CBSE Class 11 Accountancy Rectification Of Errors MCQs Set E

Question: The amount of the dishonoured bill has been wrongly debited to the general expenses account. Which type of error has been committed?
a) Error of principle
b) Compensating error
c) Error of complete omission
d) All of the options
Answer: a

Question: Goods worth RS 24000 were returned by X. the accountant however, credited the sales returns account by Rs 42,000. In order to rectify this error, what should be done?
a) Debit the sales return account by Rs 42,000.
b) Credit the sales return account by Rs 24,000
c) Debit the sales return account by Rs 66,000
d) Debit the sales return account by Rs 18,000
Answer: c

Question: If a trial balance doesn’t agree, then which account is opened in order to reconcile the trial balance?
a) Profit and loss account
b) Suspense account
c) Goodwill account
d) Capital reserve
Answer: b

Question: Omission of an account from the trial balance ________ the trial balance.
a) Will affect
b) Will not affect
c) None of the options
Answer: a

Question: After providing the trial balance the accountant finds that the total of debit side is short by Rs 2,500. This difference will be
a) Credited to suspense account
b) Debited to suspense account
c) Adjusted to any of the debit balance accounts
d) Adjusted to any of the credit balance accounts
Answer: b

Question: The reason for agreement of a trial balance is _________.
a) Transactions have dual aspect
b) Transactions have single aspect
c) Because of suspense account
d) None of the options
Answer: a

Question: Trial balance is _________
a) An account
b) A statement
c) A balance sheet
d) None of the options
Answer: b

Question: Trial balance checks the ____________.
a) Principle errors
b) Compensating errors
c) Arithmetical accuracy
d) None of the options
Answer: c

Question: If a purchase return of Rs 2000 has been wrongly posted to the debit of the sales returns account, but has been correctly entered in the suppliers account the total to the:
a) Trial balance would show the debit side to be Rs 2000 more than the credit
b) Trial balance would show the credit side to be Rs 2000 more than the debit
c) Debit side of the Trial balance will be Rs 4000 more than the credit side
d) Credit side of the trial balance will be Rs 4000 more than the debit side
Answer: c

Question: Interest on drawings indicates ___________balance in trial balance.
q) Debit
b) Credit
c) Both
d) None of the options
Answer: b

Question: Carriage inwards, carriage outwards, return inwards and return outwards.
a) All above items depict debit balances
b) All above items depict credit balances
c) One debit and three credit
d) One credit and three debit
Answer: d

Question: Rs 1500 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 the link between ________ and _______.
a) Journal and ledger
b) Ledger and subsidiary books
c) Ledger and final accounts
d) None of the options
Answer: c

Question: Sale of typewriter that has been used in the office credited to sales account , which account is to be credited:
a) Sales A/c
b) Cash A/c
c) Capital A/c
d) Typewriter a/c
Answer: d

Question: Purchase of office furniture for Rs 20,000 has been debited to Purchase A/c it is:
a) An error of omission
b) An error of commission
c) Compensating Error
d) An error of Principle
Answer: d

Fill In The Blanks.

Question: It is easy to detect errors than to ……………….
Answer: fraud

Question: An amount wrongly recorded in journal is an error of ……………….
Answer: commission

Question: Transaction recorded in journal without using proper rules of accounting is known as …………… error.
Answer: principal

Question: When an error effect only one account & also incurred difference in trial balance is known as ……………….
Answer: single side or arithmetical error

Question: If the suspense account indicates a debit balance, it shows that – – – – column of the trial balance is more than the – – – – column.
Answer: credit, Debit

Question: – – – – balance of personal account represents the amount payable to him.
Answer: credit

Question: The process of writing the difference of totals on the shorter side of the account is known as – – – –.
Answer: balancing

Question: Trial balance is a list of the balances of all – – – – accounts and – – – – accounts.
Answer: Real and personal

Question: Output CGST A/c will be shown on the – – – – side of the Balance Sheet.
Answer: Liabilities

Question: Difference in trial balance arise due to ……………… error.
Answer: single side error

True/False.

Question: Goods were sold to Mr. Aman for Rs.40,000 and to Mr. Harsh for Rs.30,000. The transactions were recorded properly in the sales book, but Rs.30,000 was posted to Mr. Aman, while Rs.40,000 was posted to Mr. Harsh. This type of error is “Error of commission”.
Answer: False

Question: A trial balance can be prepared only on a particular date.
Answer: False

Question: The errors of omission may be committed at the time of recording the transaction in the books of original entry.
Answer: True

Question: On the basis of nature of errors, all the error can be classified into four categories.
Answer: True

Question: Trial Balance facilitates preparation of final accounts.
Answer: True

Question: If purchase book has been overcast by Rs.10,000 resulting in excess debit of Rs.10,000 in purchase account and return inward book is undercast by Rs.10,000 resulting in short debit to return inward account is a case of compensating errors.
Answer: True

Question: Trial Balance is prepared to check the arithmetic accuracy of ledger accounts.
Answer: True

Question: A Trial Balance shows either debit or credit balances.
Answer: False

Match The Following

Question:
1. Errors which do not affect the trial balance .                  a. Credit Purchase from raj Rs 10,000 were recorded in sales book
2. Errors which do not affect the trial balance .                  b. Credit purchase from raj Rs 10,000 were recorded in sales book
                                                                                                but raj account was credited
                                                                                           c.  Both
                                                                                           d. None of the options
Answer: 1-a,2- b

Question:
1. if Rs5,000 is received as rent and correctly entered in the cash book                     a. Debit side of trial balance will exceed by rupees 5,000
    are not posted to rent account, its effect on trial balance would be     
2. 2.if Rs5,000 is received as rent and correctly entered in the cash book                  b. Credit side of trial balance will exceed by rupees 5,000
    and posted to credit of rent account, its effect on trial balance would be     
                                                                                                                                     c. Trial balances will not agree .
                                                                                                                                     d.Trial balances will agree .
Answer: 1-a,2- d

Question:
1. Sold Goods to Ram Rs 50,000 was wrongly credited to Ram account.                       a. Debited
    To rectify Ram Account will be :
2. Purchased Goods From Ram Rs 50,000 was wrongly Debited to Ram                       b. Credited
   account. To rectify Ram Account will be :
                                                                                                                                        c. No debit
                                                                                                                                        d. No credit
Answer: 1-a,2- b

Question:
1. Discount allowed to customer Rs 500 has been posted to the credit of Discount Received             a. overcast
    account , then the total amount of discount Received account is : 
2. Discount allowed to customer Rs 500 has been posted to the credit of Discount Received             b. undercast
    account , then the total amount of discount allowed account is :
                                                                                                                                                               c. Correctly cast
                                                                                                                                                               d. None of the options
Answer: 1-a,2- b

Question:
1. A trial balance may be prepared at                       a. End of every month, quarterly ,half yearly
2. journal is prepared                                                b. every day
                                                                                  c. yearly
                                                                                  d. Particular Date .
Answer: 1-d,2- b

Question:
1. Trial balance is a statement which does not ensure the accuracy of books of accounts.                   a. Errors of omission
    The errors which remain undetected even if the trial balance agrees are  
2. if the effect of one error is neutralized by the effect of some other error it is                                       b. Errors of commission
                                                                                                                                                                 c. Compensating error
                                                                                                                                                                 d. All of the options
Answer: 1-d ,2- c

Question:
1. If the effect of one error is neutralized by the effect of some other error .it is                      a. error of commission
2. If a wrong amount is entered either in the journal or subsidiary book                                  b. compensating error
Answer: 1-b,2- a