# NCERT Solutions for Class 11 Accountancy Chapter 6 Trial Balance and Rectification of Errors

Detailed, Step-by-Step NCERT Solutions for 11 Accountancy Chapter 6 Trial Balance and Rectification of Errors Questions and Answers were solved by Expert Teachers as per NCERT (CBSE) Book guidelines covering each topic in chapter to ensure complete preparation.

## Trial Balance and Rectification of Errors NCERT Solutions for Class 11 Accountancy Chapter 6

### Trial Balance and Rectification of Errors Questions and Answers Class 11 Accountancy Chapter 6

Question 1.
Indicate against each amount whether it is a debit or a credit balance, and prepare a trial balance as at March 31, 2005 based on the following balance.
Accounts Title — Amount (Rs.)
Capital — 1,00,000
Drawings — 16,000
Machinery — 20,000
Sales — 2,00,000
Purchases — 2,10,000
Sales return — 20,000
Purchases return — 10,000
Wages — 40,000
Goodwill — 60,000
Discount allowed — 6,000
Bank overdraft — 22,000
Bank loan — 90,000
Debtors :
Nathu — 55,000
Roopa — 20,000
Creditors :
Reena — 35,000
Ganesh — 25,000
Cash — 54,000
Stock on April 01, 2004 16,000
Accounts Title Debit or Credit Balance
(1) Capital — Credit
(2) Drawings — Debit
(3) Machinery — Debit
(4) Sales — Credit
(5) Purchases — Debit
(6) Sales return — Debit
(7) Purchases return — Credit
(8) Wages — Debit
(9) Goodwill — Debit
(11) Discount allowed — Debit
(12) Bank overdraft — Credit
(13) Bank loan — Credit
(14) Debtors — Debit
(15) Credito — Debit
(17) Stock on April 01, 2004 — Debit

Record the rectification entry for the following transactions :

Question 1.
Credit sales to Rajni Rs. 5,000 recorded in Purchases book :
This is an error of commission
State the wrong entry recorded in the book of accounts :
Correct effect should have been:
The rectification entry will be:

Question 2.
Furniture purchased from MIs. Rao Furnishings for Rs. 80(H) was entered into the purchases book.
This is the error of principle .
State the wrong entry recorded in the book of accounts:
Correct effect should have been :
The rectification entry will be:

Question 3.
Cash sales to Radhika Rs. 15,000 was shown as receipt of commission in the cash book.
This is the error of principle
State the wrong entry recorded in the book of accounts :
Correct effect should have been :
The rectification entry will be :

Question 4.
This is the error of principle
State the wrong entry recorded in the book of accounts :
Correct effect should have been :
The rectification entry will be:

Show the effect through Journal entries :
1. Credit sales to Mohan Rs. 10,000 were posted to his account as Rs. 12,000
This is an error of commission The wrong effect has been :
Correct effect should have been :
Tite rectification entry wilt be :

2. Cash paid to Neha Rs. 2,000 was not posted to her account. This is an error of omission
The wrong elect has been :
The correct effect should have been:
The rectification entry will be:

3. Sales returns from Megha Rs. 1,600 were posted to her account as Rs. 1,000.
This is an error of commission
The wrong effect has been :
The rectification entry will be:

4. Depreciation written off on furniture Rs. 1,500 was not posted to depreciation account.
This is an error of commission
The wrong effect has been :
The correct effect should have been:
The rectification entry will be:

Question 1.
Agreement of trial balance is affected by :
(a) one sided errors only
(b) two sided errors only
(c) both (a) and (b)
(d) none of the above
(c) both (a) and (b).

Question 2.
Which of the following is not an error of principle?
(a) Purchase of furniture debited to purchases account.
(b) Repairs on the overhauling of second hand machinery purchased debited to repairs account.
(c) Cash received from Manoj posted to Saroj.
(d) Sale of old car credited to sales account.
(c) Cash received from Manoj posted to Saroj.

Question 3.
Which of the following is not an error of commission?
(a) Overcasting of sales book.
(b) Credit sales to Ramesh Rs. 5,000 credited to his account.
(c) Wrong balancing of machinery account.
(d) Cash sales not recorded in cash book.
(d) Cash sales not recorded in cash book.

Question 4.
Which of the following errors will be rectified through suspense account?
(a) Sales return book undercast by Rs. 1,000.
(b) Sales return by Madhu Rs. 1,000 not recorded.
(c) Sales return by Madhu Rs. 1,000 recorded as Rs. 100.
(d) Sales return by Madhu Rs. 1,000 recorded through purchases return book
(a) Sales return book undercast by Rs. 1,000.

