Study of Trial Balance and Rectification of Errors

This set of MCQs helps students to learn about various important things such as, the meaning of trial balance, enumerate the objectives of preparing trial balance , prepare trial balance, explain the types of errors, state various process of locating errors , identify the errors which affect the agreement of trial balance and those which do not affect the agreement of trial balance, rectify the errors without preparing suspense account, rectify the errors.

Start Quiz

Which of the following is prepared on the basis of Trial Balance –

Journal Ledger Final Accounts None of these.

Of the two sides of Trial balance does not tally, which Account is opened –

Suspense Account Personal Account Real Account None of these.

The error which can be disclosed by Trial balance-

Error of ommission Error of principal Compensatory error None of these.

Which of the following is not an error of principle?

Purchase of furniture debited to purchases account. Repairs on the overhauling of second hand machinery purchased debited to repairs account. Cash received from Manoj posted to Saroj. Sale of old car credited to sales account.

Which of the following is not an error of commission?

Overcasting of sales book. Credit sales to Ramesh Rs. 5,000 credited to his account. Wrong balancing of machinery account. Cash sales not recorded in cash book.

If the trial balance agrees, it implies that:

there is no error in the books. there may be two sided errors in the book. there may be one sided error in the books. there may be both two sided and one sided errors in the books.

If suspense account does not balance off even after rectification of errors it implies that:

there are some one sided errors only in the books yet to be located. there are no more errors yet to be located. there are some two sided errors only yet to be located. there may be both one sided errors and two sided errors yet to be located.

Goods lost by fire should be credited to:

Trading A/c

Loss by Fire A/c

Sales A/c

Profit & Loss A/c

Sales of Rs.10,000 recorded as Rs. 1,000 is an example of:

Compensating Error

Errors of principle

Errors of omission

Errors of commission

Trial Balance might match in spite of presence of:

Errors of complete omission, Errors of principle

Errors of complete omission

Errors of commission

Errors of principle

Compensating errors are of a ___________ nature.

Neutralizing

Consistent

Concealing

Accommodating

Rectification entries are passed in -

Journal Proper

Purchase Book

Sales Book

None of the options

Which of the following errors will be rectified through suspense account?

Sales return book undercast by Rs. 1,000.

Sales return by Madhu Rs. 1,000 not recorded.

Sales return by Madhu Rs. 1,000 recorded as Rs. 100.

Sales return by Madhu Rs. 1,000 recorded through purchases return book

Which of the following is not an error of commission?

Overcasting of sales book

Credit sales to Ramesh Rs. 5,000 credited to his account

Wrong balancing of machinery account

Cash sales not recorded in cash book.

Quiz/Test Summary

Title: Study of Trial Balance and Rectification of Errors

Questions: 14

Contributed by:

Steve Mon, Apr 18, 2022 07:15 AM UTC

Book a Trial Class