Trial Balance and Rectification of Errors Test 13

Result

Trial Balance and Rectification of Errors Test 13

Score
-
out of -
Rank
-
out of -

TIME Taken - -

SHARING IS CARING

If our Website helped you a little, then kindly spread our voice using Social Networks. Spread our word to your readers, friends, teachers, students & all those close ones who deserve to know what you know now.

Weekly Quiz Competition

Question 1
1 / -0

Which of the following errors will not affect the trial balance?

A
Goods for 300 purchased on cash, expenses account was debited instead of purchases account.

B
Purchase Returns Book for December was overcast by 200.

C
Sales book carried forward 2,200 instead of 2,000

D
None of the above

Solution

Goods for 300 purchased on cash, expenses account was debited instead of purchase account, this is a type of compensating error and and these errors do not affect the trial balance.
Question 2
1 / -0

Rs.1500 received from sub-tenant for rent, entered correctly in the cash book and posted to the debit of the rent account. In the trial balance ____________.

A
the debit total will be greater by Rs. $$3,000$$ than the credit total

B
the debit total will be greater by Rs. $$1,500$$ than the credit total

C
subject to other entries being correct, the total will agree

D
none of the above

Solution

Correct accounting entry will be as under:
Cash A/c Dr. 1500

Instead of crediting the Rent account by Rs.1500, it is wrongly debited by Rs.1500. Hence there will be a double affect.

In such case, the total of debit will be greater by Rs.3000 than the credit total.
Question 3
1 / -0

If a purchase return of Rs. 1,000 has been wrongly posted to the debit of the sales returns account, but has been correctly entered in the suppliers account, the total of the _________________.

A
Trial balance would show the debit side to be Rs. 1,000 more than the credit.

B
Trial balance would show the credit side to be Rs. 1,000 more than the debit.

C
Debit side of the trial balance will be Rs. 2,000 more than the credit side.

D
Credit side of the trial balance will be Rs. 2,000 more than the debit side.

Solution

This error will give the double affect as instead of credit of $$Rs.1000$$ for purchase return, a debit of $$Rs.1000$$ is posted to sales return a/c.

Due to this, debit of trial balance will be $$Rs.2000$$ more than the credit side.
Question 4
1 / -0

Errors of carry forward from one year to another year affect _____________.

A
Personal A/c

B
Real A/c

C
Nominal A/c

D
Both A and B

Solution

Errors in nominal account affect the profitability of the business hence all such errors ideally to be located and rectified within the same financial year. If errors are not located and carried forward to the subsequent year, these need to be rectified through profit & loss adjustment account.

Errors of personal account and real account need to be rectified in the subsequent year through suspense account.
Question 5
1 / -0

In case, a trial balance does not agree, the difference is put to ___________.

A
Suspense a/c

B
Drawings a/c

C
Capital a/c

D
Trading a/c

Solution

If trial balance does not agree, the difference amount is parked in a temporary account known as "suspense a/c" All rectification entries are passed through suspense account.
Question 6
1 / -0

Goods worth Rs.24,000 were returned by X. The accountant, however, credited the sales returns account by Rs.42,000. In order to rectify this error, what should be done?

A
Debit the sales return account by Rs.42,000.

B
Credit the sales return account by Rs.24,000.

C
Debit the sales return account by Rs.66,000.

D
Debit the sales return account by Rs.18,000.

Solution

Correct entry for the given transaction:
Sales Return A/c Dr....$$Rs.24,000$$
To Mr. X A/c....$$Rs.24,000$$
Sales Return has been credited by $$Rs.42,000$$ instead of debiting by $$Rs.24,000$$.
We now need to pass an entry in such a way that a correct effect is seen on the debit side at $$Rs.24,000$$
This can be done if the account is debited by $$Rs.66,000$$. By doing this the effect of incorrect credit will be gone and required $$Rs.24,000$$ will be reflected on debit side.
Question 7
1 / -0

$$Rs. 331$$ received from Mr. X is debited to his account as $$Rs. 313$$. The rectifying journal will be:

A
Suspense A/c Dr. $$Rs. 331$$

To X $$331$$

B
X Dr. $$Rs. 313$$

To Suspense A/c $$Rs. 313$$

C
Suspense A/c Dr. $$Rs. 644$$

To X $$Rs. 644$$

D
Suspense A/c Dr. $$Rs. 18$$

To X $$Rs. 18$$

Solution

Mr. X a/c has to be given a credit of Rs.331 on account of payment received but instead an amount of Rs.313 is debited to his account. The total difference amount becomes Rs.644 (Rs.331+Rs.313).

