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1. A Machine was Purchased for Rs. 3,000 which was wrongly recorded in Purchase A/c. due to this error : A. Trial Balance will show difference by Rs. 3,000 B. Trial Balance will not show difference by Rs. 3,000 C. Both (a) and (b) D. None

2. Sale to Mr. Z of Rs. 3,000 on credit was recorded twice in the sales book. The rectification entry is : A. Mr. Z will be creditedB. Mr. Z will be debitedC. Sales account will be creditedD. None

3. ‘A’ sold goods to ‘B’ on credit for Rs. 15,000 but debited to ‘C’ instead of ‘B’. The entry would affect: A. Trial BalanceB. Individual LedgersC. Balance SheetD. Total Debtors

4. When the total of trial balance is not reconciled, the account opened at this juncture is : A. Trading AccountB. Suspense accountC. Profit & Loss accountD. None of these

7. An amount of Rs. 6,000 due from Anshul, which had been written off as a bad debt in a previous year, was unexpectedly recovered and had been posted to his personal account. The rectification entry is : A. Anshul A/c Dr. Rs. 6,000To Suspense A/c   Rs. 6,000 B. Suspense A/c Dr. Rs. 6,000To Bad Debts Recovered A/c    Rs. 6,000 C. No entry will be madeD. Anshul A/c Dr. Rs. 6,000To Bad Debts Recovered A/c     Rs. 6,000

8. Sale of old furniture is wrongly transferred to Sales Account. Which type of error is this ? A. Error of PrincipleB. Compensating ErrorC. Error of OmissionD. Error of Commission

9. Wages paid for the erection of a machine debited to Wages A/c is an example of : A. Error of PrincipleB. Clerical ErrorC. Error of OmissionD. Error of commission

10. A purchase of computer was debited to Office Expenditure Account. This is an error of : A. CommissionB. OmissionC. PrincipleD. Compensatory Error

11. Credit sale of Rs. 10,000 made to Sallu was passed through purchase book. The proper entry for rectification was the following : A. Sallu A/c Dr. 10,000To Sales A/c     10,000 B. Sallu A/c Dr. 20,000To Purchases A/c    20,000 C. Sallu A/c Dr. 20,000To Sales A/c       10,000 To Purchases A/c   10,000 D. None of the above

13. An amount of Rs. 8,765 paid to M was debited to N’s a/c. The rectification of the error will- A. Increase the net profitB. Decrease the net profitC. Increase the assetsD. Have no erect on the net profit

14. Suspense Account is a : A. Nominal A/cB. Real A/cC. Personal A/cD. Any of the above

15. A trial balance will not balance if A. A correct entry is posted twiceB. Rs. 5,000 received from Harish is posted in the credit side of HariC. Sales on credit basis is credited to sales account and debited in cash account.D. Goods of Rs. 2,500 returned to Ram is added into the purchases

17. On purchase of old furniture, the amount of Rs. 1,000 spent on its repair should be debited to A. Repair account;B. Furniture account;C. Cash account;D. Bank account.

19. Sales of office furniture should be credited to A. Sales accountB. Furniture accountC. Purchase accountD. Cash account

20. If a purchase return of Rs. 1,000 has been wrongly posted to the debit of the sales returns account, but has been correctly entered in the suppliers’ account, the total of the A. Trial balance would show the debit side to be Rs. 1,000 more than the creditB. Trial balance would show the credit side to be Rs. 1,000 more than the debit.C. The debit side of the trial balance will be Rs. 2,000 more than the credit sideD. The credit side of the trial balance will be Rs. 2,000 more than the debit side.

21. A debit balance in the depositor’s Cash Book will be shown as: A. A debit balance in the Bank Statement.B. A credit balance in the Bank Statement.C. An overdrawn balance in the Bank Statement.D. None of the above.

22. 7 If a purchase return of Rs. 84 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: A. The credit side to be Rs. 84 more than debit side.B. The debit side to be Rs. 84 more than credit side.C. The credit side to be Rs. 168 more than debit side.D. The debit side to be Rs. 168 more than credit side.

23. When balance as per Cash Book is the starting point, interest charged by Bank is: A. Added in the bank reconciliation statementB. Subtracted in the bank reconciliation statementC. Not required to be adjusted in the bank reconciliation statementD. Neither of the above.

24. The cash book showed an overdraft of Rs. 1,500 as cash at bank, but the pass book made up to the same date showed that cheques of Rs. 100, Rs. 50 and Rs. 125 respectively had not been presented for payments; and the cheque of Rs. 400 paid into account had not been cleared. The balance as per the pass book will be A. Rs. 1,100B. Rs. 2,175C. Rs. 1,625D. Rs. 1,375

25. A Bank Reconciliation Statement is prepared by A. The BankB. The GovernmentC. The Bank Account holderD. The user of financial statements

26. Goods purchased of Rs. 100 from N was not recorded at all. What will be its effect on the trial Balance? A. Will tallyB. Will not tallyC. Will have no affectD. None of these.

27. Goods worth Rs. 100 taken by proprietor for domestic use should be credited to A. Sales accountB. Proprietor’s personal expensesC. Purchases accountD. Expenses account

28. While preparing bank reconciliation statement with favourable balance as per cash book which of the following will not be added? A. Cheques deposited but not clearedB. Cheques issued but not presented to bankC. Cheques directly deposited in bank by a customer.D. Overcasting of Cr. side of the bank account in cash book.

29. Payment done by the account holder through issuing a cheque is entered in A. The pass-book at the time of issuing the chequeB. The cash-book at the time of presenting the cheque to the bank for paymentC. The pass-book at the time of presenting the cheque to the bank for paymentD. The cash-book when informed by the third party

30. An amount of Rs. 5,000 debited twice in pass book to prepare Bank Reconciliation Statement, when overdraft as per the cash book in the starting point: A. Rs. 5,000 will be deductedB. Rs. 5,000 will be addedC. Rs. 10,000 will be deductedD. Rs. 10,000 will be added