Trial Balance and Rectification of Errors Test 18

Question 1
1 / -0

Which of the following statements is correct?

A
The trial balance is prepared after preparing the profit and loss account.

B
The trial balance shows only balances of assets and liabilities

C
The trial balance shows only nominal account balances.

D
The trial balance has no statutory importance from the point of view of law.

Question 2
1 / -0

Which of the following error will disturb the balancing of the trial balance?

A
Recording in the purchases journal an invoice for acquiring a non current asset for Rs$$60,000$$.

B
Adding up the returns inwards journal as Rs$$11,400$$ instead of Rs$$12,600$$.

C
Recording a sales invoice for Rs 5,600$$ as Rs $$6,500$$ in the sales journal.

D
Failing to record a purchase invoice for Rs $$54,000$$ in the purchases journal.

Question 3
1 / -0

While carrying forward the total of one page of the Purchases Book to the next, the amount of Rs$$12,350$$ was written as Rs$$13,250$$. If this error located after preparation of trial then which of the following rectification entry is correct?

A
Purchases A/c Dr. $$900$$
To Profit & Loss Adj. A/c $$900$$

B
Purchases A/c Dr. $$900$$
To Suspense A/c $$900$$

C
Profit & Loss Adj. A/c Dr. $$900$$
To Purchases A/c $$900$$

D
Suspense A/c Dr. $$900$$
To Purchases A/c $$900$$

Question 4
1 / -0

An entry for the goods sold to Madhav for Rs$$1,020$$ was posted to his accountants as Rs$$1,200$$. If rectification is done before preparation of trial balance then which of the following is correct?

A
Suspense A/c Dr $$180$$
To Madhav A/c $$180$$

B
Profit & Loss Adj.A/c Dr $$180$$
To Madhav A/c $$180$$

C
Credit Madhav with Rs$$180$$ saying "By Excess debit for sales Rs$$180$$".

D
Debit Madhav with Rs$$180$$ saying "To Excess debit for sales Rs$$180$$".

Question 5
1 / -0

The balances of all assets accounts, expenses accounts, losses, drawing are placed in the __________ of the trial balance.

A
credit column

B
debit column

C
ledger folio

D
none of the above

Question 6
1 / -0

The balances of all liabilities accounts, income accounts, profits, capital are placed in the _________ of the trial balance.

A
credit column

B
debit column

C
ledger folio

D
none of the above

Question 7
1 / -0

A sale of Rs$$13,600$$ was recorded in the sales journal as Rs$$3,600$$ and posted to Govind, the customer as Rs$$6,300$$. Identify the amount of the trial balance difference which will be placed in a suspense account.

A
Dr.$$12,700$$

B
Cr.$$2,700$$

C
Dr.$$2,700$$

D
Cr.$$12,700$$

Question 8
1 / -0

Credit side of the trial balance was Rs$$11,200$$ lower than the debit side. The difference was placed in suspense. The correction of which of the following errors will reduce the suspense account balance?

A
Stationery acquired on credit terms for $$Rs340$$ has been recorded in the purchases journal.

B
A cash sale of Rs$$3,400$$ has been posted as Rs$$4,300$$

C
A credit purchase of Rs$$2,150$$ has not been posted to the customer.

D
A credit Note for Rs$$900$$ from a supplier has not been entered in return outwards day book.

Question 9
1 / -0

Drawings of goods costing $$300$$ were not recorded in the books of account. If this error located after preparation of trial then which of the following rectification entry is correct?

A
Purchases A/c Dr $$300$$
To Drawings A/c $$300$$

B
Drawings A/c Dr $$300$$
To Suspense A/c $$300$$

C
Profit & Loss Adj. A/c Dr $$300$$
To Purchases A/c $$300$$

D
Drawings A/c Dr $$300$$
To Purchases A/c $$300$$

Question 10
1 / -0

A few errors committed in Amrut's books of account are given below. State which errors would affect the trial balance.
(1) Sales of Rs$$950$$ to Ram completely omitted from books of account.
(2) Purchases of Rs$$720$$ from Shyam entered in the purchases journal as Rs$$700$$.
(3) Purchases Journal is overcast by Rs$$1,000$$
(4) Sales returns journal is under cast by Rs$$200$$.
(5) Amount paid to Agarwal wrongly posted to the debit to Mittal's account.
(6) Bank overdraft shown under debit column in the Trial Balance.
(7) Sales of Rs$$500$$ to Sadiq entered in sales journal as sales to Mushtaq.
(8) Wages paid for installation of machinery debited to wages account.

