Which of the following statements is/are true?
(i) An error in casting the subsidiary books is an error of commission.
(ii) An error in wrong casting of the sales day book will not affect the personal accounts of debtors.
(iii) Mistake in transferring the balance of an account to the trial balance will not affect the agreement of the trial balance.
(iv) The mistake of treating a liability as an income or vice versa will not affect the agreement of a trial balance.
The correct answer is -

Only (i) of the above

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Only (ii) of the above

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Both (i) and (ii) of the above

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(i), (ii) and (iv) of the above

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Solution

The correct option is D (i), (ii) and (iv) of the above
Error of commission is when wrong amount is entered in the journal or ledger leading to wrong totaling and wrong balance which is transferred to the trial balance and thus the trial balance does not tallies.
An error in the sales day book will not affect the personal account of debtors because the error in posting is done in sales ledger and not debtors account. the balance in debtors account will remain the same.
The mistake of treating a liability as an income or vice versa, the agreement of a trial balance will not be affected. This is because the accounting treatment of a liability and an income is same i.e., a liability and an income both have credit balance.

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Similar questions

Give one word/term on phrase for each of the following statements.

1) Errors of incorrect entries or wrong posting.
2) Account to which difference in trial balance is transferred.
3) Errors which are committed by clerks.
4) Transaction remained to be recorded at all in the books of accounts.
5) Error in which the effect of one mistake is nullified by another mistake.
6) An entry passed to cancel wrong effects given and give correct effects to accounts affected.
7) Errors of calculation.
8) Error which affects the agreement of trial balance.
9) Error which are not disclosed by the trial balance.
10) Taking the Total more while closing books of accounts

State whether the following statements are True or False-

1) A trial balance can agree in spite of certain errors.
2) Errors committed due to lack of accounting knowledge are errors of omission.
3) Trial balance is prepared from the balance of ledger accounts.
4) Rectification entries are passed in cash book.
5) Single sided errors affect only one account.
6) Suspense account is automatically closed after rectification of all errors.
7) Errors affecting the agreement of trial balance are called on side errors.
8) There is no need to open a suspense account if the trial balance agrees.
9) All the errors can be rectified only through suspense account.
10) Compensating errors affect the agreement of trial balance.

Q. Which of the following errors will not affect the agreement of trial balance?

Q. Which of the following errors will affect agreement of trial balance?

Q. Mistake in transferring the balance of an account to the trial balance or omitting to write ,the balance of an account in the trial balance is ________.

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