Rectification of Errors (11-20)

11. Errors which affect one side of an account are called?

(a) Single sided errors

(b) Double sided errors

(c) a and b

(d) None of the above

Correct! Wrong!

12. Goods of Rs. 1,000 purchased from Mr. “A” were recorded in sales book, the rectification of this error will?

(a) Increase the gross profit

(b) Reduce the gross profit

(c) Have no effect on gross Profit

(d) None of the given options

Correct! Wrong!

13. Which of the following account(s) will be affected, while rectifying the error of Carriage paid Rs.50 for the newly purchased machinery mistakenly debited to carriage account?

(a) Only machinery account

(b) Only carriage account

(c) Both carriage and machinery account

Only cash account

Correct! Wrong!

14. The Company incorrectly recorded a deposit of daily credit sales of Rs. 4,500 as Rs. 5,400. What is the appropriate entry, the company should follow regarding the error of Rs. 900?

(a) Add Rs.900 to its Cash account

(b) Sales (Dr) and Account Receivable (Cr) with Rs. 900

(c) Account Receivable (Dr) and Sales (Cr) with Rs. 900

(d) None of above

Correct! Wrong!

15. Suspense a/c is not used in which of the following cases?

(a) Before trial balance

(b) After trial balance

(c) Before final accounts

(d) None of the above

Correct! Wrong!

16. Failure to differentiate between capital and revenue expenditures so this error is called?

(a) Error of omission

(b) Compensating error

(c) Error of Principles

(d) none of them

Correct! Wrong!

17. Freight expenses for moving machinery to factory are?

(a) Capital expenditure

(b) Deferred revenue expenditure

(c) Revenue expenses

(d) None of the above

Correct! Wrong!

18. Error of Principle arises when?

(a) Proper distinction is not made between Capital and Revenues

(b) There is an omission of transaction

(c) Wrong amounts are entered in the Ledgers

(d) Transaction are entered in the wrong Legers

Correct! Wrong!

19. Expenditure incurred on erecting machinery is?

(a) Revenue Expenditure

(b) Capital Expenditure

(c) Deferred Revenue Expenditure

(d) None of the above

Correct! Wrong!

20. Which account is generally used for Rectification of Errors?

(a) Memorandum Account

(b) Adjustment Account

(c) Rectification Account

(d) Suspense Account

Correct! Wrong!

11. Errors which affect one side of an account are called?

12. Goods of Rs. 1,000 purchased from Mr. “A” were recorded in sales book, the rectification of this error will?

13. Which of the following account(s) will be affected, while rectifying the error of Carriage paid Rs.50 for the newly purchased machinery mistakenly debited to carriage account?

14. The Company incorrectly recorded a deposit of daily credit sales of Rs. 4,500 as Rs. 5,400. What is the appropriate entry, the company should follow regarding the error of Rs. 900?

15. Suspense a/c is not used in which of the following cases?

16. Failure to differentiate between capital and revenue expenditures so this error is called?

17. Freight expenses for moving machinery to factory are?

18. Error of Principle arises when?

19. Expenditure incurred on erecting machinery is?

20. Which account is generally used for Rectification of Errors?

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