No.

of Printed Pages : 16 pco - 01

BACHELOR'S PREPARATORY PROGRAMME
(B.P.P.)
Term-End Examination
00950
December, 2012
PC0-01 : PREPARATORY COURSE IN.
COMMERCE

Time : 2 hours Maximum Marks : 50

Note : Attempt all questions. Each question carries one mark.

1. Financial position of the business means :

(1) Net effect of the business operations

(2) Systematic records of business transactions

Cash in hand as on balance sheet date
(4) What the business owes to others and what it owns at a given point of time

513
2. The concept of conservatism implies :
(1) Understatement of assets (2) Understatement of liabilities

(3) Overstatement of profit (4) Understatement of losses

3. Buying and selling activity is called :

(1) Commerce (2) industry (3) Trade (4) Business

 5. An example of representative personal account is :
(1) Rent (2) Prepaid expenses
(3) Cash (4) Commission

6. Impersonal accounts mean :

(1) Real and nominal accounts (2) Only real accounts
(3) Personal accounts (4) Only nominal accounts

7. Purchase of goods on credit will be recorded in :

(1) Journal (2) Purchase book
(3) Purchase return book (4) Cash book

8. Trial balance includes :

(1) Only personal accounts (2) Only real accounts
(3) Only nominal accounts (4) All real, personal and nominal accounts

9. Drawings account is a :
(1) Real account (2) Personal account
(3) Nominal account (4) Real and Nominal account

10. Narration must be written :

(1) for every transaction recorded in Journal
(2) at the time of preparing Trial Balance
(3) at the time of preparing Profit and Loss A/c
(4) at the time of preparing Balance Sheet.
12. Trial Balance is prepared :
(1) before posting in the ledger
(2) before preparation of final accounts
(3) after preparation of final accounts
(4) before recording the transactions in Journal

13. Returns Inwards Book is kept to record :

(1) return of goods sold (2) credit sales of goods
(3) return of goods purchased (4) return of anything sold

14. The balance of Petty Cash Book is :

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

15. Rs. 7,000 paid as wages for establishing a plant should be debited to :
(1) wages A/c (2) plant A/c (3) repair A/c (4) cash A/c

16. According to which concept is the entity of business treated separate from its owner :
(1) matching concept (2) dual concept

(3) business entity concept (4) realization concept

17. Trading Account shows :

(1) Gross profit/Gross loss of a business
(2) Capital employed in the business
(3) Net profit/Net loss of a business
(4) Financial position of a business

18. Which of the following will not be shown within the balance sheet ?
 19. Prepaid expenses shown in Trial Balance will be shown in :

(1 ) Manufacturing A/c (2) Balance Sheet

(3) Profit and loss A/c (4) Trading A/c

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

(1) Capital A/c (2) Bank A/c (3) Suspense A/c (4) Trading A/c

21. Prepaid insurance is :

(1) an asset (2) a liability (3) a loss (4) a gain

22. The final step of accounting cycle is :

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

23. Which of the following normally has a credit balance ?

(1) Buildings A/c (2) Furniture A/c
(3) Discount allowed A/c (4) Capital A/c

24. Which of the following transactions leads to contra entry in cash book ?
(1) Rs. 2,000 paid to Anil (2) goods purchased worth Rs. 5,000 on credit
(3) Rs. 5,000 deposited to Bank (4) goods sold for cash Rs. 6,000

25. Real Accounts relate to :

(1) expenses only (2) incomes only (3) liabilities only (4) assets only
27. Bank overdraft is a :
(1) short-term liability (2) long-term liability

(3) fixed asset (4) current asset

28. Cost of goods sold is equal to :

(1) Sales - closing stock
(2) Sales - Gross profit
(3) Opening stock + purchases + direct expenses
(4) Opening stock + purchases + closing stock

