Rectification of errors questions with solutions class 11

MCQs on rectification of errors

[1] When the total of trial balance is not reconciled, the account opened at this juncture is :  

(a) Trading Account

(b) Suspense account

(c) Profit & Loss account

(d) None of these

ANSWER-(b)

[2] Which type of error occurs when credit sales is wrongly posted to Purchase Day Book:

(a) Error of omission

(b) Error of commission

(c) Compensatory error

(d) Error of principle

ANSWER-(b)

 [3] A purchase of computer was debited to Office Expenditure Account. This is an error of :

(a) Commission

(b) Omission

(c) Principle

(d) Compensatory Error.

ANSWER-(c)

 [4] What will be the effect when return inward is wrongly entered as return outward? .

(a) Gross Profit is increased by ~ 100.

(b) Gross Profit is decreased by ~ 100.

(c) Gross Profit is increased by ~ 200.

 (d) Gross Profit is decreased by ~ 200.

ANSWER-(c)

 [5] Total of sales book was understated by ~ 200. Rectification entry will be :

(a) Sales Nc Debit, Suspense Nc Credit

(b) Suspense Nc Debit, Sales Nc Credit

(c) Debtor Nc Debit, Sales Nc Credit

(d) Sales Nc Debit, Debtors Nc Credit

ANSWER-(b)

[6] Sale of old furniture is erroneously entered in sales book. Rectification entry will be:

(a) Debit Sales Nc, Credit Furniture Nc

(b) Debit Furniture Nc, Credit SalesNc

(c) Debit Debtor Nc, Credit Furniture Nc

(d) Debit Sales Nc, Credit Debtor Nc

ANSWER-(a)

[7] Sale of old furniture is wrongly transferred to Sales Account. Which type of error is this?

(a) Error of Principle

(b) Compensating Error

(c) Error of Omission

(d) Error of Commission

ANSWER-(a)

[8] Sales for ~ 5,000 was entered as purchase. The effect of this error will be:

(a) G.P. will increase by ~ 5,000

(b) G.P. will decrease by ~ 5,000

(c) G.P. will decrease by ~ 10,000

(d) G.P. will increase by ~ 10,000

ANSWER-(c)

[9] A trial balance will not balance if

(a) A correct entry is posted twice

(b) ~ 5,000 received from Harish ‘is posted in the credit side of Hari

(c) Sales on credit basis is credited to sales account and debited in cash account.

(d) Goods of ~ 2,500 returned to Ram is added into the purchases

ANSWER-(d)

[10] A Cloth merchant purchased furniture- and recorded in purchase day book. It is error of

(a) Omission

(b) Principle

(c) Compensation

(d) Commission

ANSWER-(b)

[11] Credit sale of ~ 10,000 made to Sallu was passed through purchase book. The proper entry for rectification was the following:

(a) Sallu Nc Dr. 10,000 To Sales Nc 10,000

(b) Sallu Nc Dr. 20,000 To Purchases Nc 20,000

(c). Sallu Nc Dr. 20,000 To Sales Nc 10,000 To Purchases Nc 10,000

(d) None of the above

ANSWER-(c)

[12] A new machine was purchased for ~ 1,00,000, but the amount was wrongly posted to Furniture account as ~ 10,000 and cash received from debtors ~ 11,200 was omitted to be posted to ledger. The difference in Trial balance due to such error will be:

(a) ~ 90,000

(b) ~ 78,800

(c) ~ 1,01,200

(d) ~ 1,11,200

ANSWER-(b)

[13] An amount of ~ 8,765 paid to M was debited to N’s account. The rectification of the error will-

(a) Increase the net profit

(b) Decrease the net profit

(c) Increase the assets

(d) Have no effect on the net profit

ANSWER-(d)

[14] Ram earned a profit of ~ 1,40,000 for the year 2008-09. But at the time of audit, the auditor found that Ram purchased a scooter on 1.4.08 for ~ 20,000 and charged it as revenue expenses. The auditor advised him to rectify the error now and to charge depreciation @ 15% on scooter. The correct profit after rectification will be:

(a) ~ 1,57,000

(b) ~·1,60,000

(c) ~ 1,40,000

(d) ~ 1,17,000.

ANSWER-(a)

[15] ‘A’ sold goods to ‘B’ on credit for ~ 15,000 but debited to ‘C’ instead of ‘B’. The entry would affect:

(a) Trial Balance

(b) Individual Ledgers

(c) Balance Sheet

(d) Total Debtors

ANSWER-(b)

[16] Bill accepted by Govinda was discounted with the bank for ~ 2000. On the due date the bill was dishonored. However, there is error of Omission towards Bills dishonored. Journal Entry for rectification will be:

(a) BIR Nc Dr. To Bank Nc

(b) Govinda’s Nc Dr. To Bank BIR Nc

(c) Govinda’s Nc Dr. To Bank Nc

(d) Bank Nc Dr. ToBIR Nc

ANSWER-(c)

[17] Error relating to fundamental aspect of accounting is known as.

(a) Error of Principle

(b) Error of Omission

(c) Error of Commission

(d) Compensating

ANSWER-(a)

[18] Goods purchased of ~ 100 from N was not recorded at all. What will be its effect on the trial Balance?

