BPSC TRE Previous Question Paper Quiz
विद्यालय अध्यापक परीक्षा के पूछे गए प्रश्न
For Class (1-5), (6-8), (9-10), (11-12)
Results
#1. Match List-I with List-II : a. Events (2. are the end result of transaction), b. Book-keeping (3. constitutes as a base for accounting), c. Management of business enterprise (1. are the internal users of financial statements), d. Purchase of goods worth ₹ 7,000 (4. is a transaction).
Explanation: The matching follows the standard definitions in accounting.
#2. Professional people like doctors, lawyers, etc., ascertain their profit or loss under
Explanation: Professionals often use the cash basis for simplicity in recognizing revenues and expenses.
#3. Which of the qualitative characteristic of accounting information is reflected when accounting information is clearly presented?
Explanation: Clear presentation directly enhances the understandability of accounting information.
#4. Prepaid Rent A/c is a
Explanation: Prepaid Rent is a representative personal account as it represents an advance payment to a person or entity.
#5. Economic life of an enterprise is split into the periodic interval as per
Explanation: The periodicity concept divides the indefinite economic life into regular intervals for reporting.
#6. The policy ‘anticipate no profit and provide for all possible losses’ arises due to
Explanation: This policy is a direct application of the conservatism principle in accounting.
#7. “Advance received from a supplier is not taken as income or sales.” This comment is based on
Explanation: The realization concept states revenue is recognized only when it is earned, not when an advance is received.
#8. Which of the following statements is true?
Explanation: None of the given statements are entirely accurate regarding single-entry bookkeeping.
#9. The preparation of Trial Balance is for
Explanation: A Trial Balance primarily helps in detecting clerical errors like incorrect posting or balancing.
#10. Ledger book is popularly known as
Explanation: The ledger is considered the principal book of accounts as it contains all final accounts.
#11. Which of the following statements are true? 1. When the amount deposited by the customer exceeds his withdrawal, it indicates an overdraft. 2. At the end of each year, the bank prepares the Bank Reconciliation Statement. 3. A Bank Reconciliation Statement is prepared with the help of Passbook and Cash Column of Cashbook. 4. Passbook always shows credit balance.
Explanation: All the provided statements contain inaccuracies regarding bank transactions and reconciliation.
#12. Favourable balance of Cashbook means
Explanation: A favorable balance from the firm’s perspective is a debit balance in its Cashbook, indicating cash in hand or at bank.
#13. While preparing Bank Reconciliation Statement, balance as per Passbook will have to be ______ or balance as per Cashbook ______ by the amount of direct payment by customers into Trader’s A/c with the banker.
Explanation: Direct deposits increase the Passbook balance, so to reconcile, the Passbook balance is increased or the Cashbook balance is decreased.
#14. For charging depreciation on which of the following assets, the depletion method is adopted?
Explanation: The depletion method is specifically used for wasting assets like mines and quarries, not the assets listed.
#15. Which of the following statements is true?
Explanation: Dividend Equalization Reserve is indeed a type of General Reserve meant to stabilize dividend payouts.
#16. If the due date is a public holiday, what will be the due date of the bill?
Explanation: As per the Negotiable Instruments Act, if the due date is a holiday, the instrument is payable on the next preceding business day.
#17. On dishonour of a discounted bill, which account is credited by drawer?
Explanation: On dishonour, the drawer credits the Drawee’s account to record the liability reinstated.
#18. Under what circumstance drawer and payee of Bill of Exchange is the same person?
Explanation: The drawer and payee are the same when the drawer keeps the bill without transferring it to another payee.
#19. Consignment stock will be recorded in the Balance Sheet of consignor on assets side at
Explanation: Consignment stock is valued at cost or market price, whichever is lower, which often results in invoice price less a provision for unrealized profit (stock reserve).
#20. Abdul and Binny enter into a joint venture for purchase and sale of Smart Board. Abdul purchased Smart Board costing—₹ 10,00,000; repairing expenses—₹ 1,00,000; printing expenses—₹ 1,00,000. Binny sold it at 20% margin on selling price. The sales value will be
Explanation: Total cost is ₹ 12,00,000; a 20% margin on selling price means cost is 80% of sales, so sales = ₹ 12,00,000 / 0.80 = ₹ 15,00,000.
#21. Which of the following statements is true?
Explanation: In separate books, expenses paid by a venturer are credited to their Capital Account, reducing their claim.
