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Punjab (PTB) · Chapter test · Free

1st Year Principles of Accounting Chapter 14 TestRectification Of Errors

30 marks · 40 minutes · 21 questions. Covers: CHAP 15: Rectification Of Errors.

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1st Year Principles of Accounting Chapter 14 Test

1st Year · Principles of Accounting · Punjab (PTB)

Name: ____________Roll No: ________Class/Section: ________Date: ________Total marks: 30Time: 40 minutes

Q1. Multiple choice questions (Attempt all · 10 × 1 = 10)

  1. Wages paid for the erection of a machine debited to wages account is an example of:

    1. Error of omission

    2. Error of commission

    3. Error of principle

    4. None of these

  2. A sale of Rs.1000 to Farid, was credited to his account, it will affect:

    1. Sales account

    2. Farid account

    3. Cash account

    4. Both a,b

  3. Credit purchases from Ahmad costing Rs.180 were entered in the books for Rs.810 the rectifying entry is:

    1. Debit suspense account

    2. Debit purchase account for Rs. 630 and credit Ahmad account for Rs. 630

    3. Debit Ahmad account for Rs. 630 and credit purchases account for 630

    4. None of these

  4. If a transaction has been completely omitted from the journal it will be considered:

    1. Error of commission

    2. Error of principle

    3. Error of omission

    4. None of these

  5. When two or more than two errors occurred on the opposite side of the account and cancelled the effect of each other are called:

    1. Errors of omission

    2. Compensating errors

    3. Errors of commission

    4. Errors of principle

  6. Errors which affect one account can be:

    1. Errors of principle

    2. Errors of posting

    3. Error of omission

    4. None of these

  7. Errors in casting of subsidiary books are called as:

    1. Error of omission

    2. Compensating errors

    3. Error of posting

    4. Clerical errors

  8. Errors, which do not effects on profit calculation, will have an effect only on:

    1. Trial balance

    2. Balance sheet

    3. Profit or loss account

    4. Trading account

  9. The credit purchases were wrongly recorded in sales book, the rectification of entry:

    1. Increase the net profit by double amount

    2. Decrease the net profit by double amount

    3. Decrease the net profit

    4. Increase the net profit

  10. If goods purchased from Rahim for Rs.499, credited to Rehman’s account for Rs.499, this is an:

    1. Error of commission

    2. Error of omission

    3. Compensating error

    4. Error of principle

Q2. Short questions (Attempt any 6 of 8 · 6 × 2 = 12)

  1. What are errors of trial balance?

  2. Define error of omission and error of commission.

  3. The payment of wages for RS.750 was entered twice in the books by mistake. Pass the rectifying entry.

  4. What is meant by error of posting?

  5. Give two examples of errors of priciple.

  6. Define error of principle.

  7. Write four kinds of books keeping errors.

  8. What is meant by compensating errors?

Q3. Long questions (Attempt any 2 of 3 · 2 × 4 = 8)

  1. Rectify the following errors:
    (a) Sales book under-cast by Rs. 10,000.
    (b) Purchases book under-cast by Rs. 5,000.
    (c) Sales book overcast by Rs. 2,000.
    (d) Purchases book overcast by Rs. 3,000.

  2. The following errors were found from the Books of a firm. Pass the necessary entries to rectify them:
    (a) Rs. 168,000 paid for Wages to workmen for making show cases had been charged to the Wages A/c.
    (b) A sale of Rs. 36,000 has been passed through the Purchases Book. The customer’s account has, however been correctly debited.
    (c) A sale of Rs. 9,000 to Kabir Bros. was credited to their account.
    (d) Rs. 60,000 paid for the purchase of a Motor Cycle for a partner, had been charged to the miscellaneous expenses account.
    (e) A purchase of Rs. 1,392 had been debited to Supplier’s account as Rs. 1,264. The supplier was Sarwar.

  3. Give entries to correct the errors:
    (i) A bill for Rs. 2,500 for furniture sold to B. Brother’s was credited to sales account.
    (ii) An amount of Rs. 1,780 received on account of interest was credited to commission account.
    (iii) Goods to the value of Rs. 2,600 were returned by Ali, but return was not recorded in the books.
    (iv) Wages paid Rs. 2,000 posted to the wages a/c twice.
    (v) The amount of Rs. 500 written off bad debts in the previous year now received credited to the personal a/c of the debtors.