Fri. May 24th, 2024

 

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

(For Non 10+2)

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

 

June 2016

 

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 2016, Click on the Button below.

 

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1. The dual aspect concept of recording business transactions is called

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

 

2. The basic function of financial accounting is

  1. To classify and record all business transactions
  2. To interpret financial data
  3. To assist management
  4. To ascertain the progress of business

 

3. Which of the following will not be recorded in the books of accounts?

  1. Cash withdrawn by the owner from the business
  2. Rent paid
  3. Gift received
  4. Cartage

 

4. The amount of salary paid to Anil should be debited to

  1. Anil’s account
  2. Salary account
  3. Cash account
  4. Wages account

 

5. Goods returned to supplier should be credited to

  1. Supplier’s account
  2. Purchases returns account
  3. Cash account
  4. Purchases account

 

6. Received ₹ 1,980 against the amount due ₹ 2,000 with discount allowed ₹ 20. The amount of discount allowed should be debited to

  1. Discount account
  2. Sales account
  3. Personal account
  4. Profit and Loss account

 

7. In case of bad debts, its amount should be credited to

  1. Debtor’s account
  2. Bad debts account
  3. Sales account
  4. Profit and Loss account

 

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

  1. Rent prepaid account
  2. Rohan’s account
  3. ABC Ltd. account
  4. Bad debts account

 

9. Double entry system of book-keeping means

  1. Entry in two sets of books
  2. Entry for two aspects of a transaction
  3. Entry at two places
  4. Entry on two sides of an account

 

10. Writing a brief description about the transaction in Particulars column in Journal is called

  1. Posting
  2. Narration
  3. Entry
  4. Journalising

 

11. Purchase of furniture is debited to

  1. Purchases account
  2. Goods account
  3. Furniture account
  4. Cash account

 

12. When bad debts are recovered, they should be credited to

  1. Bad debts recovered account
  2. Bad debts account
  3. Debtor’s account
  4. Cash account

 

13.  The liabilities of a firm are ₹ 60,000; the claims of the owner are ₹ 1,40,000. The total assets will be

  1. ₹ 60,000
  2. ₹ 1,40,000
  3. ₹ 2,00,000
  4. ₹ 80,000

 

14. Which of the following accounts is not a real account?

  1. Salary account
  2. Furniture account
  3. Building account
  4. Cash account

 

15. Purchases Journal is used for recording

  1. Credit purchases of goods
  2. All purchases of goods
  3. Cash purchases of goods
  4. All cash purchases

 

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

  1. Matching concept
  2. Dual aspect concept
  3. Business entity concept
  4. Realisation concept

 

17. Which of the following transactions is not entered in the Cash Book?

  1. Cash sales
  2. Rent paid
  3. Cash discount
  4. Trade discount

 

18.  Buying and selling activity is called

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

 

19. When both the debit and credit aspects of a transaction are recorded in the Cash Book, it is called

  1. Opening entry
  2. Double entry
  3. Closing entry
  4. Contra entry

 

20. The main aim of preparing a Trial Balance is

  1. To prepare final accounts
  2. To know the financial position of business
  3. To test the accuracy of posting
  4. To find out gross profit

 

21. Journal Proper is meant for recording

  1. Credit purchases of fixed assets
  2. Cash purchases of fixed assets
  3. Return of goods purchased
  4. All such transactions for which no special journal is kept

 

22. Bank Reconciliation Statement is a

  1. Ledger account
  2. Part of Cash Book with bank column
  3. Statement which reconciles the balances as per Pass book and Cash Book
  4. Pass book statement

 

23. If payment of a Bill of Exchange is made before the due date, it is called

  1. Retiring the Bill
  2. Honouring the Bill
  3. Endorsing the Bill
  4. Retaining the Bill

 

24. Maintenance charges of a fixed asset is a

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

 

25. A basis of accounting according to which accounts are prepared for cash received and cash paid is called

  1. Cash basis
  2. Accrual basis
  3. Mixed basis
  4. Dual basis

 

To Get the Answer Key: PCO 101 June 2016, Click on the Button below.

 

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26. Goods worth ₹ 2,000 received back by the company were taken in stock, but no entry was made. What type of error is this?

