Agreement of trial balance is affected by:

1

(a)

One sided error only

(b)

Two sided error only

(c)

Both a and b

(d)

None of the above

Which of the following is not an error of principle:

1

(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.

Which of the following is not an error of commission:

1

(a)

Overcasting of sales book

(b)

Credit sales to Ramesh Rs 5,000 credited to his account

(c)

Wrong balancing of machinery account

(d)

Cash sales not recorded in cash book

Which of following errors will be rectified through suspense account:

1

(a)

Sales return book under cast by Rs 1,000

(b)

Sales return by Madhu Rs 1,000 not recorded

(c)

Sales return by Madhu Rs 1,000recorded as Rs 10

(d)

Sales return by Madhu Rs 1,000 recorded through purchases returns book

If the trial balance agrees, it implies that:

1

(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.

What is meant by rectification of errors?

1

(a)

Rectification of errors means correction of errors by way of passing Journal entries.

Identify two types of errors for the purpose of rectification of errors.

1

(a)

(i) One-sided errors,
(ii) Two-sided errors

What is meant by one-sided errors?

1

(a)

One-sided errors are the errors which affect only one account. Trial Balance does not tally in this case.

What is the effect of one-sided errors on Trial Balance?

1

(a)

Trial balance will not agree.

What is meant by two-sided errors?

1

(a)

Two-sided errors are the errors which affect two or more than two accounts at the same time. Trial balance will tally in this case.