No.

of Printed Pages : 16 PCO - 01

BACHELOR'S PREPARATORY PROGRAMME

(B.P.P.)
Term-End Examination
December, 2011
02853

PC0-01 : PREPARATORY COURSE IN

COMMERCE

Time : 2 Hours Maximum Marks : 50

Note : All questions are compulsory. Each of question carries one mark.

1. The main function of Financial Accounting is to :

(1) record all the transactions
(2) record, classify and summarize the business transactions
(3) find out Gross Profit only
(4) find out Net Profit only

2. Purchases made on credit not recorded would affect :

(1) Sales A/c (2) Purchases A/c

(3 ) Supplier's A/c (4) Purchase A/c and supplier's A/c

3. Which of the following branches of accounting is concerned with measurement and control
Of costs ?
(1) Financial Accounting (2) Cost Acconnting
(3) Management Accounting (4) Accountancy

4. Sohari started business with a capital of Rs. 50000. He purchased goods from Mohan for Rs.
10,000 on cash basis. his total assets would be.
(1) Rs. 50,000 (2) Rs. 40,000 (3) Rs. 60,000 (4) Rs. 30,000

PC0-01 1 P.T.O.
 5. Sales Book is meant for recording :
(1) Cash sales (2) Credit sales of goods only
( 3 ) Cash and credit sales (4) All types of sales

6. Purchase of goods from Ram on credit basis should be credited to :

(1) Ram's A/c (2) Cash A/c (3) Sales A/c (4) Purchase A/c

7. Purchase Returns Book is kept to record :

(1) credit purchase of goods (2) returns of goods purchased
(3) credit sales of goods (4) returns of goods sold

8. The balance of Petty Cash Book is :

(1) an expense (2) an income (3) an asset (4) a liability

9. Which of the following is a personal account ?

(1) Loan's A/c (2) Purchases A/c
(3 ) Stationery A/c (4) Depreciation A/c

10. Rent outstanding account is :

(1) Real Account (2) Nominal Account
(3) Personal Account (4) Real and Nominal Account

11. Personal accounts are related to :

(1) assets only (2) expenses only
( 3 ) incomes only (4) persons and Institutions

12. Rs. 10,000 paid as wages for erecting a machine, should be debited to :
(1) cash A/c (2) repairs A/c (3) wages A/c (4) machine A/c

13. According to which concept is the entity of the business treated separate from its owner ?
(1) Going concern concept (2) Dual aspect concept
(3 ) Business entity concept (4) Cost concept

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14. Closing stock is valued at
(1) market price
(2) cost price
(3) cost price or market price whichever is lower
(4) cost price or market price whichever is higher

15. Narration must be written

(1) for every transaction entered in the Journal
(2) at the time of classifying the transactions
(3) at the time of preparing Trial Balance
(4) at the time of preparing Balance Sheet

16. Journalizing is the process of recording the business transactions in the.

(1) Books of prime entry (2) Petty cash books
(3) Trial Balance (4) Balance Sheet

17. Amount realized on account of goods sold is called :

(1) Income (2) Revenue (3) Profit (4) Gain

18. Posting is done in the

(1) Ledger (2) Trial Balance (3) Journal (4) Balance Sheet

19. Profit and loss account shows :

(1) Financial position of a business
(2) Net Profit net loss of a business
(3) Capital employed in a business
(4) Accuracy of ledger accounts

20. Prepaid Insurance is :

(1) an income for the business (2) revenue for the business
(3) liability for the business (4) an asset for the business

PC0-01 3 P.T.O.
21. Outstanding expenses given in trial balance appear on the :
(1) debit side of trading A/c (2) debit side of Profit and Loss A/c
(3) liabilities side of balance sheet (4) assets side of balance sheet

22. Expenses paid in advance account is :

(1) a Real A/c (2) a Nominal A/c
(3) a Personal A/c (4) both Real and Nominal Accounts

23. Contingent liability is shown :

(1) in trading A/c (2) in profit and loss A/c
(3) in manufacturing A/c (4) outside the balance sheet as footnote

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

(1) capital A/c (2) trading A/c
(3) suspense A/c (4) bank A/c

25. Cost of sales is Rs. 90,000, Net Sales Rs. 1,70,000 and cash Rs. 20,000. The gross profit will
be.
(1) Rs. 80,000 (2) Rs. 2,60,000 (3) Rs. 90,000 (4) Rs. 1,00,000

26. Which one of the following is included in balance sheet ?

(1) closing stock (2) wages
( 3 ) opening stock (4) contingent liabilities

27. For real accounts, the rule of debit and credit is :

(1) debit all expenses and losses
(2) credit all incomes and gains
(3) debit what comes in and credit what goes out
(4) debit all expenses and credit all incomes

28. Sales Returns journal is also called :

(1) returns inwards journal (2) returns outwards journal
(3) invoice book (4) day book

PC0-01 4
29. If customers are allowed discount, it will be treated as :
(1) loss (2) income (3 ) revenue (4) liability

30. Which of the following is not entered in books of account ?

(1) Cash discount (2) Interest received
(3) Commission received (4) Trade discount

31. Preliminary expenses are the example of :

(1) capital loss (2) revenue expenditure
(3 ) capital expenditure (4) deferred revenue expenditure

32. Trial Balance is prepared with the help of :

(1) Journals (2) Journal proper (3) Ledger (4) Balance sheet

33. Petty cash is used for payment of :

(1) contingent liabilities (2) capital expenditure
(3) Wxy to employees (4) small expenses like postage, stationery etc.

