Online Test — Trial Balance and Rectification of Errors
15 Questions • 15 min • Chapter MCQ
15:00
Question 1 of 15
A trial balance is a:
Ledger account
Statement of ledger balances
Source document
Subsidiary book
Explanation: It is a statement listing all ledger balances.
Question 2 of 15
The trial balance mainly checks the:
Profit earned
Arithmetical accuracy of the ledger
Bank balance
Number of staff
Explanation: It verifies arithmetical accuracy of posting.
Question 3 of 15
The most commonly used method of preparing a trial balance is the:
Total method
Balance method
Total-and-balance method
Cash method
Explanation: The balance method (only balances) is most common.
Question 4 of 15
Drawings appear in the ____ column of the trial balance.
Credit
Debit
Either
Neither
Explanation: Drawings reduce capital and carry a debit balance.
Question 5 of 15
Sales appear in the ____ column of the trial balance.
Debit
Credit
Either
Neither
Explanation: Sales is an income — a credit balance.
Question 6 of 15
Not recording a transaction at all is an error of:
Commission
Complete omission
Principle
Compensation
Explanation: Failing to record it is an error of (complete) omission.
Question 7 of 15
Treating the purchase of machinery as 'Purchases' is an error of:
Omission
Commission
Principle
Compensation
Explanation: Capital vs revenue confusion is an error of principle.
Question 8 of 15
Two errors that cancel each other out are ____ errors.
Omission
Principle
Compensating
Casting
Explanation: They offset each other — compensating errors.
Question 9 of 15
Which error keeps the trial balance tallied?
Wrong total of a column
Complete omission of a transaction
Posting to the wrong side
Partial omission
Explanation: Complete omission misses both sides, so the TB still tallies.
Question 10 of 15
A tallied trial balance proves:
Complete correctness
Only arithmetical accuracy
Honesty of staff
Profit
Explanation: It proves arithmetic, not full correctness.
Question 11 of 15
Errors are corrected by:
Erasing
A rectifying entry/note
Whitener
Ignoring
Explanation: Errors are rectified, never erased.
Question 12 of 15
When the trial balance does not tally and the error is untraced, the difference is put in the:
Capital A/c
Suspense A/c
Drawings A/c
Bank A/c
Explanation: A Suspense Account temporarily holds the difference.
Question 13 of 15
The Suspense Account is used to rectify errors that:
Affect the trial balance (one-sided)
Do not affect the trial balance
Are errors of principle
Are complete omissions
Explanation: Only one-sided (TB-affecting) errors pass through Suspense.
Question 14 of 15
After all errors are rectified, the Suspense Account shows a:
Debit balance
Credit balance
Nil balance
Profit
Explanation: It closes with a nil balance.
Question 15 of 15
A credit sale to Ram wrongly debited to Shyam is rectified by:
Ram A/c Dr; To Shyam A/c
Shyam A/c Dr; To Ram A/c
Sales A/c Dr; To Ram A/c
Cash A/c Dr; To Shyam A/c
Explanation: Debit the correct account (Ram); credit the wrongly debited account (Shyam).