Bachelor’s Preparatory Programme (B.P.P.)

(For Non 10+2)

Term-End Examination (T.E.E.)

December 2012

PCO-101 : Preparatory Course in Commerce

Time : 2 hours

Maximum Marks : 50

General instructions :

Preparatory course in Commerce (PCO – 101)

Questions 1 – 50. 

 (i) All questions are compulsory, each of which carries one mark.

(ii)  Each question has four alternatives, one of which is correct. Write the serial number of your correct alternatives/answers below the corresponding question number in the answer Sheet and then mark the rectangle for the same number in that column. If you find that none of the given alternatives is correct, then write 0 and mark in column 0.

(iii) Do not waste time in reading the whole question paper. Go on solving questions one by one. You may come back to the left out questions, if you have time at the end.

To Get the Answer Key: PCO 101 December 2012, Click on the Button below.

1. Financial position of the business means

1. Net effect of the business operations
2. Systematic records of business transactions
3. Cash in hand as on balance sheet date
4. What the business owes to others and what it owns at a given point of time

2. The concept of conservatism implies

1. understatement of assets
2. understatement of liabilities
3. overstatement of profit
4. understatement of losses

3. Buying and selling activity is called

1. Commerce
2. Industry
3. Trade
4. Business

4. The Debit balance of nominal accounts shows

1. Gains, incomes etc.
2. Net profit
3. Expenses, losses etc.
4. Gross profit

5. An example of representative personal account is

1. Rent
2. Prepaid expenses
3. Cash
4. Commission

6. Impersonal accounts mean

1. Real and nominal accounts
2. Only real accounts
3. Personal accounts
4. Only nominal accounts

7. Purchase of goods on credit will be recorded in

1. Journal
2. Purchase book
3. Purchase return book
4. Cash book

8. Trial balance includes

1. only Personal accounts
2. only Real accounts
3. only Nominal accounts
4. all Real, Personal and Nominal accounts

9. Drawings account is a

1. Real account
2. Personal account
3. Nominal account
4. Real and nominal account

 10. Narration must be written

1. for every transaction recorded in journal
2. at the time of preparing trial balance
3. at the time of preparing profit and loss A/c
4. at the time of preparing balance sheet

11. Amount realised for sale of goods at services is called

1. Equity
2. Profit
3. Revenue
4. Loss

12. Trial balance is prepared

1. before posting in the ledger
2. before preparation of final accounts
3. after preparation of final accounts
4. before recording the transaction in journal

13. Returns inwards book is kept to record

1. return of goods sold
2. credit sales of goods
3. return of goods purchase
4. return of anything sold

14. The balance of petty cash book is

1. an expense
2. an income
3. an asset
4. a liability

15. ₹7,000 paid as wages for establishing a plant should be debited to

1. Wages  A/c
2. Plant  A/c
3. Repair A/c
4. Cash A/c

16. According to which concepts is the entity of business treated separate from its owner?

1. matching concept
2. Dual concept
3. business entity concept
4. realisation concept

17. Trading account shows

1. Gross profit/Gross loss of a business
2. Capital employed in the business
3. Net profit/Net loss of a business
4. Financial position of a business

18. Which of the following will not be shown within the balance sheet?

1. Debtors
2. Creditors
3. Goodwill
4. Contingent liability

19. Prepaid expenses shown in trial balance will be shown in

1. Manufacturing A/c
2. Balance sheet
3. Profit and loss A/c
4. Trading A/c

20. Which account is used for rectification of one-sided errors?

1. Capital A/c
2. Bank A/c
3. Suspense A/c
4. Trading A/c

21. Prepaid insurance is

1. an asset
2. a liability
3. a loss
4. a gain

22. The final step of accounting cycle is

1. Trial balance
2. Balance sheet
3. Journal
4. Ledger

23. Which of the following normally has a credit balance?

1. Building A/c
2. Furniture A/c
3. Discount allowed A/c
4. Capital A/c

24. Which of the following transactions leads to contra entry in cash book?

1. ₹2.000 paid to Anit
2. Goods purchased worth ₹5,000 on credit
3. ₹5,000 deposit to bank
4. Goods sold for cash ₹6,000

