Trial Balance and Rectification of Errors (11 Accountancy)
Practise chapter-wise MCQs for Class 11 Accountancy — Trial Balance and Rectification of Errors. Every question comes with the correct answer and an explan
TL;DR: Practise chapter-wise MCQs for Class 11 Accountancy — Trial Balance and Rectification of Errors. Every question comes with the correct answer and an e…
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Practise chapter-wise MCQs for Class 11 Accountancy — Trial Balance and Rectification of Errors. Every question comes with the correct answer and an explan
Trial Balance and Rectification of Errors MCQs with Answers & Explanations
Q1. Salaries paid to an employee ₹2,000 were wrongly debited to his personal account. This is an example of:
- Error of commission
- Error of principle ✓ (correct)
- Error of duplication
- Error of omission
Explanation: Debiting a personal account instead of an expense account (Salaries A/c) is an error of principle, as it violates the rules of accounting.
Q2. If a trial balance is prepared before all the transactions of the period are recorded, it is likely to:
- Agree by chance
- Show an unbalanced figure that can be adjusted
- Disagree ✓ (correct)
- Agree
Explanation: If not all transactions are recorded, the debits and credits will not match, leading to a disagreement in the trial balance.
Q3. Which account is debited when goods worth ₹3,000 are returned by a customer?
- Customer's Account
- Purchase Returns Account
- Sales Account
- Sales Returns Account ✓ (correct)
Explanation: Goods returned by a customer represent sales returns, which is a contra-revenue account and is debited.
Q4. Which of the following errors will cause the trial balance to not agree?
- A bill of ₹3,000 received from Ram was omitted from the books. ✓ (correct)
- Wages paid ₹5,000 debited to salaries account.
- Sale of goods ₹2,000 to Ravi debited to Ravi's account.
- Purchases ₹10,000 recorded as ₹1,000.
Explanation: An omission means the transaction is not recorded at all, leading to an imbalance in the trial balance. The other options are errors of principle or commission where amounts are incorrectly recorded but still posted, likely leading to agreement or a different imbalance.
Q5. When a purchase of goods for ₹5,000 was wrongly recorded as ₹500 in the purchase book, the trial balance will show:
- Credit side is excess by ₹4,500
- Debit side is excess by ₹4,500 ✓ (correct)
- Debit side is excess by ₹500
- Credit side is excess by ₹500
Explanation: Purchases are debited. A lower debit of ₹500 instead of ₹5,000 will make the debit side short by ₹4,500.
Q6. Rectification of an error of principle involves:
- Correcting the amount of a transaction
- Passing an additional journal entry
- Transferring an amount from one account to another ✓ (correct)
- Crediting or debiting an account which was not touched
Explanation: Errors of principle involve placing a transaction to the wrong category of account (e.g., debiting an asset account for revenue expenditure). Rectification involves transferring the amount to the correct account.
Q7. Which of the following errors will not be disclosed by a trial balance?
- Error of principle
- Error of omission
- Error of commission
- Compensating error ✓ (correct)
Explanation: A compensating error occurs when two or more errors cancel each other out, leading to the trial balance still agreeing, thus it is not disclosed.
Q8. A sale of goods ₹8,000 to Mr. Sharma was wrongly debited to the account of Mr. Verma (another customer). This error is classified as:
- Error of commission (Clerical error) ✓ (correct)
- Compensating error
- Error of omission
- Error of principle
Explanation: This is an error of commission because the wrong personal account (Verma instead of Sharma) has been debited, although the correct amount was used.
Q9. Which of the following is a valid reason for the trial balance not agreeing?
- Goods purchased from X ₹10,000 were posted to the debit of X's account.
- Goods sold to Y ₹5,000 were completely omitted from the books. ✓ (correct)
- A payment of ₹1,000 for repairs was debited to the building account.
- A credit sale of ₹2,000 to A was recorded as ₹200.
Explanation: An error of omission means a transaction is not recorded at all, which will definitely cause the trial balance to disagree.
Q10. A Trial Balance is:
- A book of original entry
- A cash book
- A summary of ledger balances ✓ (correct)
- A ledger
Explanation: A trial balance is prepared from the balances of all accounts in the ledger as on a particular date to check the arithmetic accuracy of the ledger posting.
More 11 Accountancy MCQs
- Accounting for Partnership: Basic Concepts
- Goodwill: Nature and Valuation
- Reconstitution of a Partnership Firm - Change in Profit Sharing Ratio
- Reconstitution of a Partnership Firm - Admission of a Partner
- Reconstitution of a Partnership Firm - Retirement and Death of a Partner
- Dissolution of Partnership Firm
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