Error of Commission

Q.

Which of the following errors effect the Trial Balance i.e. Trial Balance do not tally due to which of the following errors?

1. Errors of Omission

2. An item posted to correct side of wrong account

3. Errors of Principle

4. An entry posted incorrectly in one account

Q.

What happens if the trial balance is not tallied?

Q.

Give two examples of errors of commission.

Q.

What kinds of errors would cause a difference in the trial balance? Also, list examples that would not be revealed by a trial balance?

Q.

Rent paid Rs. 2, 000 was wrongly shown as payment to landlord in the cash book. The effect of this is ___

1. Excess debit in Rent Account

2. Excess debit in cash account

3. Excess debit in Landlord`s account

4. None of the above

Q. When one or both aspects of a transaction are recorded in wrong class or category of account, then it is called errors of .

1. principle
2. commission
3. compensation
4. omission

Q.

An amount of Rs 20, 000 was received from Mr. X for the goods he purchased on credit but at the time of recording the transaction, Rs 20, 000 was credited to the account of Mr. Y. Which type of error is this?

1. Errors of omission

2. Errors of Commission

3. Errors of Principle

4. None of the above

Q.

When one or both aspects of a transaction are recorded in the wrong class or category of account, this is called:

1. Errors of Principle

2. Errors of Commission

3. Compensating Errors

4. Errors of Omission

Q. Posting of wrong amounts to the accounts are classified as errors of .

1. omission
2. commission
3. casting
4. principle

Q.

Errors of commission of posting of wrong amounts in both the accounts can be revealed by Trial Balance. Is this statement correct?

1. Yes, this is correct

2. None of the above

3. No, this is not correct

4. Either A or B

Q.

Rs. 1, 000 paid as rent to Krishna, the landlord, was debited to Krishan's personal account. This error is an:

1. Errors of Principle

2. Errors of Commission

3. Compensating Errors

4. Errors of Omission

Q.

Which of the following account(s) will be affected, when an error is made in recording sales to Rahim of Rs. 336 wrongly recorded as Rs. 363?

1. Rahim`s account

2. Both Sales & Rahim Account

3. Sales Account

4. Purchases Account

Q. Excess debit in an account is an error of .

1. commission
2. omission
3. principle

Q. Answer in one sentence only :-

What is meant by error of omission?

Q. State the limitations of Trial balance.

Q.

An error involving excess credit in an account is rectified by corresponding ___ By the amount that is in excess.

1. Credit

2. Suspense Account

3. None of the above

4. Debit

Q.

How would you rectify the following errors?

1) Sold goods worth Rs 7, 200 to Sonu has been wrongly debited to Monu’s account.
2) A purchase of Rs 950 from Ali has been wrongly debited to his personal account.
3) Cash Rs 500 received from Gangaram and entered on the receipts side of the cash book has not been posted to Gangaram’s account.
4) An amount of Rs 1, 500 drawn by the proprietor for his personal use stands debited to sundry expenses account.
5) A payment of Rs 800 made by Nanaji for cash purchase of goods from him stands debited to his personal account.

Q.

Posting of wrong amounts to the accounts are classified as ___

1. Totaling error

2. Errors of Commission

3. Errors of Omission

4. None of the above

Q.

What is an error of commission?

Q. Goods costing Rs.10, 000 taken by the proprietor for personal use were credited to sales account while passing rectifying entry :

1. Drawing Account to be debited and Purchases Account to be credited.
2. Sale Account to be debited and Drawing Account to be credited.
3. Sales Account to be debited and Purchases Account to be credited.
4. Sales Account to be debited and Suspense Account to be credited.

Q. Write the most appropriate word / term / phrase which can substitute each of the following statement:

1. Person who maintains petty cash book.
2. A bank account which the businessman prefers to open.
3. Petty cash book in which the payment side is ruled in suitable columns.
4. Subsidiary book in which only credit purchase of goods is recorded.
5. Subsidiary book in which return of goods sold on credit is recorded.
6. Book in which cash discount received and allowed is recorded.
7. Accounting entries passed in journal proper for correction of mistakes committed in the books of accounts.
8. A note issued by buyer to seller giving full details of goods returned.
9. Note issued by seller on receipt of defective goods from customer.
10. Signing on the back of the cheque to transfer its ownership.
11. An extract of customer’s account maintained by bank.
12. A type of cheque where the holder is paid the amount across the counter of the bank.
13. Bank on whom a cheque is drawn.
14. Excess of bank withdrawal over bank deposits.
15. Document used for depositing cash or cheque into the bank.

Q.

Sales to Meena for Rs.4, 200 have been posted to debit of sales account as Rs.2, 400. What shall be the net effect on the Gross Profit of this transaction?

1. Gross profit is overstated by Rs 2, 400

2. Gross profit is understated by Rs 4, 200

3. Gross profit is understated by Rs 6, 600

4. Gross profit is overstated by Rs 4, 200

Q. What kinds of errors would cause difference in the trial balance? Also list examples that would not be revealed by a trial balance.

Q.

Show the accounting equation on the basis of the following transactions.

1. Mr. Rohit Kulkarni started business with cash Rs 70, 000
2. Bought goods from sanjay Rs 1, 000.
3. Sold goods to Shyam for Rs 50, 000 (costing Rs 30, 000).
4. Goods destroyed by fire (cost Rs 500, sale Price Rs 600).
5. Purchased Furniture from J.K Furniture on credit Rs 5, 000.

Q. What is the correct sequence?

1. a) Journal b) Ledger c) Transaction d) Trial Balance
2. a) Transaction b) Ledger c) Journal d) Trial Balance
3. a) Transaction b) Journal c) Ledger d) Trial Balance
4. a) Transaction b) Trial Balance c) Ledger d) Ledger

Q.

Can you recognize revenue before delivery?

Q. Find out the error in the following sentence, if any. If there is no error, mark your answer as 'E.
The amount which the company (A) has paid to the dependents (B) of the dead worker (C) was fairly unjustified. (D) No Error. (E)

1. C
2. B
3. D
4. E
5. A

Q. Invariably errors in the trial balance are due to______________.

1. Omitting the transactions that recorded
2. Recording in wrong books
3. Both a and b
4. None of the above

Q. Which of these errors would be disclosed by the trial balance?

1. A purchase of Rs. 250 was omitted entirely from the books
2. Selling expenses had been debited to Sales Account
3. Credit sales of Rs. 300 entered in both double entry accounts as Rs30
4. Cheque Rs. 95 from C Smith entered in Smith's account as Rs. 59

Q. A sale to Chetan was entered as a sale to Ketan. This is an example of ___________.

1. Error of omission
2. Error of commission
3. Compensating error
4. Error of principle