Question 5.
If the trial balance agrees, it implies that:
(a) there is no error in the books.
(b) there may be two sided errors in the book.
(c) there may be one sided error in the books.
(d) there may be both two sided and one sided errors in the books.
(b) there may be two sided errors in the book.

Question 6.
If suspense account does not balance off even after rectification of errors it implies that:
(a) there are some one sided errors only in the books yet to be located.
(b) there are no more errors yet to be located.
(c) there are some two sided errors only yet to be located.
(d) there may be both one sided errors and two sided errors yet to be located.
(a) there are some one sided errors only in the books yet to be located.

Question 7.
If wages paid for installation of new machinery is debited to wages account, it is :
(a) an error or commission.
(b) an error of principle,
(c) a compensating error.
(d) an error of omission.
(b) an error of principle

Question 8.
Trial balance is :
(a) an account.
(b) a statement.
(c) a subsidiary book.
(d) a principal book.
(b) a statement.

Question 9.
A trial balance is prepared :
(a) after preparation financial statement.
(b) after recording transactions in subsidiary books.
(c) after posting to ledger is complete.
(d) after posting to ledger is complete and accounts have been balanced.
(d) after posting to ledger is complete and accounts have been balanced.

Question 1.
State the meaning of Trial Balance?
Meaning o Trial Balance : All the businessmen after completion of postings from Journal or Subsidiary Books to the Ledger, want to verify accuracy of the posting. For this purpose a statement is prepared wherein the balances of all the accounts in the Ledger are incorporated.

The statement so prepared is called ‘Trial Balance’. Accounts show ing debit balances are put on the debit side of the trial balance and the accounts showing credit balances are put on its credit  side. If the total of the debit side of the trial balance is equal to that of its credit side, it is presumed that the posting to the ledger is accurate.

The reason for agreement of the trial balance is that under the double entry system, each transaction is recorded two times. once on the debit side of an account and again on the credit side of another account. Thus, the total of all the entries on the debit side of all the accounts must be equal to the total of all the entries on the credit side of all the accounts. If the total of both the sides of a trial balance are equal, it is proved that the books are atleast arithmetically correct.

Definitions of Trial Balance :
According to Carter, “Trial Balance is the list of debit and credit balances, taken out from ledger. It also includes the balances of cash and bank taken from cash book.”

According to William Pickles, “The statement prepared with the help of ledger balances, at the end of financial year (or at any other date) to find out whether debit total agrees with credit total is called Trial Balance.”

Question 2.
Give two examples of errors of principle.
Errors of Principle – When some fundamental principle of accountancy is violated while recording a transaction, the error is termed as error of principle. These errors are committed in those cases where a proper distinction between capital and revenue items is not made, i.e., a capital expenditure is treated as a revenue expenditure or vice- versa.

These errors may be of two types :
(a) When a capital expenditure is treated as revenue expenditure –
For example, if the purpose of furniture is treated as an ordinary purchase and is thus debited to purchase account instead of furniture account, it will be an error of principle. Similarly, if amount spent on the extension of building is debited to repairs account instead of building account, it is also an error of principle.

(b) When a revenue expenditure is treated as capital expenditure – For example, if the amount spent on the repair of an old machinery is debited to machinery account instead of repairs account.

Question 3.
Give two examples of errors of commission.
Errors of Commission – If a wrong amount is entered either in the journal or in the subsidiary books, the Trial Balance will tally because the same amount (though wrong) will be posted in both the accounts affected by the transaction.

For example, sale of goods to Ram on credit of Rs. 420 has been entered in the Journal as Rs. 240. When the entry is posted to Ledger, double entry will be completed with Rs. 240, Ram being debited with 240, and sales account being credited with Rs. 240. In spite of the inaccuracy in both the accounts, the Trial Balance will tally.

Examples are purchase book is under-cast be Rs. 2,000 or the sales book is over-cast by Rs. 3,000. Errors that do not effect the Trial Balance are purchase being recorded as Rs. 1,000 instead of Rs. 10,000 or purchase being recorded in sales book.

Question 4.
What are the methods of preparing Trial Balance?
Preparation of a Trial Balance – A Trial Balance may be prepared at any time, say, at the end of every month, quarter, half-year or year. Usually it is prepared at the end of the accounting period, as a preparation of Final Account. It may be noted it is always prepared to verify the arithemetical accuracy of the ledger accounts before the particular date and not for a particular period.

