When credit sales of Rs 5,000 to Ram are wrongly posted as Rs 500 in his account, it is an error of: MCQ with Answer and Explanation

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When credit sales of Rs 5,000 to Ram are wrongly posted as Rs 500 in his account, it is an error of:

A. Compensating

B. Omission

C. Commission

D. Principle

Answer: Option C

Solution (By JKSSB Mock Tests)

An error of commission includes posting wrong amounts. It will cause a mismatch in the Trial Balance.

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

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Practice More Accountancy and Book Keeping Questions

Question #1

Which of the following is not a feature of a company?

A. Perpetual succession

B. Common seal

C. Unlimited liability

D. Separate legal entity

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Correct Answer: Option C

Explanation:
Company has limited liability, not unlimited.

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

Question #2

A business buying machinery pays 18% GST. Can it claim Input Tax Credit (ITC) on this GST?

A. No, capital goods are exempted from ITC

B. Yes, but only 50%

C. No, ITC is only for raw materials

D. Yes, provided the machinery is used in the course of business

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Correct Answer: Option D

Explanation:
ITC can be claimed on capital goods (like machinery) used for business purposes, subject to certain conditions in the GST Act.

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

Question #3

Which of the following is a nominal account?

A. Building Account

B. Ramesh Account

C. Rent Account

D. Capital Account

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Correct Answer: Option C

Explanation:
Rent Account represents an expense, which is a nominal account. The rule is 'Debit all expenses and losses, credit all incomes and gains'.

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

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