Revision on Errors & suspense

Purchase of machinery was entered in the purchase account. What type of error was this?

• A. Commission

• B. Principle

• C. Omission

• D. Transposition

The purchases account was added up too much by $ 100 and sales account also added up too much by $ 100. What kind of error is this?

• A. Commission

• B. Principle

• C. Omission

• D. Compensating

A cash receipt from Moorthy was debited to Moortyhy’s account and credited to cash account. What kind of error is this?

• A. Error of omission

• B. Error of commission

• C. complete reversal of entries

• D. Transposition errors

A cash purchase of goods was completely omitted from the books of the business. What kind of error is this?

• A. Commission

• B. Principle

• C. Omission

• D. Compensating

Goods sold on credit to Saani had been debited to Soni’s account. What kind of error is this?

• A. Commission

• B. Principle

• C. Omission

• D. Transposition.

A sale of goods $ 250 to E.Ellis on credit had been completely omitted from the books.

What is the entry to correct this error?

• A. Debit sales account $ 250 and credit E.ellis $ 250

• B. Debit E.Ellis $ 250 and credit sales account $ 250

• C. Debit cash account $ 250 and credit sales account $ 250

• D. Debit bank account $ 250 and credit sales account $ 250

Sale of machinery had been recorded in the sales account. What would be the entry to correct this error?

• A. Debit sales account and credit machinery account

• B. Debit machinery account and credit sales account

• C. Debit cash account and credit machinery account

• D. Debit machinery account and credit cash account

A sale of goods to Jeena $ 38 was entered in the books as $ 28. How should this error be corrected?

• A. ebit Jeena $ 38 and credit sales account $ 38

• B. Debit sales account $ 38 and credit Jeena’s account $ 38

• C. Debit Jeena $ 10 and credit sales account $ 10

• D. Debit sales account $ 10 and credit Jeena $ 10

A payment of cash $ 300 to M.Meenu was entered on the debit side of the cash book and credit side of M.Meenu’ account. What entry is required to correct this error?

• A. M,Meenu debit $ 300 and cash account credit $ 300

• B. Cash account debit $300 and M.Meenu credit $ 300

• C. M.Meenu debit $ 600 and cash account credit $ 600

• D. Cash account debit $ 600 and M.Meenu credit $ 600

Closing inventory was overvalued by $ 1400. What is the effect of this error on cost of sales?

• A. Overstated by $ 1400

• B. Understated by $ 1400

• C. No effect

• D. Overstated by $ 2800