If a purchase of ₹5,000 is posted as ₹500 in the ledger, it is an error of: MCQ with Answer and Explanation

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If a purchase of ₹5,000 is posted as ₹500 in the ledger, it is an error of:

A. Commission

B. Principle

C. Omission

D. Compensating

Answer: Option A

Solution (By JKSSB Mock Tests)

Error of commission is when a wrong amount is posted to the correct account.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Practice More Accountancy and Book Keeping Questions

Question #1

When a trial balance tallies, it provides:

A. Conclusive proof of accuracy

B. Proof that no frauds occurred

C. Proof that all accounting standards are followed

D. Prima facie evidence of arithmetical accuracy

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Correct Answer: Option D

Explanation:
A tallied Trial Balance only guarantees arithmetical accuracy; errors of principle or complete omission might still exist.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2

The 'Cooling-off Period' for an audit partner after rotation is:

A. No period

B. 5 years (as per Companies Act for partner of listed company)

C. 2 years

D. 1 year

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Correct Answer: Option B

Explanation:
A cooling-off period of 5 years is required before re-appointment.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #3

S1: SEBI regulates the primary and secondary capital markets in India. S2: SEBI was established by a legislative act of Parliament. Which statement(s) is/are correct?

A. Neither S1 nor S2

B. S1 only

C. Both S1 and S2

D. S2 only

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Correct Answer: Option C

Explanation:
SEBI regulates both primary (new issues) and secondary (trading) markets to protect investors. It was initially established in 1988 and later given statutory powers through the SEBI Act, 1992. Both statements are correct.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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