Rectification of Error of Principles

Q.

An amount of Rs 20, 000 due from Mukesh was written off as bad debt in the previous year is now been recovered. It has been credited to Mukesh`s account. Is this correct? If no, which account should have been credited.

1. Yes, it is correct

2. Bad Debts Recovered Account

3. Purchases account

4. Bad debts account

Q. Calculate the total assets if:
(i) Capital is ₹ 40, 000.
(ii) Creditors are ₹ 25, 000.
(iii) Revenue during the period is ₹ 50, 000.
(iv) Expenses during the period are ₹ 40, 000.

Q.

Wages paid for installation of machinery Rs 7000 was debited to Installation expense account. The rectifying entry to correct the same shall be?

1. Debit installation account & credit Machinery account by Rs 7000

2. Credit installation account & Debit Machinery account by Rs 7000

3. Credit installation account & Debit Wages account by Rs 7000

4. None of the above

Q. Rectify the following errors:
(i) Purchases Book has been undercast by ₹ 1, 000.
(ii) Credit sale to Anu Prakash ₹ 7, 000 was recorded in Purchases Book.
(iii) Credit sale to Rahul ₹ 7, 000 was recorded as ₹ 700.

Q. Prepare Bank Reconciliation Statement from the following:

	₹
(i) Debit balance as per the Cash Book.	15, 000
(ii) Cheques deposited but not cleared.	1, 000
(iii) Cheques issued but not presented.	1, 500
(iv) Bank interest.	200

Q.

Salary paid to Ram Rs 10, 000 for the month of August was recorded to his personal account. To rectify this, ___ Account shall be debited & ___ Account shall be credited by Rs 10, 000.

1. Ram & Salary

2. Salary & Ram

3. Salary & Suspense

4. None of the above

Q.

To record a repair or maintenance expense of a machine in your records, the ___ account is ___ by the amount of the expense in a journal entry.

1. Repairs account is debited

2. Machine account is debited

3. Repairs account is credited

4. Machine account is credited

Q. Rectify the following errors:
(i) A purchase of ₹ 5, 000 from Ram was omitted to be entered in the Purchases Book.
(ii) A credit sale of ₹ 257 to Messrs Goodluck & Co. was recorded as ₹ 275.
(iii) A purchase of office furniture for ₹ 500 from Salwan Furnitures was entered through the Purchases Book.
(iv) Rent paid to Landlord ₹ 500 was debited to his Personal Account.
(v) A debt balance of ₹ 2, 000 on the Personal Account of Mr. John (correctly shown in the Ledger) has been omitted when extracting a Trial Balance.

Q. Installation charges incurred on machinery is debited to installation expense account. To rectify the same, account is credited.

1. Installation expense
2. Asset
3. Cash
4. Machinery

Q.

Rs 1000 paid for installation of a new machine is debited to Repairs account. Which accounts shall be debited & credited?

1. Machinery & Repairs

2. Machinery & Installation expense

3. Repairs & Machinery

4. None of the above

Q. Rectify the following errors:
(i) Total of one page of the Sales Book was carried forward to the next page as ₹ 2, 785 instead of ₹ 2, 587.
(ii) A cheque of ₹ 400 received from Mohan was dishonoured and had been posted to the debit side of the ‘Allowance Account’.
(iii) Return of goods worth ₹ 5, 000 by a customer was entered in the Purchases Return Book.
(iv) Sum of ₹ 200 owed by ‘X’ has been included in the list of Sundry Creditors.
(v) Sale of old furniture worth ₹ 430 was credited to the Sales Account as ₹ 340.

Q.

Repairs to building Rs 300 were debited to Building account. Which of the following is correct with regards to its rectification?

1. Building account shall be credited

2. Repairs account shall be debited

3. Both B & C

4. It is correct

Q.

If a repairs expenditure has been carried on a machine & it has been debited to Machinery account, which account shall be debited to rectify the same?

1. Repairs account

2. Cash account

3. No rectification is required.

4. Machine account

Q.

Salary paid was debited to the employee’s personal account, the rectification entry would be to debit the ___ Account.

1. Salary account

2. Employee`s personal account

3. None of the above

4. Cash account

Q. Correct the following errors in Mohan Lal’s Book:
(i) A sum of ₹ 1, 500 written off as depreciation on furniture has not been debited to the Depreciation Account.
(ii) Returns Outward Journal has been overcast by ₹ 85.
(iii) Basudev returned goods worth ₹ 500; his account was debited by this amount.
(iv) Purchase from Krishna Mohan of ₹ 2, 250 has been debited to his account.

