Trial Balance and Rectification of Errors Test 34

Result

Trial Balance and Rectification of Errors Test 34

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 best describes a trial balance?

A
It is a list of balances on the books.

B
It is a special account.

C
Shows the financial position of a business.

D
Shows all the entries in the books.

Solution

The fundamental principle of the double entry system is that for every debit there is a credit and vice versa. The statement in which the debit and credit balances of each account are noted down and finally totaled up is called a Trial Balance.
There are two main objectives of preparing trial balance:
1) It is a check on the accuracy of posting. If the debit side and credit sides agrees, it proves that books are arithmetically correct.
2) It brings all the accounts at one place to facilitate the preparation of financial statement.
Question 2
1 / -0

Which of the following errors is revealed by trial balance?

A
Wrong amount entered in the book of original entry.

B
Wrong amount entered in a ledger account.

C
Complete omission of an entry from the book of original entry.

D
All of the above.

E
None of the above.

Solution

If any wrong amount is entered in the ledger, this will effect the trial balance. In such case, trial balance will not match. Like Rs.450 is entered as Rs.540 in the ledger. This will have disagreement in trial balance by Rs.90.
All such errors can be revealed from trial balance.
Question 3
1 / -0

An entry of $$Rs.320$$ has been debited to Vivek's account as $$Rs.230$$. It is an error of ______________.

A
Commission

B
Omission

C
Principle

D
None of the above

Solution

Error of Commission is that where an amount is wrongly posted. Like instead of amount of $$Rs.450$$ an amount $$Rs.540$$ or instead of $$Rs.1000$$, an amount of $$Rs.100$$ is mentioned.
In the given issue, amount of $$Rs.320$$ is wrongly debited as $$Rs.230$$. This will effect the trial balance by $$Rs.90$$. These errors are called error of commission.
Question 4
1 / -0

Goods worth $$Rs.200$$ returned by Mohan were taken into stock, but no entry was passed, is an error of __________.

A
Commission

B
Principle

C
Omission

D
Compensatory

Solution

Error of omission is that error where a specific transaction is completely missed out in recording in the books of accounts. This kind of error does not affect the trial balance.
Goods worth $$Rs.200$$ returned by Mohan is an error of omission.

Question 5

1 / -0

Match List-I with List-II and select the correct answer using the codes given the lists.

List-I	List-II
I. Compensating errors	(a) Not recording a business transaction
II. Errors of omission	(b) Charging a Revenue item to capital
III. Errors of principle	(c) Writing a debit item on the credit side and a credit item on the debit side of equal amount
IV. Errors of commission	(d) Posting a correct amount to a wrong account

I-(c), II-(a), III-(d), IV-(b)

I-(b), II-(a), III-(d), IV-(c)

I-(c), II-(a), III-(b), IV-(d)

I-(b), II-(a), III-(c), IV-(d)

Solution

Option C is the correct answer.

Compensating errors- When a debit item written in credit and credit is written in debit for the same amount.

Error of omission- An item is completely omitted in recording.

Error of principle- Revenue item is charged to capital or vice versa.

Error of Commission- Posting of a correct amount in to a wrong account.

Question 6
1 / -0

Which of the following errors will cause the trial balance to be out of balance?

A
The total of the purchase book is Rs.1000 short.

B
Goods received back from Mahesh, Rs.250 have not been entered in the Returns Inward Book.

C
Office furniture purchases from Ravi and Co. Rs. 950 has been entered in the Purchase book.

D
A purchase of Rs. 251 from Gopal and Co. has been entered in the Purchase Book as Rs. 215.

Solution

Purchases have debit balance. So, total of purchase book short will cause the trial balance debit side to be short by 1000. Goods received from Mahesh not entered in the returns Inward book affects both debit and credit side because entry is not made in books. Office furniture purchased entered in purchase book also does not affect total of trial balance. Purchase of 251 recorded as 215 is the amount wrongly entered in both the accounts. All are two sided error that does not affect the totals.
Question 7
1 / -0

The trial balance _________.

