Trial Balance and Rectification of Errors Test 41

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Trial Balance and Rectification of Errors Test 41

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Question 1
1 / -0

Making an entry on the wrong side are ___________.

A
Errors of Principle

B
Compensating Errors

C
Errors of Omission

D
Errors of Commission

Solution

Error of commission is that where the amount is wrongly posted or amount is posted in a wrong account. For example an amount of Rs.200 debited to Ram's a/c against the purchases instead of crediting his a/c.
Question 2
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 errors are known as ___________.

A
errors of partial ommission

B
errors of complete ommission

C
errors of principle

D
compensating errors

Solution

When a particular accounting transaction is omitted to be recorded in the books of account, this is an error of omission. This kind of error are clerical error and happened due to negligence of the person responsible for accounting.
Error of omission may be due to partial omission and complete omission. In case of complete error, a transaction is completely omitted to be recorded.
Question 3
1 / -0

Missing to transfer 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

When an accounting transaction is missed out in recording or partially missed out in posting, such error are called errors of omission. Omission may be partial or complete omission.
For example, Rs.4500 balance in Ram's a/c is missed out while transferring the balance in trial balance. Its an error of omission.
Question 4
1 / -0

If a purchase return of Rs.100 has been wrongly posted to the debit of the sales return account, but had been correctly entered in the suppliers account, the total of the trial balance would show the ____________.

A
Credit Side to be Rs.100 more than debit side

B
Debit Side to be Rs.100 more than credit side

C
Credit Side to be Rs.200 more than debit side

D
Debit Side to be Rs.200 more than credit side

Solution

For the purchase return of Rs.100, purchase return account should be credited. Instead of the credit to purchase return an amount of Rs.100 is debited to sales return. This will make the effect double i.e of Rs.200. In such situation, trial balance debit side will be more by Rs.200 than credit side.
Question 5
1 / -0

Which of the following errors is an error of omission?

A
Sale was written in the purchases journal.

B
Wages paid to Mohan have been debited to his account.

C
The total of the sales journal has not been posted to the Sales Account.

D
None of the above.

Solution

When a transaction is left out in recording the same either partially or completely, it is an error of omission. In case of partial error, trial balance will not have an agreement.
The total of the sale journal not posted to sales account,it is an error of omission.
Question 6
1 / -0

Rs$$1,000$$ being the monthly total of discount allowed to customers was credited to discount account in the ledger. If rectification is done before preparation of trial balance then which of the following is correct?

A
Credit A/c Dr. $$2,000$$
To Suspense A/c $$2,000$$

B
Discount A/c Dr. $$2,000$$
To Suspense A/c $$2,000$$

C
Credit the Discount Account with Rs$$2,000$$ saying "To Rectification of wrong credit of Rs$$1,000$$ for discount allowed.... Rs$$2,000$$

D
Debit the Discount Account with Rs$$2,000$$ saying "By Rectification of wrong credit of Rs$$1,000$$ for discount allowed.... Rs$$2,000$$
Question 7
1 / -0

Clerical errors are further classified into _____________________.

A
Errors of omission

B
Errors of commission

C
Compensating errors

D
All of the above

Solution

Errors are classified as:
1) Error of principle
2) Error of Commission
3) Error of Omission
4) Compensating Error

The error of principle is the error where the basic fundamental accounting principle is not followed.
The other errors like the error of commission, error of omission and compensating error are those which are committed by the accountants. These are called clerical error.
Question 8
1 / -0

A credit sale of Rs$$1,000$$ to Santhanam has been wrongly passed through the purchases book. Which of the following rectification entry is correct?

A
Suspense A/c Dr. $$2,000$$
To Sales A/c $$1,000$$
To Purchases A/c $$1,000$$

B
Purchases A/c Dr $$2,000$$
To Santhanam A/c $$2,000$$

C
Santhanam A/c Dr. $$2,000$$
To Sales A/c $$1,000$$
To Purchases A/c $$1,000$$

D
Sales A/c Dr. $$1,000$$
Purchases A/c Dr. $$1,000$$
To Santhanam A/c $$2,000$$

Solution

This error will have double affect on trial balance as instead of credit to sales account, a debit is posted in purchase account. To rectify the error, following rectification entry need to be passed in books of account:

Santhanam A/c Dr. $$2000$$
To Sales A/c $$1000$$
To Purchase A/c $$1000$$
Question 9
1 / -0

Rs$$15,000$$ received from Karan has been credited to Ravan. Which of the following rectification entry is correct?

