InterviewSolution
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InterviewSolution
This section includes InterviewSolutions, each offering curated multiple-choice questions to sharpen your knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Salary of Rs. 2,100 paid was posted as Rs. 2,000 in Salary A/c and Advertisment of Rs. 7,700 was posted as Rs. 7,800. Identify the type of error. |
| Answer» Correct Answer - Compensating Error. | |
| 2. |
From the following ledger balances prepare trial balance : Capital Rs. 20,800, Rent outstanding Rs. 1,420, Amount due to Param, Rs. 15,000, Drawing Rs. 2,800, Goodwill Rs. 12,000, interest received Rs. 2,000, Discount received Rs. 1,580, Amount due from Deepan Rs. 26,000. |
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Answer» Total of Trial Balance Rs. 40,800 Hints : Amount due to Param will be shown in Cr. Side. Amount due from Deepan will be shown on Dr. side. |
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| 3. |
State whether the balance of the following accounts should be placed in the debit (or) the credit columns of the trial balance: `{:("(i) Plant and Machinery",,"(ii) Discount allowed"),(" (iii) Bank overdraft ",,"(iv) Sales"),("(v) Interest Paid",,"(vi) Bad Debts"):}` |
| Answer» Dr. Balances (i), (ii), (v), (vi) , Cr. Balances (iii), (iv) | |
| 4. |
What is Trial balance ? Does the balancing of this ensure accuracy of books of accounts. |
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Answer» Trial balance : It is a statement prepared with the help of ledger balances at the end of financial year to test the arithmetical accuracy of books of accounts. Balancing of trial balance does not ensure the accuracy of books of accounts. Errors which remain undetected even if trial balance agrees: (i) Error of omission : If a transaction remains unrecorded in journal or subsidiary books. (ii) Error of commission : When wrong amount is entered either in journal or subsidiary books. (iii) Compensating error : If the effect of one error is neutralised by the effect of some other error. (iv) Error of principle : When fundamental principle of accountancy is violated while recording a transaction. |
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| 5. |
Which of the following errors is revealed by the Trial Balance :A. Wrong amount entered into the book of original entryB. Wrong amount posted in the ledger accountC. Complete omission of an entry from the books of original entryD. When accounting principle is violated while recording a transaction in the books of account |
| Answer» Correct Answer - B | |