Trial Balance and Rectification of Errors Test

Result

Trial Balance and Rectification of Errors Test - 2

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Weekly Quiz Competition

Question 1
1 / -0

Which error occur due to incorrect classification of expenditure or receipt between capital and revenue?

A
Error of principle

B
Compensating Errors

C
Errors of Commission

D
Errors of Omission

Solution

Accounting entries are recorded as per the generally accepted accounting principles (GAAP). If any of these accounting principles are violated or ignored, errors resulting from such violation are known as errors of principle.
Question 2
1 / -0

Rs.200 received from Shyam whose account was previously written off as bad debts should be credited to

A
Shyam A/c

B
Bad debts recovered A/c

C
Cash A/c

D
None

Solution

An account written off as bad can not be reopened if the amount (or a part of it) is recovered later. The amount recovered is treated as an income and credited to bad debts recovered account.
Question 3
1 / -0

Which of the following is not a type of error.

A
Compensating Errors

B
Errors of Commission

C
Suspense Account

D
Errors of Omission

Solution

Suspense account is opened to tally the trial balance, when accounting errors cause disagreement of trial balance.
Question 4
1 / -0

A trial balance is prepared to know:

A
Whether both sides are equal or not

B
Balance of Suspense Account

C
Debit Balance

D
Credit Balance

Solution

Trial balance is prepared to check the arithmetical accuracy of posting into the ledger accounts. If there are errors in posting, the totals of the two sides will not be equal.
Question 5
1 / -0

Which of the following is not an error of principle

A
Sale of old car credited to sales account

B
Cash paid to Karan (an employee) posted to salary

C
Purchase of furniture debited to purchase account

D
Repair or the over hauling of machinery purchased debited to repairs account

Solution

it will be an error of principle only if Karan is not an employee.
Question 6
1 / -0

Which of the following is not an error of commission?

A
Wrong balancing of machinery account

B
Overcasting of sales book

C
Credit sales to Pawan Rs.5000 credited to his account

D
Cash sales not recorded in cash book

Solution

It is an error of omission.
Question 7
1 / -0

Which of the following will not affect the trial balance

A
Instead of posting on the debit side, amount has been posted on the credit side

B
goods returned to supplier not recorded

C
Instead of debiting the account, it has been credited by mistake.

D
Not posted in subsidiary accounts, accounts are not opened in the ledger

Solution

It will not affect the trial balance because it is a two sided error.
Question 8
1 / -0

Debit balance of suspense account will be shown at _____ side and Credit balance will be shown at _____ side of balance sheet.

A
Assets, Capital

B
Liabilities, Assets

C
Assets, liabilities

D
Capital , Assets

Solution

Debit balance of every account is shown at the assets side while the credit balance is shown at liabilities side.
Question 9
1 / -0

Suspense account is opened when ____ does not tally

A
Balance sheet

B
Trading account

C
Trial balance

D
Profit and loss

Solution

When accounting errors cause the trial balance to disagree, suspense account is opened to tally the trial balance.
Question 10
1 / -0

Raj Hans Traders paid Rs.25,000 to Preetpal Traders (a supplier of goods). This transaction was correctly recorded in the cashbook. But while posting to the ledger, Preetpal’s account was debited with Rs.2,500 only. This constitutes an error of

A
Compensating

B
Principle

C
Commission

D
Omission

Solution

Errors which are committed due to wrong posting of transactions, wrong totalling or balancing of the accounts, wrong casting of the subsidiary books, or wrong recording of amount in the books of original entry, etc constitute errors of commission.

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Re-Attempt Weekly Quiz Competition

Trial Balance and Rectification of Errors Test - 2

Result

Trial Balance and Rectification of Errors Test - 2

Score

-

Rank

-

SHARING IS CARING

Question 1

Error of principle

Compensating Errors

Errors of Commission

Errors of Omission

Solution

Question 2

Shyam A/c

Bad debts recovered A/c

Cash A/c

None

Solution

Question 3

Compensating Errors

Errors of Commission

Suspense Account

Errors of Omission

Solution

Question 4

Whether both sides are equal or not

Balance of Suspense Account

Debit Balance

Credit Balance

Solution

Question 5

Sale of old car credited to sales account

Cash paid to Karan (an employee) posted to salary

Purchase of furniture debited to purchase account

Repair or the over hauling of machinery purchased debited to repairs account

Solution

Question 6

Wrong balancing of machinery account

Overcasting of sales book

Credit sales to Pawan Rs.5000 credited to his account

Cash sales not recorded in cash book

Solution

Question 7

Instead of posting on the debit side, amount has been posted on the credit side

goods returned to supplier not recorded

Instead of debiting the account, it has been credited by mistake.

Not posted in subsidiary accounts, accounts are not opened in the ledger

Solution

Question 8

Assets, Capital

Liabilities, Assets

Assets, liabilities

Capital , Assets

Solution

Question 9

Balance sheet

Trading account

Trial balance

Profit and loss

Solution

Question 10

Compensating

Principle

Commission

Omission

Solution

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Question Analysis

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