Practice Test


1) Goods purchased from A for Rs. 10,000 passed through the Sales book . The error will results in


2) If a Purchase Return of Rs.1,000 has been wrongly posted to debit of the Sales Returns account , but has been correctly entered in the suppliers' account , the total of the


3) If the amount is posted in the wrong account or it is written on the wrong side of the account , it is called


4) If a purchase Return of Rs.84 has been wrongly posted to debit of the Sales Returns account , but has been correctly entered in the suppliers' account , the total of the trial balance would show


5) Rs.200 paid as wages for erecting a machine should be debited to


6) On purchase of old furniture , the amount of Rs.1,000 spent on its repair should be debited to


7) Goods worth Rs.50 given as charity should be credited to


8) Errors of commission do not permit


9) The preparation of a trial balance is for


10) Rs.200 received from Smith whose account , was written off as bad debts should be credited to


11) Goods destroyed by fire should be credited to


12) Sales of office furniture should be credited to


13) Sales to Heena Rs.143 was posted to Meena as Rs.143


14) Goods taken away by the proprietor for personal use not recorded anywhere


15) The total of a folio in the Sales book Rs.1,000 was carried forward as Rs.100


16) Repairs of newly purchased second-hand machinery debited to repairs accounts


17) Sale of Rs.120 was written in the purchase book


18) Salary paid to Ram , has been debited to his account


19) Purchase of furniture has been entered in the purchase book


20) Rs.120 received from has been debited to his account


21) Freight paid on machinery has been debited to freight account


22) Repairs to building have been debited to building account


23) The total of the Sales book is Rs.200 short


24) The Sales of worth Rs.337 has been posted as Rs.373


25) The amount of a dishonoured bill has been debited to general expenses account


26) State which of these will not be revealed by the trial balance


27) State which of these will be revealed by the trial balance


28) The trial balance checks


29) which of the following will generally show a credit balance


30) which of the following will generally show a debit balance


31) A tallied trial balance will not reveal


32) A tallied trial balance will not reveal


33) A tallied trial balance will not reveal


34) A tallied trial balance will not reveal


35) A tallied trial balance will not reveal


36) Errors of principle do not permit


37) which of the following errors will not affect the trial balance ?


38) Which of the following errors will not affect the trial balance ?


39) Which of the following errors will affect the trial balance ?


40) Which of the following errors will affect the trial balance ?


41) Which of the following errors will not affect the trial balance ?


42) which of the following errors will affect the trial balance ?


43) In case the individual ledger account were accurate in all respects but a trial balance did not tally, there may be


44) Rectifying entry is not required to be posted in case of


45) Which of the following error is an error of omission ?


46) Which of the following error is an error of principle ?


47) Rs.6,000 paid for the installation of new machinery should be debited to


48) On the purchase of old furniture, Rs.3,000 spent on its repairs should be debited to


49) Purchase of office furniture for Rs.6,000 has been debited to general expenses, account it is


50) Goods worth Rs.500 taken by the proprietor for personal use should be debited to


51) On opening suspense account the words recorded in the particulars column are


52) The object of opening suspense account is


53) Profit & loss adjustment account is used


54) Goods costing Rs.10,000 taken by the proprietor for personal use were not recorded .The errors will result in


55) Goods costing Rs.10,000 distributed as free sample were not recorded .The errors will result in


56) goods costing Rs.10,000 given as charity were not recorded .The errors will result in


57) Goods costing Rs.10,000 destroyed by fire were not recorded . The errors will result in


58) Goods costing Rs.10,000 taken by the proprietor for personal use were not recorded .The errors will result in


59) Goods costing Rs.10,000 distributed as free sample were not recorded .The errors will result in


60) goods costing Rs.10,000 given as charity were not recorded .The errors will result in


61) goods costing Rs.10,000 destroyed by fire were not recorded .The errors will result in


62) goods costing Rs.10,000 taken by the proprietor for personal use were not recorded .The errors will result in


63) Goods costing Rs.10,000 distributed as free sample were not recorded .The errors will result in


64) goods costing Rs.10,000 given as charity were not recorded .The errors will result in


65) goods costing Rs.10,000 destroyed by fire were not recorded .The errors will result in


66) goods costing Rs.10,000 taken by the proprietor for personal use should be credited to


