This quiz works best with JavaScript enabled. Home > English Grammar > Grammar > Editing And Proofreading > Correction Of Errors – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Correction Of Errors Quiz 4 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Commission income of RM 200 received in cheque was debited to Commission account and credited to Bank account.Correct the above error. A) Dr Commission RM 200Cr Bank RM 200. B) Dr Commission RM 400Cr Bank RM 400. C) Dr Bank RM 200Cr Commission RM 200. D) Dr Bank RM 400Cr Commissio RM 400. Show Answer Correct Answer: D) Dr Bank RM 400Cr Commissio RM 400. 2. 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. A) Reversal ErrorDr Purchases RM 1, 200 Cr Inventory RM 1, 200. B) Compensationg ErrorDr Purchases RM 1, 200 Cr Inventory RM 1, 200. C) Compensationg ErrorDr Inventory RM 1, 200 Cr Purchases RM 1, 200. D) Reversal ErrorDr Inventory RM 1, 200 Cr Purchases RM 1, 200. Show Answer Correct Answer: C) Compensationg ErrorDr Inventory RM 1, 200 Cr Purchases RM 1, 200. 3. 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 A) C. B) D. C) B. D) A. Show Answer Correct Answer: D) A. 4. A payment mad by cash $ 100 to Sunil was omitted from the books of the business. what is the rectification entry? A) Dr:suspense $ 100Cr:Sunil $ 100. B) Dr:Sunil $ 100Cr:Cash $ 100. C) Dr:Cash $ 100Cr:suspense $ 100. D) Dr:Cash $ 100Cr:Sunil $ 100. Show Answer Correct Answer: B) Dr:Sunil $ 100Cr:Cash $ 100. 5. Cash 1, 000 posted to wrong debtor: A) Error of principle. B) Error of commission. C) Compensating error. D) Error of omission. Show Answer Correct Answer: B) Error of commission. 6. State the effect on Profit for the Year:Cash payment for Furniture and Fittings A) Increase. B) Decrease. C) No Effect. D) None of the above. Show Answer Correct Answer: C) No Effect. 7. Purchase of a motor van costing $ 1000 was recorded in motor expenses account. A) Error of commission. B) Error of principle. C) Error of omission. D) Error of original entry. Show Answer Correct Answer: B) Error of principle. 8. Credit sales of $ 113 to Yan were debited to the account of Lei A) Principle. B) Commission. C) Reversal. D) Omission. Show Answer Correct Answer: A) Principle. 9. Which of the following error would effect the agreement of Trial Balance A) Sales to Ram Rs150 posted to his account as Rs175. B) Sales to Mahesh Rs800 posted to Mukesh as Rs800. C) A credit sale wrongly passed through purchase book. D) None of these. Show Answer Correct Answer: A) Sales to Ram Rs150 posted to his account as Rs175. 10. A credit purchase of goods $ 1200 from Calvin trading was recorded in Clara trading account. Name the error. A) Error of omission. B) Error of commission. C) Error of principle. D) Compensating error. Show Answer Correct Answer: B) Error of commission. 11. A sales returns of $ 89 from a trade receivable, S McNee, was credited to the account of S McKoy A) Compensating errors. B) Errors of omission. C) Errors of commission. D) Errors of principle. E) Errors of original entry. Show Answer Correct Answer: C) Errors of commission. 12. Wages paid of $ 290 cash was entered in both accounts as $ 390 A) Compensating. B) Reversal. C) Omission. D) Original entry. Show Answer Correct Answer: D) Original entry. 13. Repairs to office equipment, RM 1, 500 had been posted to the office equipment account. A) Error of principle. B) Error of commission. C) All the above. D) None of the above. Show Answer Correct Answer: A) Error of principle. 14. A sale of 500 omitted from ledger: A) Error of principle. B) Compensating error. C) Error of omission. D) Error of commission. Show Answer Correct Answer: C) Error of omission. 15. $ 200 rental payment was not recorded in the books. What is type of this error? A) Error of omission. B) Error of principle. C) Compensating error. D) Error of commission. E) Error of original entry. Show Answer Correct Answer: A) Error of omission. 16. Furniture purchased for 5, 000 entered in repairs account: A) Error of commission. B) Compensating error. C) Error of principle. D) Error of omission. Show Answer Correct Answer: C) Error of principle. 