Trial Balance, Rectification of Errors and Final Accounts Multiple Choice

1.    In book-keeping posting means :

1.    to record the transaction only

2.    To record the transaction from journal to the ledger

3.    To record the transaction only in ledger

4.    None of these

2.    The basic rule of book-keeping, debit the receiver and credit the giver is applicable to :

1. Personal account                                              2. Real account

3. Nominal account                                               4. None of these

3.    Goods of the value of Rs.1,500 taken by the proprietor for his personal use should be debited to :

1. sales account                                                    2. Purchase account

3. drawing account                                               4. None of these

4.    Goods destroyed by fire should be credited to :

1. purchase account                                             2. Sales account

3. loss of goods by fire account                            4. None of these

5.    The credit balance of bank account indicates.

1. amount payable by the bank                            2. Amount payable to the bank

3. amount receivable to the bank                         4. Cash at bank

6.    Which is the following is the preparing the trial balance method is ?

1. Total method                                                     2. Balance method

3. Both 1 and 2                                                      4. Neither of above 1 & 2

7.    Which of the following accounts will invariably have a debit balance ?

1. bank account                                                    2. Account receivable a/c

3. accounts payable a/c                                        4. None of these

8.    Which of the following accounts have only credits balance ?

1. accounts payable account                                2. Salaries outstanding a/c

3. reserve funds a/c                                              4. All of the above

9.    Which of the following accounts may have a debit or credit balance ?

1. Discount received account                               2. Sales account

3. Trade expenses a/c                                          4. Loan a/c

10.  The error in the casting of sale book is called as :

1. Clerical error                                                     2. Error of principle

3. compensating error                                           4. None of these

11.  Error of commission arises when :

1.    any transaction is in correctly recorded, either wholly or party.

2.    Any transaction is left either wholly or partially.

3.    Any transaction is recorded in a fundamentally incorrect manner

4.    None of these

12.  Wages paid for the erection of a machine debited to wages account is an example of :

1. error of principle                                                2. Clerical error

3. compensating error                                           4. None of these

13.  Error of balancing affects – accounts :

1. One account                                                     2. Two accounts

3. Two or more accounts                                      4. None of these

14.  Preparation of trial balance helps in locating errors of :

1. omission                        2. A clerical nature      3. Commission            4. All types

15.  An entry of Rs.840 being debited to sonali’s a/c as Rs.480 would be an error of :

1. commission                                                       2. Omission

3. principle                                                             4. Negligible significance

16.  An entry of Rs.1,000 being wrongly posted to wages a/c instead of machinery a/c would be an error of ?

1. omission                                                            2. Commission

3. principle                                                             4. A clerical nature

17.  An expense of Rs.500 on cartage of a new machine purchased should be debited to :

1. cash a/c                                                            2. Miscellaneous expenses a/c

3. cartage a/c                                                        4. Machine a/c

18.  Error which affect one account can be :

1. errors of omission                                             2. Errors of principle

3. errors of posting                                                4. None of these

19.  Error of carry forward affect –

1. personal a/c                                                      2. Impersonal a/c

3. nominal a/c                                                       4. Suspense a/c

20.  Sales of Ram, Rs.336, posted to his account as Rs.363 affect …

1. sales account                                                    2. Ram’s account

3. both 1 and 2                                                      4. None of these

21.  Sales to Uma Rs.336 have been debited to Thulasi account. This will be rectified by :

1.    Uma a/c – Dr. To Thulasi a/c

2.    Thulasi a/c – Dr. To Uma a/c

3.    Crediting both the account

4.    None of these

22.  Sales to Mahesh Rs.336, were not recorded this will affect –

1. purchase account                                             2. Sales account

3. mahesh account                                               3. Both 2 and 3

23.  Cartage paid, Rs.50 for the newly purchased machinery, if debited to cartage account will affect ;

1. only machinery account                                   2. Only cartage account

3. both 1 and 2                                                      4. None of these

24.  Goods purchase from Raju for Rs.1,000 were passed through sales book. The rectification of the error will :

1. increase the gross profit                                   2. Decrease the gross profit

3. neither of the two                                              4. Only Raju account affect

25.  An amount of Rs.200 paid to Bixam against an acceptance was debited to Pandu’s account. The rectification of the error will :

1. increase the net profit                                       2. Bixam’s account increase

3. reduce net profit                                                4. Have no effect on the net profit

26.  An amount of Rs.300 written off as bad debt was received from X and was credited to X’s personal account. The rectification of this entry will :

1. increase net profit by Rs.300                            2. Reduce net profit by Rs.300

3. both 1 and 2                                                      4. None of these

