PRC-1 · Chapter 8 · Question 18 of 100
An invoice of Rs. 4,500 received from a supplier was initially recorded in the purchases day book as Rs. 5,400. This is an example of an:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Error of Original Entry
Explanation
An error of original entry occurs when the wrong original figure is entered into a book of prime entry, which is then correctly posted to the ledgers based on that wrong figure.
More Correction of Errors MCQs
- 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…
- Q24Revenue expenditure of Rs. 20,000 for routine vehicle maintenance was incorrectly capitalized to the Motor Vehicles account. What is the…