Trial Balance and Rectification of Errors Test 1

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Trial Balance and Rectification of Errors Test 1

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Weekly Quiz Competition

Question 1
1 / -0

_______are passed for rectifying errors which might have committed in the books of account.

A
Transfer Entries

B
Adjustment Entries

C
Rectification Entries

D
Opening Entries
Question 2
1 / -0

Rs. 15,000 received from Karan has been credited to Ravan. Which of the following rectification entry is correct?

A
Raven A/c Dr. 15,000

To Karen A/c 15,000

B
Karan A/c Dr. 15,000

To Raven A/c 15,000

C
Ravan A/c Dr. 15,000

To Suspense A/c 15,000

D
Suspense A/c Dr. 15,000

To Karan A/c 15,000
Question 3
1 / -0

A trial balance contains the balances of ______________________.

A
Only personal and real accounts

B
Only real and nominal accounts

C
Only nominal and personal accounts

D
All accounts

Solution

Trial Balance is a statement which lists all the balances of the Real, Personal and Nominal Account irrespective of Capital or Revenue account. It contains two columns debit and credit.
Question 4
1 / -0

Returns outwards book was under cast by Rs. 150. If this error located after preparation of final account then which of the following rectification entry is correct?

A
Suspense A/c Dr. 150

To Profit & Loss Adj. A/c 150

B
Profit & Lots Adj. A/c Dr. 150

To Suspense A/c 150

C
Returns Outwards A/c Dr. 150

To Profit & Loss Adj. A/c 150

D
Profit & Loss Adj. A/c Dr. 150

To Returns outwards A/c 150
Question 5
1 / -0

After preparing the trial balance the accountant finds that the total of a debit side is short by Rs.2,500. This difference will be _____________.

A
debited to suspense account

B
credited to suspense account

C
adjusted to any of the debit balance accounts

D
adjusted to any of the credit balance accounts
Question 6
1 / -0

Total of purchases book was Rs. 10,000 short. If rectification is done before preparation of trial balance then which of the following is correct?

A
Purchases A/c Dr. 2,000

To Suspense A/c 2,000

B
Debit purchases account with Rs. 10,000 saying "To Short total of Purchases Book Rs. 10,000".

C
Credit purchases account with Rs. 10,000 saying "By Short total of Purchases Book Rs. 10,000".

D
Suspense A/c Dr. 2,000

To Purchases A/c 2,000
Question 7
1 / -0

The preparation of a trial balance helps in locating ______________.

A
Errors in Principle

B
Errors of Omission

C
Clerical Errors

D
Compensatory Errors

Solution

While recording the transaction, there is a possibility of having the error. Since accounting is based on double entry system, for every debit there will be a credit. Hence at any point of time, trial balance must be tallied. If trial balance dose not matches, there must be some clerical error.
Question 8
1 / -0

Which item is shown on the debit side of a trial balance?

A
Rent outstanding.

B
Prepaid expenses.

C
Purchases returns.

D
Excess of income over expenses.

Solution

Prepaid expenses means the expense which are already paid but the services against which are yet to receive. While passing the closing entry, expenses account will be credited by debiting the prepaid expense.
Question 9
1 / -0

Error of commission do not allow ___________.

A
Correct totalling of the balance sheet

B
Correct totalling of the trial balance

C
The trial balance to agree

D
Correct totalling of the day book

Solution

Error of commission are the errors which are committed due to wrong posting of transaction, wrong totalling or balancing of the accounts, wrong casting of the subsidiary books, or wrong recording of amount in the books of original entry. Such errors are of clerical nature and most of these affect totalling of the trial balance.
Question 10
1 / -0

Which of the following error is an error of principle?

A
Rs. 1000 received from Ganesh has been debited to his account

B
Purchase of Rs. 3000 has been entered in the sales journal

C
Repairs to machinery have been debited to machinery account

D
Repairs to scooter have been debited to repairs account

Solution

Option C is correct.
Accounting entries are recorded as per the generally accepted principles. If any of these principles are violated or ignored, error resulting from such violation are known as errors of principle.
An error of principle may occur due to incorrect classification of expenditure or receipt between capital and revenue.
Repairs to machinery is debited to machinery account instead of debiting to repairs and maintenance account i.e. it is treated as capital expenditure instead of revenue expenditure hence it is error of principle.

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Trial Balance and Rectification of Errors Test 1

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Trial Balance and Rectification of Errors Test 1

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SHARING IS CARING

Question 1

Transfer Entries

Adjustment Entries

Rectification Entries

Opening Entries

Question 2

Raven A/c Dr. 15,000 To Karen A/c 15,000

Karan A/c Dr. 15,000 To Raven A/c 15,000

Ravan A/c Dr. 15,000 To Suspense A/c 15,000

Suspense A/c Dr. 15,000 To Karan A/c 15,000

Question 3

Only personal and real accounts

Only real and nominal accounts

Only nominal and personal accounts

All accounts

Solution

Question 4

Suspense A/c Dr. 150 To Profit & Loss Adj. A/c 150

Profit & Lots Adj. A/c Dr. 150 To Suspense A/c 150

Returns Outwards A/c Dr. 150 To Profit & Loss Adj. A/c 150

Profit & Loss Adj. A/c Dr. 150 To Returns outwards A/c 150

Question 5

debited to suspense account

credited to suspense account

adjusted to any of the debit balance accounts

adjusted to any of the credit balance accounts

Question 6

Purchases A/c Dr. 2,000 To Suspense A/c 2,000

Debit purchases account with Rs. 10,000 saying "To Short total of Purchases Book Rs. 10,000".

Credit purchases account with Rs. 10,000 saying "By Short total of Purchases Book Rs. 10,000".

Suspense A/c Dr. 2,000 To Purchases A/c 2,000

Question 7

Errors in Principle

Errors of Omission

Clerical Errors

Compensatory Errors

Solution

Question 8

Rent outstanding.

Prepaid expenses.

Purchases returns.

Excess of income over expenses.

Solution

Question 9

Correct totalling of the balance sheet

Correct totalling of the trial balance

The trial balance to agree

Correct totalling of the day book

Solution

Question 10

Rs. 1000 received from Ganesh has been debited to his account

Purchase of Rs. 3000 has been entered in the sales journal

Repairs to machinery have been debited to machinery account

Repairs to scooter have been debited to repairs account

Solution

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Raven A/c Dr. 15,000

To Karen A/c 15,000

Karan A/c Dr. 15,000

To Raven A/c 15,000

Ravan A/c Dr. 15,000

To Suspense A/c 15,000

Suspense A/c Dr. 15,000

To Karan A/c 15,000

Suspense A/c Dr. 150

To Profit & Loss Adj. A/c 150

Profit & Lots Adj. A/c Dr. 150

To Suspense A/c 150

Returns Outwards A/c Dr. 150

To Profit & Loss Adj. A/c 150

Profit & Loss Adj. A/c Dr. 150

To Returns outwards A/c 150

Purchases A/c Dr. 2,000

To Suspense A/c 2,000

Suspense A/c Dr. 2,000

To Purchases A/c 2,000