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Correction Of Errors Quiz 2 (60 MCQs)

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1. Purchase return of $ 87 was entered in both accounts as $ 870
2. 2) $ 68 paid by credit transfer for insurance was entered in the accounting records as $ 86.Which double entry will correct this error? account debited $ account credited $ A Bank 18 insurance 18B bank 68 Insurance 68C insurance 18 bank 18D insurance 68 bank 68
3. Insurance of $ 200 paid by cheque has been recorded as $ 20 in both accounts.State the effect of error on profit for the period, assets, liabilities and equity.
4. Which of the following is NOT a shortcoming of single entry book-keeping?
5. Credit purchase of goods worth $ 340 has been recorded as $ 430. The correcting journal entry would be:
6. Cheque of $ 580 paid to Melon Tree has been recorded in the account of Melon Three.State the effect of error on profit for the period, assets, liabilities and equity.
7. Increase in allowance for doubtful debts should be
8. Sale understated by 200 and purchase overstated by 200:
9. 07) A suspense account was opened with a credit balance of $ 840. Which error caused this?A A cheque for $ 420 received from a customer was debited to his account.B Discounts allowed, $ 420, was debited twice in the discounts allowed account.C Goods costing $ 420, taken by the owner of the business for own use, were credited to his drawings account.D Rent received, $ 420, was credited twice in the rent receivable account.
10. What type of error has occurred when cheque of $ 110 paid to Dominic credited to the account of Max?
11. Which of the following type of error will result in an imbalance on the trialbalance?
12. Expenses on minor repairs of building was posted to building account. This isan error of
13. What type of error has occurred when a transaction is missed out of the accounts completely?
14. A trial balance is a proof of accuracy of
15. What is the impact on profit for the year if income overstated?
16. What type of error has occurred when motor car purchased was debited to maintenance expenses by mistake?
17. What type of error has occurred when purchases of machinery are entered in the purchases account?
18. Returns inward is overcast by 800, 000 KHR and discount received is undercastby 2, 000, 000 KHR. The effect of the errors is that, profit will be
19. A trial balance lists:
20. A petty cash voucher for stationery $ 18 was overlooked
21. Which of the following is an example of error of Principle
22. Which of the following is not an example of error of commission
23. 01) Saddique's trial balance failed to balance. The debit column totalled $ 12 250 and the credit column totalled $ 12 200.The following errors were discovered. No entry had been made for cash sales, $ 150. The total of the discount received account, $ 50, had been omitted from the trial balance. What were the totals of the trial balance after the errors had been corrected?A $ 12 250B $ 12 300C $ 12 350D $ 12 400
24. The purchase of some new office equipment, $ 2300, was debited to the purchases account
25. WHEN A TRANSACTION WAS COMPLETELY OMITTED FROM THE BOOKS, IT IS CALLED .....
26. The cost of goods purchased by cash was wrongly debited to sales account andcredited to cash book. The entries necessary to correct the error are:
27. REPAIRS OF MACHINERY WAS WRONGLY RECORDED AS PURCHASE OF MACHINERY. THE CORRECT JOURNAL ENTRY FOR THE CORRECTION OF ERRORS IS .....
28. Which one of the following is an error of commission?
29. A further sale of goods to Shakib of £1750 had not been recorded in the books of The Coach. Choose the journal entry needed to correct the errors.
30. Credit sale of goods worth $ 300 to Lucy has been posted to Lucas' account. The correcting journal entry would be:
31. Commission income of RM 200 received in cheque was debited to Commission account and credited to Bank account.Correct the above error.
32. The purchases account was overstated by RM 1, 200 while the inventory account was understated by RM 1, 200.Please state the type of error and show the correct entries.
33. 04) After the financial statements for the year ended 30 April 2022 had been prepared, a trader discovered that the closing inventory had been over-valued. What will be the effect of this error? profit for the year ended 30 April 2022 capital on 30 April 2022 profit for the year ending 30 April 2023A overstated overstated understatedB overstated understated no effectC understated no effect no effectD understated understated overstated
34. A payment mad by cash $ 100 to Sunil was omitted from the books of the business. what is the rectification entry?
35. Cash 1, 000 posted to wrong debtor:
36. State the effect on Profit for the Year:Cash payment for Furniture and Fittings
37. Purchase of a motor van costing $ 1000 was recorded in motor expenses account.
38. Credit sales of $ 113 to Yan were debited to the account of Lei
39. Which of the following error would effect the agreement of Trial Balance
40. A credit purchase of goods $ 1200 from Calvin trading was recorded in Clara trading account. Name the error.
41. A sales returns of $ 89 from a trade receivable, S McNee, was credited to the account of S McKoy
42. Wages paid of $ 290 cash was entered in both accounts as $ 390
43. Repairs to office equipment, RM 1, 500 had been posted to the office equipment account.
44. A sale of 500 omitted from ledger:
45. $ 200 rental payment was not recorded in the books. What is type of this error?
46. Furniture purchased for 5, 000 entered in repairs account:
47. A cash payment of $ 1, 700 for rent has been omitted from the books. What is the rectification entry?
48. Sales of £450 worth of goods to Shakib had been entered in error into the account of Sameer.
49. Sales of £3400 had been correctly entered into sales account of The Coach. This transaction had been recorded as £4300 in Shakib's account.
50. Hiro wishes to increase his provision for doubtful debts at the end of the year. How does he record this increase?
51. Return inwards of RM 56 was posted to the wrong side of the account.Does this error need Suspense account to make correction?
52. State the effect on Profit for the Year:Rent under added by £80
53. A payment for RM 1, 400 utilities was debited to cash in hand and credited to utilities account.
54. A payment of 1, 000 to a supplier is recorded as 100. Correcting entry:
55. A computer used by the business is sold but credited to the sales account. Which of the following pairs of entries would correct this error?
56. 6) Davi prepared the following journal entry to correct an error. debit $ credit $ Samir 40 Samuel 40Which error was being corrected?A Cash paid to Samir had been credited to Samuel. B Cash received from Samuel had been debited to Samir.C Goods bought from Samir had been credited to Samuel.D Goods sold to Samir had been debited to Samuel.
57. Office expenses of $ 21 was actually a payment made for the owner's private expenses
58. State true or false:If sales, purchases return, liability or income are undercasted, suspense account will be debited and related account will be credited.
59. WHICH OF THE FOLLOWING ERRORS, WOULD NOT AFFECT THE BALANCING OF A TRIAL BALANCE?
60. What type of error has occurred when purchases and sales accounts were both overcast by $ 200?
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