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Errors that do / do not Affect the T.B

Total questions: 10

Worksheet time: 20mins

Name
Class
Date
1.

If a trial balance totals do not agree, the difference must be entered in

a)

The Profit and Loss Account

b)

The Suspense Account

c)

A Nominal Account

d)

The Capital Account.

2.

Which of the following do not affect trial balance agreement? (i) Sales £105 to A Henry entered in P Henry’s account

(ii) Cheque payment of £134 for Motor expenses entered only in Cash Book

(iii) Purchases £440 from C Browne entered in both accounts as £404

(iv) Wages account added up incorrectly, being totaled £10 too much.

a)

(i) and (iv)

b)

(i) and (iii)

c)

(ii) and (iii)

d)

(iii) and (iv).

3.

If £500 was shown added to Purchases instead of being added to a fixed asset

a)

Net profit only would be understated

b)

Net profit only would be overstated

c)

It would not affect net profit

d)

Both gross and net profits would be understated.

4.

An amount of $100 is debited to an account in error. It should have been credited to the account.

What is the effect of this error on the trial balance totals?

a)

There will be $100 more on the credit side than on the debit side.

b)

There will be $100 more on the debit side than on the credit side.

c)

There will be $200 less on the credit side than on the debit side.

d)

There will be $200 less on the debit side than on the credit side.

5.

X received a cheque from Z, a customer. X recorded it as being received from S, another

customer.

What type of error is this?

a)

commission

b)

compensating

c)

omission

d)

principle

6.

A purchase on credit of $500 from Mitchell was credited in error to Mitchison’s ledger account.

Which journal entries correct this error?

a)

Mitchison $500 debit Mitchell $500 credit

b)

Mitchell $500 debit Mitchison $500 credit

c)

Suspense $500 debit Mitchell $500 credit

d)

Mitchison $500 debit Suspense $500 credit

7.

A difference on a trial balance was entered in a suspense account. It was found that a cheque for

$120 had been entered on the wrong side of a debtor’s account.

Which entries should be made in the journal to correct the error?

a)

debtor $120 debit suspense $120 credit

b)

debtor $240 debit suspense $240 credit

c)

suspense $120 debit debtor $120 credit

d)

suspense $240 debit debtor $240 credit

8.

Which error affects the balancing of a trial balance?

a)

an addition error in the Sales account

b)

crediting a purchase to B. Shore's account instead of A. Shaw's account

c)

failing to enter a sales invoice in the books

d)

posting the purchase of a machine to the debit side of the Purchases account

9.

A trial balance agrees, total debits and total credits being $50 000.

It is now discovered that an insurance payment of $200 had been wrongly entered in the General

Office Expenses account instead of the Insurance account.

What will the trial balance totals be after this error has been corrected?

a)

$49 800

b)

$50 000

c)

$50 200

d)

$50 400

10.

A difference on a trial balance is entered in a Suspense account. It is found that rent paid of $250

has been correctly entered in the Rent account but credited to the Bank account as $520.

Which entries will correct this error?

a)

Bank account $270 Suspense account $270

b)

Suspense account $270 Bank account $270

c)

Bank account $520 Suspense account $520

d)

Suspense account $520 Bank account $520