There are two methods used for the preparation of Trial Balance :
(i) Balance Method
(ii) Total Amount Method

(i) Balance Method – In order to prepare a trial balance under this method, all the accounts showing debit balances in the ledger are put on the debit side of the trial balance and the accounts showing credit balance are put on its credit side. If, however, and account shows no balance, i.e., the debit and credit totals of an account are equal, the account is not included in the trial balance. After this, the debit and credit columns of the trial balance are totalled and if the total is equal, it is said that the trial balance has tallied. It may be noted that a trial balance under this method can be prepared only when all the ledger accounts have been balanced

(ii) Total Amount Method – Under this method, the total amount of debit side of each ledger account is put on the debit side of the trial balance. It may be noted that a trial balance under this method can be prepared immediately after the completion of posting to the ledger.

Question 5.
What are the steps taken by an accountant to locate the errors in the trial balance?
Steps to locate or detect the errors – If the trial balance does nottally, steps must be taken to locate the errors which are causing discrepancy. The following steps may be taken, one after another, to locate the error :
Steps –
(1) Recheck the totals of both the debit and credit columns of the trial balance.

(2) The exact figure of difference in the trial balance should be ascertained. After this, the subsidiary books should be gone through to see if any item of that amount remains unposted. For example, if the difference is of Rs. 6,800, all the entries of Rs. 6,800 should be scanned to ensure that they have been duly posted,

(3) The difference should be halved to find out of some figure equal to half the difference has been posted on the wrong side of an account thereby making the difference double. For example, if the total of debit side of the trial balance exceeds by Rs. 6,800, it is possible that a credit item of Rs. 3,400 may have been posted to the debit side of the ledger account.

(4) The difference in,the trial balance should be divided by 9. If the difference is completely divisible, it can be a mistake of transposition of figures. For example, if the figure of 47 is written as 74, the different is of Rs. 27. This figure is completely divisible by 9. Likewise, if‘0’ is added against a figure, the difference will also be divisible by 9. For example, if the figure of 13 is written 130, the difference Rs. 117 which is completely divisible by 9.

(5) In case, the difference is in a round figure, say Rs. 1, Rs. 10, Rs. 100 etc. there will be a possibility of wrong totalling or wrong carry forwards of the totals of a subsidiary book or there will be an error in the balancing of an account. Flence. the totalling and balancing must be checked.

(6) Check with the help of the ledger whether the balance of each and every account including the balancing must be checked.

(7) Check whether all the closing balances from the previous year’s balance sheet have been correctly carried forward and recorded in respective, ledger accounts.

(8) Check the figures which are not clearly written.

(9) If the difference is of a very big amount, it is just possible that the balance of a certain ledger account may not have been included in the trial balance. This can be detected by comparing the trial balance of the current year with that of the previous year. Also, if the figures of accounts under the same head show abnormal variation, the account should be rechecked to find out the cause of variation.

(10) If, in spite of all the above efforts, there is still a difference in the trial balance, a complete checking of the postings of all the entries will be necessary. A check mark (✓) should be placed at the right of each amount to show that the item has been checked. It should also be checked that the totals of the subsidiary books have been posted to the relevant accounts in the ledger.

Question 6.
What is suspense account? Is it necessary that is suspense account will balance off after ratification of errors detected by the accountant? If not, then what happens to the balance still remaining in suspense account?
Meaning of suspense account – Sometimes, in spite of best efforts of an accountant, all the errors are not located and the trial balance does not tally, In such a situation, to avoid the delay in the preparation of final accounts, the difference in the trial balance is placed to a newly opened account known as “Suspense Account” and the trial balance tallies. If the debit side of the trial balance exceeds the credit side, the difference will be put on the credit side of the suspense account. After including the balance of suspense account in the trial balance, it will appear to be tallied.

Later, when the errors are located, the rectification entries will be passed with the help of the suspense account. Therefore, when all the errors have been located and rectified the suspense account will automatically stand closed. If suspense account still shows a balance, it will be taken in the balance sheet – on the assets side if it shows a debit balance or on the liabilities side if it shows a credit balance.

Question 7.
What kinds of errors would cause difference in the trial balance. Also list examples that would not be revealed by trial balance.
Types of Errors : All errors may be classified into the following two categories :
(1) Errors affecting trial balance (or errors disclosed by trial balance).
(2) Errors not affecting trial balance (or errors not disclosed by trial balance).

