Chapter 10 ACCOUNTANCY : Trial Balance and Rectification of Errors — Online MCQ Test
COMMERCE · CLASS 11 INTER I YEAR · Andhra State Board
Practice Chapter 10 ACCOUNTANCY : Trial Balance and Rectification of Errors with a free chapter-wise online MCQ test.
This chapter covers: This chapter details verifying arithmetical accuracy through trial balances identifying accounting errors and recording rectification entries..
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Chapter 10 ACCOUNTANCY : Trial Balance and Rectification of Errors — Important Questions & Answers
What is the primary purpose of preparing a Trial Balance?
- A. To check the arithmetical accuracy of ledger accounts
- B. To determine the net profit of the business
- C. To calculate the total assets of the firm
- D. To record daily transactions
Answer: A. To check the arithmetical accuracy of ledger accounts
A Trial Balance is a statement prepared to verify that the total debits equal total credits, thereby checking the arithmetical accuracy of the ledger.
A Trial Balance is a statement prepared to verify that the total debits equal total credits, thereby checking the arithmetical accuracy of the ledger.
Which of the following errors is an error of principle?
- A. Omission of a transaction
- B. Posting purchase of furniture to the Purchases account
- C. Writing a different amount in the journal
- D. Posting to the wrong side of an account
Answer: B. Posting purchase of furniture to the Purchases account
An error of principle occurs when accounting rules are violated, such as treating a capital expenditure (furniture) as a revenue expenditure (purchases).
An error of principle occurs when accounting rules are violated, such as treating a capital expenditure (furniture) as a revenue expenditure (purchases).
If a transaction is completely omitted from the books of original entry, it is called an error of:
- A. Principle
- B. Commission
- C. Omission
- D. Compensating error
Answer: C. Omission
An error of complete omission happens when a transaction is totally missed, meaning it is not recorded in the journal or subsidiary books at all.
An error of complete omission happens when a transaction is totally missed, meaning it is not recorded in the journal or subsidiary books at all.
Which item, when increased, is entered on the credit side of the Trial Balance?
- A. Outstanding Expenses
- B. Prepaid Insurance
- C. Accrued Income
- D. Cash in Hand
Answer: A. Outstanding Expenses
Outstanding expenses are liabilities. Liabilities increase on the credit side, appearing as a credit balance in the Trial Balance.
Outstanding expenses are liabilities. Liabilities increase on the credit side, appearing as a credit balance in the Trial Balance.
A sales invoice for Rs. 800 was entered in the sales book as Rs. 80. The rectification entry involves:
- A. Debit Sales Rs. 720
- B. Debit Customer Rs. 720, Credit Sales Rs. 720
- C. Debit Sales Rs. 800, Credit Customer Rs. 800
- D. Debit Customer Rs. 80, Credit Sales Rs. 80
Answer: B. Debit Customer Rs. 720, Credit Sales Rs. 720
Under-recording a sale requires an additional entry of the difference (800 - 80 = 720) to the customer and sales accounts.
Under-recording a sale requires an additional entry of the difference (800 - 80 = 720) to the customer and sales accounts.