#22. “Legal expenses incurred to defend a suit for breach of contract to supply goods” is
Explanation: Legal expenses for defending normal business operations are treated as revenue expenditure.
#23. Business paid to Mr. Anuj a cheque of ₹ 80,000 as salary on 25th June, 2023. Mr. Anuj went to bank to deposit cheque in his account on 3rd July, 2023. What is the entry to be passed in the Balance Sheet on the date of Final A/c?
Explanation: Since the cheque was issued before the year-end, Salary A/c is already debited, and no further liability exists on the balance sheet date.
#24. Insurance premium paid by firm on 1st December, 2021 for the year up to 30th November, 2022 was ₹ 18,000 and Insurance Premium paid on 1st December, 2022 for the year up to 30th November, 2023 was ₹ 30,000. What amount will be debited to Profit & Loss A/c for the year ended 31st March, 2023?
Explanation: Expense for the year is 4 months of the first premium (₹6,000) plus 4 months of the second premium (₹10,000), totaling ₹16,000; recalculating correctly gives ₹22,000 (Jan-Mar ’23 from second premium: ₹30,000 * 4/12 = ₹10,000; Apr-Nov ’22 from first premium fully expired, portion in this FY? Recheck leads to ₹22,000).
#25. “The accountant of a firm desires that adjustments for outstanding expenses and prepaid expenses should not be made while preparing financial statements.” In the above statement, which accounting concept will be violated?
Explanation: Not adjusting for outstanding and prepaid expenses violates both the Accrual Concept and the Matching Concept.
#26. Control is the fourth sub-system of Accounting Information System, because it
Explanation: The control subsystem ensures data integrity and standard formatting in the output.
#27. Match List-I with List-II: a. ESS (2. helps in making decisions at the strategic level…), b. MIS (1. are the information systems at management level…), c. DSS (4. are the information systems at the organizations management level that combine data…), d. TPS (3. are the computerized systems that perform and record daily routine transactions…)
Explanation: The correct matching is a-2, b-1, c-4, d-3, which is not listed as an option.
#28. Developing a software according to the needs and specifications of the users. This type of software is called
Explanation: Both “Customized Software” and “Tailor-made Software” describe software built to specific user requirements.
#29. When shares are forfeited, the Share Capital A/c is debited by
Explanation: Share Capital Account is debited with the amount called up on the forfeited shares.
#30. Which of the following statements is/are false? 1. The Receipts & Payments A/c records receipts and payments of revenue nature only. 2. Only revenue items are disclosed in Income & Expenditure A/c. 3. Subscriptions in advance in the current year are treated as assets of the not-for-profit organization.
Explanation: Statements 1 and 3 are false; Receipts & Payments A/c records all cash flows, and subscriptions in advance are a liability.
#31. Donation received for specific purpose
Explanation: Specific-purpose donations are liabilities until the conditions are met.
#32. Which one of the following is the Not-for-Profit Organization?
Explanation: All listed entities are for-profit companies, not not-for-profit organizations.
#33. A company sold 20% of the goods on cash basis and balance on credit basis. Debtors are allowed 1 1/2 months’ credit and their balances as on 31st March, 2023 is ₹ 1,25,000. Assume that the sale is uniform throughout the year. Credit sales would be
Explanation: Debtors represent 1.5 months of credit sales; Annual credit sales = ₹1,25,000 * (12/1.5) = ₹10,00,000.
#34. The amount of closing stock would be, when Sales—₹ 6,00,000; Opening Stock—₹ 50,000; Purchases—₹ 5,00,000; Productive Wages—₹ 10,000; Carriage Inwards—₹ 7,000; Rate of Gross Profit on cost—20%
Explanation: GP on cost 20% means GP on sales is (1/6); COGS = ₹6,00,000 * 5/6 = ₹5,00,000; Closing Stock = ₹50,000+₹5,00,000+₹10,000+₹7,000−₹5,00,000 = ₹67,000.
#35. Adesh and Bhadresh are partners sharing profits and losses in the ratio of 3 : 2. Chandresh is admitted for 20% of share in profits out of which half of the share was gifted by Adesh and remaining was acquired by Chandresh from Adesh and Bhadresh in equal proportion. What would be new profit-sharing ratio?
Explanation: New ratio calculations result in Adesh:Bhadresh:Chandresh = 12:8:5.
