Trial Balance and Rectification of Errors Test 9

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Trial Balance and Rectification of Errors Test 9

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Weekly Quiz Competition

Question 1
1 / -0

Ratification of a contract

A
Can be retrospective

B
Is always prospective

C
Can never be done

D
Can be done any time retrospective or prospective
Question 2
1 / -0

Non-recording of a transaction in books of account is an error of _______

A
Principle

B
Omission

C
Commission

D
Compensatory Nature

Solution

There are mainly 2 types of errors
1. Error of Principle
2. Clerical Errors: It is sub divided into 3 kinds
- Error of Omission
- Error of Commission
- Compensating Error

When a transaction is not recorded in the books of accounts then it known as Error of omission
Question 3
1 / -0

If r=0.8, N=100, the probable error of coefficient of correlation is.........

A
0.021

B
0.024

C
0.29

D
0.031
Question 4
1 / -0

A credit sales of Rs. $$4000$$ to $$Y$$ was credited to $$Y$$'s A/c. Rectification entry would be passed if the error is detected after preparation of trial balance but before preparation of Trading and profit and loss A/c

A
Debtor's A/c Dr $$8000$$., Sales A/c Cr Rs. $$8000$$

B
Debtor's A/c Dr Rs.$$8000$$., Sales A/c Cr Rs. $$4000$$, Suspense A/c Rs. $$4000$$

C
No entry, Debit Debtors A/c By Rs. $$8000$$

D
Debtors A/c Dr Rs. $$4000$$, Sales A/c Cr Rs. $$4000$$
Question 5
1 / -0

Trial balance is prepared to __________.

A
Check true and fair view of balance Sheet.

B
To check arithmetic accuracy of Accounts.

C
To ensure legal compliance

D
To ensure compliance to IFRS

Solution

The trial Balance is prepared to
1. To ascertain the arithmetical accuracy of the ledger accounts.
2. To help in locating errors.
3. To help in the preparation of the financial statements. (Profit & Loss account
and Balance Sheet).
Question 6
1 / -0

Select thee false statement

A
Errors of omission does not effect agreement of trial balance

B
Trial Balance is left unaffected by errors of principle

C
The agreement of trial balance is no guarantee that there is no error in the acounts

D
Compensating errors affect agreement of trial balance
Question 7
1 / -0

Based on the facts given in question No .59 what rectification entry would be passed if the error is detected before finalization of Accounts but after preparation of Trial balance

A
Sales Dr Rs.45,000,Debtors Cr Rs.45,000

B
Stock debit Rs.30,000 Trading A/c Cr Rs. 30,000

C
Sales Dr Rs.45,000,Stock debit Rs.30,000, Trading A/c Cr Rs.75,000

D
Sales Dr Rs.45,000 , Stock debit Rs.30,000 Debtors Cr Rs.45,000, Trading A/c Cr Rs.30,000
Question 8
1 / -0

In question 16 on rectification Furniture A/c will be

A
Credited by Rs.1,090

B
Debited by Rs.1,090

C
Credited by Rs.901

D
Debited by Rs.109
Question 9
1 / -0

A trade purchase of Rs.5500 from Y was passed through Sale Day book as Rs.550,what rectification entry would be passed if the mistake is detected in the subsequent financial year

A
Sale A/c Dr Rs.550, Purchase A/c Dr Rs. 5500,Y's A/c Cr Rs.6050

B
Profit and loss adjustment A/c Dr Rs.6050, Y's A/c Cr Rs.6050

C
Sales A/c Dr Rs 550,Purchase A/c Dr Rs.5500,Suspense A/c Cr Rs.6050

D
None
Question 10
1 / -0

Rs.5000 paid as local cartage on material purchased. However this amount was booked under miscellaneous expense A/c instead of on carriage inward. Due to this error net profit and loss will .......

A
increase by Rs. 5000

B
decrease by Rs. 5000

C
increase by Rs. 10,000

D
not be affected at all

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Trial Balance and Rectification of Errors Test 9

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Trial Balance and Rectification of Errors Test 9

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Question 1

Can be retrospective

Is always prospective

Can never be done

Can be done any time retrospective or prospective

Question 2

Principle

Omission

Commission

Compensatory Nature

Solution

Question 3

0.021

0.024

0.29

0.031

Question 4

Debtor's A/c Dr $$8000$$., Sales A/c Cr Rs. $$8000$$

Debtor's A/c Dr Rs.$$8000$$., Sales A/c Cr Rs. $$4000$$, Suspense A/c Rs. $$4000$$

No entry, Debit Debtors A/c By Rs. $$8000$$

Debtors A/c Dr Rs. $$4000$$, Sales A/c Cr Rs. $$4000$$

Question 5

Check true and fair view of balance Sheet.

To check arithmetic accuracy of Accounts.

To ensure legal compliance

To ensure compliance to IFRS

Solution

Question 6

Errors of omission does not effect agreement of trial balance

Trial Balance is left unaffected by errors of principle

The agreement of trial balance is no guarantee that there is no error in the acounts

Compensating errors affect agreement of trial balance

Question 7

Sales Dr Rs.45,000,Debtors Cr Rs.45,000

Stock debit Rs.30,000 Trading A/c Cr Rs. 30,000

Sales Dr Rs.45,000,Stock debit Rs.30,000, Trading A/c Cr Rs.75,000

Sales Dr Rs.45,000 , Stock debit Rs.30,000 Debtors Cr Rs.45,000, Trading A/c Cr Rs.30,000

Question 8

Credited by Rs.1,090

Debited by Rs.1,090

Credited by Rs.901

Debited by Rs.109

Question 9

Sale A/c Dr Rs.550, Purchase A/c Dr Rs. 5500,Y's A/c Cr Rs.6050

Profit and loss adjustment A/c Dr Rs.6050, Y's A/c Cr Rs.6050

Sales A/c Dr Rs 550,Purchase A/c Dr Rs.5500,Suspense A/c Cr Rs.6050

None

Question 10

increase by Rs. 5000

decrease by Rs. 5000

increase by Rs. 10,000

not be affected at all

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