A trial balance shows equal totals but still contains an error of ₹2,000 where purchase of stationery was debited to furniture account. This is: MCQ with Answer and Explanation

A trial balance shows equal totals but still contains an error of ₹2,000 where purchase of stationery was debited to furniture account. This is:
A. Error of commission
B. Error of omission
C. Compensating error
D. Error of principle
Answer: Option D
Solution (By JKSSB Mock Tests)
Stationery is revenue expenditure, furniture is asset. Treating revenue as capital is error of principle.

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Practice More Accountancy and Book Keeping Questions

Question #1
Which of the following is NOT a component of the Indian Financial System?
A. Financial Instruments
B. Financial Markets
C. Financial Institutions
D. Financial Auditors

Correct Answer: Option D


Explanation:
The Indian Financial System comprises financial institutions, markets, instruments, and services. Auditors are professionals who verify financial data, not a structural component of the financial system itself.

Question #2
A company issues 10,000 equity shares of ₹10 each at a premium of ₹5. The amount credited to Securities Premium A/c is:
A. ₹1,00,000
B. ₹10,000
C. ₹1,50,000
D. ₹50,000

Correct Answer: Option D


Explanation:
Securities premium = shares * premium per share = 10,000 * 5 = ₹50,000.

Question #3
Under GST, the 'Taxable Event' is:
A. Manufacture
B. Production
C. Sale
D. Supply of goods or services

Correct Answer: Option D


Explanation:
GST is levied on 'supply' rather than manufacture or sale alone.