MCQExams
0:0:1
CBSE
JEE
NTSE
NEET
Practice
Homework
×
CBSE Questions for Class 11 Commerce Accountancy Trial Balance And Rectification Of Errors Quiz 17 - MCQExams.com
CBSE
Class 11 Commerce Accountancy
Trial Balance And Rectification Of Errors
Quiz 17
Goods costing Rs.10,000 distributed as free samples were not recorded. The errors will result in
Report Question
0%
Increases in Net Profit
0%
Decrease in Net Profit
0%
No Effect on Net Profit
0%
None of these
Explanation
Net profit is calculated from the gross profit of trading account. When the gross profit falls, net profit also decreases and vice versa. While any increase in balance of purchase account leads to simultaneous fall in gross profit.
The journal for goods distributed as free samples is -
Advertisement Expense A/c Dr 10000
To Purchases A/c 10000
This implies, this amount has to be reduced from the balance of purchases account. When the transaction is not recorded i.e., the amount is not reduced from the purchases account, purchase account balance increases leading to fall in gross profit. This leads to decrease in net profit.
State with reasons, whether the following statement is True or False.
Purchase of office furniture & fixtures of $$Rs. 2,500$$ has been debited to General Expense Account. It is an error of omission.
Report Question
0%
True
0%
False
Explanation
Purchase of office furniture has to be debited to furniture account as its an asset. This has been debited as general expenses. Its an error of principle as capital expenditure is debited revenue expenditure. Rectification entry will be as under
Furniture A/c Dr. $$2500$$
To General expenses $$2500$$
0:0:1
1
2
1
2
0
Answered
0
Not Answered
0
Not Visited
Correct : 0
Incorrect : 0
Report Question
×
What's an issue?
Question is wrong
Answer is wrong
Other Reason
Want to elaborate a bit more? (optional)
Practice Class 11 Commerce Accountancy Quiz Questions and Answers
<
>
Support mcqexams.com by disabling your adblocker.
×
Please disable the adBlock and continue.
Thank you.
Reload page
