TQ1: CHAPTER 10 - CORRECTION OF ERRORS

A trial balance is a proof of accuracy of

• A- transactions.

• B- final accounts.

• C- double entry in the ledgers.

• D- trading account.

A suspense account is used to

• A- agree the trial balance

• B- record sales.

• C- record purchases.

• D- correct errors.

The purchase of a computer for office use was debited to purchases account.

This is an error of

• A- commission.

• B- omission.

• C- original entry.

• D- principle.

Expenses on minor repairs of building was posted to building account. This is

an error of

• A- Omission

• B- Complete reversal

• C- Principle

• D- Compensation

The cost of goods purchased by cash was wrongly debited to sales account and

credited to cash book. The entries necessary to correct the error are :

• A- Dr Purchases account; Cr cash book

• B- Dr Sales account; Cr Cash book

• C- Dr Cash book; Cr Sales account

• D- Dr Purchases account; Cr Sales account

Which of the following is NOT a shortcoming of single entry book-keeping?

• A- A trial balance is not available

• B- Profits are overstated

• C- There are no subsidiary books

• D- There are no control accounts

In which of the following circumstances will the preparation of a Trial Balance

assist in disclosing an error?

• A- Failure to post an entry journal

• B- Posting rent expenses to motor running account

• C- Failure to post part of a journal entry

• D- Posting the debit of a journal entry as a credit and vice versa

The amount of 500,000 KHR for the maintenance of the factory machine was

debited to the plant and machinery account after crediting bank account with

same amount. Which error has been committed?

• A- Error of commission

• B- Error of original entry

• C- Error of omission

• D- Error of principle

The repairs of the personal vehicle of a proprietor’s wife was wrongly treated as

part of motor vehicle expenses of the business. Which of the following

accounting entries is required to correct the error?

• 
• 
• 
• 

The closing inventories of a firm were overvalued by 3 million KHR due to overcast

error in one of the inventory valuation sheets. How would the correction of

this affect the reported profit?

• A- Increase reported profit by 3 million KHR

• B- Reduce reported profit by 3 million KHR

• C- No effect on the reported profit

• D -Increase reported profit by 6 million KHR