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Accounting Errors and Expenditure Classification

Comprehensive quiz covering accounting topics including errors of principle and omission, capital and revenue expenditure classification, contingent liabilities, trial balance errors, and bank reconciliation statements for CPT exam preparation

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Questions

Question 1 Multiple Choice (Single Answer)

The cash book showed an overdraft of Rs. 3,000 as cash at bank, but the pass book made up on the same date showed that cheques of Rs. 200, Rs. 100 and Rs. 250 respectively had not been presented for payments and the cheque of Rs. 800 paid into the account had not been cleared. The balance as per the cash book will be

  1. Rs. 2,200
  2. Rs. 4,350
  3. Rs. 3,250
  4. Rs. 2,750
Question 2 Multiple Choice (Single Answer)

One outgoing cheque of Rs. 112 was recorded as Rs. 121 in the cash column is the Cash Book.
(Note: The cheque was presented in the bank). When the balance as per Cash Book is the starting point

  1. Rs. 112 to be subtracted
  2. Rs. 121 to be subtracted
  3. Rs. 9 to be added
  4. Rs. 112 to be added
Question 3 Multiple Choice (Single Answer)

While preparing a Bank Reconciliation Statement taking the balance as per Cash Book as the starting point. An under cast of withdrawal column in pass book is

  1. added
  2. subtracted
  3. not required to be adjusted
  4. none of these
Question 4 Multiple Choice (Single Answer)

Which of the following items is to appear in the Bank Reconciliation Statement if the balance as per Amended Cash Book is taken as the starting point?

  1. Bank charges and interest charged by bank
  2. Interest allowed and direct payments by bank
  3. Direct payment by our debtors into the bank
  4. A wrong entry in the pass book
Question 5 Multiple Choice (Single Answer)

The debit balance of Rs. 112 as on the precious day was brought forward as a credit balance of Rs. 121. When the balance as per Cash Book is the starting point.

  1. Rs. 112 to be added
  2. Rs. 121 to be added
  3. Rs. 9 to be added
  4. Rs. 112 to be subtracted
Question 6 Multiple Choice (Single Answer)

Direct payment to the third party on behalf of the account holder is initially posted in

  1. the cash book when the amount is paid by the bank
  2. the cash book when the entry is posted in the pass book
  3. the pass book when the amount is paid by the bank
  4. none of these
Question 7 Multiple Choice (Single Answer)

What is the treatment, if the starting point is a favourable pass book balance, when wrong credit is made in the pass book?

  1. Add to the pass book
  2. Subtract from the cash book
  3. Add to cash book
  4. Subtract from the pass book
Question 8 Multiple Choice (Single Answer)

In order to calculate the amended cash book balance, which of the following is taken into consideration?

  1. Cash book error
  2. Pass book error
  3. Timing difference
  4. All of above
Question 9 Multiple Choice (Single Answer)

Under BRS, while adjusting the cash book

  1. all the errors and omissions in the cash book are taken into consideration
  2. all the errors and omissions in the pass book are taken into consideration
  3. delay in recording in the pass book due to difference in timing are taken into consideration
  4. all of the above
Question 10 Multiple Choice (Single Answer)

What is amended cash book in the context of BRS?

  1. Rectified cash book having two columns.
  2. Rectification of cash book before preparation of BRS.
  3. Rectification of cash book after preparation of BRS.
  4. Rectified cash book having three columns.
Question 11 Multiple Choice (Single Answer)

The balance shown by bank column of cash book was Rs. 48, 000 on 31.1.98. A cheque issued worth Rs. 24, 000 on 16.1.98, was not cleared till 31.1.98. Cheque worth Rs. 10, 000 received on 20th January, and deposited on 21.1.98, was cleared on 27.1.98. The balance as per pass book as on 31.1.98 (assuming opening balance of pass book and cash book are equal) is

  1. Rs. 14, 000
  2. Rs. 24, 000
  3. Rs. 72, 000
  4. Rs. 82, 000
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