11th Principles of Accounting MCQS Chapter 14

The credit purchases were wrongly recorded in sales book, the rectification of entry

Decrease the net profit by double amount

Increase the net profit by double amount

Decrease the net profit

Increase the net profit

Trade expenses of Rs. 180 posted in the ledger as Rs. 810, it will be considered as

Error of transposition

Error of omission

Error of principle

Error of casting

If any income omitted to be recorded it will

Overstate the profit

having no effect on profit

Both a & b

Understate the profit

If amount for Rs. 554 recovered from Ali, ly written off as bad debts we should

Credited to bad debts recovered account

Debited to bad debts recovered account

Debited to bad debts account

Credited to Ali account

The process of totaling the data at the end of the period is called

Compensating

Recording

Posting

Casting

If goods purchased from Rahim for Rs. 499, credited to Rehman’s account for Rs. 499. this is an

Compensating error

Error of principle

Error of principle

Error of commission

A sale of Rs. 1000 to Farid, was credited to his account, it will affect

Cash account

Farid account

Sales account

Both a & b

Wages paid for the erection of machine debited to wages account is an example of

Error of principle

Error of omission

None of these

Error of commission

Transportation cost paid for the purchases of Machinery must be debited to

Machinery account

Cash account

Transportation cost account

Purchases account

When balance of suspense account has debit balance it will be shown in balance sheet on

Liability side

Capital side

Asset side

Credit side