67) Goods costing Rs.10,000 distributed as free sample should be credited to


68) goods costing Rs.10,000 given as charity were should be credited to


69) goods costing Rs.10,000 destroyed by fire not recorded .The errors will result in


70) goods costing Rs.10,000 taken by the proprietor for personal use were credited to sales account .While passing rectifying entry


71) goods costing Rs.10,000 distributed as free sample were credited to sales account .While passing rectifying entry


72) Rs.10,000 paid in cash for repairs of an old machine ,should be debited to


73) Rs.10,000 paid in cash for repairs of a newly purchased old machine were debited to repairs account .this error


74) Rs.10,000 paid in cash for repairs of a newly purchased old machine were debited to repairs account .while passing a rectifying entry


75) Rs.10,000 paid in cash for installation of an new machine ,should be debited to


76) Rs.10,000 paid in cash for installation of a newly purchased old machine were debited to installation account .while passing a rectifying entry


77) Rs.10,000 paid in cash for installation of a newly purchased old machine were debited to installation account .this error


78) sales of office furniture has been credited to sales account .It is


79) Sales of office furniture credited to sales account


80) a cash purchase of goods for proprietor's personal use should be credited to


81) Rs.10,000 received in cash from X whose account ,was written off as a bad debt should be credited to


82) Rs.10,000 received in cash from X (whose account ,was written off as a bad debt) credited to X's account. this error


83) Rs.10,000 received in cash from X (whose account ,was written off as a bad debt) credited to X's account. while rectifying this error


84) The total of sales book was not posted to the ledger this error


85) Sales to meena Rs.143 was posted to meena . This error


86) Sales to meena Rs.143 was credited as 413


87) sales to meena Rs.143 was debited as 413


88) The total of a folio in the sales book Rs.1,000 was carried forward as Rs.100.this error


89) Total of sales book cost Rs.900 short .this error


90) A cash sales of Rs.143 to meena omitted to be posted


91) Both the discount column of the cash book were omitted to be posted in the ledger. this error


92) Rent paid to Ram a landlord should be debited to his account this error


93) sales to meena Rs.143 omitted to be recorded .this error


94) sales to meena Rs.143 recorded in sales return book .this error


95) sales to meena Rs.143 recorded in sales return book from meena Rs.413 .this error


96) Which of the following errors will be revealed by the trial balance


97) Goods purchased from X for Rs. 10,000 passed through the Sales book . The error will results in


98) Goods purchased from X for Rs. 10,000 passed through the Sales return book . The error will results in


99) Goods purchased from X for Rs. 10,000 passed through the purchase return book . The error will results in


100) Goods sold to Y for Rs. 10,000 passed through the purchase book . The error will results in


101) Goods sold to Y for Rs. 10,000 passed through the purchase return book . The error will results in


102) Goods sold to Y for Rs. 10,000 passed through the sales return book . The error will results in


103) Goods returned to X for Rs. 10,000 passed through the Sales return book . The error will results in


104) Goods returned to X for Rs. 10,000 passed through the Sales book . The error will results in


105) Goods returned to X for Rs. 10,000 passed through the purchase book . The error will results in


106) Goods returned by Y for Rs. 10,000 passed through the Sales book . The error will results in


107) Goods returned by Y for Rs. 10,000 passed through the purchase book . The error will results in


108) Goods returned by Y for Rs. 10,000 passed through the purchase return book . The error will results in


109) Goods purchased from X for Rs. 10,000 passed through the Sales book . The error will results in


110) A bill receivable of Rs. 10,000,from X was recorded in bill payable book. the error


111) A purchase of Rs.10,000 has been wrongly posted to the credit of sales account but had been correctly entered in the supplier's account . The trial balance would show


112) A purchase of Rs.10,000 has been wrongly posted to the credit of purchase return account but had been correctly entered in the supplier's account . The trial balance would show


113) A purchase of Rs.10,000 has been wrongly posted to the debit of supplier's account but had been correctly entered in the purchase account . The trial balance would show


114) A purchase of Rs.10,000 has been wrongly posted to the credit of sales account but had been correctly entered in the supplier's account . The error is


115) Unintentional omission or commission of amount and accounts in the process of recording transactions are known as -


116) Whenever errors are noticed in the accounting records, they should be rectified -


117) Difference of totals of both debit and credit side of the trial balance is transferred to -


118) A suspense account facilitates the preparation of -------even when the --------has not tallied


119) After preparing the Trial Balance the accountant finds that the total of debit side is short by Rs.2,500, This difference will be -


120) A Trial Balance will not tally if -


121) Rs.3,000 received from sub - tenant for rent and entered correctly in the case book is posted to the debit of the rent account. In the Trial Balance -


122) Error of Commission do not permit -


123) An item of Rs.72 has been debited to a personal account as Rs.27, is a error of -


124) Sales of Shyam of Rs.500 not recorded in the books would affect -


125) Which of the accounts is increased by credit entries?