Select the correct answer from the options given below.

A
(1), (3) and (7)

B
(3), (4) and (6)

C
(3), (4), (5)and (8)

D
(3), (4), (6)and (8)

Submit Test

Trial Balance a...

Question 1

The trial balance is prepared after preparing the profit and loss account.

The trial balance shows only balances of assets and liabilities

The trial balance shows only nominal account balances.

The trial balance has no statutory importance from the point of view of law.

Question 2

Recording in the purchases journal an invoice for acquiring a non current asset for Rs$$60,000$$.

Adding up the returns inwards journal as Rs$$11,400$$ instead of Rs$$12,600$$.

Recording a sales invoice for Rs 5,600$$ as Rs $$6,500$$ in the sales journal.

Failing to record a purchase invoice for Rs $$54,000$$ in the purchases journal.

Question 3

Purchases A/c Dr. $$900$$ To Profit & Loss Adj. A/c $$900$$

Purchases A/c Dr. $$900$$ To Suspense A/c $$900$$

Profit & Loss Adj. A/c Dr. $$900$$ To Purchases A/c $$900$$

Suspense A/c Dr. $$900$$ To Purchases A/c $$900$$

Question 4

Suspense A/c Dr $$180$$To Madhav A/c $$180$$

Profit & Loss Adj.A/c Dr $$180$$To Madhav A/c $$180$$

Credit Madhav with Rs$$180$$ saying "By Excess debit for sales Rs$$180$$".

Debit Madhav with Rs$$180$$ saying "To Excess debit for sales Rs$$180$$".

Question 5

credit column

debit column

ledger folio

none of the above

Question 6

credit column

debit column

ledger folio

none of the above

Question 7

Dr.$$12,700$$

Cr.$$2,700$$

Dr.$$2,700$$

Cr.$$12,700$$

Question 8

Stationery acquired on credit terms for $$Rs340$$ has been recorded in the purchases journal.

A cash sale of Rs$$3,400$$ has been posted as Rs$$4,300$$

A credit purchase of Rs$$2,150$$ has not been posted to the customer.

A credit Note for Rs$$900$$ from a supplier has not been entered in return outwards day book.

Question 9

Purchases A/c Dr $$300$$ To Drawings A/c $$300$$

Drawings A/c Dr $$300$$ To Suspense A/c $$300$$

Profit & Loss Adj. A/c Dr $$300$$ To Purchases A/c $$300$$

Drawings A/c Dr $$300$$ To Purchases A/c $$300$$

Question 10

(1), (3) and (7)

(3), (4) and (6)

(3), (4), (5)and (8)

(3), (4), (6)and (8)

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Question Analysis

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Purchases A/c Dr. $$900$$
To Profit & Loss Adj. A/c $$900$$

Purchases A/c Dr. $$900$$
To Suspense A/c $$900$$

Profit & Loss Adj. A/c Dr. $$900$$
To Purchases A/c $$900$$

Suspense A/c Dr. $$900$$
To Purchases A/c $$900$$

Suspense A/c Dr $$180$$
To Madhav A/c $$180$$

Profit & Loss Adj.A/c Dr $$180$$
To Madhav A/c $$180$$

Purchases A/c Dr $$300$$
To Drawings A/c $$300$$

Drawings A/c Dr $$300$$
To Suspense A/c $$300$$

Profit & Loss Adj. A/c Dr $$300$$
To Purchases A/c $$300$$

Drawings A/c Dr $$300$$
To Purchases A/c $$300$$