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

(For Non 10+2)

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

December 2013

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 2013, Click on the Button below.

1. The concept of conservatism implies

1. Understatement of profit
2. Understatement of assets
3. Overstatement of liabilities
4. Prudence in measuring income

2. Which of the following is correct?

1. Assets + Liabilities = Capital
2. Assets  −  Liabilities = Capital
3. Assets + Capital = Liabilities
4. Assets ÷ Liabilities = Capital

3. Buying and selling activity is called:

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

4. Sales book is meant for recording:

1. All sales
2. All types of credit sales
3. Credit sales of merchandise only
4. Cash sales

5. Purchase of furniture for cash should be debited to:

1. Furniture A/C
2. Goods A/C
3. Capital A/C
4. Cash A/C

6. Goods sold to Aman on cash basis will be credited to:

1. Aman A/C
2. Sales A/C
3. Cash A/C
4. Capital A/C

7. Returns Inwards book is kept to record:

1. Credit sales of goods
2. Credit purchase of goods
3. Returns of goods sold
4. Return of goods purchased

8. Rent outstanding account is :

1. Real A/C
2. Nominal A/C
3. Personal A/C
4. Representative personal A/C

9. ₹ 5000 paid as rent to Landlord should be credited to:

1. Cash A/C
2. Rent A/C
3. Landlord A/C
4. Repair A/C

10. Debit balance of suspense A/C will be shown on:

1. The debit side of trading A/C
2. The Assets side of balance sheet
3. The Liabilities side of balance sheet
4. The credit side of trading A/C

11. Prepaid expenses is treated as :

1. A loss
2. A gain
3. A liability
4. An Asset

12. Interest received is credited to:

1. Cash A/C
2. Interest A/C
3. Manufacturing A/C
4. Trading A/C

13. Bad-debts will be charged to:

1. Trading A/C
2. Profit and loss appropriation A/C
3. Profit and loss A/C
4. Capital A/C

14. Profit on sale of an asset will be normally shown on:

1. The debit side of trading A/C
2. The credit side of trading A/C
3. The credit side of profit and loss A/C
4. The debit side of profit and loss A/C

15. Which of the following is not a current liability?

1. Bank loan taken for more than one year
2. Bills payable
3. Outstanding expenses
4. Creditors

16. Goodwill is:

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

17. All indirect expenses are shown in:

1. Trading A/C
2. Profit and loss A/C
3. Profit and loss appropriation A/C
4. Manufacturing A/C

18. Manufacturing account is prepared to find out:

1. Gross profit
2. Gross loss
3. Cost of goods produced
4. Profit on sale of manufactured goods.

19. Bank Reconciliation statement is made by the:

1. Bank
2. Creditors
3. Auditor
4. Customer of the bank

20. Commission received account has:

1. A credit balance
2. A debit balance
3. No balance
4. Any type of balance, debits or credit

21. Sales Returns journal is also called:

1. Purchases journal
2. Sales journal
3. Returns outwards journal
4. Returns inwards journal

22. Rent paid in advance given in Trial balance will be shown in:

1. Assets side of balance sheet
2. Liabilities side of balance sheet
3. Trading A/C
4. Manufacturing A/C

23. Trading account is prepared to find out:

1. Gross loss \ Gross profit
2. Net profit \ Net loss
3. Cost of goods produced
4. Capital

24. Depreciation on building is charged to:

1. Trading A/C
2. Profit and loss A/C
3. Manufacturing A/C
4. Profit and loss appropriation A/C

25. Contingent liability is shown:

1. In trading A/C
2. In profit and loss A/C
3. In balance sheet
4. Outside the balance sheet as a foot note

To Get the Answer Key: PCO 101 December 2013, Click on the Button below.

26. Which of the following is a current asset?

1. Building
2. Furniture
3. Prepaid expenses
4. Plant

27. ‘Salaries and wages’ are shown as the:

1. Debit side of profit and loss A/C
2. Debit side of trading A/C
3. Credit side of profit and loss A/C
4. Credit side of trading A/C

28. Bank overdraft is a:

1. Current asset
2. Current liability
3. Fixed asset
4. Long-term liability

29. Nominal accounts relate to:

1. Expenses and losses only
2. Incomes and gains only
3. Assets only
4. Incomes, gains, expenses and losses

30. Gross profit is equal to

1. Net sales − Cost of goods sold
2. Net sales + Cost of goods sold
3. Opening stock + Purchases − Closing stock
4. Opening stock + Purchases

31. Expenditure giving benefits for more than one year is called:

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

32. Donation received for a ‘specific purpose‘ is a:

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

33. Income tax is a:

1. Current asset
2. Fixed asset
3. Current liability
4. Contingent liability

34. Sales tax collected is a:

1. Fixed liability
2. Current liability
3. Current asset
4. Fixed asset

35. Loan account is a:

1. Real A/C
2. Nominal A/C
3. Real as well as nominal A/C
4. Personal A/C

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36. Information given in adjustments will be shown in final accounts at:

1. Three places
2. One place
3. Two places
4. Four places

37. Trade discount given to customers is recorded:

1. On debit side of cash book
2. On credit side of cash book
3. In journal
4. No where in books of account

38. Selling and distribution expenses are transferred to:

1. Manufacturing A/C
2. Trading A/C
3. Profit and loss A/C
4. Capital A/C

39. A business has liabilities of ₹ 200,000 and owner’s equity is ₹ 5,00,000. Its assets would be

1. ₹ 7,00,000
2. ₹ 5,00,000
3. ₹ 4,00,000
4. ₹ 3,00,000

40. Journal proper records:

1. Purchases returns
2. Sales returns
3. Cash paid to creditors
4. The transactions which are not recorded in any of the special journal

41. The balance of petty cash book is shown on the:

1. Debit side of profit and loss A/C
2. Debit side of trading A/C
3. Credit side of trading A/C
4. Assets side of balance sheet

42. ₹ 10,000 paid as wages for erecting a plant should be debited to:

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

43. Closing stock is valued at:

1. Cost price
2. Market price
3. Cost price or market price whichever is lower
4. Cost price or market price whichever is higher

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

1. Suspense A/C
2. Cash A/C
3. Trading A/C
4. Profit and loss A/C

45. Carriage outwards shown in trial balance will be recorded in:

1. Capital A/C
2. Bank A/C
3. Profit and loss A/C
4. Cash A/C

46. Current assets do not include:

1. Bills receivables
2. Cash
3. Debtors
4. Bank loan

47. Cash given away as charity would be debited to:

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

48. A contra entry appears on both the sides of:

1. Purchases book
2. Balance sheet
3. Cash book
4. Pass book

49. Bad debts recovered will be shown in:

1. Trading A/C
2. Capital A/C
3. Profit and loss A/C
4. Balance sheet

50. Premium received on issue of shares is an example of :

1. Capital profit
2. Revenue profit
3. Fictitious asset
4. Tangible asset

To Get the Answer Key: PCO 101 December 2013, Click on the Button below.

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

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