25. Real accounts relate to

1. expenses only
2. incomes only
3. liabilities only
4. assets only

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26. A copy of the customer’s account given of bank is called

1. Cash Book
2. Cheque Book
3. Pass Book
4. Purchase Book

27. Bank overdraft is a

1. short-term liability
2. long-term liability
3. fixed asset
4. Current asset

28. Cost of goods sold is equal to

1. Sales − Closing Stock
2. Sales − Gross Profit
3. Opening Stock + Purchase + Direct Expenses
4. Opening Stock + Purchase + Closing Stock

29. Depreciation of fixed assets is treated as

1. Capital expenditure
2. Capital loss
3. Revenue expenditure
4. Revenue loss

30. Manufacturing account is prepared to find out

1. Gross profit
2. Net profit
3. Cost of goods produced
4. Cost of goods sold

31. Debit balance of suspense account will be shown in

1. Manufacturing A/c
2. Trading A/c
3. Profit and Loss A/c
4. Balance sheet

32. The main objective of preparing a balance sheet is to know

1. the net result of business activities
2. arithmetical accuracy of accounting work
3. the financial position of the business
4. the capital employed in the business

33. Carriage outwards will be shown in

1. Trading A/c
2. Profit and Loss A/c
3. Manufacturing A/c
4. Balance sheet

34. Salaries and wages will be shown in

1. Manufacturing A/c
2. Trading A/c
3. Substance A/c
4. Profit and loss A/c

35. Trademark is a

1. fictitious asset
2. tangible asset
3. intangible asset
4. current asset

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36. Which of the following is a liquid asset?

1. Stock
2. Prepaid expenses
3. Government securities
4. Investments

37. Interest on capital is shown on the

1. debit side of manufacturing A/c
2. credit side of trading A/c
3. debit side of profit and loss A/c
4. assets side of balance sheet

38. Opening stock is ₹50,000; Purchases ₹1,00,000; Direct expenses ₹15,000; Closing stock ₹65,000. Cost of goods sold will be

1. ₹50,000
2. ₹65,000
3. ₹1,00,000
4. ₹2,30,000

39. Which one of the following is not a current asset?

1. Debtor
2. Stock
3. Cash
4. Furniture

40. Bad debts recovered will be shown in

1. Trading A/c
2. Credit side of Profit and Loss A/c
3. Assets side of balance sheet
4. Liability side of balance sheet

41. Sales Tax paid is a

1. Capital expenditure
2. Deferred revenue expenditure
3. Revenue expenditure
4. Capital loss to the business

42. Income Tax payable is a

1. Current liability
2. Long term liability
3. Revenue expenditure
4. Capital expenditure

43. Profit on sale of old asset will be shown in

1. Trading A/c
2. Manufacturing A/c
3. Profit and loss A/c
4. Suspense A/c

44. Discount on issue of shared is an example of

1. Capital expenditure
2. Capital loss
3. Deferred revenue expenditure
4. Revenue expenditure

45. Goods given as charity would be credited to

1. Purchases A/c
2. Sales A/c
3. Charity A/c
4. Cash A/c

46. Donation received for a specific purpose is a

1. Capital receipt
2. Revenue receipt
3. Capital expenditure
4. Revenue expenditure

47. Cash withdrawal for personal use will be debited to

1. Cash A/c
2. Drawings A/c
3. Purchases A/c
4. Sales A/c

48. Bank reconciliation statement is prepared by

1. Bank
2. The account holder
3. Purchaser
4. Seller

49. Credit purchase of building will be recorded in

1. Purchases Journal
2. Cash Book
3. Journal Proper
4. Sales Journal

50. A promissory note is written by

1. Buyer
2. Seller
3. Bank
4. Auditor

To Get the Answer Key: PCO 101 December 2012, Click on the Button below.

For “10 Years BPP PCO – 101 Solved Papers“, click on the button below:

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