#36. Mathur started a business by investing ₹ 6,76,000 as capital. After 4 months, Goyal joined the business by investing a capital of ₹ 5,07,000. A total of ₹ 2,60,000 including 25% of the total profit was given to Goyal for conducting business at the end of the year. How much profit Mathur will get?
Explanation: Based on the profit-sharing ratio from capital and time, Mathur’s share of the total profit is ₹2,60,000.
#37. Mannu and Bhanu are partners. Bhanu wants to admit his son Channu into business. Can Channu become the partner of the firm?
Explanation: A partner can admit a new partner, including a family member, subject to the partnership deed.
#38. L, S and D are partners sharing profits in the ratio of 2/5, 3/7 and 3/10. If S retires from the firm, what will be the gain ratio of L?
Explanation: After calculating the gaining ratio upon S’s retirement, L’s gain is 1/3.
#39. Arjun, Bansi and Chelsi are partners in a firm. On June 30, 2023, Chelsi died, the sales for the year 2022–23 was ₹ 30,00,000 and profits were ₹ 6,00,000. The sales for the period from April 1, 2023 to June 30, 2023 were ₹ 7,50,000. What would be the share of deceased partner in the current year’s profits?
Explanation: Profit for the period = (₹7,50,000/₹30,00,000)×₹6,00,000 = ₹1,50,000; Chelsi’s share = ₹50,000.
#40. Discount allowed on the reissue of forfeited shares cannot exceed
Explanation: The discount on reissue cannot exceed the amount originally received on those forfeited shares.
#41. Which technique(s) can be used in connection with analysis and interpretation of financial statements? 1. Funds Flow Statement 2. Net Working Capital Analysis 3. Cash Flow Statement 4. Ratio Analysis
Explanation: Funds Flow, Cash Flow, and Ratio Analysis are all key techniques for financial statement analysis.
#42. Rate of return on equity share capital is calculated after deducting ____ and ____ from the net profit before interest.
Explanation: Return on equity is calculated from profit after interest and preference dividend.
#43. Match List-I (Useful ratio) with List-II (Symptom): a. Finished goods turnover ratio – 4. Falling demand for the product in the market; b. Interest coverage ratio – 3. Inability to pay interest; c. Debt-service coverage ratio – 2. Inability to pay dues to financial institutions; d. Current ratio and quick ratio – 1. Liquidity crisis
Explanation: The matching aligns each ratio with its indicative financial symptom.
#44. Furniture for a cloth dealer is a/an
Explanation: Furniture is a fixed asset used in business operations over the long term.
#45. Declared and paid dividend ₹ 7,00,000 is
Explanation: Dividend payments are classified as cash flows from financing activities.
#46. The basic function of financial accounting is to
Explanation: The basic functions include recording, classifying, and summarizing transactions.
#47. Revenue from sale of goods ordinarily is reported as a part of the earning in the period
Explanation: Revenue is recognized when the sale is made.
#48. The statement containing various ledger balances on a particular date is known as
Explanation: A Trial Balance is a list of all ledger account balances on a specific date.
#49. The note which is sent to a customer when he returns the goods is known as
Explanation: A Credit Note is issued to acknowledge a reduction in the amount payable by the customer.
#50. Passbook is the statement of account of the customer maintained by the
Explanation: The Passbook is a copy of the customer’s account in the books of the bank.
#51. The statement which is prepared to reconcile the balance of Cashbook and Passbook is known as
Explanation: The correct term is Bank Reconciliation Statement, which is not listed.
#52. For depreciation on leasehold property, the appropriate method of depreciation is
Explanation: Leasehold property is depreciated using the Fixed Instalment Method.
#53. At the time of renewal of bill, Interest A/c is debited in the books of
Explanation: The drawee debits Interest A/c at the time of renewal.
#54. The account maintained by a businessman with his bankers is known as
Explanation: Businesses operate a Current Account with their bank.
#55. Sales are equal to
Explanation: Sales = Cost of Goods Sold + Profit.
#56. Cash receipts from sale of grass by a club is treated as
Explanation: Sale of grass is a revenue receipt.
#57. In case of net worth method of single entry, net profit is ascertained by
Explanation: Profit is determined by comparison of opening and closing capital.
#58. If the rate of Gross Profit is 25% on Cost of Goods Sold, hence it is ______ on sales.
Explanation: 25% on cost equals 20% on sales.
#59. When the new partner brings his share of goodwill in cash, the amount is debited to
Explanation: Cash A/c is debited.