(1) Errors affecting trial balance (or errors disclosed by trial balance) – If the trial balance does not tally, it will indicate that certain errors have been committed which have affected the agreement of the trial balance. The accountant will then proceed to find out the errors and ultimately the errors will be located. Such errors are called ‘errors disclosed by trial balance’ or ‘errors which affect the agreement of trial balance.’ Until such errors are rectified, the trial balance will not agree. Some of the examples of such errors are as follows :

(i) Wrong Casting – If the total of the cash book or some other subsidiary book is wrong, the trial balance will not tally. For example, the total of the purchase book has been added Rs. 7,000 in excess. When this total will be posted to the debit side of the purchase account, it will also show an excess debit of Rs. 7,000 and hence, the trial balance will not tally.

(ii) Posting to the wrong side – If instead of posting an amount on the debit side of an account, it is posted on the credit side, or vice versa, the trial balance will not tally. For example, goods for Rs. 6,000 have been purchased from Gopal. If instead of posting the amount on the credit side of Gopal’s account it is posted to his debit, the debit side of the trial balance will exceed by Rs. 8.000.

(iii) Posting of wrong amount – The trial balance will not tally if the posting in an account is made with an incorrect amount. For example, goods for Rs. 800 have been purchased from Mahendra. If it has been correctly entered in the purchase book but while posting to Mahendra’s credit, the amount posted is Rs. 80 instead of Rs. 800, the trial balance will not tally.

(iv) Omission of posting of one side of an entry – For example, if Rs. 600 have been received from Geeta and correctly entered in the cash book, but if it is omitted to be posted on the credit side of Geeta’s account, the trial balance will not tally.

(v) Double posting in a single account – For example, if Rs. 900 have been received from Shyam Lai and correctly entered in the cash book, but if it is posted twice on the credit side of Shyam Lai’s account, the trial balance will not tally.

(vi) Errors of posting in wrong account – If, while posting from the books of original entry, posting is made to a wrong account but on the correct side, the error will not affect the agreement of trial balance. If, for example, goods are sold to Ram on credit but Shyam’s account is debited in place of Ram’s account in ledger, the trial balance would tally in spite of errors in both the accounts.

(2) Errors not affecting trial balance (or errors not disclosed by trial balance)
Examples of errors not revealed by the trial balance are the following :

• Errors of Omission
• Errors of Commission
• Compensating errors
• Errors of Principles.

Question 8.
State the limitations of Trial Balance.
Main objective of preparing a trial balance is to check the accuracy of the accounts. However, the equality of debits and credits of trial balance does not mean that there are absolutely no errors in the books of accounts. There may be number of errors which may remain undetected in spite of the agreement of a trial balance. As such, it is true that “Trial Balance is not a conclusive proof of the accuracy of book of accounts”. There are certain errors which do not affect, the agreement of the trial balance. Such errors are also called limitations of trial balance: These are the following errors :

• Errors of Omission
• Errors of Commission .
• Compensating errors
• Errors of Principles
• Errors of posting in wrong account.

Sometimes in spite of best efforts of an accountant, all the errors are not located and the trial balance does not tally. So, the trial balance has certain limitations.

Question 1.
Describe the purpose for the preparation of Trial Balance.
The following are the purposes of preparing a trial balance :
(1) To ascertain the arithmetical accuracy of the ledger accounts.
(2) To help in locating errors.
(3) To obtain a summary of the ledger accounts.
(4) To help in the preparation of final accounts.

(1) To ascertain the arithmetical accuracy of the ledger accounts –
The trial balance provides a useful check upon the ledger postings. If a trial balance tallies, it is proved that the posting to the ledger accounts is correct. In other words, it ensures that both the aspects of each transaction have been posted into the ledger, i.e., debit aspects have been posted on the debit side and the corresponding credit aspects on the credit side.

(2) To help in locating errors – If a trial balance does not tally, it indicates that some errors have occurred and the accountant will then proceed to locate such errors. Even a small difference in the trial balance is to be given the same importance and attention as a large difference because it may be possible that there may be a number of errors which have of setted the effect of one another, resulting in a small composite difference.

(3) To obtain a summary of the ledger accounts – A trial balance serves as a summary of all the ledger accounts. Scanning the trial balance enables one to know the assets, liabilities, expenses, incomes etc.

(4) To help in the preparation of final accounts – As the trial balance contains the list of all the ledger accounts, it provides a basis for further processing of accounting data, i.e., preparation of final accounts namely, Trading and Profit & Loss Account and a Balance Sheet.

