Income Tax Departmental Examination (ITO / Inspector) Practice Quiz

Question 1

The trial balance of a workshop agrees. Machinery repairs of ₹18,000 were debited to the machinery account. What is the position?

Accepted Answer

The trial balance still agrees, but profit and the machinery asset are both overstated

Question 2

Rent paid ₹4,500 was posted to the rent account as ₹5,400. Interest received ₹6,200 was posted to the interest account as ₹7,100. No other mistake exists. Which statement is correct?

Accepted Answer

The trial balance still agrees because the extra debit equals the extra credit

Question 3

The debit column of a trial balance is short by ₹2,400 and the difference is placed in suspense. Discount allowed of ₹2,400 had been credited to the customer but never debited to discount allowed. The rectification is:

Accepted Answer

Debit discount allowed ₹2,400 and credit suspense ₹2,400

Question 4

A payment of ₹9,000 to a creditor was debited to that creditor as ₹900, while cash was correctly credited. Separately, wages of ₹3,000 were credited to wages instead of being debited. By how much is the trial balance out of balance?

Accepted Answer

The debit total is short by ₹14,100

Income Tax Departmental Examination (ITO / Inspector) — Discussion

Income Tax Departmental Examination (ITO / Inspector) — Group Discussion