Rectification of Error MCQ Quiz in বাংলা - Objective Question with Answer for Rectification of Error - বিনামূল্যে ডাউনলোড করুন [PDF]

Last updated on Apr 6, 2025

পাওয়া Rectification of Error उत्तरे आणि तपशीलवार उपायांसह एकाधिक निवड प्रश्न (MCQ क्विझ). এই বিনামূল্যে ডাউনলোড করুন Rectification of Error MCQ কুইজ পিডিএফ এবং আপনার আসন্ন পরীক্ষার জন্য প্রস্তুত করুন যেমন ব্যাঙ্কিং, এসএসসি, রেলওয়ে, ইউপিএসসি, রাজ্য পিএসসি।

Latest Rectification of Error MCQ Objective Questions

Top Rectification of Error MCQ Objective Questions

Rectification of Error Question 1:

A cashier can commit a fraud by:

  1. under casting the payments side of the cash book
  2. under casting the wage book
  3. overcasting the receipts side of the cash book
  4. overcasting the payments side of the cash book

Answer (Detailed Solution Below)

Option 4 : overcasting the payments side of the cash book

Rectification of Error Question 1 Detailed Solution

Key PointsCash book:

Cash Book is the one in which all the cash receipts and cash payments, including the funds deposited in the bank and funds withdrawn from the bank, are recorded according to the date of the transaction. All the transactions recorded in the cash book have two sides, i.e., debit and credit.

 Important PointsThere are number of ways in which cashier can commit fraud while preparing cash book which are as follows:

  1. Intercept at Cash Register: A cashier could pocket cash at the cash register and never ring up the sale on the register. This approach can be detected after the fact by comparing actual inventory levels to the amount of sale transactions. If the inventory level is lower than indicated by the cash register transactions, someone may be removing cash.
  2. Intercept in Mailroom: Though rare, it is possible that a customer will send cash through the mail in payment of an invoice. If so, a mailroom clerk can pocket the mailed cash and destroy the envelope in which it came. 
  3. Intercept at Cashier: The cashier can overcast the payment side in the accounting records. This issue can be detected after the fact by matching the receipt and payment side of cash book.
  4. Intercept in Deposit Pouch: The person delivering cash deposits to the bank can remove cash from the pouch on the way to the bank. This issue can be mitigated by handing off the cash to an armoured truck for delivery. It can also be detected after-the-fact by comparing the deposit slip from the bank to the cashier's record of cash received.
  5. Petty Cash Removal: One of the easier ways to abscond with cash is to take cash out of the petty cash box when it is unguarded. Another option is to steal the entire box, thereby ensuring that all cash and coins are removed. This can be prevented by switching from petty cash to the use of procurement cards.
  6. Pay Envelope Removal: A person could remove cash from pay envelopes before they are delivered to employees. This issue can be detected by having employees count the cash in their pay envelopes and signing for receipt of the envelopes.

Hence, it can be concluded that a cashier can commit a fraud by overcasting the payments side of the cash book.

Rectification of Error Question 2:

Cash paid to Hemant Joshi, Rs. 800 was debited to Hiral Joshi as Rs. 8,000. This is an example of:

  1. compensating error
  2. error of omission
  3. error of commission
  4. error of principle

Answer (Detailed Solution Below)

Option 3 : error of commission

Rectification of Error Question 2 Detailed Solution

Key PointsClerical Errors - Clerical errors are those that result from incorrect transaction recording. Three other categories of clerical errors are detailed below:
  • Errors of Omission: Errors caused due to omission of recording a transaction entirely or party in the books of account.
  • Errors of Commission: Errors of commission is caused due to wrong recording of a transaction, wrong totalling, wrong casting, wrong balancing, etc. 
  • Compensating Errors: Two or more errors committed in such a way that they nullify the effect of each other on the debits and credits.

Cash paid to Hemant Joshi, Rs. 800 was debited to Hiral Joshi as Rs. 8,000 is an example of error of commission.

Additional Information

Errors of Principle: Errors arising due to wrong classifications of receipts and payments between revenue and capital receipts and revenue and Capital expenditure.

Rectification of Error Question 3:

Failure to differentiate between capital and revenue expenditures so this error is called?

  1. Error of omission
  2. Compensating error
  3. Error of Principles
  4. None of them

Answer (Detailed Solution Below)

Option 3 : Error of Principles

Rectification of Error Question 3 Detailed Solution

Failure to differentiate between capital and revenue expenditures so this error is called error of principle.