27.  Discount allowed Rs.93 to Mohan has been credited to his account by Rs.39. the error will be rectified by :

1. Debiting Mohan by Rs.54                                 2. Crediting Mohan by Rs.54

3. Debiting discount by Rs.54                               4. None of these

28.  Which item is shown on the debit side of a trial balance ?

1. purchase returns                                               2. Rent outstanding a/c

3. prepaid expenses                                              4. None of these

29.  Bills receivable book is a part of :

1. ledger                            2. Journal                    3. Balance sheet         4. None of these

30.  An entry of Rs.320 has been debited to vivek’s account as Rs.230. it is an error of :

1. commission                                                       2. Omission

3. principle                                                             4. None of these above 

Answers

1.2       2.1       3.3       4.1       5.2       6.3       7.2       8.4       9.4       10.1     11.1     12.1

13.1     14.2     15.1     16.3     17.4     18.3     19.2     20.2     21.1     22.4     23.1     24.2    

25.4     26.1     27.4     28.3     29.2     30.1

Bank Reconciliation Statement Multiple Choice Questions

Greetings to fellow blog readers......

1.    A Bank Reconciliation Statement is prepared by :

1. customer of the Bank                                       2. Bank

3. neither of the above two                                   4. None of these

2.    The balance of cash book shows :

1. net income                                                        2. Cash in hand

3. net expenditure                                                 4. None of these

3.    BRS is :

1. a part of the cash book                                     2. A ledger account

3. a statement showing the causes for difference between the balance of cash book and pass book

4. none of these

4.    Bank Reconciliation statement is prepared to ascertain the causes of the difference between :

1.    the balance as per the bank column of the cash book and the balance as per pass book

2.    the balance as per the cash column of cash book and the balance as per the pass book

3.    neither of the two

4.    none of these

5.    While preparing bank reconciliation statement charges paid into bank but not yet cleared are :

1. added                            2. Deducted                3. Multiple                    4. None of these

6.    A five months bill drawn on 2^nd Feb 2004 will mature for payment on … 2004.

1. Sep 5^th                          2. Sep 2^nd                    3. Feb 5^th                     4. None of these

7.    In arriving at out adjusted cash balance which of the following is not taken into account ?

1.    amount deposited by our customer direct into our bank account

2.    errors in the cash book                                   3. Errors in the pass book

4. none of these

8.    When bank column of a cash book shows a credit balance, it means :

1. overdraft balance                                              2. Cash book balance

3. positive balance of pass book                          4. None of these

9.    A bank reconciliation statement is prepared by :

1. creditors                                                            2. Debtors

3. business                                                            4. Customers (bank)

10.  Favourable balance as per cash book means :

1.    debit balance in the bank. Bank column of the cash book

2.    debit balance in the pass book

3.    neither of the two

4.    none of these

11.  Over draft as per cash book means :

1.    Credit balance in the cash book

2.    Credit balance in the bank column of the cash book

3.    Debit balance in the cash book

4.    None  of these

12.  Which of the following is the correct ?

1.    pass book shows credit balance

2.    cash book in the bank column shows the debit or credit balance

3.    when the pass book shows debit balance

4.    all of the above

13.  Bank balance as per cash book Rs.18,500 Rs.4,500 is entered in the cash book as paid into bank; but not credited by the bank. The pass book balance is Rs.

1. Rs.14,000                      2. Rs.13,000                3. Rs.23,000                4. Rs.18,500

14.  Pass book balance is 20,000, dividend of Rs.1,000 collected by bank but entered in the cash book as Rs.100. the cash book balance is :

1. Rs.19,000                      2. Rs.21,100                3. Rs.19,100                4. None of these

15.  Overdraft Bank balance as shown by the cash book is Rs.6,000. A cheque Rs.10,400 was deposited to bank but omitted in the cash book. In the pass book the amount is wrongly entered in the withdrawal column. Overdraft balance as per pass book.

1. Rs.16,400                      2. Rs.10,400                3. Rs.4,400                  4. Rs.16,000

16.  Overdraft balance as per pass book Rs.8,500. A cheque of Rs.3,450 issued but wrongly entered in the debit side of the cash book. The cheque is not yet presented for payment. Overdraft balance as per cash book.

1. Rs.8,500                        2. Rs.5,050                  3. Rs.11,950                4. None of these

17.  Bank balance as per cash book is Rs.7,800, bank charges of Rs.75 debited by bank but not recorded in the cash book. The pass book balance is ?

1. Rs.7,875                        2. Rs.7,725                  3. Rs.7,800                  4. Rs.7,850

18.  Bank balance as per pass book is Rs.9,700. Cash with drawn from bank Rs.3,000 but recorded as Rs.300 in the cash book but balance as per cash book is ?