29. Depreciation of fixed assets is treated as :

(1) capital expenditure (2) capital loss

(3) revenue expenditure (4) revenue loss

30. Manufacturing Account is prepared to find out :

(1) Gross profit (2) Net profit

(3) Cost of goods produced (4) Cost of goods sold

31. Debit balance of suspense account will be shown in :

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

32. The main objective of preparing a Balance sheet is to know :

(1) the net result of business activities
 33. Carriage outwards will be shown in :
(1) Trading A/c
(2) Profit and loss A/c
(3) Manufacturing A/c
(4) Balance sheet

34. Salaries and wages will be shown in :

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

35. Trade mark is a :

(1) Fictitious asset (2) Tangible asset
(3) Intangible asset (4) Current asset

36. Which of the following is a liquid asset ?

(1) Stock
(2) Prepaid expenses
(3) Government securities (4) Investments

37. Interest on capital is shown on the :

(1) debit side of manufacturing A/c
(2) credit side of trading A/c
(3) debit side of profit and loss A/c
(4) Assets side of a Balance Sheet

38. Opening stock is Rs. 50,000 ; Purchases Rs. 1,00,000 ; Direct expenses Rs. 15,000 ; Closing
stock Rs. 65,000. Cost of goods sold will be :
(1) 50,000 (2) 65_nnn 1I \ -■
1-* n
40. Bad debts recovered will be shown in :

(1) Trading A/c (2) Credit side of profit and loss A/c

(3) Assets side of balance sheet (4) Liabilities side of balance sheet

41. Sales tax paid is a :

(1) capital expenditure (2) deferred revenue expenditure

(3) revenue expenditure (4) capital loss to the business

42. Income tax payable is a :

(1) current liability (2) long term liability

(3) revenue expenditure (4) capital expenditure

43. Profit on sale of old asset will be shown in :

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

(3) Profit and loss A/c (4) Suspense A/c

44. Discount on issue of shares is an example of :

(1) capital expenditure (2) capital loss

(3) deferred revenue expenditure (4) revenue expenditure

45. Goods given as charity would be credited to :

(1) purchases A/c (2) sales A/c (3) charity A/c (4) cash A/c
 47. Cash withdrew for personal use will be debited to :
(1) Cash A/c (2) Drawings A/c (3) Purchases A/c (4) Sales A/c

48. Bank Reconciliation statement is prepared by :

(1) bank (2) the account holder
(3) purchaser (4) seller

49. Credit purchase of building will be recorded in :

(1) Purchases Journal (2) Cash book
(3) Journal proper (4) Sales journal

50. A promissory note is written by :

(1) Buyer (2) Seller (3) Bank (4) Auditor
 th-A.311.-o1 I

qiiNTT Wri:i.TIT
)
14 ll trftF
tIltErt, 2012

itTft.34.-01 : airu ',rt.' YiirITT

ETWUHT 3.TT : 50
T :2 ETu -

mq-f 3(ftwe qct) 1,1 t

1.
(1) ccilelHIRIch #Fwzrr4 i fi-q-
@ 791-1d

(2) ogicMINch

(3)4414 Ile."4-F-dfP-T1177)—*7
cH( c4 t -ff2TT t, t fdfq TR I
(4) 061cRilq giki 3-74

2. 31-17{q1C—CdT c Hcbc4-111 14 t :

ch t<Tgr9i I (2)'-.1(-113-1)' chH t13171 I

(1) 4R.H.HR-Icil

- 14T -4 3119-w "FTqFf I (4) TM -4 ct) 44 flT I

(3)

3. 9111 - ifqW-4 4;1 fwzrr t :

(2) 7EI'Pl (3) oqP-Iik (4)

(1)
 5. -9-farfffq o1rch1410
t:
(1) fwT-Fri (2) 31- • oe-fq

(3) (4) --11-171-9-

6. F.-1aq FoRich T-071-4 t :

(1) aR-orlon (2)f ciftdroich

(3) ogrcic141d (4)

7. ftwrt fw-zir 71-crrrr :

(1) A-6 4 (2) 9b1 .4
(3) Al IqTERtfT1- - (4)

8.