Key Points

  1. Capital Expenditure - A company's capital expenditures include cash used to acquire, update, and maintain tangible assets like equipment, as well as to pay off liabilities like bank loans.
  2. Revenue Expenditure - Revenue expenditures are continuing operating expenses, which are short-term spending used to execute daily business activities such as salary payments, utility bills, and so on.
  3. Error of Principle - These are errors that occur when accounting principles are not adhered to. Installation costs for machines, for example, are charged to the profit and loss account.
  4. Error of Omission -  An error of omission occurs when a transaction is totally or partially left out of the books of account. For example, purchase of goods not recorded in books of accounts.
  5. Error of Commission - It is an error that occurs as a result of incorrect recording, casting, posting, and balancing, among other things. For example, the Purchase book is totaled as Rs. 5,000 instead of Rs. 50,000.

Analysis and Conclusion:

  • In the above example given, capital expenditure (carriage on purchase of machinery) is wrongly treated as revenue expenditure and results in an error of principle.

Rectification of Error Question 4:

Suspense a/c is not used in which of the following cases?

  1. Before trial balance
  2. After trial balance
  3. Before final accounts
  4. None of the above

Answer (Detailed Solution Below)

Option 1 : Before trial balance

Rectification of Error Question 4 Detailed Solution

Suspense A/c is not used before the preparation of the trial balance.

Key Points

  1. Suspense A/c -  When there are one-sided accounting errors that affect the trial balance, it can be difficult to discover the error right away. As a result, the difference between the trial balance's debit and credit sides is preserved in a temporary account. This temporary account is known as the suspense account.
  2. Trial Balance - A trial balance is a statement made up of the debit and credit balances of ledger accounts that is used to check the books' arithmetical accuracy.
  3. Final Accounts - Final accounts are financial statements prepared at the end of an accounting period to determine the financial performance of the firm, including profit gained and loss incurred during that period, as well as the financial condition of the company as of that date. Trading, profit and loss account, and balance sheet are all part of a financial statement. 

Conclusion:

  • Suspense A/c is opened when the debit and credit side of the trial balance does not tally, hence it is used only after the preparation of the trial balance and final accounts.

Rectification of Error Question 5:

Sale of goods to Mr. Amir is wrongly debited to Umair A/c(debtor) instead of Amir A/c(debtor), this is an example ?

  1. Error of principle
  2. Error of omission
  3. Error of commission
  4. Error of original entry

Answer (Detailed Solution Below)

Option 3 : Error of commission

Rectification of Error Question 5 Detailed Solution

The correct answer is Error of commission.

Important PointsError of commissionThis error arises when an accountant makes correct debit or credit of the accounts but posts to the wrong account or wrong side in the ledger.

The sale of goods to Mr. Amir is wrongly debited to Umair A/c is an error of commission.

Additional InformationOther types of Errors in Accounting:

Type of Error

Meaning

Example

Error of principle

This type of error arises when the wrong accounting principle is applied while performing the Accounting activities. These errors do not affect the Trial Balance

Treating the purchase of an asset as an expense.

Error of Omission

This type of error arises when an accountant completely or partially excludes or omits to record an entry in the books of accounts. Complete omission of entry does not affect the Trial Balance, while partial omission affects the Trial Balance.

Payment of Electricity bill omitted to be recorded

Compensating Errors

When one error committed by an accountant compensates another error, it is called compensating error.

Purchase of goods from Ram Rs. 1000 & Shyam Rs. 4000 recorded as Ram Rs 4,000 and Shaym Rs. 1,000

The error of original entry An error of original entry is when the wrong amount is posted to an account The sale of goods to Mr. Amir for Rs. 969 is posted to his account for Rs. 996.

Rectification of Error Question 6:

Which of the following errors will NOT affect the trial balance?

  1. Amount paid to a supplier Rs. 12,000 is wrongly credited to the supplier’s account
  2. Discount offered on cash sales Rs. 500 recorded in the cash book but not posted to the ledger
  3. Purchases of Rs. 4,500 not entered in the purchases book
  4. Amount of cash sales Rs. 349 wrongly posted to the ledger as Rs. 394

Answer (Detailed Solution Below)

Option 3 : Purchases of Rs. 4,500 not entered in the purchases book

Rectification of Error Question 6 Detailed Solution

Key Points

Trial balance The purpose of a trial balance is to confirm the mathematical accuracy of ledger posting. It is a statement that summarizes the closing balance of all ledger accounts. All ledger balances are recorded in trial balance either on the statement's credit side or debit side.

