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CBSE Questions for Class 11 Commerce Accountancy Trial Balance And Rectification Of Errors Quiz 8 - MCQExams.com

Rs1,000 being the monthly total of discount allowed to customers was credited to discount account in the ledger. If rectification is done before preparation of trial balance then which of the following is correct?
  • Credit A/c Dr. 2,000
    To Suspense A/c 2,000
  • Discount A/c Dr. 2,000
    To Suspense A/c 2,000
  • Credit the Discount Account with Rs2,000 saying "To Rectification of wrong credit of Rs1,000 for discount allowed.... Rs2,000
  • Debit the Discount Account with Rs2,000 saying "By Rectification of wrong credit of Rs1,000 for discount allowed.... Rs2,000
Which of the following errors will affect the trial balance?
  • Repairs to building wrongly debited to Building A/c.
  • Total of Purchase Journal by Rs1,0001,000 short.
  • Freight paid on new machinery debited to Freight A/c.
  • None of the above.
Total of purchases book was Rs10,000 short. If rectification is done before preparation of trial balance then which of the following is correct?
  • Purchases A/c Dr. 2,000
    To Suspense A/c 2,000
  • Debit purchases account with Rs10,000 saying "To Short total of Purchases Book Rs10,000."
  • Credit purchases account with Rs10,000 saying "By Short total of Purchases Book Rs10,000."
  • Suspense A/c Dr. 2,000
    To Purchases A/c 2,000
Which of the following statements is correct?
  • The trial balance is prepared after preparing the profit and loss account.
  • The trial balance shows only balances of assets and liabilities
  • The trial balance shows only nominal account balances.
  • The trial balance has no statutory importance from the point of view of law.
An entry for the goods sold to Madhav for Rs1,020 was posted to his accountants as Rs1,200. If rectification is done before preparation of trial balance then which of the following is correct?
  • Suspense A/c Dr 180
    To Madhav A/c 180
  • Profit & Loss Adj.A/c Dr 180
    To Madhav A/c 180
  • Credit Madhav with Rs180 saying "By Excess debit for sales Rs180".
  • Debit Madhav with Rs180 saying "To Excess debit for sales Rs180".
Goods bought from Mukesh amounting to Rs 5,500 were posted to the credit of his account as Rs5,000. If this error located after preparation of trial balance then which of the following rectification entry is correct?
  • Suspense A/c Dr 500
    To Mukesh A/c 500
  • Mukesh A/c Dr 500
    To Suspense A/c 500
  • Profit & Loss Adj.A/c Dr 500
    To Mukesh A/c 500
  • Mukesh A/c Dr 500
    To Profit & Loss Adj.A/c 500
Under statement of closing stock or work-in-progress in the period will _________.
  • understate cost of goods manufactured in that period
  • overstate current assets
  • overstate gross profit from sales in that period
  • understate net income in that period
A sale of Rs13,600 was recorded in the sales journal as Rs3,600 and posted to Govind, the customer as Rs6,300. Identify the amount of the trial balance difference which will be placed in a suspense account.
  • Dr.12,700
  • Cr.2,700
  • Dr.2,700
  • Cr.12,700
Rs2,400, being the pre-paid portions of insurance, was brought forward from the previous year as a credit balance in the nominal account. Identify the amount of the trial balance difference which will be placed in a suspense account.
  • Dr. 4,800
  • Cr. 4,800
  • Cr. 2,400
  • Dr. 2,400
Credit side of the trial balance was Rs11,200 lower than the debit side. The difference was placed in suspense. The correction of which of the following errors will reduce the suspense account balance?
  • Stationery acquired on credit terms for Rs340 has been recorded in the purchases journal.
  • A cash sale of Rs3,400 has been posted as Rs4,300
  • A credit purchase of Rs2,150 has not been posted to the customer.
  • A credit Note for Rs900 from a supplier has not been entered in return outwards day book.
Drawings of goods costing 300 were not recorded in the books of account. If this error located after preparation of trial then which of the following rectification entry is correct?
  • Purchases A/c Dr 300
    To Drawings A/c 300
  • Drawings A/c Dr 300
    To Suspense A/c 300
  • Profit & Loss Adj. A/c Dr 300
    To Purchases A/c 300
  • Drawings A/c Dr 300
    To Purchases A/c 300
Bank overdraft is shown on the _______ side of trial balance.
  • credit
  • debit
  • front
  • none of these
Which of the following is/are method for preparation of trial balance?
  • Balances Method
  • Totals Method
  • Both (A) & (B)
  • None of the above
Cartage Rs780 paid on machinery newly acquired was debited to carriage inward account. If this error located after preparation of trial balance then which of the following rectification entry is correct?
