CBSE Class 11 Accountancy Rectification Of Errors MCQs Set 01

MCQs

Question : Goods lost by fire should be credited to:
a) Trading A/c
b) Loss by Fire A/c
c) Sales A/c
d) Profit & Loss A/c
Answer :  A

Question :  Sales of Rs.10,000 recorded as Rs. 1,000 is an example of:
a) Compensating Error
b) Errors of principle
c) Errors of omission
d) Errors of commission
Answer : A

Question :  Trial Balance might match in spite of presence of:
a) Errors of complete omission, Errors of principle
b) Errors of complete omission
c) Errors of commission
d) Errors of principle
Answer :  A

Question : Compensating errors are of a ___________ nature.
a) Neutralizing
b) Consistent
c) Concealing
d) Accommodating
Answer :  A

Question : Rectification entries are passed in -
a) Journal Proper
b) Purchase Book
c) Sales Book
d) None of the options
Answer :  A

Question : Under casting of Sales book is corrected by______Sales Account
a) Crediting
b) Debiting
c) Balancing
d) Ignoring
Answer :  A

Question :  A Suspense Account will give the
a) Debit or Credit balance
b) Debit balance
c) Credit balance
d) None of the options
Answer :  A

Question :  Purchase of office furniture worth Rs. 5,000 has been debited to General expenses account. Identify the error.
a) Error of Principle
b) Clerical error
c) Error of omission
d) None of the options
Answer : A

Question :  Rs. 2000 received from Smith whose account was previously written off as bad debt should be credited to -
a) Bad debts recovered Account
b) Smiths Account
c) Cash Account
d) None of the options
Answer :  A

Question :  A Trial Balance is prepared to
a) Ensure Arithmetical accuracy
b) Locate Errors of Principle
c) Locate Errors of omission
d) Locate Errors of commission
Answer :  A

Question :  Errors of complete omission permit
a) All the above
b) Correct totaling of B/S
c) The Trial balance to agree
d) Correct totaling of Trial Balance
Answer :  A

Question :  Goods worth Rs.100 given as charity should be credited to -
a) Purchase Account
b) Sales Account
c) Charity Account
d) None of the options
Answer :  A

Question :  On purchase of old furniture, the amount of Rs. 1,000 spent on its repairs should be debited to -
a) Furniture Account
b) Repairs Account
c) Cash Account
d) None of the options
Answer :  A

Question :  Rs. 2,000 paid as wages for erecting a machine should be debited to -
a) Machinery Account
b) Wages Account
c) Capital Account
d) None of the options
Answer :  A

Question :  Wages paid to a worker making additions to machinery amounting to Rs. 5,000 were debited to the Wages account. Identify the type of error.
a) Error of principle
b) Compensating error
c) Error of omission
d) Error of commission
Answer :  A

Question :  Which of the following is true about compensating error -
a) It is not disclosed in the trial balance, One error is nullified by the other.
b) It is not disclosed in the trial balance.
c) One error is nullified by the other.
d) None of the options
Answer :  A

Question : Goods sold to Sethi for Rs.640 was recorded in his account as Rs.460. In the rectifying entry, Sethi’s A/c will be debited with :
a) 180
b) 460
c) 640
d) 1,100
Answer :  A

Question : A brief-case purchased for Rs.800 for the son of a partner was debited to General Exp. A/c with Rs.80. In the rectifying entry, Drawings A/c should be debited with:
a) 880
b) 720
c) 800
d) 80
Answer :  C

Question : Suspense Account is a
a) Real Account
b) Personal Account
c) Nominal Account
d) Any of these
Answer :  D

Question : It is easy to detect………….… than to…………………….
a) frauds, errors
b) mistakes, frauds
c) errors, frauds
d) errors, mistakes
Answer :  C

Question : On purchase of old furniture, the amount of Rs. 1,000 spent on its repairs should be debited to
a) Repairs Account.
b) Furniture Account.
c) Cash Account.
d) None of these
Answer : B

Question : Goods of Rs. 500 given as charity should be credited to
a) Charity Account.
b) Sales Account.
c) Purchases Account.
d) None of these.
Answer : C

Question  : Goods of Rs. 1,000 taken by the proprietor for personal use should be credited to
a) Sales Account.
b) Proprietor’s Personal Expenses Account.
c) Purchases Account.
d) None of these.
Answer : C

Question : Errors of omission permit
a) correct totalling of the Balance Sheet.
b) correct totalling of the Trial Balance,
c) the Trial Balance to match.
d) None of these.
Answer : C

Question : Rs. 2,000 received from Smith whose account was previously written off as Bad
Debt should be credited to
a) Bad Debts Recovered Account.
b) Smith’s Account.
c) Cash Account.
d) None of these.
Answer : A

Question  : Goods destroyed by fire is credited to
a) Trading Account.
b) Goods lost by Fire Account. .
c) Sales Account.
d) None of these.
Answer : D

Question : Error not shown by Trial Balance are:
a) Errors of Principle.
b) Compensating Errors.
c) Errors of Complete Omission.
d) All of the above.
Answer : D

Question  : An amount of Rs. 5,000 received from Ram is credited to Shyam. It is an error of
a) Omission.
b) Commission.
c) Compensation.
d) Principle.
Answer : B

Question : Rs. 1,500 received from Bahadur whose account was previously written off as bad-debt should be credited to
a) Bahadur’s A/c
b) Bad-debts Recovered A/c
c) Suspense A/c
d) Cash A/c
Answer : B

Question : Trial Balance is prepared to locate
a) Errors of Principle.
b) Errors of omission.
c) Compensating Errors.
d) None of these.
Answer : D

Question. Agreement of trial balance is affected by
a) one sided errors only
b) two sided errors only
c) both (a) and (b)
d) none of the above
Answer : C

Question. Which of the following is not an error of commission?
a) Overcasting of sales book.
b) Credit sales to Ramesh Rs. 5,000 credited to his account.
c) Wrong balancing of machinery account.
d) Cash sales not recorded in cash book.
Answer : D

Question. If the trial balance agrees, it implies that:
a) there is no error in the books.
b) there may be two sided errors in the book.
c) there may be one sided error in the books.
d) there may be both two sided and one sided errors in the books.
Answer : B

Question. If wages paid for installation of new machinery is debited to wages account, it is
a) an error or commission.
b) an error of principle
c) a compensating error.
d) an error of omission.
Answer : B

Question. A trial balance is prepared:
a) after preparation financial statement.
b) after recording transactions in subsidiary books.
c) after posting to ledger is complete.
d) after posting to ledger is complete and accounts have been balanced.
Answer : D

Fill in the blanks

Question. Errors of principle ________ affect the Trial Balance.
Answer : do not

Question. A Trial Balance ________ despite the existence of several errors in the books.
Answer : tallies

Question. Overcasting in salaries account is rectified by ________ suspense account and ________ salaries account.
Answer : debiting, crediting

Question. Journal entries passed to correct errors are called ________
Answer : rectifying entries

Question. While preparing ________ the ledger account balances are carried from the Trial Balance.
Answer : financial statement