Trial Balance And Rectification Of Errors(11th Grade > Accountancy ) Questions and answers for exam Preparation

11th Grade > Accountancy

TRIAL BALANCE AND RECTIFICATION OF ERRORS MCQs

Total Questions : 30 | Page 2 of 3 pages

Question 11. A sale of Rs. 2550 on credit entered in the Sales Book as Rs.5250. The effect of this mistake on the Gross Profit shall be ___ .

No effect on the Gross Profit
Increase in Gross Profit by Rs 2700
Decrease in Gross Profit by Rs 2700
Increase in Gross Profit by Rs 5250

Discuss Question

Answer: Option C. -> Decrease in Gross Profit by Rs 2700
:
C
Since sales has been entered short by (5250-2550)= Rs 2700, gross profit shall decrease by Rs 2700.

Question 12. Rent paid Rs. 2,000 was wrongly shown as payment to landlord in the cash book. The effect of this is ___

Excess debit in Rent Account
Excess debit in cash account
Excess debit in Landlord`s account
None of the above

Discuss Question

Answer: Option C. -> Excess debit in Landlord`s account
:
C
Landlord’s account has been wrongly debited instead of Rent account, hence there is an excess debit in landlord`s account.

Question 13. Which of the following errors shall NOT be rectified by using a Suspense Account?

Returns Outwards Books was cast Rs 10 short
Rs 600 paid for purchase of Office Furniture was posted to the Purchase Account.
A credit sale of Rs 76 was wrongly posted to the Sales Account as Rs 67.
Payment of a Rs100 telephone bill correctly entered in the Cash Account but debited to the Telephone Account as Rs1,000.

Discuss Question

Answer: Option B. -> Rs 600 paid for purchase of Office Furniture was posted to the Purchase Account.
:
B
This error does not effect the trial, hence suspense account shall not be used to rectify this.

Question 14. Salary paid to Manager is debited to his personal account. This error is an error of ___ .

Principle
Omission
Commission
None of the above

Discuss Question

Answer: Option A. -> Principle
:
A
Since this is a disobey of accounting principles, this is an error of principle.

Question 15. Sales to Shakila of Rs. 2,400 was posted to the debit of her account. How it shall be corrected?

Crediting her account by Rs. 2,400
Crediting her account by Rs. 4,800
Debiting her account by Rs. 4,800
It is correct

Discuss Question

Answer: Option D. -> It is correct
:
D
Sales is recorded to the debit of her account which is correct.

Question 16. An amount of Rs. 99 was omitted to be posted to the credit of a customer's account from the Cash Book. Suspense account shall be ___ to rectify this error.

Debited with Rs 99
Credited with Rs 99
Suspense account shall not be effected
None of the above

Discuss Question

Answer: Option A. -> Debited with Rs 99
:
A
The error involved the omission of posting to the credit of customers account. So, to rectify this error you will have to credit customer's account with Rs. 99. The corresponding debit would be given to the Suspense Account.

Question 17. Rs. 580 received from Shyam were posted to his account as Rs. 850. To rectify this error, suspense account shall be ___ With Rs ___ .

Debited with Rs 270
Credited with Rs 270
Credited with Rs 580
Debited with Rs 580

Discuss Question

Answer: Option B. -> Credited with Rs 270
:
B
It means Shyam's Account is to be debited with Rs. 270 & suspense account is to be credited with Rs 270.

Question 18. If a sale of Rs 500 to Ram is debited as only of Rs 50 to his account, while a sale of Rs 50 to Shyam is debited as of Rs 500 to his account, then which type of error is this?

Errors of omission
Errors of Commission
Errors of Principle
Compensating Error

Discuss Question

Answer: Option D. -> Compensating Error
:
D
Since amount of short debit & credit is equal, therefore it is a compensating error.

Question 19. If the total of the debit column in the trial balance is more than the credit column, the difference is placed to the_____ of suspense account so that the trial balance may tally.

Debit
Credit
Debit or Credit
None of the above

Discuss Question

Answer: Option B. -> Credit
:
B
To tally the Trial Balance, difference is placed on credit of suspense account.

Question 20. Sales to Meena for Rs.4200 have been posted to her credit as Rs.2400. What shall be the net effect on the Gross Profit of this transaction?