34. Which of the following items are charged to profit and loss A/c
(1) Carriage inwards (2) Carriage outwards
(3) Wages and Salaries (4) Closing stock

35. Depreciation arises from.

(1) fall in value of money only
(2) physical wear and tear of a fixed asset
(3) fall in prices only
(4) fall in market value of a fixed asset only

36. Depreciation on Plant and Machine given in Trial Balance is shown in :

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

PC0-01 5 P.T.O.
37 Sales are equal to :
(1) Cost of goods sold+gross profit

(2) Lost of goods sold - gross profit

(3) Gross Profit - cost of goods sold

(4) Purchasing+opening stock-closing stock

38. A business has liabilities of Rs. 20,000 and owner's equity is Rs. 80,000. Its assets would be.

(1) Rs. 80,000 (2) Rs. 20,000 (3) Rs. 60,000 (4) Rs. 1,00,000

39. Which of the following order of assets is according to the order of permanence ?

(1) Stock, machine, goodwill, debtors, cash

(2) Cash, debtors, stock, machine, goodwill

(3) Cash, debtors, goodwill, machine, stock

(4) Goodwill, machine, stock, debtors, cash

40. Additional capital introduced is a

(1) Revenue receipt (2) Revenue expenditure

(3 ) Capital receipt (4) Capital profit

41. Which one of the following is an error of principle ?

(1) Debited to Anil instead of Amit

(2) A sale of Rs. 50 was entered in books as Rs. 500

(3) Cash sales of Rs. 200 was entered in Sales Book

(4) Repair of Building of Rs. 20000 has been debited to Building A/c

42. Purchases Book is undercast by Rs. 500 while rectifying this error, debit will be given to :

(1) Purchases A/c (2) Cash A/c

(3) Suspense A/c (4) Capital A/c

PC0 - 01 6
43. Good will is a :

(1) Current asset (2) Tangible asset

(3) Intangible asset (4) Liquid asset

44. Bank overdraft is a :

(1) Current liability (2) Long - term liability

(3) Current asset (4) liquid asset

45. All the indirect expenses are shown in :

(1) Trading A/c (2) Suspense A/c

(3) Manufacturing A/c (4) Profit and Loss A/c

46. Salaries and wages are shown on the :

(1) debit side of Manufacturing A/c

(2) debit side of Trading A/c

(3) debit side of suspense A/c

(4) debit side of profit and loss A/c

47. Income tax paid is :

(1) a liability (2) an asset (3) an expense (4) a capital loss

48. Which of the following errors is revealed by Trial Balance ?

(1) Posting of wrong amount in one account

(2) Compensating error

(3) Posting an amount on the correct side but in the wrong account

(4) Treating an expense as an asset.

PC0-01 7 P.T.O.
49. Interest on drawings is :
(1) an expenditure for the business
(2) an income for the business
(3) an asset for the business
(4) a liability for the business

50. The amount of accrued income given in Trial Balance will be shown in :
(1) Trading A/c (2) Profit and Loss A/c
(3) Assets side of Balance Sheet (4) Liability side of Balance Sheet

PC0-01 8
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4. *1 50,000T. Th, 044141( obqi I t 10,000T. Thi richiii U1-17T I 31:1-4

r ifl
• :

(1) 50,000 T. (2) 40,000 T. (3) 60,000 T. (4) 30,000 T.

PCO-01 9 P.T.O.
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(1) ituf 0111 (2) ThL1 (911(1I (3) Te1:419t (51111 (4) 4.1s-lVt( tglcif

10. 3177 f---frzii 01 ft :

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(3) cl ctc1+1c1 UT4T (4) ciltliclob 74 311-4-0414 (IRV 1.-1-1

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(3) Piaui (4) el rqd a it{-2lla71 t

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(1) tqla (2) lit“-Icf tslia 4 (3) 740 igia Th--). (4) 4411 (511a Th"f

PC0-01 10
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(3) oqicHi tst) tichr44-If (4) 01 Ici a,1 tictirthif

14. airrf 1 311th t :

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15. ciltsif (Narration) "rife 30-11"Tr-R :

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(1) vrtifiTTSfr-aftz 4 (2) 1171i1Th-i" -01" 4

(3) "e 14 (4) 44:1 Ynd

17. *4 TT7 14 ana" tirkf tIttt)

(1) 371sT (2) 3ITTP4 (revenue) (3)1 37 (4) 913T1-49" (Gain)

18. 1Neft" (Posting) M-4 311ct1 t :

(1) 1l11c4O (2) ivigd 14 (3) rf 14 (4) **I YBz4

PC0-01 11 P.T.O.
 19. 9T14-$1 -I MUTTi'M t :

(1) t&.) fadit=9Tfaah (2) Ron fiqF 1 1-T/f9-19

(3) - f) ciJit -eM'tT (4) '1& Ma'? ti I 1;1

20. 11*7 41 1-11 &itT t :

(1) ctiatiii ail T 317f (2) 011R-111 Thi• cob aTITTrf (revenue)

( 3) cickiitt ct>1 azTaf (4) oticHiit( 1.)

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(1) co-1141(wr -ktrr4a -craTil (2) 7131-1 -I Ma tkatikil4

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-
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:

(1) 80,000 T. (2) 2,60,000 T. (3) 90,000 T. (4) 1,00,000 T.

PC0-01 12
26. QE writrFf*-trr ,Timr t?
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27. aikci act) igtatk tr4a4-fta Fiq44 t :

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(3) .*-4W ci61 all (4) triW

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(1) trrff (2) 3171 (3) aTrim (4) c 4clf

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PC0-01 13 P.T.O.
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(1) 80,000 T. (2) 20,000 T. (3) 60,000 T. (4) 1,00,000 T.

PC0=-01 14
 39.
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PC0-01 15 P.T.0, v
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(4) t tzE0 IRT 14

PC0-01 16