Question
What among the following is an example of compensating
errors?Solution
· Errors of Commission - When an error is committed in recording a transaction with wrong amount or posting to wrong side of the account, it is called an 'Error of Commission'. Following are some of the examples: · Posting of correct amount but on the wrong side · Posting of a wrong amount but on the correct side · Errors of Omission - When a transaction is completely or partially omitted to be recorded in books of account, it is called an 'Error of omission'. · Goods are purchased on credit from Mr. A. This transaction is not recorded in the purchase journal. This is called error of 'Complete omission' – MATCHES Trial Balance · If the above entry is recorded in purchase journal but remains to be posted to the supplier, Mr. A's account, then it will be called 'Partial omission' – DOESN’T MATCH the Trial Balance · Compensating Errors - When one mistake nullifies the wrong effect of another, it is called a compensating error. These are two or more in number and balance each other. · Example - total of rent account is undercast by Rs. 1,000 and the total of printing and stationery account is overcast by Rs. 1,000 Errors of Principle - These are errors arising from not observing the accounting principles correctly, e.g. wages paid for installation of machinery debited to wages account.
- Identify the most appropriate ANTONYM of the given word.
Generous 'To decamp' would mean:
- Select the most appropriate synonym of the bold word in the given sentence.
The scientist made a crucial discovery in the field of medicine.
... In the following question select the answer pair that expresses a relationship most similar to that expressed in the capitalised pair.
AFFECTIO...
Select the most appropriate antonym of the given word.
PERSEVERANCE
In each of the following questions, one word is highlighted in bold. There are four sentences given in the option. Out of the four sentences, three wil...
He was indifferent to the outcome of the game.
trickle
In the following question, four words have been given out of which one word is incorrectly spelt. Select the incorrectly spelt word.
- Select the most appropriate synonym of the given word.
Serene