17. A cash payment of $ 1, 700 for rent has been omitted from the books. What is the rectification entry? A) Dr:Cash $ 1, 700Cr:Rent $ 1, 700. B) Dr:Cash $ 1, 700Cr:Suspense $ 1, 700. C) Dr:Rent $ 1, 700Cr:Cash $ 1, 700. D) Dr:Suspense $ 1, 700Cr:Cash $ 1, 700. Show Answer Correct Answer: C) Dr:Rent $ 1, 700Cr:Cash $ 1, 700. 18. Sales of £450 worth of goods to Shakib had been entered in error into the account of Sameer. A) Error of original entry. B) Error of commission. C) Error of omission. D) Error of principle. Show Answer Correct Answer: B) Error of commission. 19. Sales of £3400 had been correctly entered into sales account of The Coach. This transaction had been recorded as £4300 in Shakib's account. A) Suspense £900 DR, Shakib £900 CR. B) The Coach £100 DR, Suspense £100 CR. C) Suspense £100 DR, Shakib £100 CR. D) Office expense £600 DR, Shakib £600 CR. Show Answer Correct Answer: A) Suspense £900 DR, Shakib £900 CR. 20. Hiro wishes to increase his provision for doubtful debts at the end of the year. How does he record this increase? A) Debit entry credit entryprovision for doubtful debts bad debts. B) Debit entry credit entryprovision for doubtful debts income statement. C) Debit entry credit entrybad debts provision for doubtful debts. D) Debit entry credit entry income statement provision for doubtful debts. Show Answer Correct Answer: D) Debit entry credit entry income statement provision for doubtful debts. 21. Return inwards of RM 56 was posted to the wrong side of the account.Does this error need Suspense account to make correction? A) Yes. B) No. C) All the above. D) None of the above. Show Answer Correct Answer: A) Yes. 22. State the effect on Profit for the Year:Rent under added by £80 A) Increase. B) Decrease. C) No Effect. D) None of the above. Show Answer Correct Answer: B) Decrease. 23. A payment for RM 1, 400 utilities was debited to cash in hand and credited to utilities account. A) Reversal ErrorDr Cash RM 2, 800 Cr Utilities RM 2, 800. B) Reversal ErrorDr Cash RM 1, 400 Cr Utilities RM 1, 400. C) Reversal ErrorDr Utilities RM 2, 800 Cr Cash RM 2, 800. D) Reversal ErrorDr Utilities RM 1, 400 Cr Cash RM 1, 400. Show Answer Correct Answer: C) Reversal ErrorDr Utilities RM 2, 800 Cr Cash RM 2, 800. 24. A payment of 1, 000 to a supplier is recorded as 100. Correcting entry: A) Dr Cash 1000, Cr Supplier 1000. B) Dr Supplier 900, Cr Cash 900. C) Dr Supplier 1000, Cr Cash 1000. D) Dr Cash 900, Cr Supplier 900. Show Answer Correct Answer: B) Dr Supplier 900, Cr Cash 900. 25. 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? A) Dr Sales, Cr Owner's Equity. B) Dr Sales, Cr Computer. C) Dr Computer, Cr Sales. D) Dr Computer, Cr Bank. Show Answer Correct Answer: B) Dr Sales, Cr Computer. 26. 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. A) A. B) D. C) C. D) B. Show Answer Correct Answer: B) D. 27. Office expenses of $ 21 was actually a payment made for the owner's private expenses A) Omission. B) Compensating. C) Principle. D) Commission. Show Answer Correct Answer: C) Principle. 28. State true or false:If sales, purchases return, liability or income are undercasted, suspense account will be debited and related account will be credited. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 29. WHICH OF THE FOLLOWING ERRORS, WOULD NOT AFFECT THE BALANCING OF A TRIAL BALANCE? A) AN AMOUNT POSTED TO HARIS. B) AMOUNT OMITTED ENTIRELY FROM THE BOOKS. C) AMOUNT OVERCAST IN ONE ACCOUNT. D) AN AMOUNT POSTED TO THE WRONG SIDE OF THE ACCOUNT. Show Answer Correct Answer: B) AMOUNT OMITTED ENTIRELY FROM THE BOOKS. 30. What type of error has occurred when purchases and sales accounts were both overcast by $ 200? A) Commission. B) Principle. C) Omission. D) Compensating. Show Answer Correct Answer: D) Compensating. ← PreviousNext →Related QuizzesGrammar QuizzesEnglish Grammar QuizzesCorrection Of Errors Quiz 1Correction Of Errors Quiz 2Correction Of Errors Quiz 3Correction Of Errors Quiz 5Correction Of Errors Quiz 6Accept Vs. Except QuizAffect Vs Effect QuizCommon Mistakes Quiz 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books