A
Ravan A/c Dr $$15,000$$
To Karan A/c $$15,000$$

B
Karan A/c Dr $$15,000$$
To Ravan A/c $$15,000$$

C
Ravan A/c Dr $$15,000$$
To Suspense A/c $$15,000$$

D
Suspense A/c Dr $$15,000$$
To Karan A/c $$15,000$$

Solution

This is an error of commission. Amount received from Karan has to be credited to his account not to the account of Ravan. Rectification entry will be as under:

Ravan A/c Dr. 15000
To Karan A/c 15000
Question 10
1 / -0

If an amount paid for servicing vehicles has been posted in error to Motor Vehicles account. The journal entry necessary to correct this error should require which of the following?

A
Debit Vehicle Maintenance A/c and credit Motor Vehicles A/c

B
Debit Cash A/c and credit Motor Vehicles A/c

C
Debit Motor Vehicles A/c and credit Vehicle Maintenance A/c

D
Debit Vehicle Maintenance A/c and credit Cash A/c

Solution

Original entry to be passed:
Vehicle Maintenance A/c Dr.
To Cash A/c

Wrong Entry Passed:
Motor Vehicle A/c Dr.
To Cash A/c

Rectification entry to be passed:
Vehicle Maintenance A/c Dr.
To Motor Vehicle A/c

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Trial Balance and Rectification of Errors Test 41

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Trial Balance and Rectification of Errors Test 41

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Question 1

Errors of Principle

Compensating Errors

Errors of Omission

Errors of Commission

Solution

Question 2

errors of partial ommission

errors of complete ommission

errors of principle

compensating errors

Solution

Question 3

Errors of principle

Errors of commission

Errors of omission

Compensating errors

Solution

Question 4

Credit Side to be Rs.100 more than debit side

Debit Side to be Rs.100 more than credit side

Credit Side to be Rs.200 more than debit side

Debit Side to be Rs.200 more than credit side

Solution

Question 5

Sale was written in the purchases journal.

Wages paid to Mohan have been debited to his account.

The total of the sales journal has not been posted to the Sales Account.

None of the above.

Solution

Question 6

Credit A/c Dr. $$2,000$$To Suspense A/c $$2,000$$

Discount A/c Dr. $$2,000$$To Suspense A/c $$2,000$$

Credit the Discount Account with Rs$$2,000$$ saying "To Rectification of wrong credit of Rs$$1,000$$ for discount allowed.... Rs$$2,000$$

Debit the Discount Account with Rs$$2,000$$ saying "By Rectification of wrong credit of Rs$$1,000$$ for discount allowed.... Rs$$2,000$$

Question 7

Errors of omission

Errors of commission

Compensating errors

All of the above

Solution

Question 8

Suspense A/c Dr. $$2,000$$To Sales A/c $$1,000$$To Purchases A/c $$1,000$$

Purchases A/c Dr $$2,000$$To Santhanam A/c $$2,000$$

Santhanam A/c Dr. $$2,000$$To Sales A/c $$1,000$$To Purchases A/c $$1,000$$

Sales A/c Dr. $$1,000$$Purchases A/c Dr. $$1,000$$To Santhanam A/c $$2,000$$

Solution

Question 9

Ravan A/c Dr $$15,000$$ To Karan A/c $$15,000$$

Karan A/c Dr $$15,000$$ To Ravan A/c $$15,000$$

Ravan A/c Dr $$15,000$$ To Suspense A/c $$15,000$$

Suspense A/c Dr $$15,000$$ To Karan A/c $$15,000$$

Solution

Question 10

Debit Vehicle Maintenance A/c and credit Motor Vehicles A/c

Debit Cash A/c and credit Motor Vehicles A/c

Debit Motor Vehicles A/c and credit Vehicle Maintenance A/c

Debit Vehicle Maintenance A/c and credit Cash A/c

Solution

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Credit A/c Dr. $$2,000$$
To Suspense A/c $$2,000$$

Discount A/c Dr. $$2,000$$
To Suspense A/c $$2,000$$

Suspense A/c Dr. $$2,000$$
To Sales A/c $$1,000$$
To Purchases A/c $$1,000$$

Purchases A/c Dr $$2,000$$
To Santhanam A/c $$2,000$$

Santhanam A/c Dr. $$2,000$$
To Sales A/c $$1,000$$
To Purchases A/c $$1,000$$

Sales A/c Dr. $$1,000$$
Purchases A/c Dr. $$1,000$$
To Santhanam A/c $$2,000$$

Ravan A/c Dr $$15,000$$
To Karan A/c $$15,000$$

Karan A/c Dr $$15,000$$
To Ravan A/c $$15,000$$

Ravan A/c Dr $$15,000$$
To Suspense A/c $$15,000$$

Suspense A/c Dr $$15,000$$
To Karan A/c $$15,000$$