Month: July 2017

A. Error of commission
B. Error of principle
C. Error of omission
D. Compensating error

A. Dividend
B. Royalty
C. Purchase consideration
D. Installment

A. Delivery method
B. Percentage-of-completion method
C. Production method
D. Moving average method

(a). Sales of `950 to Ram completely omitted from books of account
(b). Purchases of `720 from Shyam entered in the purchases journal as `700
(c). Purchases Journal is overcast by `1,000
(d). Sales returns journal is undercast by `200
(e) Amount paid to Agarwal wrongly posted to the debit to Mittal’s account
(f) Bank overdraft shown under debit column in the Trial Balance
(g) Sales of `500 to Sadiq entered in sales journal as sales to Mushtaq
(h) Wages paid for installation of machinery debited to wages account

A. a, c and g
B. c, d and f
C. c, d, e and h
D. c, d, f and h

A. Goodwill
B. Inventories
C. Investments
D. Both B. and C. above.

A. Cost Price
B. Market Price
C. Cost price or Market price whichever is higher
D. Cost price or Market price whichever is lower

A. They must be followed by reversing entries
B. They transfer the balances in all of the Nominal Accounts to the Trading and Profit and Loss Account
C. They must be made after the reversing entries but before the adjusting entries
D. They must be made after the adjusting entries but before the reversing entries

A. A sale of an asset is recorded in the Sales Book
B. Total of Return Outward Book is debited to Return Outward Account
C. The balance of Petty Cash Book is a liability
D. Cash Book is a subsidiary book as well as a ledger

A. Masood’s account
B. Cash account
C. Cash account and Gagan’s account
D. None of these

A. Scrap value
B. Residual value
C. Market value
D. Depreciable value