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

(For Non 10+2)

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

June 2015

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 2015, Click on the Button below.

1. The basic function of Financial Accounting is to

1. record all business transactions
2. assist the management in decision-making
3. present a fair view about the financial position of a business
4. All of the above

2. Purchase Returns Book is kept to record

1. returns outwards
2. credit sales of goods
3. credit purchases of goods
4. returns of goods sold

3. The balance of Petty Cash Book is

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

4. Which of the following will not be shown in the Balance Sheet?

1. Machinery
2. Debtors
3. Closing stock
4. Contingent liability

5. Rent Outstanding Account is a

1. Real A/c
2. Nominal A/c
3. Personal A/c
4. None of the above

6. Debit balance of Suspense A/c will be shown on the

1. credit side of Trading A/c
2. debit side of Trading A/c
3. assets side of Balance Sheet
4. liabilities side of Balance Sheet

7. Prepaid insurance is

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

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

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

9. Patents are a/an

1. Tangible asset
2. Intangible asset
3. Current asset
4. Wasting asset

10. Salaries and wages are 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. credit side of Profit and Loss A/c

11. Manufacturing Account is prepared to find out

1. Cost of production
2. Gross profit
3. Net profit
4. Cost of sales

12. Income received in advance will be shown in the Balance Sheet as

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

13. All direct expenses are shown in

1. Profit and Loss A/c
2. Profit and Loss Appropriation A/c
3. Balance Sheet
4. None of the above

14. Profit on sale of an asset will be recorded on the

1. debit side of Trading A/c
2. credit side of Profit and Loss A/c
3. debit side of Profit and Loss A/c
4. credit side of Trading A/c

15. Printing and stationery is charged to

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

16. Bad debts recovered will be shown on the credit side of

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

17. A person who draws a bill of exchange is known as

1. Endorser
2. Drawer
3. Payee
4. Drawee

18. Which of the following is sent to a customer when he returns the goods?

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

19. Purchases made on credit would affect

1. Cash A/c only
2. Purchases A/c only
3. Supplier’s A/c only
4. Purchases A/c and Supplier’s A/c

20. The system of recording transactions based on dual aspect concept is called

1. Imprest system
2. Double entry system
3. Single entry system
4. Double account system

21. Which of the following accounts shows a credit balance?

1. Plant A/c
2. Wages A/c
3. Debtors A/c
4. Rent Received A/c

22. Interest on capital is shown on the

1. debit side of Trading A/c
2. debit side of Profit and Loss A/c
3. credit side of Trading A/c
4. credit side of Profit and Loss A/c

23. The difference of Trial Balance is shown in

1. Trading A/c
2. Profit and Loss A/c
3. Suspense A/c
4. Capital A/c

24. Excess of expenditure over income is a

1. Revenue loss
2. Revenue profit
3. Capital gain
4. Capital loss

25. Double entry system of book-keeping is a system of

1. reliable records
2. providing true financial position of a business
3. helping in locating errors
4. All of the above

To Get the Answer Key: PCO 101 June 2015, Click on the Button below.

26. Which of the following equations is correct?

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

27. Cost of goods sold is equal to

1. Sales + Gross profit
2. Sales ÷ Gross profit
3. Sales × Gross profit
4. Sales − Gross profit

28. Real accounts reflect

1. Liabilities
2. Gains
3. Expenses
4. Assets

29. Goods given away as donation would be credited to

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

30.  ₹ 1,000 paid as wages for installation of a machine should be debited to

1. Cash A/c
2. Machine A/c
3. Wages A/c
4. None of the above

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

1. Patents
2. Debtors
3. Closing stock
4. Prepaid expenses

32. 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. Customer’s A/c in the bank’s books

33. Bank Reconciliation Statement is prepared by the

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

34. Bank overdraft is a/an

1. Current asset
2. Current liability
3. Intangible asset
4. Tangible fixed asset

35. Trademarks are treated as

1. Fictitious asset
2. Intangible asset
3. Tangible asset
4. Current asset

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36. Underwriting commission is an example of

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

37. Revenue is said to be realized when

1. Sales are made
2. Cash is received
3. Goods are manufactured
4. Both (1) and (3)

38. Preliminary expenses are a/an

1. Fixed asset
2. Fictitious asset
3. Tangible asset
4. Intangible asset

39. Which of the following is treated as a liquid asset?

1. Prepaid expenses
2. Cash in hand
3. Credit balance of a bank account
4. Bills Receivable (B/R)

40. Rent outstanding appearing in Trial Balance will be shown in

1. Trading A/c
2. Manufacturing A/c
3. Liabilities side of Balance Sheet
4. Assets side of Balance Sheet

41. Goods returned worth ₹ 30,000 by Shyam & Co. were taken into stock for ₹ 3,000. It is an error of

1. Commission
2. Principle
3. Omission
4. Compensating

42. Current liabilities do not include

1. Outstanding expenses
2. Accrued income
3. Proposed dividend
4. Bank overdraft

43. Small donation received for general purpose is to be taken as

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

44. Sales tax is charged to

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

45. Sale of old newspapers will be recorded in

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

46. Carriage inwards are shown in

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

47. Cash given away as charity shall be debited to

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

48. Contra entry appears on both the sides of

1. Cash Book
2. Sales Book
3. Balance Sheet
4. Purchases Book

49. Premium received on issue of shares is treated as

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

50. A copy of Customer’s A/c given by the bank is called

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

To Get the Answer Key: PCO 101 June 2015, Click on the Button below.

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