webservices.ignou.ac.in Preparatory Course Commerce Question Paper : The People’s University

Name of the University : IGNOU The People’s University
Department : Bachelor’s Preparatory Programme
Degree : Preparatory Course In Commerce
Subject Code/Name : Commerce – PCO – 01
Year : June 2016
Document Type : Question Paper

Website : https://webservices.ignou.ac.in/Pre-Question/Question%20Paper%20June%202016/soms/soms.htm#soms1
Download Model/Sample Question Paper : https://www.pdfquestion.in/uploads/11529-PCOcommerce.pdf

Preparatory Course In Commerce Question Paper :

Time : 2 hours
Maximum Marks : 50
General Instructions :
Preparatory Course in Commerce (PC0-01) Questions 1— 50

 Related : IGNOU B.Ed Entrance Test Question Paper : www.pdfquestion.in/5672.html

(i) This is an objective type question paper. Options for the correct answer must be marked only in OMR sheet.
(ii) All questions are compulsory.
(iii) The question paper consists of 50 questions each of which carries one mark.

(iv) Each question has four alternatives, one of which is correct. Write the Sl. No. of your correct alternative/answer below the corresponding question number in the OMR 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.

(v) 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.

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(1) Cash withdrawn by the owner from the business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 t 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