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

(For Non 10+2)

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

December 2018

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 2018, Click on the Button below.

1. Recording of business transactions in accounts with the help of documents should be based on

1. Single entry system
2. Double entry system
3. Verifiability and objectivity of evidence
4. Combination of Single and Double entry system

2. Wages paid to Billu should be debited to

1. Billu’s A/c
2. Wages A/c
3. Cash A/c
4. Goods A/c

3. The concept of Conservatism is applicable

1. In providing for discount on creditors
2. While providing for depreciation
3. To charge bad and doubtful debts
4. In making the provision for future losses

4. Cash account is a/an

1. Personal A/c
2. Nominal A/c
3. Real A/c
4. Intangible asset

5. Loan from bank is a/an

1. Personal A/c
2. Real A/c
3. Nominal A/c
4. Asset

6. Purchase of goods is a

1. Nominal A/c
2. Personal A/c
3. Real A/c
4. Representative Personal A/c

7. Rent paid to landlord will be credited to

1. Landlord A/c
2. Cash A/c
3. Rent A/c
4. Drawings A/c

8. Real accounts related to

1. Assets
2. Expenses
3. Losses
4. Incomes

9. Financial position of the business mans

1. Position about profits and losses
2. Position about incomes and expenses
3. What the business owes to others and what it owns at a given point of time
4. Position about liquid funds

10. Salary Outstanding account is a

1. Personal A/c (Natural)
2. Real A/c
3. Nominal A/c
4. Personal A/c (Representative)

11. Trial balance is prepared

1. Before posting into the ledger
2. After preparation of final accounts
3. After posting into the ledger and balancing of accounts
4. All of the above

12. Posting is done in the

1. Journal
2. Ledger
3. Trial Balance
4. Balance Sheet

13. Goods given as Charity should be credited to

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

14. Pass Book is a copy of

1. Cash Book relating to bank column
2. Cash Book relating to cash column
3. Firm’s receipts and payments
4. A customer’s account in the bank’s books

15. Bank Reconciliation Statement is a

1. Part of Pass Book
2. Part of Cash Book
3. Statement is prepared by the bank
4. Statement prepared by the customer

16. Suspense account given in the Trial Balance will be shown in the

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

17. Sale of old typewriter used in the office should be credited to

1. Sales A/c
2. Cash A/c
3. Capital A/c
4. Typewriter A/c

18. Sales Tax collected is a/an

1. Liability
2. Asset
3. Expense
4. Loss

19. Bank overdraft is a/an

1. Liability
2. Asset
3. Revenue
4. Expense

20. Income Tax payable is a/an

1. Liability
2. Asset
3. Loss
4. Expense

21. Business includes

1. Industry and Commerce
2. Trade and aids to trade
3. Industry and aids to trade
4. Trade only

22. A person who owes some amount to the business is called

1. Debtor
2. Creditor
3. Owner
4. Auditor

23. Final step of accounting cycle is the preparation of

1. Trial Balance
2. Balance Sheet
3. Trading and Profit and Loss A/c
4. Ledger

24. Which of the following is a personal account?

1. Bakul A/c
2. Loan from Rakesh A/c
3. Sales Outstanding A/c
4. All of the above

25. Equity is the

1. Difference between the value of assets and value of liabilities
2. Anything which has economic value
3. Amount earned to business operations
4. Amount realised from goods sold

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26. Excess of Revenue over Expenses is

1. Capital
2. Loss
3. Drawings
4. Profit

27. Which of the following transactions leads to Contra entry in the Cash Book?

1. Deposited ₹ 10,000 in the bank
2. Received ₹ 4,000 from Naresh
3. Goods sold to Rakesh for cash ₹ 1,000
4. Goods purchased from Mohan for cash ₹ 1,000

28. Balance of Cash Book is a/an

1. Asset
2. Income
3. Expense
4. Liability

29. Depreciation on Fixed Assets is treated as

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

30. Objective of preparing Balance Sheet is to ascertain

1. Financial position of business
2. Net results of business activities
3. Arithmetical accuracy of the transactions recorded
4. Assets of the business

31. Amount brought in by the proprietor, Ramesh, in the business should be credited to

1. Cash A/c
2. Capital A/c
3. Ramesh A/c
4. Drawings A/c

32. Office equipment purchased on credit will be recorded in

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

33. Which note is sent to the customer when he returns the goods?

1. Debit note
2. Credit note
3. Promissory note
4. Cheque

34. Amount realized from the goods sold is called

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

35. Goods sold to Mahesh for cash will be credited to

1. Cash A/c
2. Mahesh A/c
3. Sales A/c
4. Purchase A/c

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36. The statement containing various ledger balances is known as

1. Trial Balance
2. Bank Reconciliation Statement
3. Statement of Account
4. Financial Statement

37. According to money measurement concept, which of the following will be recorded in the books of account?

1. Health of Manager
2. Quality of goods
3. Value of building
4. Qualifications of employees

38. Revenue is said to have been realized when

1. The sale is made
2. Goods are manufactured
3. Cash is received
4. Sale is made and cash is received

39. Discount allowed on issue of shares is an example of

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

40. Repair incurred for using second-hand car is a

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

41. Sales are equal to

1. Cost of goods sold + Gross profit
2. Cost of goods sold – Gross profit
3. Gross profit – Cost of goods sold
4. Cost of goods sold – Stock

42. Interest on drawings is regarded as

1. Expenditure for the business
2. Loss for the business
3. Gain for the business
4. Liability for the business

43. Which of the following is prepared to find out cost of production?

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

44. Closing stock is valued at

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

45. Petty cash book is used for recording

1. Purchases of current assets
2. Purchase of fixed assets
3. Payment of long term liabilities
4. Small expenses like postage, stationery, etc.

46. Which of the following statements is false?

1. Ram’s account is a Personal account.
2. Loan account is a Personal account.
3. Capital account is a Personal account.
4. Rent account is a Personal account.

47. Single Entry System of book-keeping is a system of

1. Incomplete records
2. Reliable records
3. Providing true financial position
4. Helping in locating errors

48. Which of the following equations is correct?

1. Capital – Assets = Liabilities
2. Capital + Assets = Liabilities
3. Capital + Liabilities = Assets
4. Capital × Liabilities = Assets

49. When an asset recorded at its price actually paid, it is related to :

1. Materiality concept
2. Conservatism concept
3. Cost concept
4. Matching concept

50. Indirect expenses are shown in

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

To Get the Answer Key: PCO 101 December 2018, Click on the Button below.

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