A-AS Level (CIE) Accounting Paper-1: Specimen Questions with Answers 58 - 59 of 93

Question 58

Question

MCQ▾

A copywriter purchases a brand-new laptop for business but forgets to record entry in the purchase book. It is an example of what error?

Choices

Choice (4)

a.

Reversal of entries

b.

Principle error

c.

Omission

d.

Commission

Answer

c.

Explanation

If a transaction remains altogether unrecorded either complete in the Journal or in Subsidiary Books, it will be termed as an error of omission. Such an action will not affect the agreement of a Trial Balance, as the transaction has been entered neither on the debit side of an account nor on the credit side of any other account. For example, suppose goods for ₹ 2,000 have been sold to Ram on credit and rancheros transaction was omitted to be recorded in the books. Detection of such types errors is very difficult because the omission will not affect the trial balance in any way, neither has it been recorded on the debit side of Ram՚s account nor on the credit side of sales account.

Question 59

Question

MCQ▾

The following information relates to a business:

opening debtors 200000

cash received during the year 500000

discounts allowed during the year 30000

bad debts written off during the year 25000

closing debtors 260000

What were the sales during the year?

Choices

Choice (4)

a.

600000

b.

815000

c.

615000

d.

215000

Answer

c.

Explanation

What Were the Sales During the Year?
ParticularsAmountParticularsAmount
To opening balance200000By Cash500000
To Credit Sales615000By Discount allowed30000
By Bad debts25000
By closing debtors260000
815000815000

🎯 Select Paper

Developed by: