CA Foundation · Accounting & Mercantile Law

Rectification of Errors, Suspense Account and Trial Balance

10 practice questions, each with the answer and an explanation.

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Random questions from this topic, one at a time. You see the answer and the explanation straight after each one.

All 10 questions

  1. Goods purchased from Mohan on credit for ₹7,500 were entered in the Sales Book as ₹5,700. What is the rectifying entry before preparation of Trial Balance?
  2. Before closing the books, ₹12,000 paid for machinery installation was debited to Wages Account. If depreciation on machinery is 10% per annum, what is the net impact on Net Profit?
  3. A credit purchase of ₹8,400 from Suresh was completely omitted from the books of account. What type of accounting error is this?
  4. The Sales Book was overcast by ₹5,000. How is this error rectified after the preparation of the Trial Balance but before Final Accounts?
  5. Which of the following errors is an Error of Principle?
  6. After preparation of final accounts, a purchase of office furniture for ₹25,000 was discovered debited to Purchases Account. How is this rectified in the next accounting year?
  7. A difference of ₹1,440 in the Trial Balance is placed in Suspense Account. If it was caused by posting ₹800 as ₹80, in which account did the error occur?
  8. Discount allowed to Ram of ₹150 was credited to Discount Received Account. What is the amount of difference created in the Trial Balance?
  9. Which of the following errors will cause the Trial Balance to disagree?
  10. When a Suspense Account is opened to balance the Trial Balance, where is its remaining debit balance shown if not fully rectified before year-end?

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