Saleem in the

• cash book.

• sales journal.

• general ledger.

• purchase journal.

16. Mr Karim’s organisation follows the ‘imprest system’ for petty cash fund. He has received thepetty cash vouchers and schedule for the month. For the replenishment of petty cash, he will have to

• record the balance amount of the petty cash fund only.

• record all the expenditure and take back the custody of remaining amount.

• record all the expenditures and replenish the petty cash with the same amount.

• issue the cheque for the entire amount of petty cash without consulting the expenses paid.

In a ‘three column cash book’, the cash withdrawal from the bank for business use will

• not be recorded on either side.

• be recorded in receipt side only.

• be recorded in payment side only.

• be recorded in both receipt and payment side.