If the purchase of a printer for ₹12,000 is recorded in the purchases book, the error is: MCQ with Answer and Explanation

Question

Share Report Error

If the purchase of a printer for ₹12,000 is recorded in the purchases book, the error is:

A. Compensating error

B. Error of principle

C. Error of commission

D. Error of omission

Answer: Option B

Solution (By JKSSB Mock Tests)

Printer is an asset, should be capitalised. Recording in purchases book treats it as expense, violating accounting principles.

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

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Question #1

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The 'Presumptive Taxation' for professionals under Section 44ADA applies to gross receipts up to:

A. ₹25 lakh

B. ₹2 crore

C. ₹1 crore

D. ₹50 lakh

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Correct Answer: Option D

Explanation:
Section 44ADA provides for presumptive income at 50% of gross receipts for specified professionals with receipts up to ₹50 lakh (now ₹75 lakh in some cases).

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

Question #2

Share Report

In the Balance Sheet, 'Share Application Money Pending Allotment' is shown as:

A. Current liability

B. Reserves and surplus

C. Non-current liability

D. Share capital

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Correct Answer: Option A

Explanation:
It is a liability until shares are allotted, and if allotment is due within 12 months, it's current.

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Question #3

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The 'TDS on benefit or perquisite' under Section 194R is at the rate of:

A. 2%

B. 10%

C. 1%

D. 5%

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Correct Answer: Option B

Explanation:
TDS at 10% on value of benefit/perquisite exceeding ₹20,000 in a year.

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

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