Re-Mock POA Paper-2

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

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.

• 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

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.

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.

• 165,000

• Rs 185,000

• Rs 250,000

• Rs 350,000

• debit of Rs 2,950

• debit of Rs 3,450

• credit of Rs 2,950

• credit of Rs 3,450

Which of the following is the part of Statement of financial position (Balance sheet)?

• Sales

• Net profit

• Gross profit

• Opening inventory