(1) circfc-Pld (2) kq• 01H-c-1 fach

(3) 3-17f-&Ff (4) c1147c-ircich, circfn.ici nzif 3-7q-71• 0•7:19-f7

9. 3-ITUTIT 1T-di t :

(1) aR-drach (2) 0e-41-4c-1 41d 7-517f

(3) 3-1F:r-fzi (4) ciRci cich 311-4-0

-7-RUI7

10. oe-IR911 (Narration) fff-a-1- :

(1) ,1-6 -ft-wrt
fell,
T

11. 4-11(1 113t tr -9-rEff Trt ci SriIn1 t :

(1) 7F--460- (2) -@TI-1 (3) 3-117

12. cldild '*1111 \Ant :

(1) 1't -4.U-49 -T-4
(2) 34fal:f q91-4 T hr

(3) 3-1fdizi Z~Tc~ alb

(4) c•1R-1-1.0 ,3140 ftTh-Tg.

13. fdTzf . qicR:11qt -4 -ft-wrt fwza Alc11 t :

(1) T71-11(1 -1
.-qicR:ft (2) 7417 1-11(.1 t fdTzi

(3) Sh1f Y 17HIcl (4) fdWzi chrl f*-1:ft ift oh -TIT-{# c(

14. -TO -4-*7- •Wf t :

(1) -ct) ciq (2) 377 (3) (-11-ird (4) 11

15. oh Rfft P-TTfc17 rc1"tTTV:170 -t 7,000T. tiqaf AR;) :

(1) TrAO (2) -17ft (3) 4-I kl-H d (4)

16. f*7T t aTT:F{ oicmlq t t Taf-rt fi-rr 4-11-11 \Ant?

(1) #1-01-9. oh (sicbc-4-11 (2) FgAtzr 4cbc4-1-11

(3) qoh iot)(*4•11 (4) q-V (41,(-44-11

17. 0114R -{NTIT TqTfUT t

(1) oqcMlit'Hcbc-i 7riTie1cho Pik

 18. 1:1 4-1 (116c1 fw# 4-474 7117'4 -16 -kurzir
(1) ,1q1k (2)
(3) tfTfd. (4)

19. ckit.Id 4 q -9-q7 c)qq -kT7

(1) relf:IHNI ut (2) tMTr7-ftz
(3) -.14T-11:1 7gt (4) cq 141 tc 4

20. ic=h 7R-1174 3-1V-

474 )11N.ff chl -3-TiT t?
(1) 1M 7T-M (2) 7NTM
(3) 1: IciTold -M-dT d-cld T (4) c4IILIR -U Tr

21. ii
i tTIT 011 t :
(1) ict) 4rtt14r71 (2) Bch tTCT (3) (zt) (4) Q,ch

22. csOich-I -ci9h 3ff-d17 -9791 :

(1) ck-ILId (2) tl--4R7t (3) \314(1 (4) 7TM -qt.

23. F-14-1 rt5 ci f*-71 q14 t?

(1) qrq9-T§i-r- (2)79-Th-T7
(3) t (4) TM 7NT f

24. -14-1 rirt_VI -4 f-*--Tr 7).-*7-.qt 4 ylyd3ffifiz (contra entry) cb1 \TN411. ?
(1) 33f9-9. t 2,000 T. T79 f*
--7:1T1 (2) 5,000 T. -Wr 347 4-11(-1 7g7tqi I
(3) tk 11 5,000T. \-1411 .W77 I (4) 6,000 T. "WF 4-110 AT I
26. U• \TH 1t:
(1) 7)-w--4-e4 (2) (3) 41ti (4) 9111 Gi6 14

27. 4ch 3-11qTTFFE t -) :

(1) 3-17TWEdl-itzrdT (2) q'14chic,41-1tzEdT

(3) T2TTt .14 (4) -cilcV-Irt'(-14F-K-1

28. TR HIM C11,1c1 011g'& t :

(1) fdWEr - 31f-frf tzlch

(2) fq-Wzis - .711-1

(3) 517friTT +911 + AcQ-1 -T 1z1-70

(4) 171-{fril + 9h1 + affal:f

29. T2Trt 4R(-14 (1411 TI7:47=1...-1 ,11111 t :

(1) tt7--rrU ce-iq (2) ittITU -I

(3) 3-117117 (4) 3-I 11'