126) Closing stock in Trial Balance will be taken to -


127) The Preparation of a trial balance helps in


128) Error of commission arises when -


129) Error which affect one account can be -


130) Purchase of office furniture for Rs.20,000 has been debited to purchases A/c. It is -


131) "Treating a revenue expense as a capital expenditure" is a example of -


132) Which of the following is put on credit side of T/B -


133) Which of the following would not be revealed by preparation a Trial balance -


134) In case trial balance does not agree, difference is put to


135) Sales of typewriter that has been used in the office should be credited to -


136) Suspense A/c in the trial balance will be entered in -


137) Rs.1,500 received from Bahadur whose A/cs was previously written off as bad debt should be credited to


138) Error of omission arises when -


139) Error of principle arises when -


140) Errors of carry forward from one year to another affects


141) Good destroyed by fire should be credited to


142) Consider the following statements -
A credit purchase in the accounting year which was not recorded in the books but included in closing stock is to be
(1) Added to the purchase account
(2) Added to the creditors account
(3) Subtracted from the closing stock
(4) Added to the opening stock.

Which of the following statements gives above is/are correct?


143) If a Purchase Return of Rs.100 has been wrongly posted to the debit of the sales return account, but had been correctly entered in the suppliers account, the total of the trial balance would show -


144) On purchases of old furniture, the amount spent on its repair should be debited to


145) Cartage paid, Rs.50, for the newly purchases machinery, if debited to cartage account will affect-


146) Discount allowed Rs.93 to Mohan has been credited to his account by Rs.39.The error will be rectified by -


147) A Bill Receivable of Rs.500 was dishonoured and credited as Rs.50. The error will be rectified by -


148) If an effect of an error is cancelled by the effect of some other error, it is commonly known as -


149) Which of the following errors are not revealed by the Trial Balance -


150) Which of the following is not a true of a Trial balance?


151) The statement listing the balances by the titles of the accounts in the ledger on a given date is known as


152) The equality of debits and credits can be tested periodically by preparing a


153) Which of the following describes the proper sequence of actions in the accounting cycle


154) Which of the following errors is an error of omission?


155) Errors of recording do not allow


156) Which of the following errors will affect Trial Balance?


157) Cheque received from Bina by Rs.4,000 was recorded in the cash column of the Cash Book, thought on the correct side. The rectification will be does by -


158) Goods sold to Basu and Co.on credit, worth Rs.4,000 were not recorded in the books. The rectification entry is -


159) Salary paid for the Month of June, Rs.21,000 by issue of a cheque was recorded in the Journal but not posted at all. The rectification will be done by -


160) Sale to Vasant Rs.4,300 on credit was recorded twice in the Sales Book.The rectification entry is -


161) Purchase of Machinery worth Rs.5,000 was omitted from accounts. The rectification entry is


162) Sales Book was overcast by Rs.500


163) Cartage paid for newly purchased machinery, posted to Cartage Account


164) A transaction not recorded at all is called as an error of ________.


165) Rectification entries are passed in _________.


166) Errors occurred due to wrong posting are called as errors of _________.


167) Wages paid for installation of machinery wrongly debited to wages account is an error of _______.


168) If the trial balance shows a short credit the suspense account will have a _______.


169) For which type of error, journal entry is required for rectification ______.


170) Paid insurance Rs. 2,080 posted twice to Insurance A/c is an examples of ________.


171) ________ will not affect the trial balance.


172) ________ Account is a temporary account.


173) ___________are the errors committed by persons responsible for recording and maintaining account of a business firm in the course of accounting process.


174) Accounting error may be in the form of and due to_______


175) Unintentional omission or commission of amounts and account in the process of recording transaction are known as____


176) Errors other than_____are called clerical errors.