Question 2.
Explain errors of principle and give two examples with measures to rectify them.
Errors of Principle – If any of the generally accepted accounting principles is violated or ignored, errors resulting from such violation are known as errors of principle. An error of principle may occur due to incorrect classification of expenditure or receipts between capital and revenue.

For example, amount spent on additions to the buildings should be treated as capital expenditure and must be debited to the assets account. Instead, if this amount is debited to maintenance and repairs account, it is treated as a revenue expense. This is an error of principle.

Similarly, if a credit purchases of machinery is recorded in purchase book is an example of error of principle, or rent paid to landlord is recorded in cash book posted or recorded in journal proper.

Two examples of errors of principles are as under :
(1) When an account has wrongly been debited in place of another account.
Example : Machinery purchased for Rs. 9,000 has been debited to Purchases A/c.
Solution : This error affects the two accounts in the following manner –

While rectifying this mistake Machinery A/c will be debited because it was not debited earlier and the Purchases A/c will be credited because it was wrongly debited.

III. By comparing the correct entry and the wrong entry it will be ascertained that Machinery A/c should be debited and the Purchases A/c should be credited, as it has been w rongly debited earlier.

(2) When an account has wrongly been credited in place of another account.
Example : Rs. 8,000 being the sale proceeds of old furniture has been credited to Sales A/c.
Solution : This error affects the two accounts in the following manner –

While rectifying this mistake Sales A/c will be debited because it has been,credited by mistake and the Furniture A/c will be credited because it was credited earlier.

III. By comparing the correct entry and the wrong’ entry it will be ascertained that Sales A/c should be debited because it has been wrongly credited earlier and Furniture account should be credited. Rectifying entry which must be passed now.

Question 3.
Explain the errors of commission and give tw o examples with measures to rectify them.
Errors of Commission – The errors committed due to wrong posting of transactions, wrong totalling or balancing of the accounts, wrong casting of the subsidiary books, or wrong recording of the amount in the books of original entry, etc. For example, Mohan paid Rs. 15,000 to Gopal Traders (a supplier of goods). This tansactions was correctly recorded in the cash book, but Gopal Trader’s account was debited with Rs. 1,500 only. This is an error of commission as it is an error of clerical nature and reflected in trial balance.

Two examples of errors of commission may be cited as follows :
(1) When there is a short debit in one account and a short credit in anoher account.
Example : Goods purchased from Sahil for Rs. 4,000 was entered in Purchase Book as Rs. 400 only.
Solution : Effect of error –

While rectifying this mistake Purchases A/c will be debited by Rs. 3,600 because there will be a short debit in Purchases A/c and Sahil’s A/c will be credited because it has been credited by a lesser amount.

(2) When there is an excess debit in one account and an excess credit in another account.
Example : Goods sold to Rakesh for Rs. 3,800 on credit was recorded in Sales Book as Rs. 8,300.
Solution : Effect of error

While rectifying this mistake Rakesh will be credited by Rs. 4,500 because it has been ‘excess debited’ by a similar amount and Sales A/c will be debited by Rs. 4,500 because it has been ‘excess credited’ by a similar amount.

Notes :
(1) Students can adopt any of the two methods discussed as above, because rectifying entry in both the methods will be similar.
(2) In the examination the students should pass only the rectifying entries.

Question 4.
What are the different types of errors that are usually f committed in recording business transactions.
From the rectification point of view, all errors can be „ classified into the following two categories (types) :
(A) Two-sided Errors
(B) One-sided Errors

(A) Two-sided Errors – Errors which affect two accounts simultaneously are called two-sided errors. Such errors may  include the following types of errors :

• Omission to pass an entry in the book of original records,
• Wrong recording of a transaction in the books of original records,
• Posting to the wrong account, and
• Errors of principle.

All these errors are rectified by passing a journal entry, one account being debited and the other account being credited. Following rules should be observed while passing entries to rectify the two – sided errors –

• The account showing an excess debit should be credited in the rectifying entry.
• The account showing a short debit should be debited in the rectifying entry.
• The account showing an excess credit should be debited in the rectifying entry.
• The account showing a short credit should be credited in the rectifying entry.