Important PointsOption 1 - Amount paid to a supplier Rs. 12,000 is wrongly credited to the supplier’s account.

  • This will result in disagreement of trial balance as only Supplier's account is affected.

Option 2- Discount offered on cash sales Rs. 500 recorded in the cash book but not posted to the ledger.

  • This will result in disagreement of trial balance as only Discount Account is affected.

Option 3 - Purchases of Rs. 4,500 not entered in the purchases book

  • This will not result in disagreement of trail balance as this is the error of omission. It will affect purchase account and cash account (assuming cash purchases) simultaneously. 

Option 4 - Amount of cash sales Rs. 349 wrongly posted to the ledger as Rs. 394.

  • This will result in disagreement of trial balance as wrong amount is posted to ledger. Cash sales account is overcast.

Rectification of Error Question 7:

Which of the following is NOT a two-sided error?

  1. Purchases book was overcast by Rs. 3,400
  2. An amount of Rs. 2,000 received from Mr. A was wrongly credited to Mr. B’s account.
  3. A sales return of Rs. 1,000 is completely omitted from sales return book and hence not posted to customer’s account.
  4. Furniture purchased for Rs. 5,000 was entered in the purchases book. 

Answer (Detailed Solution Below)

Option 1 : Purchases book was overcast by Rs. 3,400

Rectification of Error Question 7 Detailed Solution

Key Points

Two-sided error - Errors with a two-sided effect are ones that do not change the trial balance's agreement. These mistakes happen in two or more different accounts. Passing journal entries are used to correct such mistakes.

Important PointsOption 1 - Purchases book was overcast by Rs. 3,400.

  • This is not a two-sided error as effect of it has been only on purchase book.

Option 2 - An amount of Rs. 2,000 received from Mr. A was wrongly credited to Mr. B’s account.

  • This is a two-sided error as effect of it has been on Mr. A account and Mr. B Account.

Option 3 - A sales return of Rs. 1,000 is completely omitted from sales return book and hence not posted to customer’s account.

  • This is a two-sided error as effect of it has been on customer's account and sales return account.

Option 4 - Furniture purchased for Rs. 5,000 was entered in the purchases book. 

  • This is a two-sided error as effect of it has been on furniture account and purchase account.

Rectification of Error Question 8:

Which of the following is NOT a one-sided error?

  1. Undercast of subsidiary book
  2. Wrong recording of the transaction in the books of original entry
  3. Omission of posting to an account
  4. Posting to the wrong side of the account

Answer (Detailed Solution Below)

Option 2 : Wrong recording of the transaction in the books of original entry

Rectification of Error Question 8 Detailed Solution

Key Points

  • Trial balance errors are accounting mistakes that the trial balance sheet is unable to identify.
  • Clerical errors and errors of principle are two different categories of trial balance limits. Humans make clerical mistakes.
  • When an accounting principle is not followed, errors of principle occur.

Important PointsOne-sided Errors in trial balance are as follows:

  • The omission of account from posting in the ledger inadvertently.
  • Posting from journal to ledger in the wrong account.
  • One account out of two accounts of the transaction is accounted for.
  • Recording twice in a particular account of a transaction inadvertently.
  • Recording wrong amount i.e. short or excess amount in the ledger accounts at the time of posting from journal to ledger.
  • Committing mistakes in balancing a ledger account.
  • Committing mistakes in recording the amount of ledger balance in the trial balance.
  • Committing mistake in writing ledger balances in the trial balance i.e. debit balance in the credit money column or credit balance in the debit money column.
  • Committing mistake in casting totals of debit and credit money columns of trial balance.

Note: Wrong recording of the transaction in the books of original entry, is an error of commission which is two sided error in trial balance and does not effect it.

Error of Commission: These types of errors are known as errors of commission. The amount entered in the journal for a specific transaction may be more or smaller in the ledger accounts, and the debtor is treated as a creditor and the creditor as a debtor. For instance: Rs.531 in goods sold to Karim on account. If a sales account is credited with Rs.513 and an account receivable is debited with $513 for this transaction. Even though both accounts are Rs.18 undercast, the trial balance's agreement will not be affected by this error.

Hence, incorrect statement about one-sided error is "Wrong recording of the transaction in the books of original entry."

