PRC-1 · Chapter 8 · Question 17 of 100
A cheque of Rs. 15,000 received from a customer, Ali, was correctly entered in the cash book but was posted to the credit of Umer's account. This is an example of an:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Error of Commission
Explanation
An error of commission occurs when a transaction is recorded in the correct class of account but the wrong specific personal or ledger account (posting to Umer instead of Ali).
More Correction of Errors MCQs
- Q19Two independent errors of Rs. 1,000 occurring on opposite sides of the ledger, which cancel each other out, are known as:
- Q20The total of the sales day book was under-casted by Rs. 5,000. How does this affect the trial balance?
- Q21If a trial balance does not agree, the difference must initially be placed in a temporary account called the:
- Q22Which of the following errors will require the use of a Suspense Account to correct?
- Q23Capital expenditure of Rs. 100,000 on a new building extension was incorrectly treated as revenue expenditure. What is the impact on the…