(a) Will tally

(b) Will not tally

(c) Will have no affect

(d) None of these.

ANSWER-(a)

[19] Goods purchased from Keshav ~ 13,500 has been recorded as ~ 13,000 in Purchase Book. The error in this entry is:

(a) Error of Principle

(b) Compensating Error

(c) Error of Commission

(d) Error of Omission.

ANSWER-(c)

[20] ~ 1,000 received as interest, shown as interest paid in cash book. Due to this error the cash balance will be effected by:

(a) ~ 2,000

(b) ~ 1,000

(c) ~ 4,000

(d) None of the above

ANSWER-(a)

[21] If One of the cars purchased by a car dealer is used for business purpose and has been debited to goods for resale A/c, then the rectification entry will be:

(a) Debit Drawings Alc and Credit Purchases Alc

(b) Debit office Expenses Alc and Credit Motor Car Alc

(c) Debit Motor Car A/,c and Credit Purchases Alc

(d) Debit Motor Car Alc and Credit Sales Alc

ANSWER-(c)

[22] Which of the following errors will not be revealed by trial balance at the end of the year?

(a) Purchase day book was over cast by ~ 100

(b) Purchase of ~ 100 in cash was debited to purchase account but· omitted to be entered in cash book. (c) Sales day book was undercast by ~ 500

(d) Purchase of material for ~ 300 used for installation of machinery was debited to purchase account instead of machinery account.

ANSWER-(d)

[23] Hari charges 10% depreciation on plant and machinery. On 1st AprIl 2011 he debited ~ 7,520 paid on installation of plant and machinery to profit and loss account. At the time of preparing final accounts on 31″t March, 2012 due to this error,

 (a) Net Profit will decrease. by ~ 6,768

(b) Net Profit will decrease by ~ 7,520

(c) Net Profit will decrease by ~ 8,272

(d) Net Profit will increase by ~ 6,768

ANSWER-(a)

[24] Mr. Ravi Shankar Iyer is carrying sole proprietorship business. On the occasion of his daughter’s marriage he bought a car for ~ 5,00,000 to gift it to his son-in law. To record the above transaction he passed the following journal entry : Car account Dr. 5,00,000 To Cash account 5,00,000 What will be the journal entry to rectify the above journal entry as already passed by him? .

(a) Drawing Alc Dr. 5,00,000 To Cash Alc 5,00,000

(b) Drawing Alc Dr. 5,00,000 To Car ‘Alc 5,00,000

(c) Car Alc Dr. 5,00,000 To Drawing Ale 5,00,eOo

(d) Cash Ale Dr, 5,00,000 To Car Ale 5,00,000

ANSWER-(b)

[25] If· purchase of goods amounting ~ 500 has been wrongly posted to credit side of purchase account. The difference in the Trial Balance would be:

(a) ~ 500

(b) ~ 250

(c) ~ 1,000

(d) ~ 1,500

ANSWER-(c)

[26] Goods worth ~ 750 were purchased from S &Co. but while posting wrong debit was given to R & Co. The total of credit side of the trial balance was ~ 43,750. Assuming that this is the only error, the total of the debit side of the trial balance was:

(a) ~ 43,750

(b) ~ 44,500

(c) ~ 43,000

(d) ~ 45,250

ANSWER-(d)

[27] Which type of error occurs when credit sale is wrongly posted to the purchases book?

(a) Error of commission

(b) Error of omission

(c) Compensatory Error

(d) Error of Principle

ANSWER-(a)

[28] On scrutiny, an accountant found that

(i) Bad debts recovery of ~ 500 was credited to debtors Alc wrongly

(ii) Bank charges of ~ 50 was wrongly entered twice in Bank Book

(iii) Purchase return of ~ 100 was omitted to be entered in the books of Alc. What will be the net effect in profit after above rectification?

                   (a) Increase ~ 650  

                  (b) Increase ~ 350

                  (c) Decrease ~ 650

                 (d) Increase ~ 550

ANSWER-(a)

[29] Old office furniture sold to Sethi for ~ 2,000 was entered in the Sales Book. The book value of furniture sold was ~ 2,500. Rectification entry would be:

(a) Sales Ale Dr. ~ 2,000 To Furniture Ale ~ 2,000

(b) Furniture Ale Dr. ~ 2,500 To Loss on sales Ale 500 To Sales Ale 2,000

(c) Sales Nc Dr. ~ 2,000 Losson sale of furniture ~500 To Furniture Nc 2,500

(d) Sethi’s Nc Dr  ~ 2,000 To Furniture

ANSWER-(c)

[30] Which of the following mentioned error will not affect the Trial Balance?·

(a) Purchase book was under cost by ~ 5,000

(b) White washing charges ~ 10,000 were debited to Building Account.

(c) Credit sales of ~ 2,000 to P was correctly recorded in sales book but not posted in P’s account.

(d) Cash paid to Brij Bihari ~ 500 was debited to Brij Bhushan’s account by ~ 5,000.