Q.

Rs 2740 paid for repairs to motor car was debited to Motor car . Which of the following is correct with regards to its rectification?

1. B & C Both

2. Motor car shall be credited by Rs 2740

3. Repairs account shall be debited by Rs 2740

4. Cash shall be debited by Rs 2740

Q.

From the following transactions prepare necessary ledger accounts and balance them.

2011 Jan.	1	Sachin started Business with Cash Rs 10, 000 and Machinery Rs 15, 000
	1	Purchased goods for cash Rs 3, 000.
	3	Sold goods for cash Rs 4, 000.
	5	Purchased furniture on credit from Poona Traders Rs 7, 000.
	8	Purchased goods on credit from Mr. Dilip Rs 2, 000 at 10% T.D.
	10	Sold goods on credit to Mr. Mahendra Rs 8, 000 at 12.5% T.D.
	15	Paid Rent Rs 600.
	28	Withdraw cash for personal use Rs 1, 000.
	20	Paid cash to Mr. Dilip Rs 1, 800.
	25	Received cash from Mr. Mahendra Rs 6, 800.
	31	Paid to Miss Sunita Rs 400 for salaries

Q.

Which account is debited while doing the journal entries related to salaries paid to employees?

1. Employee`s account

2. Cash account

3. Salary account

4. None of the above

Q. account is debited when salaries are paid to employees.

1. Salary
2. Employee's
3. Cash
4. Remuneration

Q.

On 1st January, 2016, Gyan Singh opened a bank account by depositing Rs.24, 000 in cash. All remittance are to be paid into bank on the same day on which they are received and all payment are made by cheques. Enther the following transaction in the jurnal.

2016
Jan 2 goods sold to Pritam for cash Rs. 1, 000.
Jan 5 Settled Arjun's Account of Rs. 800.
Jan 7 Received from Vinay a Cheque for Rs. 3, 000.
Jan 10 Purchased a typewriter for Rs. 800 and Spend Rs. 200 on its repairs.
Jan 12 Vinay's cheque was returned dishonured.
Jan 15 Received a money order for Rs. 100 from Arjun.
Jan 20 Vinay settled his account by means of a cheque for Rs. 3, 020, Rs. 20 being for interest charged.
Jan 27 Purchased machinery from Sunil for Rs. 20, 000 and paid him by means of a bank draft purchased from bank for Rs. 20, 020.

Q. On 1st January, 2018, A drew a bill on B for ₹ 10, 000 payable after 3 months. B accepted the bill and returned it to A. After 10 days, A endorsed the bill to his creditor C. On the due date, the bill was dishonoured and C paid ₹ 50 as noting charges.
Record the transactions in the books of A, B and C.

Q. Wages paid for installation of any asset is debited to account.

1. wages
2. cash
3. asset
4. salary

Q. Mohan Singh draws a bill on Jagat for ₹ 1, 000 payable 2 months after date. Immediately after its acceptance, Mohan Singh sends the bill to his bank for collection. On due date, bank gets the payment. Make the entries in the books of all the parties.

Q.

If installation expense is paid for any machine & put to the debit of Installation expense account, to rectify this which account shall be credited?

1. Asset account

2. Installation Expense account

3. Cash account

4. Wages account

Q.

Which of the following account(s) will be affected, while rectifying the error of carriage charges, paid for a new plant purchased mistakenly debited to carriage account?

1. Plant Account

2. Carriage Account

3. Both plant & carriage account

4. Purchases account

Q.

Rs 1000 paid for repairs to building have been debited to Building account. Which account shall be debited while rectification?

1. Wages account

2. Cash account

3. Repairs account

4. Building account

Q.

What does PCV stand for?

Q.

How to record a fixed asset purchase on a QuickBooks desktop?

Q.

Rs 460 paid for repairs of a 2nd hand machinery before buying it shall be debited to ___ Account.

1. Expense account

2. Repairs account

3. None of the above

4. Machinery account

Q.

Repairs bill for the proprietor`s car Rs 410 has been paid by the firm & has been debited to the repairs account. Which of the following is correct with regards to its rectification?

1. Proprietor`s account shall be debited & Repairs account shall be credited by Rs 410

2. Drawings account shall be debited & Repairs account shall be credited by Rs 410

3. Drawings account shall be credited & Repairs account shall be debited by Rs 410

4. Drawings account shall be debited & Proprietor`s account shall be credited by Rs 410