177) ______arise as a result of some act of omission on the part of the person responsible for the maintenance of books of account


178) When any particular transaction has not at all been entered in the book of original entry,it cannot be posted into the ledger at all,such error are known as_______


179) ________arises due to some positive act of commission on the part of the person responsible for the maintenance of the books of account


180) _______are neutralizing in nature,hence one error is compensated by other error or errors of opposite nature


181) Mistake in balancing an account is_______


182) Mistake in transfering the balance of an account to the trial balance or omitting to write the balance of an account in the trial balance is_________


183) Wages paid for installation of machinery debited to wages account.This is_________


184) Making an entry on the wrong side is______


185) A mistake in the casting of subsidiary books is_______


186) Compensating errors do not affect the agreement of_______


187) If accountant does not post the journal entry in journal,it will be classified as_______


188) If purchase amounting to Rs.12,000 posted as Rs.2,000 and sales amounting Rs.12,000 posted as Rs.2,000 then it will be classified as________


189) Accounting errors can be classified into______


190) Clerical errors are further classified into_____


191) The difference in trial balance is transferred to______if the errors are not identified.


192) _______is opened to rectify the entries in the next according period which involves nominal accounts.


193) _______arise because of the failure to differentiate between capital expenditure and revenue expenditure and capital receipts and revenue receipts.


194) If a transaction is entered more than one time,it is known as_____


195) Which of the following error can be disclosed by trial balance ?


196) Which of the following error can be disclosed by trial balance ?


197) Which of the following error can not be disclosed by trial balance ?


198) Which of the following error can be disclosed by trial balance ?


199) Which of the following error can affect the agreement of trial balance ?


200) Which of the following errors will not affect the agreement of trial balance ?


201) Which of the following errors will not affect the agreement of trial balance ?


202) Which of the following errors will not be revealed by the trial balance ?


203) Which of the following errors will be revealed by the trial balance ?


204) Which of the following statement is true ?


205) Treating a revenue expense as a capital expenditure is an example of_______


206) Which of the following errors will affect the trial balance ?


207) An expense on major repairs of machinery purchased second hand has been debited to repairs account,it involves an error of______


208) An entry for the goods sold to Madhav for Rs.1,020 was posted to his account as Rs.1,200.If rectification is done before preparation of trial balance then which of the following is correct ?


209) Rs.1,000 being the monthly total of discount allowed to customer was credited to discount account in the ledger. If rectification is done before preparation of trial balance then which of the following is correct ?


210) Rs.2,750 received from sohan was credited to mohan as Rs.2,750.If rectification is done before preparation of trial balance then which of the following rectification entry will be correct ?


211) Total of purchase book was Rs.10,000 short.If rectification is done before preparation of trial balance then which of the following is correct ?


212) An amount of Rs.15,000 withdrawn by the proprietor for his personal use has been debited to trade Expenses Account.Which of the following rectification entry is correct ?


213) A purchase of goods from Nathan amounting to Rs.3,000 has been wrongly entered in the sales book.However Nathan Account has been correctly Credited.Which of the following Rectification entry is correct ?


214) A credit sale of Rs.1,000 to Santhanam has been wrongly passed through the purchases book.Which of the following rectification entry is correct ?


215) Rs.15,000 received from karan has been credited to Ravan. Which of the following rectification entry is correct ?


216) Rs.3,750 paid on account of salary to the cashier Dhawan stand debited to his personal account.Which of the following rectification entry is correct ?


217) A contractor's bill for extension of premises amounting to Rs.27,500 has been debited to building Repairs account.Which of the following rectification entry is correct ?


218) A bill of Rs.20,000 for old office furniture sold to sethi was entered in the sales day book.Which of the following rectification entry is correct ?


219) An amount of Rs.8,000 received on account of interest was credited to commission Account.Which of the following rectification entry is correct ?


220) Goods bought from mukesh amounting to Rs.5,500 were posted to the credit of his account as Rs.5,000.If this error located after preparation of trial balance then which of the following rectification entry is correct ?


221) Sales book was overcast by Rs.20,000.If this error located after preparation of trial then which of the following rectification entry is correct ?


222) While carrying forward the total of one page of the purchase book to the next,the amount of Rs.12,350 was written as Rs.13,250.If this error located after preparation of trial then which of the following rectification entry is correct ?


223) Cartage Rs.780 paid on machinery newly acquired was Debiited to carriage inward account.If this error located after preparation of trial balance then which of the following rectification entry is correct ?


224) Drawings of goods costing 300 were not recorded in the books of account. If this error located after preparation of this trial balance then which of the following rectification entry is correct ?


