Which of the following is an error of principle? MCQ with Answer and Explanation

Question

Share Report Error

Which of the following is an error of principle?

A. Sales of old furniture credited to Sales Account

B. Purchase of goods recorded in purchase book but not posted to supplier's account

C. Credit sale to Ram posted to Shyam's account

D. Wages paid for installation of machinery debited to Wages Account

Answer: Option D

Solution (By JKSSB Mock Tests)

Wages for installation of machinery should be capitalised (machinery). Debiting Wages Account treats it as revenue expenditure, violating principles.

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

Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Accountancy and Book Keeping Questions

Question #1

The 'Section 44ADA' presumptive income scheme for professionals applies to gross receipts up to:

A. ₹10 lakh

B. ₹50 lakh (now ₹75 lakh if cash receipts ≤ 5%)

C. ₹1 crore

D. ₹25 lakh

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option B

Explanation:
Presumptive income for professionals up to gross receipts ₹50 lakh (or ₹75 lakh if digital).

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

Question #2

Which of the following is a direct tax levied by the Union Government?

A. Entertainment tax

B. Excise duty on alcohol

C. Income tax

D. Sales tax

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
Income tax is a direct tax. Excise on alcohol is state subject. Sales tax/VAT is state. Entertainment tax is local.

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

Question #3

Which of the following is a non-integrated accounting system?

A. Computerized accounting

B. Single entry system

C. Cost and financial accounts maintained separately

D. Cost accounts integrated with financial accounts

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
Non-integrated system keeps cost and financial accounts independently, with reconciliation.

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

Explore All Accountancy and Book Keeping MCQs