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

(For Non 10+2)

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

June 2011

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 June 2011, Click on the Button below.

1. Which of the principal request that the same accounting method should be used from one accounting year to another?

1. Consistency
2. Materiality
3. Conservatism
4. Matching

2. Sales book is meant for recording

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

3. Which of the following is correct?

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

4. The basic function of financial accounting is to

1. Record all the transactions
2. Find out gross profit only
3. Find out net profit only
4. Record, classify, summarise and to interpret the business transactions in a systematic manner

5. Purchase of building should be debited to

1. Equipment A/c
2. Buildings A/c
3. Goods A/c
4. Capital A/c

6. Goods sold to Amar on credit will be debited to

1. Sales A/c
2. Cash A/c
3. Amar’s A/c
4. Purchase A/c

7. Which of the following account is not a personal account?

1. Loan A/c
2. Capital A/c
3. Shyam’s A/c
4. Cash A/c

8. Almirah bought for ₹ 6,000 and paid there on cartage of ₹ 200. Almirah account will be debited by

1. ₹ 6,000
2. ₹ 200
3. ₹ 6,200
4. ₹ 5,800

 9. Returns inwards book is kept to record

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

10. ₹ 1,000 paid as rent to landlord should be debited to

1. Rent A/c it
2. Cash A/c
3. Landlord’s A/c
4. Repair A/c

11. Wages outstanding account is a

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

12. Credit balance of suspense A/c will be shown on

1. The debit side of trading A/c
2. The credit side of trading A/c
3. The assets side of balance sheet
4. The liabilities side of balance sheet

13. Prepaid expenses is

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

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

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

15. Business includes

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

16. Commission received is credited to

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

17. Bad debts will be charged to

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

18. Profit on sale of an asset will be credited to

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

19. Which of the following is not a current asset?

1. Debtors
2. Stock
3. Loose tools
4. Cash

20. Patent is

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

21. All direct expenses are shown in

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

22. Manufacturing account is prepared to find out

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

23. Bank reconciliation statement is made by the

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

24. Discount received account has

1. A Debit balance
2. A credit balance
3. No balance
4. All of the above

25. Cost of goods purchased is ₹ 28,000, Net sales ₹ 60,000 and Closing stock is ₹ 15,000. The gross profit will be

1. ₹ 47,000
2. ₹ 43,000
3. ₹ 75,000
4. ₹ 88,000

To Get the Answer Key: PCO 101 June 2011, Click on the Button below.

26. Purchase Returns Journal is also called

1. Invoice book
2. Purchase journal
3. Returns outwards journal
4. Returns inwards journal

27. A cheque payable at the counter of the bank without identification is called

1. Bearer cheque
2. Specific check
3. Order cheque
4. Crossed cheque

28. Income received in advance given in trial balance will be shown in

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

29. Trading account is prepared to find out

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

30. Contingent liabilitiy 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 footnote

31. Depreciation on plant will be charged to

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

32. Which of the following is current asset?

1. Debtor
2. Prepaid expenses
3. Cash in hand
4. All of the above

33. ‘Wages and Salaries’ are shown on the

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

34. Interest on drawings is shown on the

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

35. Bank overdraft is a

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

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

36. Gross profit is equal to

1. Net sales – Cost of goods sold
2. Opening stock + Purchases
3. Net sales + Cost of goods sold
4. Opening stock + purchases-closing stock

37. Nominal accounts related to

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

38. Expenditure on purchase of items giving benefit for a loss of period is called

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

39. Which of the following statement is correct?

1. Book keeping is the art of recording the business transaction only
2. Bank account is a real account
3. Purchases account is a nominal account
4. Loan account is a personal account

40. A business has liabilities of ₹ 1,70,000 and owner’s equity is ₹ 80,000. Its assets would be

1. ₹ 2,00,000
2. ₹ 90,000
3. ₹ 1,70,000
4. ₹ 2,50,000

41. ₹ 10,000 received from Ram whose account was written off as bad debts in the previous year should be credited to

1. Ram’s A/c
2. Bad debts A/c
3. Bad debts recovered A/c
4. Cash A/c

42. Donation received for a ‘specific purpose‘ is a

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

43. Purchases book is undercast by ₹ 500 while rectifying this error the debit will be given to

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

44. Sales tax collected is a

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

45. Capital account is a

1. Personal A/c
2. Real A/c
3. Nominal A/c
4. Real as well as personal A/c

46. The item given as adjustments will be shown in final accounts at

1. Only place only
2. Two places
3. Three places
4. Four places

47. Journal proper records

1. Cash received from debtors
2. Sales returns
3. Purchase returns
4. The transactions which are not recorded in any of the special journal

48. Trade discount is given to customers on

1. Cash Purchases
2. Credit Purchases
3. Credit sales
4. Large-scale Purchases

49. Selling and distribution expenses are transferred to

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

50. Loan account is

1. A nominal A/c
2. A real A/c
3. An asset A/c
4. A personal A/c

To Get the Answer Key: PCO 101 June 2011, Click on the Button below.

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

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