PRC-1 · Chapter 8 · Question 39 of 100
An amount of Rs. 800 received from a debtor, Bilal, was credited to the account of another debtor, Bilal & Co. The trial balance will:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Agree, because this is an error of commission
Explanation
Errors of commission involve recording a transaction in the correct class of accounts but the wrong individual account. Because equal debits and credits were still posted, the trial balance agrees.
More Correction of Errors MCQs
- Q41The total of the Discount Allowed column in the cash book, Rs. 400, was credited to the Discount Received account. The correcting entry is:
- Q42Which of the following correctly describes the nature of a Suspense Account?
- Q43If the credit side of a trial balance is heavier by Rs. 1,200, the Suspense Account will be opened with:
- Q44A credit sale of Rs. 600 was completely omitted from the books. How does this affect the trial balance?
- Q45Rent received of Rs. 1,400 was correctly entered in the cash book but debited to the Rent Received account in the general ledger. What is…