1. Rs.12,400                      2. Rs.6,700                  3. Rs.3,700                  4. Rs.12,700

19.  Overdraft of pass book is Rs.11,500. Interest on Overdraft Rs.350 debited by bank but not recorded in the cash book. Bank balance as per cash book is ?

1. Rs.11,850                      2. Rs.11,500                3. Rs.11,150                4. Rs.11,750

20.  Bank balance as per cash book is Rs.570, debit side of the cash book bank column is over added to the extent of Rs.10,000. Overdraft of balance as per pass book is ?

1. Rs.9,430                        2. Rs.10,570                3. Rs.570                     4. None of these

21.  When overdraft as per pass book is the starting point, bank charges of Rs.100 recorded twice will be :

1. added by Rs.100                                               2. Added by Rs.200

3. deducted by Rs.100                                          4. Deducted by Rs.200

22.  When favourable balance as per cash book is the starting point, wrong debit given by the bank to the firm’s account will be :

1. added                            2. Deducted                3. No effect                 4. None of these

23.  The credit balance of Rs.1,000 in the bank column of the cash book was carried forward as its debit balance. When overdraft as per pass book is the starting point.

1. Rs.1000 will be deducted                                  2. Rs.1000 will be added

3. Rs.2000 will be deducted                                  4. None of these

24.  When Overdraft as per pass book is the starting point, interest on Overdraft Rs.50 recorded twice on pass book will be :

1. Added by Rs.100                                              2. Added by Rs.50

3. Deducted by Rs.50                                           4. None of the above

25.  When favourable balance as per cash book is the starting point, cheques deposited but not collected Rs.500 before due date will be :

1. added by Rs.500                                               2. Deducted by Rs.1000

3. deducted by Rs.500                                          4. None of these

26.  When overdraft as per cash book is the starting point, the credit balance of Rs.200 in the bank column of the cash book was carried forward as its debit balance will be ?

1. added by Rs.200                                               2. Added by Rs.400

3. deducted by Rs.400                                          4. None of these

27.  Balance as per cash book Rs.7,000 cheques issued Rs.750 but not cleared in the bank balance as per pass book will be :

1. Rs.7,750                        2. Rs.6,250                  3. Rs.7,000                  4. None of these

28.  Balance as per pass book is Rs.10,000 cheques issued but not cleared in the bank is Rs.350 bank charges Rs.50 not taken in the cash book, balance as per cash book will be :

1. Rs.10,050                      2. Rs.10,350                3. Rs.9,700                  4. Rs.10,400

29.  When bank column of a cash book shows a credit balance. It means :

1. favourable balance                                           2. Overdraft

3. favourable balance as per pass book              4. None of these

30.  Bank balance as per Pass book is Rs.30,000, dividend of Rs.1,000 collected by bank but entered in cash book as Rs.100. the cash book bank balance is Rs.:

1. Rs.29,100                      2. Rs.31,000                3. Rs.31,100                4. Rs.29,900

31.  While preparing bank reconciliation statement as per pass book will have to be – or balance as per cash book – by the amount of direct payment by customer into trader’s account with the banker :

1. decreased                     2. Increased                3. Both 1 and 2            4. None of these

32.  Overdraft as per cash book Rs.1,000, cheques issued but not presented in the bank balance as per pass book will be :

1. Dr Balance PB-000                                           2. Cr balance PB – 1000

3. Dr Balance PB – 2000                                      4. None of these

33.  Bank balance as per cash book is Rs.19,000. Rs.4,000 is entered in the cash book as paid into bank but not credited cash book. The pass book balance is :

1. Rs.14,000                      2. Rs.15,000                3. Rs.23,000                4. None of these

34.  Bank balance as per cash book is Rs.570, debit side of the cash book bank column is over added to the extent of Rs.9,500. Overdraft balance as per pass book is Rs. :

1. Rs.8,930                        2. Rs.10,070                3. Rs.9,570                  4. None of these

35.  Pass book overdraft balance is Rs.30,000 cheques deposited but not credit  is Rs.8,000 what is the balance as per cash book is :

1. Rs.38,000                      2. Rs.22,000                3. Rs.30,000                4. None of these

 ANSWERS

1.1       2.2       3.3       4.1       5.2       6.1       7.3       8.1       9.4       10.1     11.2     12.4

13.1     14.3     15.1     16.2     17.2     18.1     19.3     20.1     21.1     22.2     23.3     24.3    

25.3     26.2     27.1     28.3     29.2     30.1     31.3     32.2     33.2     34.1     35.1