Trial Balance and Rectification of Errors Test 31

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Trial Balance and Rectification of Errors Test 31

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Question 1
1 / -0

Goods costing Rs. 55000 distributed as free samples were not recorded. This is an error of _____.

A
Omission

B
Commission

C
Principal

D
Compensating

Solution

Error of omission is when a transaction is not recorded at all in the journal or in any subsidiary books, both debit and credit aspect of the transaction is missing, which does not affect the trial balance.
When goods are distributed as free samples advertisement account and purchases account is affected. There will not be any effect on the trial balance because of this error.
Question 2
1 / -0

The main object of opening suspense account is ___________.

A
To tally the trial balace

B
To avoid the delay in the preparation of financial statements

C
To rectify the errors

D
None of these

Solution

Suspense accounts are the accounts that are prepared when the trial balance does not tally or when there is an unidentified transaction. These are prepared temporarily to avoid delay in preparation of financial statements and are closed when the reasons are deducted or at the end of accounting cycle.
Question 3
1 / -0

Goods costing Rs. 15000 given as charity were not recorded. This is an error of ______.

A
Omission

B
Commission

C
Principal

D
Compensating

Solution

Error of omission is when a transaction is completely omitted to be recorded in the books or recorded in the journal but omitted to posted to the ledger accounts. Here the debit and credit aspect of the transaction is not present in the books of accounts. Such errors do not affect the agreement of the trial balance.
When goods given as charity is not recorded, there will be no effect on the purchases account as well as the charity account.
Question 4
1 / -0

Which of the following errors will affect the Trial Balance?

A
Errors of complete omission.

B
Errors of recording in the books of original entry.

C
Errors of posting involving the posting to the wrong account on the correct side with the correct amount.

D
Errors of principle

E
Compensating errors

Solution

When a transaction has been correctly recorded in the cash book but not posted in the ledger at all, the trial balance will not tally.
For example, for cash received from debtors, the entry is passed in the cash book but omitted to be posted to the ledger of debtor's account. In this case the debtors balance should decrease, but since the posting is not made to the ledger, there will be no effect on the debtor's account balance, whereas the debit balance of cash account will increase. These balances are transferred to the trial balance, in which the debit balance will be more than the credit balance.
Question 5
1 / -0

Goods costing Rs. 35000 destroyed by fire were no recorded. This _________________.

A
will affect the agreement of trial balance

B
will not affect the agreement of trial balance

C
may or may not affect

D
None of these

Solution

When an entry is not recorded in the books account, it is known as an error of omission.
When the recording of an entry is omitted, the debit and credit both are not recorded, and hence, the trial balance tallies.
Question 6
1 / -0

Which type of error occurs when credit sale is wrongly posted to purchases book?

A
Error of commission

B
Error of omission

C
Compensatory error

D
Error of principle

Solution

When a transaction is posted wrongly then it is known as error of commission.
Question 7
1 / -0

Rs 25,000 received from Aditi, is credited in the account of Prerna. It is an error of:

A
Principle

B
Commission

C
Omission

D
Compensatory

Solution

Compensating errors are those where a wrong account is debited instead of the right account. Example When Ram Account is debited instead of Shyam then it is called Compensating error.
Question 8
1 / -0

Error relating to fundamental aspect of accounting is known as.

A
Error of principle

B
Error of omission

C
Error of commission

D
Compensating error

Solution

Error of principle are related to fundamental aspect of the accounting. Here, revenue account may be debited instead of capital account.
Question 9
1 / -0

A purchase of Rs. 10,000 has been wrongly posted to the credit of sales Account but had been correctly entered in the Supplier's Account. This is an error of ______.

A
Omission

B
Commission

C
Principle

D
Compensating

Solution

Error of commission means wrong posting of the balance or wrong total. These kind of errors may affect the balancing of the Trial Balance.
Therefore, this example is related with error of Commission.
Question 10
1 / -0

A purchase of Rs. 10,000 has been wrongly posted to the debit of Supplier's Account but had been correctly entered in the Purchases Account. This is an error of ____________.

A
Omission

B
Commission

C
Principle

D
Compensating

Solution

A purchase of Rs-10,000 is wrongly posted to credit of purchase account but is correctly entered in the suppliers account where as the correct entry should have been :-
Purchase account...... Dr
To supplier's account.
This is an error of commission. This error includes recording in wrong account, recording wrong amount etc.

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Trial Balance and Rectification of Errors Test 31

Result

Trial Balance and Rectification of Errors Test 31

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Question 1

Omission

Commission

Principal

Compensating

Solution

Question 2

To tally the trial balace

To avoid the delay in the preparation of financial statements

To rectify the errors

None of these

Solution

Question 3

Omission

Commission

Principal

Compensating

Solution

Question 4

Errors of complete omission.

Errors of recording in the books of original entry.

Errors of posting involving the posting to the wrong account on the correct side with the correct amount.

Errors of principle

Compensating errors

Solution

Question 5

will affect the agreement of trial balance

will not affect the agreement of trial balance

may or may not affect

None of these

Solution

Question 6

Error of commission

Error of omission

Compensatory error

Error of principle

Solution

Question 7

Principle

Commission

Omission

Compensatory

Solution

Question 8

Error of principle

Error of omission

Error of commission

Compensating error

Solution

Question 9

Omission

Commission

Principle

Compensating

Solution

Question 10

Omission

Commission

Principle

Compensating

Solution

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