#60. A and B are partners in the ratio of 2 : 1. They admit C by giving him 1/3 share. The new ratio will be
Explanation: New ratio becomes 2 : 1 : 1.
#61. Match List-I with List-II: a. Secured debentures – 3. are secured by a charge on assets; b. Bonds – 1. are a form of long-term debt; c. Bearer debentures – 4. are treated as negotiable instruments; d. Naked debentures – 2. are debentures which do not carry any charge
Explanation: Correct matching is not listed.
#62. A, B and C are partners in the ratio of 5 : 3 : 2. B retires and his shares were taken by A and C in the ratio of 2 : 1. The new ratio will be
Explanation: New ratio = 7 : 3.
#63. X and Y are partners sharing profits in the ratio of 3 : 2. Z was admitted with 1/4th shares which he acquires equally from X and Y. The new ratio will be
Explanation: After sacrificing equally for Z’s 1/4 share, the new ratio calculates to 19:11:10.
#64. Cash from Operation is equal to
Explanation: An increase in outstanding expenses is added back to net profit as it does not involve cash outflow.
#65. Increase in the amount of Bills Payable results in
Explanation: An increase in Bills Payable means less immediate cash payment, thus increasing cash flow.
#66. Applications of cash in Cash Flow Statement include
Explanation: Tax paid is an application (outflow) of cash in operating activities.
#67. The criterion fulfilled by an effective accounting report is
Explanation: Effective reports are relevant, timely, accurate, complete, and concise.
#68. COBOL, BASIC, FORTRAN, C, C++, JAVA are examples of
Explanation: These are all high-level programming languages used for software development.
#69. DBMS does not serve as a tool for which of the following?
Explanation: A DBMS organizes, processes, and retrieves data but does not create the data itself.
#70. An accounting information system processes the financial transactions and events based on
Explanation: Accounting systems are built on the foundation of GAAP.
#71. Which of the following is an advantage of ‘server-database’?
Explanation: Server databases offer multiuser support and often better reliability, both being advantages.
#72. Match List-I (Transaction) with List-II (Activity): a. Cash payments of salaries – 2. Operating; b. Cash proceeds from issuing shares – 3. Financing; c. Payment of income tax – 2. Operating (or 1. Investing depending on context); d. Tax deducted at source on interest received – 1. Investing
Explanation: Salaries and income tax are operating; share issue is financing; TDS on interest is related to investing activities.
#73. Which of the following statements are true? 1. A company cannot purchase its own equity shares. 2. A company can issue its shares at a discount by passing a special resolution. 3. The interest rate charged on calls-in-arrear and calls-in-advance are the same as per Table-F.
Explanation: All statements have inaccuracies regarding company law provisions.
#74. If the percentage of discount on marked price is 33 1/3 and the discount is ₹ 1,200, what would be the selling price?
Explanation: Discount is 1/3 of MP; MP = ₹1,200 * 3 = ₹3,600; SP = MP – Discount = ₹3,600 – ₹1,200 = ₹2,400.
#75. Match List-I (Types of Report) with List-II (Example): a. Demand Report – 2. Inventory valuation report; b. Responsibility Report – 4. Report regarding different aspects of purchases; c. Summary Report – 1. Profit & Loss A/c; d. Exception Report – 3. Inquiry of inventory status regarding overstocking
Explanation: The matching aligns each report type with a typical example.
#76. Which of the following is not an example of Capital Reserve?
Explanation: Both Contingency Reserve and Dividend Equalization Reserve are revenue reserves, not capital reserves.
#77. Which of the following statements are true? 1. Prepaid rent is a Personal A/c. 2. Interest on Drawings is an income for the business. 3. Accrued income and income due but not received are same. 4. Cost of obtaining licence is a capital expenditure.
Explanation: Statements 2, 3, and 4 are correct accounting principles.
#78. A Bank Reconciliation Statement is a
Explanation: It is a separate statement, not part of the ledger or cashbook.
#79. Ways of creating secret reserve: 1. by suppressing the sale 2. by undervaluing stock-in-trade and goodwill 3. by charging excessive depreciation 4. by charging capital expenditure to Profit & Loss A/c
Explanation: Methods 2, 3, and 4 are ways to create a secret reserve by understating profits.
#80. AS-10 (new) has come into effect from
Explanation: The revised Accounting Standard 10 (Property, Plant and Equipment) became effective from April 1, 2016.
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