ANSWER-(b)

 [31] Rectification entries are first recorded in _______ _

(a) ledger

(b) subsidiary books

(c) journal proper

(d) trial balance.

ANSWER-(c)

[32] Wages ~’500 paid for installation of a new machine was wrongly posted to wages account instead of Machinery account. It is an error of

(a) Commission

 (b) Principle

(c) Omission

(d) Clerical nature.

ANSWER-(b)

[33] The following errors were detected in the books of Shreay Ltd. while preparing the final accounts:

(i) A Cheque received for ~ 3,100 from Franc &Co. was dishonoured and debited to discount account

(ii) The sales account has been totalled short by ~ 23,000

(iii) Goods’ of ~ 1,200 returned by Kumar &Sons were included in stock but no entry was made in the books. After rectifying above mistakes, net profit will.

                              (a) Increase by ~ 24,900

                           (b) Decrease by ~ 24,900

                           (c) Not change

                          (d) Increase by ~ 23,700

ANSWER-(a)

[34] Which type of error can occur while posting the journal entries in the ledger?

(A) Error of Principle

(B) Error of Commission

(C) Error of Partial Omission

(D) Error of Complete Omission

                         (a) (A), (B), (C) and (D)

                         (b) (8), (C) and (D)

                         (c) (A), (C) and (D)

                        (d) (A), (8) and (D)

ANSWER-(b)

[35] On Examination of old books of Mr. Rai’s firm, a Chartered Accountant found the following mistakes:  

1. Purchase of a cycle was debited to conveyance account ~ 3,000. Fixed assets are depreciated at 10% depreciation.  

2. A credit purchase of goods from Mr. X for ~ 2,500 entered as sale.

3. Receipt of cash from Mr. A was posted to the account of Mr. 8 ~ 1,500. What will be the effect on Capital Account of Mr. Rai after rectifying above mistakes?

             (a) His capital will be debited by ~ 2,300.

             (b) His capital will be credited by ~ 2,300.

             (c) His capital will be debited by ~ 2,700.

            (d) His capital will be debited by ~ 3,800.

ANSWER-(a)

[36] A Sale of ~ 637 was entered in sales book as ~ 763 and posted to the credit of the customer. This error carried to the next accounting period. You are required to give journal entry to rectify the error is the next accounting period.

(a) Profit &Loss Adjustment Nc Dr. 126 Suspense Nc Or.1,400 To Customer Nc 1,526

(b) Profit &Loss Adjustment Nc Dr. 126 Customers Nc Or.1 ,400 To Suspense Nc 1,526

(c) Suspense Nc Or.1,526 To Profit &Loss adjustment Nc 126 To Customer Nc 1,400

(d) Customer Nc Or.1,526 To Profit &Loss Adjustment Nc 126 To Suspense Nc 1,400

ANSWER-(b)

[37] If a purchase return of ~ 3,500 has been wrongly posted to the debit of the sales Returns Account, but has been correctly entered in the supplier’s account, the total of

(a) The trial balance would show the debit side to be ~ 3,500 more than the credit side.

(b) The debit side of the trial balance will be ~ 7,000 more than the credit side.

(c) The trial balance would show the credit side to be ~ 3,500 more than the debit side.

(d) The credit side of the trial balance will be ~ 7,000 more than the debit side.

ANSWER-(b)

[38] ~ 18,000 received from tenant for rent and entered correctly in the cash book. It is posted to the debit of the rent account. In the trial balance:

(a) The debit total will be greater by ~ 36,000 than the credit total.

(b) The debit total will be greater by ~ 18,000 than the credit total.

(c) Subject to other entries being correct the totai will agree.

(d) None of the above.

ANSWER-(a)

 [39] An error can be deleted at any of the following stages:

(a) Before preparation of Trial Balance

(b) After extracting trial balance but before the Final Accounts are drawn

(c) After the Final Accounts i.e. in the next accounting period

(d) All of the above.

ANSWER-(d)

[40] Stamp duty on property purchased has been debited to “Legal Expenses” account by the accountant. Which type of error has been committed?

(a) Error of Commission

(b) Error of Principle

(c) Error of Commission

(d) It is not an error at all.

ANSWER-(b)

[41] In the course of locating the reason of differences in trial balance, it has been found that an amount received from a customer has been debited to his account and purchase from a supplier has been wrongly entered in the ledger as ~ 17,720 instead of ~ 17,270. These errors may be classified as:

 (a) Errors of commission

(b) Errors of omission

(c) Both error of omission and commission

(d) Errors of principle.

ANSWER-(a)

[42] An amount received from a customer has been debited to his account. The error may be classified as ________ .

(a) errors of principal

(b) errors of omisslon

(c) errors of commission

(d) compensating errors

ANSWER-(c)

[43] If a sales return of ~ 2,000 has been wrongly posted to the credit side of the purchase returns account, but has correctly posted in the customer account, the total of the trial balance would show

(a) The debit side to be ~ 4,000 more than the credit side

(b) The debit side to be ~ 2,000 more than the credit side

(c) The credit side to be { 2,000 more than the debit side .

(d) The credit side to be ~ 4,000 more than the debit side.

ANSWER-(d)

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