PCO 101 Solved Question Paper June 2019

PCO 101 Solved Question Paper June 2019

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.

1. Capital account is a/an

1. Real Account
2. Personal Account
3. Current Account
4. Intangible Account

2. Discount account is neither a

1. Personal Account nor a Real Account
2. Nominal Account nor a Real Account
3. Nominal Account nor a Personal Account
4. All of the above

3. Which of the following book is both a Journal and Ledger ?

1. Day Book
2. Sales Book
3. Petty Cash Book
4. Cash Book

4. “Bills Payable Book” is a part of 

1. Journal
2. Ledger
3. Trial Balance
4. Profit and Loss Account

5. Debiting an item leads to an

1. increase in asset
2. increase in liability
3. increase in capital
4. all of the above

PCO 101 Solved Question Paper June 2019

6. Crediting an item leads to

1. an increase in asset
2. an increase in liability
3. a decrease in capital
4. all of the above

7. Which of the following accounts is a Personal Account ?

1. Ram’s Account
2. Wages Outstanding Account
3. Bank Account
4. all of the above

PCO 101 Solved Question Paper June 2019

8. Cash received from Tilak as rent will be credited to

1. Cash Account
2. Rent Account
3. Tilak’s Account
4. Capital Account

9. Under which system of accounting or credit transactions not recorded ?

1. Cash system
2. Single entry system
3. Double entry system
4. Mercantile system

PCO 101 Solved Question Paper June 2019

10. Which of the following rules of journalizing is applicable to personal accounts ?

1. Debit what comes in, credit what goes out
2. Debit the receiver, credit the giver
3. Debit all losses, credit all gains
4. Debit what comes in, credit the giver

11. Which of the following transactions will be recorded in the Purchase Book ?

1. Cash purchase of goods
2. Credit purchase of goods
3. Credit purchase of furniture
4. all of the above

PCO 101 Solved Question Paper June 2019

12. The transactions of non-financial nature are not recorded in books of account as per

1. Cost concept
2. Money Measurement Concept
3. Matching concept
4. Going Concern concept

13. A business has liabilities of Rs. 45,00 0 and owners equity of Rs. 30,000. Its assets are

1. Rs. 75,000
2. RS. 45,000
3. RS. 15,000
4. RS. 30,000

14. Satish, and owner of the business, withdrew cash for personal use from the business. This will be debited to

1. Satish’s Account
2. Cash Account
3. Drawings Account
4. Capital Account

PCO 101 Solved Question Paper June 2019

15. The debit balance of Cash Account means

1. Profit
2. Loss
3. Cash at Bank
4. Cash in hand

16. A brief summery of the transaction given after its recording in journal is called

1. Statement
2. Ledger Folio
3. Narration
4. Casting

17. Trial Balance is a statement that consists of debit and credit balances of

1. All accounts except real accounts
2. All accounts except nominal accounts
3. All accounts except personal accounts
4. All accounts except closing stock

18. A firm’s bank account shows a credit balance of Rs. 200. It means

1. Firm has cash in hand
2. Firm has cash at bank
3. Firm has an overdraft
4. Firm has no profit

PCO 101 Solved Question Paper June 2019

19. “The factory of a firm is damaged by fire“. This is an example of

1. revenue loss
2. revenue expenditure
3. capital loss
4. capital expenditure

20. The net profit of a firm is Rs. 84,000. Manager is to be allowed commission at 5% on net profit after charging such commission. His commission will be

1. 2,100
2. 4,200
3. 3,890
4. 4,000

PCO 101 Solved Question Paper June 2019

21. Which of the following transactions will be recorded in Journal Proper ?

1. Purchase of patent on credit
2. Purchase of plant on gas
3. Sale of goods on credit
4. Sale of old furniture on cash

22. An expenditure is capital expenditure when

1. it is the personal expenditure of the owner
2. it is related to liquid assets
3. it is intended to benefit the future period also
4. all of the above

23. A receipt is called a revenue receipt when

1. it is related to routine activity of the business
2. it is credited to capital account
3. it decreases the tax liability
4. all of the above

PCO 101 Solved Question Paper June 2019

24. A written note containing an unconditional undertaking signed by the maker to pay a certain sum of money only to or to the order of a certain person or to the bearer of that instrument is called

