What type of accounting error has occurred when a sale, entered in the Sales Day Book has not been posted?
a. Entry error
b. Double entry error
c. Error of duplication
d. Error of principle
Ans – b
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Banks in India can’t outsource (i) KYC, (ii) Marketing, (iii) Corporate planning
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans – b
(Barring ‘Marketing’ all others are core functions and cannot be outsourced as per RBI
guidelines)
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In which of the following ledgers would you find the account of a supplier?
a. Purchases ledger or Trade Payables ledger
b. Sales ledger or Trade Receivables ledger
c. Impersonal ledger
d. Nominal ledger or General ledger
Ans – a
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The following differences between the Cash Book entries and information in the bank statement have been identified:
i) An amount incorrectly credited to the company’s account by the bank
ii) Lodgements into bank not reported in the bank statements
iii) Dishonour of a cheque deposited into the bank
iv) Bank loan interest recovered by the bank
v) Cheques drawn by the company yet to be presented to bank Which set of alternatives correctly analyses treatment of these?
a. In Cash Book: ii, iv; In bank rec: i, iii, v
b. In Cash Book: iii, iv; In bank rec: i, ii, v
c. In Cash Book: ii, iv, v; In bank rec: i, iii
d. In Cash Book: i, ii, iii; In bank rec: iv, v
Ans – b
If the Petty Cash Book is treated as merely a subsidiary book of accounts, Rs. 78 paid by the Cashier to restore the petty cash balance to the level of the imprest should be accounted for as
……
a. Debit Petty Cash Book and credit Cash Account
b. Debit Petty Cash Account and credit Cash Account
c. Debit Petty Cash Account and credit Bank Account
d. Debit Cash Account and credit Petty Cash Account
Ans – b
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When drawing up a BRS, if you start with a Credit balance as per the Pass Book, the unpresented cheques should be ……
a. Added
b. Deducted
c. Not required to be adjusted
d. None of the above
Ans – b
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The credit entries in a Bank Account ……
a. Will not be supported by a cheque number only when payment is by BACS or Standing Order
b. Should each be supported by a cheque number which depends on when the cheque was posted
c. Should each be supported by a sequential cheque number
d. Will not be supported by a cheque number when payment is by BACS or Standing Order or when cash is drawn out from Cash Machine or when the bank recovers bank charges.
Ans – d
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A Pass Book is a copy of ……
a. A Customer’s account in the Bank’s Books
b. Cash Book relating to bank column
c. Cash Book relating to cash column
d. Firm’s receipts and payments
Ans – a
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Which of these errors affect two or more accounts?
a. Errors of complete omission
b. Errors of principle
c. Errors of posting to wrong account
d. All the three
Ans – d
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