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

 

27. Nominal accounts are related to

  1. Liabilities only
  2. Expenses, incomes, losses and gains
  3. Assets only
  4. Expenses and losses only

 

28. Patents are examples of

  1. Fixed assets
  2. Current assets
  3. Intangible assets
  4. Liquid assets

 

29. Outstanding income is shown in the Balance Sheet as

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

 

30. Which of the following expenses are shown on the debit side of Profit and Loss account?

  1. Carriage outward
  2. Wages and salaries
  3. Carriage inwards
  4. Goods returned

 

31. ‘Wages and Salaries’ are shown in

  1. Profit and Loss account
  2. Trading account
  3. Balance Sheet
  4. Profit and Loss Appropriation account

 

32. Preliminary expenses are an example of a

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

 

33. An example of fictitious asset is

  1. Preliminary expenses
  2. Discount allowed
  3. Prepaid rent
  4. All of the above

 

34. Current liabilities are liabilities payable

  1. After one year
  2. Within one year
  3. Within five years
  4. After five years

 

35. Overcasting of Purchases Journal would affect

  1. Sales account
  2. Purchases account
  3. Supplier’s account and Purchases account
  4. Supplier’s account

 

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

 

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36. Which of the following is deferred revenue expenditure?

  1. Expenditure on formation of a company
  2. Depreciation on fixed assets
  3. Expenditure incurred for buying goods for resale
  4. Interest on loan taken for business

 

37.  ₹ 10,00,000 spent in developing a new area for an estate is a

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

 

38. Shiva started business with ₹ 2,00,000. He purchased goods on credit from Girish for ₹ 25,000. His total business assets will be

  1. ₹ 2,25,000
  2. ₹ 2,00,000
  3. ₹ 1,75,000
  4. ₹ 1,50,000

 

39. ‘Income received in advance’ appearing in the Trial Balance will be shown in

  1. Trading account
  2. Profit and Loss account
  3. Assets side of Balance Sheet
  4. Liabilities side of Balance Sheet

 

40. Outstanding salaries are shown in Balance Sheet as a

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

 

41. A loan of ₹ 10,000 was made on September 1 @ 6% per annum. No interest was paid till December 31. The accrued interest will be

  1. ₹ 150
  2. ₹ 200
  3. ₹ 500
  4. ₹ 600

 

42. Opening stock: ₹ 15,000; Purchase of goods: ₹ 82,000; Direct expenses: ₹ 9,100; Indirect expenses: ₹ 10,500; and Closing stock: ₹ 18,000. The cost of goods sold will be

  1. ₹ 1,06,100
  2. ₹ 1,16,600
  3. ₹ 88,100
  4. ₹ 98,100

 

43. A manager gets 10% commission on net profits after charging such commission. Before charging the commission the profits were ₹ 55,000. The commission will be

  1. ₹ 5,575
  2. ₹ 5,000
  3. ₹ 5,500
  4. ₹ 6,000

 

44. Bad debts are ₹ 400; new provision for bad debts is ₹ 1,850 and old provision for bad debts is ₹ 60. The amount to be debited to Profit and Loss account in this context will be

  1. ₹ 2,190
  2. ₹ 2,250
  3. ₹ 460
  4. ₹ 1,850

 

45. Accounts are divided into

  1. Personal accounts
  2. Real accounts
  3. Nominal accounts
  4. All of the above

 

46. The concept of costs and revenues comparison is

  1. Matching concept
  2. Consistency concept
  3. Materiality concept
  4. Going concern concept

 

47. Sale of old newspaper will be recorded in

  1. Liabilities side of Balance Sheet
  2. Trading account
  3. Profit and Loss account
  4. Assets side of Balance Sheet

 

48. Which of the following is false?

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

 

49. Amount realised from the sale of scrap is adjusted in the

  1. Cost of goods sold
  2. Cost of goods produced
  3. Profit and Loss account
  4. Trading account

 

50. Manufacturing account is prepared to ascertain

  1. Cost of goods sold
  2. Cost of goods produced
  3. Cost of goods purchased
  4. Cost of work-in-progress

To Get the Answer Key: PCO 101 June 2016, Click on the Button below.

 

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

 

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