Unit 9: Trial Balance and Rectification of Errors — Online MCQ Test
COMMERCE & ACCOUNTANCY · CLASS 11 INTERMEDIATE 1 YEAR · Telangana State Board
Practice Unit 9: Trial Balance and Rectification of Errors with a free chapter-wise online MCQ test.
This chapter covers: Focusing on accounting accuracy this chapter details trial balance objectives ledger balancing error classifications single-sided double-sided errors suspense account usage and err....
AI-generated questions from basic to board-exam level, with instant results and explanations.
Unit 9: Trial Balance and Rectification of Errors — Important Questions & Answers
What is the main purpose of preparing a Trial Balance?
- A. To calculate profit for the year
- B. To check the arithmetical accuracy of ledger accounts
- C. To determine cash balance only
- D. To prepare the Balance Sheet directly
Answer: B. To check the arithmetical accuracy of ledger accounts
A Trial Balance is prepared to verify whether the debit and credit balances in the ledger agree arithmetically. It is not a final statement of profit or financial position.
A Trial Balance is prepared to verify whether the debit and credit balances in the ledger agree arithmetically. It is not a final statement of profit or financial position.
Which of the following errors will NOT be disclosed by a Trial Balance?
- A. Posting to the wrong account on the correct side
- B. Wrong totaling of the Trial Balance
- C. Casting error in a ledger account
- D. Omission of a transaction from both accounts
Answer: D. Omission of a transaction from both accounts
If a transaction is omitted from both debit and credit sides, the Trial Balance may still agree. Such errors are not disclosed by the Trial Balance.
If a transaction is omitted from both debit and credit sides, the Trial Balance may still agree. Such errors are not disclosed by the Trial Balance.
A debit entry of ₹500 for repairs was wrongly posted to the furniture account. What type of error is this?
- A. Error of principle
- B. Error of commission
- C. Compensating error
- D. Error of omission
Answer: B. Error of commission
The amount was recorded in the wrong account, though the debit side was used. This is an error of commission.
The amount was recorded in the wrong account, though the debit side was used. This is an error of commission.
A sales return of ₹800 was wrongly credited to the sales account instead of the sales returns account. Which accounts are affected?
- A. Sales account and Sales Returns account
- B. Cash account and Purchases account
- C. Debtors account and Creditors account
- D. Capital account and Drawings account
Answer: A. Sales account and Sales Returns account
The transaction was recorded in the wrong revenue account. The sales account was credited instead of the sales returns account, so both accounts are affected.
The transaction was recorded in the wrong revenue account. The sales account was credited instead of the sales returns account, so both accounts are affected.
A ledger account shows Debit total ₹18,400 and Credit total ₹18,100, but the Trial Balance is taken as balanced because an item was omitted from both sides. Which conclusion is most correct?
- A. The Trial Balance proves all entries are correct
- B. There may still be an undetected error despite agreement of totals
- C. The omitted item must be a compensating error
- D. Such an omission always creates a Suspense Account balance
Answer: B. There may still be an undetected error despite agreement of totals
Agreement of Trial Balance totals does not guarantee absence of errors. Errors like complete omission may remain hidden even when the Trial Balance agrees.
Agreement of Trial Balance totals does not guarantee absence of errors. Errors like complete omission may remain hidden even when the Trial Balance agrees.