Trial Balance and Rectification of Errors Test 45

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Trial Balance and Rectification of Errors Test 45

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Weekly Quiz Competition

Question 1
1 / -0

Which of the following is an example of an error of omission in accounting?

A
Recording a purchase return in the sales book.

B
Forgetting to record a cash sale transaction.

C
Recording a transaction with an incorrect amount.

D
Recording a purchase of machinery as an expense.

Solution

An error of omission occurs when a transaction is completely omitted from the accounting records. Forgetting to record a cash sale transaction is an example of an error of omission.
Question 2
1 / -0

If an expense is understated, which type of error is this considered?

A
Error of omission

B
Error of commission

C
Error of principle

D
Compensating error

Solution

An error of omission occurs when a transaction is completely omitted from the accounting records or when an entire aspect of a transaction is missed. Understating an expense would result in an error of omission.
Question 3
1 / -0

A trial balance is prepared to know:

A
Whether both sides are equal or not

B
Balance of Suspense Account

C
Debit Balance

D
Credit Balance

Solution

Trial balance is prepared to check the arithmetical accuracy of posting into the ledger accounts. If there are errors in posting, the totals of the two sides will not be equal.
Question 4
1 / -0

A trial balance is prepared to locate:

A
Error of complete omission

B
Error of commission

C
Error of principle

D
None of these

Solution

Errors of commission always show up in the trial balance and therefore the trial balance helps to locate these errors.
Question 5
1 / -0

These are the errors which are committed due to wrong posting of transactions, wrong totaling or balancing of the accounts is:

A
Errors of Commission

B
Errors of Omission

C
Compensating Errors

D
Error of principle

Solution

These are the errors that are committed due to wrong posting of transactions, wrong totaling or wrong balancing of the accounts, the wrong casting of the subsidiary books, or wrong recording of the amount in the books of original entry, etc. For example: Raj Hans Traders paid Rs. 25,000 to Preetpal Traders (a supplier of goods). This transaction was correctly recorded in the cashbook. But while posting to the ledger, Preetpal’s account was debited with Rs. 2,500 only. This constitutes an error of commission. Such an error by definition is of a clerical nature and most of the errors of commission affect the trial balance
Question 6
1 / -0

If the Trial Balance shows a difference, what is the first step to take in rectifying errors?

A
Reconstruct the entire accounting records.

B
Verify the accuracy of the Trial Balance totals.

C
Identify and investigate possible errors.

D
Amend the entries in the Trial Balance.

Solution

When a difference is detected in the Trial Balance, the first step is to identify and investigate the possible errors that could have caused the imbalance.
Question 7
1 / -0

Name the account affected by the following example- Machinery purchased for Rs.4000 has been debited to purchase account.

A
Assets account and Purchase account

B
Machinery account and Goods account

C
Machinery account and Purchase account

D
None of these

Solution

"Machinery account and Purchase account" accurately identifies the accounts affected by the error described in the scenario.
Question 8
1 / -0

Which of the following is an example of an error of omission?

A
Recording a transaction twice

B
Forgetting to record a purchase of equipment

C
Incorrectly recording the date of a transaction

D
Overstating revenue

Solution

Forgetting to record a purchase of equipment is an example of an error of omission. Errors of omission occur when a transaction is completely omitted from the books, leading to an imbalance in the accounts.
Question 9
1 / -0

Which type of error involves recording a transaction in the wrong account?

A
Errors of omission

B
Errors of commission

C
Errors of principle

D
Errors of allocation

Solution

Errors of commission involve recording a transaction in the wrong account, leading to inaccuracies in the financial records.
Question 10
1 / -0

If a purchase of office supplies is recorded as a purchase of machinery, what type of error is this considered?

A
Error of omission

B
Error of commission

C
Error of principle

D
Error of compensating

Solution

Recording a transaction in a manner inconsistent with accounting principles or policies, such as recording a purchase of office supplies as machinery, is considered an error of principle.

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Re-Attempt Weekly Quiz Competition

Trial Balance and Rectification of Errors Test 45

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Trial Balance and Rectification of Errors Test 45

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SHARING IS CARING

Question 1

Recording a purchase return in the sales book.

Forgetting to record a cash sale transaction.

Recording a transaction with an incorrect amount.

Recording a purchase of machinery as an expense.

Solution

Question 2

Error of omission

Error of commission

Error of principle

Compensating error

Solution

Question 3

Whether both sides are equal or not

Balance of Suspense Account

Debit Balance

Credit Balance

Solution

Question 4

Error of complete omission

Error of commission

Error of principle

None of these

Solution

Question 5

Errors of Commission

Errors of Omission

Compensating Errors

Error of principle

Solution

Question 6

Reconstruct the entire accounting records.

Verify the accuracy of the Trial Balance totals.

Identify and investigate possible errors.

Amend the entries in the Trial Balance.

Solution

Question 7

Assets account and Purchase account

Machinery account and Goods account

Machinery account and Purchase account

None of these

Solution

Question 8

Recording a transaction twice

Forgetting to record a purchase of equipment

Incorrectly recording the date of a transaction

Overstating revenue

Solution

Question 9

Errors of omission

Errors of commission

Errors of principle

Errors of allocation

Solution

Question 10

Error of omission

Error of commission

Error of principle

Error of compensating

Solution

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