Trial Balance and Rectification of Errors Test 25

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Trial Balance and Rectification of Errors Test 25

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Question 1
1 / -0

Accounting errors may be in the form of and due to________________.

A
Omitting the transactions to record

B
Recording in wrong books

C
Recording in wrong account or wrong totalling

D
All of the above

Solution

Accounting transaction may be in the form of and due to omitting the transactions to record either partially or fully, recording in wrong books, wrong account or wrong totalling, errors of principle etc.
Question 2
1 / -0

Mistake in transferring the balance of an account to the trial balance or omitting to write ,the balance of an account in the trial balance is ________.

A
Errors of principle

B
Errors-of-commission

C
Errors of omission

D
Compensating errors

Solution

Mistake in transferring the balance of an account to the trial balance or omitting to write ,the balance of an account in the trial balance is error of omission. When the transactions are partially or completely omitted from being recorded this is known as an error of omission.
Question 3
1 / -0

When any particular transaction has not at all been entered in the journal or in the book of original entry, it cannot be posted into the ledger at all, such error are known as________________.

A
Errors of partial omission

B
Errors of complete omission

C
Errors of principle

D
Compensating errors

Solution

When any particular transaction has not at all been entered in the journal or in the book of original entry, it cannot be posted into the ledger at all, such error are known as error of complete omission. An error of complete omission does not affect the agreement of trial balance this means a transaction is completely being omitted from being recorded.
Question 4
1 / -0

_________ are the errors committed by persons responsible for recording and maintaining accounts of a business firm in the course of accounting process.

A
Marketing error

B
Accounting errors

C
Planning error

D
All of the above

Solution

Accounting errors are the errors committed by persons responsible for recording and maintaining accounts of a business firm in the course of accounting process.
Question 5
1 / -0

Mistake in balancing an account is______________.

A
Errors of principle

B
Errors of commission

C
Errors of omission

D
Complete omission

Solution

Mistake in balancing an account is error of commission. Error of commission is a mistake that consists of doing something wrong like wrong account, or including an account in wrong place, wrong totalling of accounts etc.
Question 6
1 / -0

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

A
Errors of Complete Omission

B
Compensatory Errors

C
Errors of Principle

D
All of the above
Solution
Even after the trial balance tallies, that doesn’t means there is no error in the preparation.
- Errors of complete omission - if a transaction is completely omitted or not recorded in the journal or any subsidiary books , it is termed as error of omission. Such error will not effect the trial balance as it is not recorded on the debit side of an account nor on the credit side of another account.
- Compensatory errors - compensating errors is when the effect of one error is neutralized by some other errors. For example, if Ram’s account is debited with 500 instead of 5000 and on the other hand Shyam’s account is debited with 5000 instead of 500. This situation would not have any effect on the trial balance .
- Error of principle – when the fundamental principle of accounting is violated while preparing the accounts, this is known as error of principle. These errors are made when there’s no proper distinction between capital and revenue items i.e., capital expenditure being treated as revenue expenditure and vice versa.
Question 7
1 / -0

If accountant does not post the journal entry in journal, it will be classified as -

A
Errors of principle

B
Errors of commission

C
Compensating errors

D
Errors of complete omission

Solution

The errors of omission may be committed at the time of recording the transaction in the books of original entry or while posting to the ledger. They are of two types:
1. When a transaction is completely omitted from recording in the books of original record, it is an error of complete omission, For example, if an accountant does not post the journal entry in journal, it is an error of complete omission.
2. When the recording of transaction is partly omitted from the books, it is an error of partial omission.
Question 8
1 / -0

Compensating errors do not affect the agreement of -

A
Trial balance

B
Cash flow statement

C
Fund flow statement

D
None of the above

Solution

When two or more errors are committed in such a way that the net effect of these errors on the debits and credits of accounts is nil, such errors are called compensating errors. Such errors do not affect the tallying of the trial balance. For example, if purchase book has been overcast by Rs. 10,000 resulting in excess debit of Rs. 10,000 in purchases account and sales return book is undercast by Rs. 10,000 resulting in short debit to sales returns account is a case of two errors compensating each other's effect. One plus is set off by the other minus, the net effect of these two errors is nil and so they don not affect the agreement of trial balance.
Question 9
1 / -0

Making an entry on the wrong side is_______________.

A
Errors of principle

B
Compensating errors

C
Errors of omission

D
Errors of commission

Solution

Making an entry on wrong side is error of commission. An error of commission arise when there is wrong posting, wrong amount In posted, wrong account etc.
Question 10
1 / -0

If a transaction is entered more than one time, it is known as -

A
Duplicating error

B
Errors of complete omission

C
Errors of principle

D
Compensating errors

Solution

Error of duplication means recording any transaction twice in the subsidiary books i.e., debited and credited twice. In this case the trial balance will tally but the amount will be more.

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Re-Attempt Weekly Quiz Competition

Trial Balance and Rectification of Errors Test 25

Result

Trial Balance and Rectification of Errors Test 25

Score

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Rank

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SHARING IS CARING

Question 1

Omitting the transactions to record

Recording in wrong books

Recording in wrong account or wrong totalling

All of the above

Solution

Question 2

Errors of principle

Errors-of-commission

Errors of omission

Compensating errors

Solution

Question 3

Errors of partial omission

Errors of complete omission

Errors of principle

Compensating errors

Solution

Question 4

Marketing error

Accounting errors

Planning error

All of the above

Solution

Question 5

Errors of principle

Errors of commission

Errors of omission

Complete omission

Solution

Question 6

Errors of Complete Omission

Compensatory Errors

Errors of Principle

All of the above

Solution

Question 7

Errors of principle

Errors of commission

Compensating errors

Errors of complete omission

Solution

Question 8

Trial balance

Cash flow statement

Fund flow statement

None of the above

Solution

Question 9

Errors of principle

Compensating errors

Errors of omission

Errors of commission

Solution

Question 10

Duplicating error

Errors of complete omission

Errors of principle

Compensating errors

Solution

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