A
is a formal financial statement

B
is used to prove that there are no errors in the journal or ledger

C
provides a listing of every account in the chart of accounts

D
provides a listing of the balance of each account in active use

Solution

The statement in which the debit and credit balances are noted down for each of the account is called a trial balance. Trial balance is prepared to check the arithmetical accuracy of the accounting. There are two main objective of preparation of trial balance:
1) It is a check on the accuracy of posting. If trial balance agrees, this proves that books are arithmetically correct.
2) It brings all ledger balances together at one place.This will help in preparing the profit & loss account and balance sheet.
Question 8
1 / -0

An entry of $$Rs.500$$ was wrongly posted to wages account instead of machinery account, as wages are to be capitalized. It is an error of _________.

A
Commission

B
Ommission

C
Principle

D
Clerical error

Solution

When a capital expenditure is wrongly debited as revenue expenditure, this is an error of principle. Amount spent on purchasing of machinery including all incidental expenses till the machine is ready for out to use, to be debited to machinery account.
$$Rs.500$$ spent for wages on purchase of machinery wrongly debited to wages account is an error of principle.
Question 9
1 / -0

Which of the following errors will not cause the trial balance to be out of balance ?

A
Purchase Book carried forward Rs.100 less.

B
Paid wages Rs. 480 for construction of a room credited to Wages account.

C
Purchase return book for march 1979 was under cast by Rs. 35.

D
None of the above.

Solution

The errors mentioned in option A, B and C are one sided errors which may cause the trial balance to be out of order whereas the two errors does not affect the trial balance.
Question 10
1 / -0

Which of the following errors will not cause the trial balance to be out of order?

A
Rs. 590 received from Pulkit has been debited to Suresh.

B
A purchase of Rs. 258 from Lekhi has been debited to his account as Rs. 285.

C
The total of the discount column of the Cash Book (Cr.) is Rs.25 short.

D
An invoice for Rs.460 is entered in the Sales Book as Rs.640.

Solution

Sales day book is a subsidiary book. An invoice of $$Rs.460$$ is entered as $$Rs.640$$. Posing of this amount is directly debited to customer account as $$Rs.640$$ and the total of sales day book will also be done by taking the figure of $$Rs.640$$. Hence, there will be no effect in trial balance.

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 34

Result

Trial Balance and Rectification of Errors Test 34

Score

-

Rank

-

SHARING IS CARING

Question 1

It is a list of balances on the books.

It is a special account.

Shows the financial position of a business.

Shows all the entries in the books.

Solution

Question 2

Wrong amount entered in the book of original entry.

Wrong amount entered in a ledger account.

Complete omission of an entry from the book of original entry.

All of the above.

None of the above.

Solution

Question 3

Commission

Omission

Principle

None of the above

Solution

Question 4

Commission

Principle

Omission

Compensatory

Solution

Question 5

I-(c), II-(a), III-(d), IV-(b)

I-(b), II-(a), III-(d), IV-(c)

I-(c), II-(a), III-(b), IV-(d)

I-(b), II-(a), III-(c), IV-(d)

Solution

Question 6

The total of the purchase book is Rs.1000 short.

Goods received back from Mahesh, Rs.250 have not been entered in the Returns Inward Book.

Office furniture purchases from Ravi and Co. Rs. 950 has been entered in the Purchase book.

A purchase of Rs. 251 from Gopal and Co. has been entered in the Purchase Book as Rs. 215.

Solution

Question 7

is a formal financial statement

is used to prove that there are no errors in the journal or ledger

provides a listing of every account in the chart of accounts

provides a listing of the balance of each account in active use

Solution

Question 8

Commission

Ommission

Principle

Clerical error

Solution

Question 9

Purchase Book carried forward Rs.100 less.

Paid wages Rs. 480 for construction of a room credited to Wages account.

Purchase return book for march 1979 was under cast by Rs. 35.

None of the above.

Solution

Question 10

Rs. 590 received from Pulkit has been debited to Suresh.

A purchase of Rs. 258 from Lekhi has been debited to his account as Rs. 285.

The total of the discount column of the Cash Book (Cr.) is Rs.25 short.

An invoice for Rs.460 is entered in the Sales Book as Rs.640.

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.