1. Debit Note
2. Credit Note
3. Promissory Note
4. Bank Note

25. Assets which are regularly used in the business and are not meant for resale are called

1. Current assets
2. Fixed assets
3. Fictitious assets
4. Liquid assets

PCO 101 Solved Question Paper June 2019

26. Goodwill, Patents and Trademarks are the example of

1. both fixed assets and tangible assets
2. both current assets and tangible assets
3. both fixed assets and intangible assets
4. both current assets and intangible assets

27. Which of the following are added to capital while preparing Balance Sheet ?

1. Net profit
2. Cash at Bank
3. Cash in hand
4. all of the above

28. Some of the fixed assets which get exhausted in course of time are called

1. Current assets
2. Fictitious assets
3. Intangible assets
4. Wasting assets

29. Petty cash book is

1. a copy of single column cash book
2. a copy of triple column cash book
3. another cash book for recording expenses involving small amounts
4. a Cash Book recording receipts only

PCO 101 Solved Question Paper June 2019

30. “Wages and Salaries” are shown in

1. Trading Account
2. Profit and Loss Account
3. both in Trading Account and Profit and Loss Account
4. Manufacturing Account

31. Which of the following is shown in Profit and Loss Account ?

1. Carriage inwards
2. Carriage outwards
3. Freight inwards
4. All of the above

PCO 101 Solved Question Paper June 2019

32. Income Tax paid in case of a proprietary concern is

1. deducted from the capital
2. shown in Profit and Loss Account as expense
3. deducted from gross profit
4. debited to profit and loss account and deducted from capital

33. A balance sheet

1. is a statement of assets and liabilities
2. is prepared for a particular period
3. includes all nominal accounts
4. all of the above

34. Prepaid expenses are

1. expenses paid for a future period
2. expenses which have become due but have not been paid
3. debited to Trading Account
4. related to direct expenses only

PCO 101 Solved Question Paper June 2019

35. Interest on capital given in Trial Balance is

1. debited to Profit and Loss Account only
2. added to Capital only
3. deducted from Capital only
4. debited to Profit and Loss Account and also added to capital

36. Which of the following errors is an error of principle ?

1. Rs. 1,000 spent on extension of building debited to Wages Account
2. Entry of Rs.80 debited to Umesh as Rs.98
3. Purchase Book was undercast by Rs.800
4. All of the above

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

1. Wrong amount entered in the book of original entry
2. Wrong amount entered in ledger account
3. Complete omission of an entry from the book of original entry
4. All of the above

PCO 101 Solved Question Paper June 2019

38. Calculate the due date of a Bill of Exchange, how many days of grace are added ?

1. One
2. Two
3. Three
4. Five

39. The person who writes the Bill of Exchange is generally

1. The Creditor
2. The Debtor
3. The Endorser
4. The Owner

40. If the due date of a Bill of Exchange falls on a public holiday or Sunday, the due date will be

1. next day
2. a day before the due date
3. three days before the due date
4. three days after the due date

41. Commerce refers to

1. Trade
2. Trade and aids to trade
3. Industry
4. Industry and trade

PCO 101 Solved Question Paper June 2019

42. The purpose of preparing Balance Sheet is

1. to know the financial position of the business
2. to find out cost per unit of goods produced
3. to find out net profit
4. all of the above

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

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

44. Office equipment purchased on credit will be recorded in

1. Purchase Book
2. Cash Book
3. Sales Book
4. Journal Proper

PCO 101 Solved Question Paper June 2019

45. Which type of discount is not shown in the books of account ?

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

46. Which of the following errors is not disclosed by Trial Balance ?

1. Error of omission of posting in one account
2. Error of commission
3. Error of principle
4. Error of posting on the wrong side

Note : All the above options are correct.

PCO 101 Solved Question Paper June 2019

47. Interest on capital is shown on the

1. Credit side of Trading A/c
2. Debit side of Trading A/c
3. Credit side of Profit and Loss A/c
4. Debit side of Profit and Loss A/c

48. If the total of debit and credit sides of Trial Balance do not tally, the difference is put in

1. Suspense Account
2. Trading Account
3. Profit and Loss Account
4. Capital Account

49. Excess of income over expenditure is

1. Profit
2. Loss
3. Capital gain
4. Capital

PCO 101 Solved Question Paper June 2019

50. Depreciation primary arises from

1. physical wear and tear
2. fall in the value of money
3. fall in the market value of an asset
4. fall in prices

Thank You