Additional InformationSome more types of errors which does not affect trial balance:

Two sided Errors 

  • Errors of Omission: The agreement of the trial balance is not hampered by the failure to record a specific transaction. To illustrate: purchased goods with a $1,000 credit. The agreement of a trial balance is impacted if this transaction is not documented in the books of accounts.
  • Compensating Errors: The self-rectifying error is the name given to this error. A compensating error is an error that is corrected by another error or errors. For Example: Salary expense is under debited by $100 but the general expense is over debited by $100.
  • Error of Principal: Some mistakes in keeping track of transactions may occur due to inadequate understanding of accounting concepts. For instance: If a machine's repair costs are considered part of the machine's cost, capital investment is counted as revenue expenditure.

Rectification of Error Question 9:

Which of the following is an error of commission ?

  1. Sales book was overcast by Rs. 600 and purchase book was undercast by the same amount
  2. Treating charges as addition to asset
  3. A sale of Rs. 6,000 omitted to be recorded
  4. A purchase of Rs. 7,400 was wrongly posted

Answer (Detailed Solution Below)

Option 4 : A purchase of Rs. 7,400 was wrongly posted

Rectification of Error Question 9 Detailed Solution

Key Points

Error of Commission

  • The commission error occurs when a bookkeeper or accountant records a debit or credit to the correct account but to the wrong subsidiary account or ledger.
  • For example, money that has been received from a customer is credited properly to the accounts receivable account, but to the wrong customer.
  • A payment to a vendor that's recorded as accounts payable, but to the wrong invoice or vendor is also an error of commission. The error would show as posted to the wrong vendor on the accounts payable subsidiary ledger.
  • In the above question, purchase of Rs. 7400 was wrongly posted, although no purchase was made due to which purchase book is overcast by Rs. 7400.

Therefore, option no. 4 is correct.

Additional Information

Errors in Accounting:

Type of Error Meaning Example
Error of principle This type of error arises when the wrong accounting principle is applied while performing the Accounting activities. These errors do not affect the Trial Balance Treating the purchase of an asset as an expense.
Error of Omission This type of error arises when an accountant completely or partially excludes or omits to record an entry in the books of accounts. Complete omission of entry does not affect the Trial Balance while partial omission affects the Trial Balance. Payment of Electricity bill omitted to be recorded
Error of Commission This error arises when an accountant makes correct debit or credit of the accounts but makes mistake in entering the amount or posting to the wrong side in the ledger.  Purchase of fixed assets for Rs. 10,000 posted to the credit of Vendor's account as Rs. 1000
Compensating Errors When one error committed by an accountant compensates another error, it is called compensating error. Purchase of goods from Ram Rs. 1000 Shyam Rs. 4000 recorded as Ram Rs 4,000 and Shaym Rs. 1,000

Rectification of Error Question 10:

Which of the following statements is incorrect regarding proofing?

  1. The sale of typewriters used for office purpose should be credited to Typewriters Account.
  2. Goods given as donation should be credited to Purchases Account.
  3. Suspense Account always shows a debit balance.
  4. The suspense account in the trial balance will be entered in the balance sheet.

Answer (Detailed Solution Below)

Option 3 : Suspense Account always shows a debit balance.

Rectification of Error Question 10 Detailed Solution

The incorrect statement is Suspense Account always shows a debit balance.

Key Points

  • The general ledger account that the business utilises to temporarily record the transactions is known as a suspense account.
  • The sort of account that would be best to use when recording those transactions may be unclear to the accountant.

 Important Points

Statement I:  The sale of typewriters used for office purpose should be credited to Typewriters Account

  • This statement is correct because assets are the items that a business has, both tangible and intangible and assets acquired by the company are not intended for sale.
  • According to the golden rules of accounting, we should Dr. what comes in and Cr. what goes out in real accounts. We are given a fixed asset (a typewriter) in the question, and since we are selling it, the asset account (the typewriter) will be credited.

Statement II: Goods given as donation should be credited to Purchases Account.

  • This statement is correct as when accounting for goods given as donation, purchases are reduced with the exact cost of goods contributed. The amount is reduced from purchases in the trading account. It is shown as an expense on the debit side of the income statement and the purchase account is credited.

Statement III: Suspense Account always shows a debit balance,

  • This statement is incorrect because suspense account can show both debit or credit balance.
  • If the balance of suspense shows debit balance, it is shown in asset side of balance sheet and if balance shows credit balance, it is recorded liability side of balance sheet.

Statement IV: The suspense account in the trial balance will be entered in the balance sheet.

  • This statement is correct because suspense account given in the trial balance will be entered in the Balance sheet.
  • If the Trial Balance does not agree, the difference is put to Suspense A/c. Suspense A/c on credit side of Trial Balance will be entered on the liabilities side of Balance Sheet.

Hence, it can be concluded that only the statement third is incorrect.

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