225) Purchases book was udercast by Rs.10,000.If this error located after preparation of final account then which of the following rectification entry is correct ?


226) Cash received from jamna Das Rs.687 was posted to the debit of janki Das Rs.687.If this error located after preparation of final account then which of the following rectification entry is correct ?


227) Depreciation on furniture Rs.2,970 was wrongly recorded as Rs.2,790. If this error located after preparation of final account then which of the following rectification entry is correct ?


228) Rs.1,500 being the total of discount column on the credit side of the cash book was not posted in the general ledger.If this error located after preparation of final account then which of the following rectification entry is correct ?


229) Closing stock was overstated by Rs.9,000 being casting error in the shedule of inventory.If this error located after preparation of final account then which of the following rectification entry is correct ?


230) Returns outwards book was undercast by Rs.150.If this error located after preparation of final account then which of the following rectification entry is correct ?


231) Rs.6,000 being the cost of purchase of office furniture was entered in the purchase book.If this error located after preparation of final account then which of the following rectification entry is correct ?


232) Wages paid for installation of machinery Rs.2,750 had been debited to wages account as Rs.5,250.If this error located after preparation of final account then which of the following rectification entry is correct ?


233) A cheque for Rs.7,330 was received from Rao after allowing him a discount of Rs.70.It was endorsed in favour of sen in full settlement of Rs.7,500.The cheque was dishonoured,but no entry for dishonour was passed in the books.If this error located after preparation of final account then which of the following rectification entry is correct ?


234) ______arise as a result of some act or omission on the part of the person responsible for the maintenance of books of account


235) Rectification of errors are first entered in -


236) ABC Ltd has issued a cheque for Rs. 3,50,000. The accountant by error has recorded the payment at Rs. 35,000. This error can be identified on preparing _____.


237) After rectification of the following errors, effect on Net profit will be
i) A cheque dishonoured Rs.3,100 debited to discount A/c
ii) Sales book (undercast) short by Rs.23,000
iii) A customer returned goods of value of
Rs.1,200, included in stock but not recorded


238) Cash received from Ramesh Rs. 1,500 ,is recorded correctly in Cash book, but debited to his account Because of this error _____


239) Errors are rectified by using Suspense A/c


240) The suspense A/c facilities the preparation of _____ even if the _____has not been balanced.


241) Wages paid Rs. 2,500 for installation of new machinery wrongly debited to wages A/c instead of machinery A/c. It is an error of _____


242) Which of the following will not affect Trial Balance?


243) If a purchase return of Rs. 3500 has been wrongly posted to the debit of the sales return account, but had been correctly entered in the suppliers account, the total of the trial balance would show:


244) Which of the errors committed while the entries are posted in ledger.
1) Errors of Principle
2) Errors of commission.
3) Errors of Partial omission
4) Errors of complete omission.


245) What will be the effect on Capital a/c after rectifying the following errors :
(i) Purchase of a cycle for Rs. 3,000 was debited to conveyance A/c (fixed assets are depreciated at 10 %)
(ii) Credit purchase of goods from X for Rs. 2,500 was wrongly entered in the sales book
(iii) Cash received from Mr. A Rs. 1,500 was posted to the A/c of Mr. B


246) Sales return of worth Rs. 637 has been wrongly credited to purchase return account, but had been correctly posted to debtors account. Total of trial balance would show:


247) After the rectification of following errors, the Net profit will be
(i) A Cheque of Rs. 3,100 was dishonoured and debited to Disocunt A/c
(ii) Sales book (undercast) short by Rs.23,000
(iii) A customer returned goods of value of Rs. 1,200, included in stock but not recorded


248) Salaries paid Rs. 4,500 is shown on credit side of Trial Balance. The debit side of Trial Balance will be ______.


249) Sold old furniture valued Rs. 2,000 to Sona was recorded as sales, the Book Value of furniture was Rs. 2,500. What will be the rectifying entry?


250) On Scrutiny, an accountant found that
(i) Bad Debts recovery of Rs. 500 was credited to Debtors A/c wrongiy.
(ii) Bank Charges of Rs. 50 was wrongly entered twice in Cash Book.
(iii) Purchase Returns of Rs. 200 was omitted to be entered in the Books of A/c.
What is the impact on profit after rectification?


251) Goods worth Rs.100 taken by proprietor for domestic use should be credited to