  • Machinery A/c Dr. 780
    Carriage Inwards Dr. 780
    To Profit & Loss Adj. A/c 1,560
  • Machinery A/c Dr. 780
    To Carriage Inwards A/c Dr. 780
  • Suspense A/c Dr. 1,560
    To Machinery A/c Dr. 780
    To Carriage Inwards A/c 780
  • Carriage Inwards A/c Dr 900
    To Machinery A/c Dr. 900
A few errors committed in Amrut's books of account are given below. State which errors would affect the trial balance.
(1) Sales of Rs950 to Ram completely omitted from books of account.
(2) Purchases of Rs720 from Shyam entered in the purchases journal as Rs700.
(3) Purchases Journal is overcast by Rs1,000
(4) Sales returns journal is under cast by Rs200.
(5) Amount paid to Agarwal wrongly posted to the debit to Mittal's account.
(6) Bank overdraft shown under debit column in the Trial Balance.
(7) Sales of Rs500 to Sadiq entered in sales journal as sales to Mushtaq.
(8) Wages paid for installation of machinery debited to wages account.

Select the correct answer from the options given below.
  • (1), (3) and (7)
  • (3), (4) and (6)
  • (3), (4), (5)and (8)
  • (3), (4), (6)and (8)
Which of the following error will disturb the balancing of the trial balance?
  • Recording in the purchases journal an invoice for acquiring a non current asset for Rs60,000.
  • Adding up the returns inwards journal as Rs11,400 instead of Rs12,600.
  • Recording a sales invoice for Rs 5,600asRs6,500$$ in the sales journal.
  • Failing to record a purchase invoice for Rs 54,000 in the purchases journal.
While carrying forward the total of one page of the Purchases Book to the next, the amount of Rs12,350 was written as Rs13,250. If this error located after preparation of trial then which of the following rectification entry is correct?
  • Purchases A/c Dr. 900
    To Profit & Loss Adj. A/c 900
  • Purchases A/c Dr. 900
    To Suspense A/c 900
  • Profit & Loss Adj. A/c Dr. 900
    To Purchases A/c 900
  • Suspense A/c Dr. 900
    To Purchases A/c 900
The balances of all assets accounts, expenses accounts, losses, drawing are placed in the __________ of the trial balance.
  • credit column
  • debit column
  • ledger folio
  • none of the above
Which of the following statement is correct?
  • If there is gross loss in trading account then profit & loss account will also have net loss always.
  • Balance sheet gets tallied even if there is a two sided error.
  • Cash book is similar to balance sheet.
  • All of the above.
The balances of all liabilities accounts, income accounts, profits, capital are placed in the _________ of the trial balance.
  • credit column
  • debit column
  • ledger folio
  • none of the above
Difference of totals of both debit and credit side of the trial balance is transferred to _________.
  • Miscellaneous Account
  • Difference Account
  • Trading Account
  • Suspense Account
If the rate of gross profit increases in the current financial year, the same may happen due to which of the following reason?
  • There is omission of purchases which was not accounted for.
  • Closing stock was valued at higher price.
  • Selling price has been increased without corresponding increase in cost.
  • All of the above.
A ______ is a schedule or list of balances of both debit and credit extracted from various accounts.
  • Profits & Loss Account
  • Balance Sheet
  • Cash Flow Statement
  • Trial balance
If the trial balance do not agree after transferring the balance of all ledger accounts including cash and bank balance and also errors are not located timely, then the trial balance is tallied by transferring the difference of debit and credit side to an account knows as_____________.
  • Memorandum Account
  • Capital Account
  • Suspense Account
  • Drawing Account
State with reasons whether the following statement is true or false:
Error of principle involves an Incorrect allocation of expenditure or receipt between capital and revenue.
  • True
  • False
State with reasons whether the following statement is true or false:
Compensating errors do not disturb agreement of Trial Balance.
  • True
  • False
Closing stock will never appear in the Trial Balance. 
  • True
  • False
State with reasons whether the following statement is true or false:
If the amount Is posted in the wrong account or it is written on the wrong side of an account it is called error of omission.
  • True
  • False
Which of the following statement contains all the types of account i.e., personal, real & nominal account?
  • Balance sheet
  • Trial balance
  • Income statement
  • None of the above
___________ is a statement of debit & credit balances, while __________ is a statement of assets and liabilities.
  • Profit & loss, Balance sheet
  • Trial balance, Balance sheet
  • Balance sheet, Trading account
  • Trial balance, Profit & loss
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