Related InterviewSolutions

• Rectify the following errors assuming that suspense account was opened. Ascertain the difference in trial balance. (a) Credit sales to Mohan 7,000 were recorded in Purchase Book. However, Mohan’s account was correctly debited. (b) Credit purchases from Rohan 9,000 were recorded in sales book. However, Rohan’s account was correctly credited. (c) Goods returned to Rakesh 4,000 were recorded in sales return book. However, Rakesh’s account was correctly debited. (d) Goods returned from Mahesh 1,000 were recorded through purchases return book. However, Mahesh’s account was correctly credited. (e) Goods returned to Naresh 2,000 were recorded through purchases book. However, Naresh’s account was correctly debited.
• Which of the following is not an error of commissionA. Overcasting of sales book.B. Credit sales to Ramesh  5,000 credited to his account.C. Wrong balancing of machinery account.D. Cash sales not recorded in cash book.
• Trial balance of Anuj did not agree. It showed an excess credit of 6,000. He put the difference to suspense account. He discovered the following errors (a) Cash received from Ravish 8,000 posted to his account as 6,000. (b) Returns inwards book overcast by 1,000. (c) Total of sales book 10,000 was not posted to Sales account. (d) Credit purchases from Nanak 7,000 were recorded in sales Book. However, Nanak’s account was correctly credited. (e) Machinery purchased for  10,000 was posted to purchases account as 5,000. Rectify the errors and prepare suspense account.
• Which of following errors will be rectified through suspense account:A. Sales return book undercast by  1,000.B. Sales return by Madhu  1,000 not recorded.C. Sales return by Madhu Rs 1,000. recorded as  100.D. Sales return by Madhu  1,000 recorded through purchases returns book
• Give journal entries to rectify the following errors assuming that suspense account had been opened. (a) Goods distributed as free sample 5,000 were not recorded in the books. (b) Goods withdrawn for personal use by the proprietor 2,000 were not recorded in the books. (c) Bill receivable received from a debtor 6,000 was not posted to his account. (d) Total of Returns inwards book 1,200 was posted to Returns outwards account. (e) Discount allowed to Reema 700 on receiving cash from her was recorded in the books as 70.
• Which of the following is not an error of principle:A. Purchase of furniture debited to purchases account.B. Repairs on the overhauling of second hand machinery purchased debited to repairs account.C. Cash received from Manoj posted to Saroj.D. Sale of old car credited to sales account.
• There is no error in the books.A. There is no error in the books.B. There may be two sided errors in the book.C. There may be one sided error in the books.D. There may be both two sided and one sided errors in the books.
• Trail balance is preparedA. After preparation financial statement.B. After recording transactions in subsidiary booksC. After posting to ledger is complete.D. After posting to ledger is complete and accounts have been balanced,
• Trial balance is:A. An accounB. A statement.C. A subsidiary book.D. A principal book.
• Agreement of trial balance is affected by:A. One sided errors only.B. Two sided errors only.C. Both (a) and (b)D. None of the above.