Accounting Multiple Choice Question – 22 March 2020

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Which of the following errors would be disclosed by a trial balance?

Select ONE answer:

  1. Expenses being debited to the sales account.
  2. A credit sale of £300 inadvertently entered in the Sales Journal as £30.
  3. Failure to record a cash purchase.
  4. None of the above.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

  1. Not correct – As the expenses are being entered in the wrong class of account (sales is an income account), this is an error of principle.
  2. Not correct – A £300 credit sale being entered in the Sales Journal as £30 will result in the total of the sales journal being incorrect. So long as this incorrect figure is posted to the correct sides of the correct accounts (the debit side of the debtors control account and the credit side of the sales account) this will be an error of original entry.
  3. Not correct – Failure to record any transaction is an error of omission.
  4. Correct – Although what is described in answers A, B and C are incorrect, none of these errors affect the balancing of the trial balance. As the trial balance will balance in all cases, these errors will not be disclosed by it.

 

 

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