Test: Rectification Of Errors - 4 | 14 Questions MCQ Test Crash Course of Accountancy

QUESTION: 1

Goods purchased from A for Rs. 10,000 passed through the sales book. The error will result in

A.
Increase in gross profit.
B.
Decrease in gross profit.
C.
No effect on gross profit.
D.
Either (a) or (b).

Solution:

QUESTION: 2

If a purchase return of Rs.1,000 has been wrongly posted to the debit of the sales returns account, but has been correctly entered in the suppliers’ account, the total of the

A.
trial balance would show the debit side to be Rs.1,000 more than the credit
B.
trial balance would show the credit side to be Rs.1,000 more than the debit.
C.
the debit side of the trial balance will be Rs.2,000 more than the credit side.
D.
the credit side of the trial balance will be Rs.2,000 more than the debit side.

Solution:

This error will give the double affect as instead of credit of Rs.1000 for purchase return, a debit of Rs.1000 is posted to sales return a/c.

Due to this, debit of trial balance will be Rs.2000 more than the credit side.

QUESTION: 3

If the amount is posted in the wrong account or it is written on the wrong side of the account, it is called

A.
error of omission.
B.
error of commission.
C.
error of principle.
D.
compensating error.

Solution:

QUESTION: 4

If a purchase return of Rs.84 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:

A.
the credit side to be Rs.84 more than debit side.
B.
the debit side to be Rs.84 more than credit side.
C.
the credit side to be Rs.168 more than debit side.
D.
the debit side to be Rs.168 more than credit side.

Solution:

QUESTION: 5

Rs. 200 paid as wages for erecting a machine should be debited to

A.
Repair account.
B.
Machine account.
C.
Capital account.
D.
Furniture account

Solution:

QUESTION: 6

On purchase of old furniture, the amount of Rs. 1,000 spent on its repair should be debited to

A.
Repair account;
B.
Furniture account;
C.
Cash account;
D.
Bank account

Solution:

QUESTION: 7

Goods worth Rs. 50 given as charity should be credited to

A.
Charity account;
B.
Sales account;
C.
Purchase account.
D.
Cash account

Solution:

QUESTION: 8

Goods worth Rs. 100 taken by proprietor for domestic use should be credited to

A.
Sales account;
B.
Proprietor’s personal expenses;
C.
Purchases account
D.
Expenses account.

Solution:

QUESTION: 9

Errors of commission do not permit;

A.
Correct totalling of the balance sheet;
B.
Correct totalling of the trial balance;
C.
The trial balance to agree.
D.
None of the above

Solution:

QUESTION: 10

The preparation of a trial balance is for:

A.
Locating errors of commission;
B.
Locating errors of principle;
C.
Locating clerical errors.
D.
All of the above

Solution:

QUESTION: 11

Rs. 200 received from Smith whose account, was written off as a bad debt should be credited to :

A.
Bad Debts Recovered account;
B.
Smith’s account;
C.
Cash account.
D.
Bad debts account

Solution:

QUESTION: 12

Purchase of office furniture Rs. 1,200 has been debited to General Expense Account.It is :

A.
A Clerical error;
B.
An error of principle;
C.
An error of omission.
D.
Compensating error.

Solution:

QUESTION: 13

Goods destroyed by fire should be credited to

A.
Purchase account
B.
Sales account.
C.
Goods lost by fire account;
D.
Cash account

Solution:

The correct answer is A.

The goods destroyed by fire is a loss for the business and is a nominal account. Therefore, according to the rule of nominal account, all the expenses and losses are to be debited. Hence, "Loss by fire A/c" is debited when goods are destroyed by fire and "purchases A/c" is credited.

QUESTION: 14

Sales of office furniture should be credited to

A.
Furniture Account.
B.
Sales Account
C.
Purchase Account.
D.
Cash Account

Solution:

The sale of furniture is credited to the furniture account.

Test: Rectification Of Errors - 4

14 Questions MCQ Test Crash Course of Accountancy - Class 11 | Test: Rectification Of Errors - 4

Goods purchased from A for Rs. 10,000 passed through the sales book. The error will result in

If a purchase return of Rs.1,000 has been wrongly posted to the debit of the sales returns account, but has been correctly entered in the suppliers’ account, the total of the

If the amount is posted in the wrong account or it is written on the wrong side of the account, it is called

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