30. Tffrdl 01-1111 ,1-11c11t :

(1) -1.1.)ci -7r4

(2) f94F 7P-T 1. 1c1

(3) 3&117ff 4-IM rc-R

(4) -17 411(1 c11,1c1 711c1 c‘l;

Jc11 1
y U Ir4dFLll .311U111 •
 32. t14TT 7ftE 79-A chi t:
(1) calaHlria, f 711c1 TT9T
(2) Tr -TTzi 4 af--1-1-1
-01-9--.7 tif{74-UT 711c1 -W9T
(3) oe-IcR-1Iq fafffzr #2.Tfa 711c1 -TT91
(4) (Y-IcH-11i 4

33. F-14 fc-1 o'--11 (Carriage outwards) -f- fTzfT \-111 411
(1) aapAR TTA (2) .tf.A 14

(3) -IH ul .&A (4) 4--- 17t 4

34. -k-{T- \II I 1' 1 :

(1) rar-Nfui 14 (2) oqILIIt 14
(3) 3t1c1 (4) . 71.-1.-11--1 14

35. 15 4-114) t Bch :

(1) TN144R44rrI (2) 4-Icf LI 1-1 (3) 31TO 4I4I4F-cf (4) -clicv&i-irTi

36. -14-1R1RAd 14 cIkri .14LI t?

(1) (2) -51- 7
(3) TITTRI -5ftirdzif (4) f9tT

37. .1:0 'TT -kUrzIT Akilt:

(1) fc1F-14-liul -gfltr-qa 1R-T14

(2) oe.111IR c -kr-4E T-RT14

38. 71tr--(11 T 50,000 T. ; 9h1 1,00,000 T. ; ‘,-It-61-1. :
171. 15,000 T. ; 31M14 i-e.1q) 65,000 T. ; 4-11d
01410 1111 :

(1) 50,000 T. (2) 65,000 T. (3) 1,00,000 T. (4) 2,30,000 T.

39. P-1 1-1FriftId st11(-014-1R-1 let?

(1) (2) "R-T-- (3) )(=1 (4) 1:FiTh7

40. q17 A-v-11 -k-uR ,31R;1 :

(1) 0114R 17T (2) TN. 4

(3) 71tZ t 4ftti41t1i1 TR-114 (4) 4c7 tzl7T3 TRT

41. idI1 f*-TIT j ilf fqWZ1 t :

(1) -Ettrm cq (2) 31721#17 3-71-TM oqi

(3) 317111-ff cqq (4) 11:71717

42. tzT 3171-7 t

(1) -cikttzr-d-r (2) ql.i.nic,illtzEdT

(3) 3-1171717 oqi (4) litiM oqi

43. Trt 4RW4R1 itdTh-Tf ITT -gaiT -kurzrr ANI411 :

(1) 061141k 7Tr- 4 (2) roir-14-11u1

(3) - 11.1.--TF9. 7 (4) and

drid s

44. f9-Th=f9 Tr{ dqui t :

(1) TrAITM 01 I -Wf (2) 1017 11-',1

(3) 317-1-fTff 3-Tr1irff 011 'Wf (4) 31711M
46. 1-) fdtta 3t7z1 -5171 -p-TT
(1) litrW5fir7 (2) 3-1177 17171

(3) ttriff cli (4) 3-117/M =17

47. '-11-cl-c111c1:171.k Fri fi ttqa f-*-71T '1R,11 :

(1) c Tf (2) 311u1T.ITc =hl (3) W,A. c+) (4) f4W74 -UM. -0

48. i 'w11-rqrff fqqTtrT 01-11i1

(1) IT gRI (2) 71T-d.M1-4 q171.

(3) (4) fd----ffT g141

49. i-Tg9 3-1 961 fc*-11 :

(1) -
9474 ,14(1 (2) q61
0:1 \-14(4 -4
(3) TIC (4) f54 \m-id

50. ttE fffUT t:

(1) (2) fay -171 (3) tk rgR1 (4) 3i-q-