Accounting Errors and Corrections Quiz

What is the correct journal entry to rectify the error of furniture purchased for Rs. 10,000 wrongly debited to the purchases account as Rs. 4000?

• Debit Furniture Account Rs. 10,000; Credit Purchases Account Rs. 4,000 Credit Cash Account Rs. 6000

• Debit Furniture Account Rs. 6,000; Credit Purchases Account Rs. 6,000

• Debit Purchases Account Rs. 10,000; Credit Furniture Account Rs. 4,000

• Debit Furniture Account Rs. 4,000; Credit Purchases Account Rs. 10,000

How should the purchase of machinery from Ramzan for Rs. 20,000 be correctly recorded?

• Debit Purchases Account Rs. 20,000; Credit Ramzan's Account Rs. 20,000

• Debit Machinery Account Rs. 20,000; Credit Cash Account Rs. 20,000

• Debit Machinery Account Rs. 20,000; Credit Ramzan's Account Rs. 20,000

• Debit Cash Account Rs. 20,000; Credit Machinery Account Rs. 20,000

What is the impact on the capital account when goods worth Rs. 800 are withdrawn by the proprietor for personal use but posted as Rs. 300?

• Capital is overstated by Rs. 500

• Capital is understated by Rs. 500

• Capital is overstated by Rs. 800

• Capital is understated by Rs. 800

What is the correct adjustment for the Returns Inward book being undercast by Rs. 1000?

• Debit Returns Inward Account Rs. 1000
  Credit Suspense Account Rs. 1000

• Debit Suspense Account Rs. 1000
  Credit Returns Inward Account Rs. 1000

• Debit Sales Account Rs. 1000
  Credit Suspense Account 1000

• Debit Customer's Account Rs. 1000
  Credit Sales Account Rs. 1000

Calculate the total amount of errors in the purchases account due to the incorrect entries mentioned.

• Rs. 4,000

• Rs. 6,000

• Rs. 10,000

• Rs. 20,000

What is the correct journal entry to rectify the error of goods withdrawn by the proprietor for personal use posted as Rs. 300 instead of Rs. 800?

• Debit Drawings Account Rs. 500; Credit Purchases Account Rs. 500

• Debit Drawings Account Rs. 800; Credit Purchases Account Rs. 800

• Debit Drawings Account Rs. 500; Credit Capital Account Rs. 500

• Debit Drawings Account Rs. 800; Credit Capital Account Rs. 800

If the Returns Inward book was undercast by Rs. 1000, what is the effect on the profit?

• Profit is overstated by Rs. 1000

• Profit is understated by Rs. 1000

• Profit is overstated by Rs. 2000

• Profit is understated by Rs. 2000

What is the correct amount to be debited to the Furniture Account after rectifying the error of the furniture purchase?

• Rs. 4,000

• Rs. 6,000

• Rs. 10,000

• Rs. 14,000