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

(For Non 10+2)

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

June 2017

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 2017, Click on the Button below.

1. The basic function of Financial Accounting is to

1. find out net profit
2. find out gross profit
3. record all financial transactions in business
4. assist the management in decision-making

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

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

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

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

4. The balance of Cash Book is

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

5. Profit and Loss Account shows the

1. Net profit/Net loss
2. Gross profit only
3. Total of expenses only
4. Total of incomes only

6. Rent Outstanding Account is

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

7. Debit balance of Suspense A/c will be shown in

1. Manufacturing A/c
2. Trading A/c
3. The asset side of Balance Sheet
4. Profit and Loss A/c

8. Posting is done in

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

9. Amount brought in by the proprietor into the business should be debited to

1. Cash A/c
2. Capital A/c
3. Drawing A/c
4. Trading A/c

10. Sales Returns Journal is also called

1. Sales book
2. Return inwards book
3. Invoice book
4. Return outwards book

11. Which of the following is a Nominal account?

1. Drawings A/c
2. Purchases A/c
3. Bad debts A/c
4. Sales A/c

12. Which type of discount is not shown in the books of accounts?

1. Cash discount
2. Rebate
3. Discount on bills receivable
4. Trade discount

13. Debit balance of pass book shows

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

14. Which of the following errors is disclosed by a Trial Balance?

1. Compensating error
2. Posting to wrong account
3. Error of omission
4. Posting on the wrong side

15. Purchase of machine should be debited to

1. Machine A/c
2. Cash A/c
3. Purchases A/c
4. Capital A/c

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

1. Capital A/c
2. Suspense A/c
3. Cash A/c
4. Trading A/c

17. A machine was bought for ₹ 5,000 and cartage of ₹ 1,000 paid thereon. For this, Machine Account should be debited by

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

18. Cost of goods purchased is ₹ 40,000; Net sales ₹ 1,00,000; Opening stock ₹ 20,000 and Closing stock is ₹ 30,000. The gross profit will be

1. ₹ 40,000
2. ₹ 60,000
3. ₹ 1,90,000
4. ₹ 70,000

19. Purchases of goods should be debited to

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

20. Which of the following accounts is not a personal account?

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

21. Outstanding expenses given in Trial Balance will be shown in the

1. Trading A/c
2. Manufacturing A/c
3. Profit and Loss A/c
4. Liabilities side of the Balance Sheet

22. Insurance premium paid in advance is treated as

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

23. Purchases book is meant for recording

1. credit purchases of goods only
2. cash purchases
3. all types of purchases
4. Both credit and cash purchases

24. ₹ 10,000 paid as wages for the renovation of a cycle shed should be debited to

1. Wages A/c
2. Cash A/c
3. Repair A/c
4. Cycle shed A/c

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

1. Goodwill
2. Loose tools
3. Contingent liability not provided for
4. Reserves and Surplus

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26. Trademarks will be shown on the

1. debit side of Manufacturing A/c
2. credit side of Manufacturing A/c
3. debit side of Profit and Loss A/c
4. assets side of Balance Sheet

27. What will be the effect of commission received on accounting equation?

1. Cash will increase
2. Cash will decrease
3. Capital will increase
4. Both cash and capital will increase

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

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

29. The difference of Trial Balance is shown in

1. Capital A/c
2. Trading A/c
3. Cash A/c
4. Suspense A/c

30. Excess of income over expenditure is a

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

31. 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 the above

32. Cost of goods sold is equal to

1. Sales × Gross profit
2. Sales ± Gross profit
3. Sales
   $–$Gross profit
4. Sales + Gross profit

33. Real accounts reflect

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

34. Which of the following item is not a liquid asset?

1. Cash in hand
2. Cash at Bank
3. Debtor
4. Marketable securities

35. Underwriting commission is an example of

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

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36. Preliminary expenses are an example of a

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

37. Debtor is a/an

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

38. Revenue is said to be realized when

1. Cash is received
2. Sales are made
3. Purchases are made
4. Goods are manufactured

39. Dividend payable is an example of

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

40. Goods returned worth ₹ 3,000 by Anil & Co. were taken into stock for ₹ 300. It is an error of

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

41. A small donation received for general purpose is to be taken as

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

42. Sales tax paid is shown in

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

43. Sale of old newspapers will be recorded in

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

44. 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

45. If Cash is ₹ 25,000, Land ₹ 50,000, Furniture 10,000 and Bills Payable ₹ 20,000 in a Balance Sheet on a given date, the amount of Capital would be

1. ₹ 75,000
2. ₹ 70,000
3. ₹ 1,05,000
4. ₹ 65,000

46. Under which concept is a firm considered to be a continuing unit?

1. Going concern concept
2. Matching concept
3. Conservatism concept
4. Separate entity concept

47. Balance Sheet is a statement containing the assets and liabilities of a business

1. for a particular period
2. on a particular date
3. on a given time
4. None of the above

48. Which of the following is deducted out of the current assets to arrive at liquid assets?

1. Cash in hand
2. Cash at Bank
3. Debtors
4. Stock

49. Depreciation on plant for a manufacturing concern will be charged to

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

50. Sales is equal to

1. Cost of goods sold + Gross profit
2. Opening stock − Purchases
3. Closing stock + Gross profit
4. Closing stock − Gross profit

To Get the Answer Key: PCO 101 June 2017, Click on the Button below.

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