Following will be the rectification entry:

Suspense A/c Dr. 644
To Mr. X 644
Question 8
1 / -0

Purchased goods from Mohan for Rs. 3,600 but was recorded as Rs. 6,300 to the debit of Mohan. In the rectifying entry, Mohan's A/c will be credited with ________________.

A
9,900

B
2,700

C
3,600

D
6,300

Question 9

1 / -0

Match List I with List II and select the correct answer using the codes given below:

List I	List II
A. Error of Omission	1. Capital expenditure treated as revenue
B. Error of Commission	2. Goods sold but not entered in books
C. Error of Principle	3. A's A/c is debited by $$Rs. 500$$, instead of $$Rs. 5000$$

$$A = 1, B = 2, C = 3$$

$$A = 2, B = 3, C = 1$$

$$A = 3, B = 2, C = 1$$

$$A = 2, B = 1, C = 3$$

Solution

List I	List II
A. Error of Omission	2. Goods sold but not entered in books
B. Error of Commission	3. A's A/c is debited by Rs.500, instead of Rs.5000
C. Error of Principle	1. Capital expenditure treated as revenue

Question 10
1 / -0

The preparation of a trial balance helps in locating _________.

A
Compensating errors

B
Error of omission

C
Error of Principle

D
All of the above

Solution

Trial balance is prepared at the end of the financial year to check the accuracy of the books of account. If trial balance agrees, this can be assume that the books of account are arithmetical correct. But there are other types of errors which are there even the trial balance tally.

Preparation of trial balance helps in locating the following error:
Compensating error
Error ofomission
Error of principle

User

Question Analysis

Correct -
Wrong -
Skipped -

My Perfomance

Score
-
out of -
Rank
-
out of -

Re-Attempt Weekly Quiz Competition

Trial Balance and Rectification of Errors Test 13

Result

Trial Balance and Rectification of Errors Test 13

Score

-

Rank

-

SHARING IS CARING

Question 1

Goods for 300 purchased on cash, expenses account was debited instead of purchases account.

Purchase Returns Book for December was overcast by 200.

Sales book carried forward 2,200 instead of 2,000

None of the above

Solution

Question 2

the debit total will be greater by Rs. $$3,000$$ than the credit total

the debit total will be greater by Rs. $$1,500$$ than the credit total

subject to other entries being correct, the total will agree

none of the above

Solution

Question 3

Trial balance would show the debit side to be Rs. 1,000 more than the credit.

Trial balance would show the credit side to be Rs. 1,000 more than the debit.

Debit side of the trial balance will be Rs. 2,000 more than the credit side.

Credit side of the trial balance will be Rs. 2,000 more than the debit side.

Solution

Question 4

Personal A/c

Real A/c

Nominal A/c

Both A and B

Solution

Question 5

Suspense a/c

Drawings a/c

Capital a/c

Trading a/c

Solution

Question 6

Debit the sales return account by Rs.42,000.

Credit the sales return account by Rs.24,000.

Debit the sales return account by Rs.66,000.

Debit the sales return account by Rs.18,000.

Solution

Question 7

Suspense A/c Dr. $$Rs. 331$$To X $$331$$

X Dr. $$Rs. 313$$To Suspense A/c $$Rs. 313$$

Suspense A/c Dr. $$Rs. 644$$To X $$Rs. 644$$

Suspense A/c Dr. $$Rs. 18$$To X $$Rs. 18$$

Solution

Question 8

9,900

2,700

3,600

6,300

Question 9

$$A = 1, B = 2, C = 3$$

$$A = 2, B = 3, C = 1$$

$$A = 3, B = 2, C = 1$$

$$A = 2, B = 1, C = 3$$

Solution

Question 10

Compensating errors

Error of omission

Error of Principle

All of the above

Solution

User

Question Analysis

My Perfomance

Score

-

Rank

-

Results Announcement on: coming Monday

Stay Tuned: We’ll update you on your result via email or SMS.

Suspense A/c Dr. $$Rs. 331$$

To X $$331$$

X Dr. $$Rs. 313$$

To Suspense A/c $$Rs. 313$$

Suspense A/c Dr. $$Rs. 644$$

To X $$Rs. 644$$

Suspense A/c Dr. $$Rs. 18$$

To X $$Rs. 18$$