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Question Excerpt From Rectification of Errors
Q.1)
While finalizing the current year's profit, the company realized that
there was an error in the valuation of closing stock of the previous
year. In the previous year, closing stock was valued more by
Rs.50,000. As a result
A
Previous year's profit is overstated and current year's profit is also overstated. B. Previous year's profit is understated and current year's profit is overstated. C. Previous year's profit is understated and current year's profit is also understated. D. Previous year's profit is overstated and current year's profit is understated.
Q.2)
Which of the following errors are not revealed by the Trial Balance:
A
Compensating errors B. Errors of commission C. Wrong balancing of an account D. Wrong totalling of an account
Q.3)
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
Q.4)
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' acpount, 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.
Q.5)
The preparation of a trial balance is for: A . Locating errors of complete omission. B. Locating errors of principle. C. Locating clerical errors. D. All of the above.
Q.6)
The accountant of the firm M/s ABC is unable to tally the following trial balance
S. No. Account heads Debit (Rs.) Credit(Rs.) 1. Sales
15,000 2. Purchases 10,000 3. Miscellaneous expenses
2,500 4. Salaries 2,
Total 12,500 17,500 The above difference in trial
balance is due to
A
Wrong placing of sales account B. wrong placing of salaries account
D. Journal; Trial balance
Q.10)
Unintentional omission or commission of amounts and accounts in the process of recording transactions are known as A . Frauds B. Misinterpretation. C. Errors D. None of the above
Q.11)
"Treating a revenue expense as a capital expenditure" is an example of A . Compensating errors. B. Error of principle. C. Error of omission. D. Error of commission.
Q.12)
If an effect of an error is cancelled by the effect of some other error, it is 11 commonly known as A . Errors of principle B. Compensating errors C. Errors of omission.
D. Errors of commission
Q.13)
When opening stock is overstated, net income for the accounting period will be A . Overstated B. Not be affected C. Understated D. None of the above
Q.14)
If a sales return of Rs.1,500 has been wrongly posted to the credit of the purchase returns account, but has been correctly entered in the debtors' account, the total of the A . Trial balance would show the debit side to be Rs.3,000 more than the credit B. Trial balance would show the credit side to be Rs.3,000 more than the debit. C. The debit side of the trial balance will be Rs. 1,500 more than the credit side. D. The credit side of the trial balance will be Rs. 1,500 more than the debit side
Q.15)
Which of the following errors will affect the trial balance? A . Repairs to building wrongly debited to Building A/c B. Total of Purchase Journal by Rs. 1,000 short. C. Freight paid on new machinery debited to Freight A/c D. None of the three
B. Rs. 9, C. Rs.11,
