If a trial balance does not tally, the difference is put to: MCQ with Answer and Explanation

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If a trial balance does not tally, the difference is put to:

A. Suspense account

B. Profit and Loss account

C. Capital account

D. Drawings account

Answer: Option A

Solution (By JKSSB Mock Tests)

A suspense account is opened temporarily to make the trial balance agree pending detection of errors.

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

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Question #1

The audit of a company's accounts is conducted by:

A. Government auditor

B. Internal auditor

C. Cost auditor

D. Statutory auditor appointed by shareholders

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Correct Answer: Option D

Explanation:
Statutory audit is carried out by an independent auditor appointed by the shareholders.

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Question #2

X and Y share profits in ratio 3:2. Z is admitted with 1/5th share. Sacrificing ratio of X and Y is:

A. 1:1

B. 3:2

C. 2:3

D. Equal to new ratio

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Correct Answer: Option B

Explanation:
If new partner's share is given without specifying sacrifice, old partners sacrifice in their old ratio. So 3:2.

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Question #3

A hybrid system of accounting is a mixture of:

A. Cash basis and Accrual basis

B. Double entry and Single entry

C. Indian GAAP and IFRS

D. Financial and Cost accounting

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Correct Answer: Option A

Explanation:
In a hybrid system, typically incomes are recorded on a cash basis while expenses are recorded on an accrual basis.

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

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