Rectification of Errors-Test 2

Error relating to fundamental aspect of accounting is known as :

Goods purchased of Rs.100 from N was not recorded at all. What will be its effect on the trial balance ?

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

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

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 :

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

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

Mr. Ravi Shankar lyer is carrying sole proprietorship business. On the occasion of his daughter’s marriage he bought a car for Rs.5,00,000 to gift it to his son-in-law. To record the above transaction he passed the following journal entry :

Car A/c     Dr.5,00,000

To Cash A/c             5,00,000

What  will be the journal entry to rectify the above journal entry as already passed by him ?

If purchase of goods amounting Rs.500 has been wrongly posted to credit side of purchase account. The difference in the Trial Balance would be

Goods worth Rs.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 Rs.43,750. Assuming that this is the only error, the total of the debit side of the trial balance was :

Which type of error occurs when credit sale is wrongly posted to purchases book ?

On scrutiny, an accountant found that

(i) Bad debts recovery of Rs.500 was credited to debtors A/c wrongly

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

(iii) Purchase return of Rs.100 was omitted to be entered in the books of A/c

What will be the net effect in profit after above rectification ?

Old office furniture sold to Sethi for Rs.2,000 was entered in the Sales Book. The book value of furniture sold was Rs.2,500.

Rectification entry would be :

Which of the following mentioned error will not affect the Trial Balance ?

Rectification entries are first recorded in ______ .

Wages Rs.500 paid for installation of a new machine was wrongly posted to wages account instead of machinery account. It is an error of

The following errors were detected in the books of Shreay Ltd. While preparing the final accounts :

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

(ii) The sales account has been totaled short by Rs.23,000

(iii) Goods of Rs.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.

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

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 Rs.3,000. Fixed assets are depreciated at 10% depreciation.
2. A credit purchase of goods from Mr.X for Rs.2,500 entered as sale.
3. Receipt of cash from Mr.A was posted to the account of Mr.B Rs.1,500

What will be the effect on Capital Account of Mr.Rai after rectifying above mistakes ?

If a purchase return of Rs.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

Rs.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 :

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

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

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 Rs.17,720 instead of Rs.17,270. These errors may be classified as :

Errors of commission do not allow :

Errors of Principle do not allow :

Rectifying Entry is not required to be posted in case of –

Which of the following errors is an error of omission ?

Which of the following errors is an error of principle ?

On purchase of old furniture, Rs.3,000 spent on its repairs should be debited to :