These four rules as enumerated above can be explained by the examples given below –
(I) Machinery purchased for Rs. 10,000 has been wrongly debited to purchase A/c.
Solution :
Machinery’ in the account is short by rs. 10,000 while the purchase also shown excess by Rs. 10,000 may be rectified as follows :

(Being purchase of machinery wrongly debited to purchase account)

(II) Rs. 8,000 being the sale proceeds of old furniture has been credited to sales account.
Solution :
In this error furniture account is short by Rs. 8,000 while the Sales A/c exceeds by Rs. 8,000 may be rectified as under :

(Being sale of old furniture wrongly credited to Sales A/c)

(III) Good purchased from Roshan for Rs. 9,000 was entered in the purchase book as Rs. 900 only.
Solution :
In the above error purchase account is short by Rs. 8,100, while Roshan’s A/c is also short by Rs. 8,100 may be rectified as under :

(Being good purchased from Roshan for Rs. 9,000 wrongly entered as Rs. 900)

(IV) Goods sold to Ravi for Rs. 360 on credit was recorded in the sales book as Rs. 620.
Solution :
The effect of error is that Ravi’s A/c is exceed by Rs. 360, while Sales A/c is also exceed by Rs. 360 may be rectified as under :

(Being sale to Ravi for Rs. 360 wrongly entered as Rs. 620)

(B) One-sided Errors – These errors affect only one account. If, for
example, a sum of Rs. 9,000 given to Rakesh is correctly entered ‘ in the cash book but omitted to be recorded to the debit of Rakesh, the error is known as one-sided error as it exist in the account of Rakesh only. Such types of errors occur in the following cases :
(i) When a subsidiary book is under cast or overcast.
(ii) When the posting to an account is omitted.
(iii) When the posting is made on the wrong side of an account.
(iv) When the posting is made from the wrong amount.

As an accountant of a company, you are disappointed to learn that the totals in your new trial balance are not equal. After going through a careful analysis, you have discovered only one error. Specifically, the balance of the Office Equipment A/c has a debit balance of Rs. 15,600 on the trial balance. However, you have figured out that a correctly recorded credit purchase of pen-drive for Rs. 3,500 was posted from the journal to the ledger with Rs. 3,500 debit to Office Equipment and another Rs. 3,500 debit to creditors accounts. Answer each of the following questions and present the amount of any misstatament :
(a) Is the balance of the office equipment account overstated, understated, or correctly stated in the trial balance?
(b) Is the balance of the creditors account overstated, understated or correctly stated in the trial balance?
(c) Is the debit column total of the trial balance overstated, understated, or correctly stated?
(d) Is the credit column total of the trial balance overstated, understated, or correctly stated?
(e) If the debit column total of the trial balance is Rs. 2,40,000 before correcting the error, what is the total of credit column.
In the above problem, the total of trial balance are not equal. A purchase of pen-drive, an item of stationary wrongly debited of office equipment for Rs. 3,500 and also debit of supplier’s account due to which the following errors take place.
(a) The balance of office equipment account is overstated as the cost of pen-drive wrongly debited to office equipment account.
(b) The balance of creditors or supplier a liability is understated as debited by the amount of pen-drive for Rs. 3,500.
(c) The debit side of trial balance is overstated due to addition in the value of office equipment for Rs. 3,500 by wrongly debited amount of pen-drive.
(d) The credit side of trial balance is understated as the amount of creditors or supplier’s decreased by the amount Rs. 3,500.
(e) In case of debit column total of trial balance shows Rs. 2,40,000 before correcting the error, the total of credit side of trial balance is less by Rs. 3,500 (i.e. Rs. 2,36,500).

Numerical Questions

Question 1.
Rectify the following errors :
(i) Credit sales to Mohan Rs. 7,000 were not recorded.
(ii) Credit purchases from Rohan Rs. 9,000 were not recorded.
(iii) Goods returned to Rakesh Rs. 4,000 were not recorded.
(iv) Goods returned from Mahesh Rs. 1,000 were not recorded.
These are the errors of omission –

Question 2.
Rectify the following errors :
(i) Credit sales to Mohan Rs. 7,000 were recorded as Rs. 700.
(ii) Credit purchases from Rohan Rs. 9,000 were recorded as Rs. 900.
(iii) Goods returned to Rakesh Rs. 4,000 were recorded as Rs. 400.
(iv) Goods returned from Mahesh Rs. 1,000 were recorded as Rs. 100.
These are the errors of commission and rectified to the following manner

Question 3.
Rectify the following errors :
(i) Credit sales to Mohan Rs. 7,000 were recorded as Rs. 7,200.
(ii) Credit purchases from Rohan Rs. 9,000 were recorded as Rs. 9,900.
(iii) Goods returned to Rakesh Rs. 4,000 were recorded as Rs. 4,040.
(iv) Goods returned from Mahesh Rs. 1,000 were recorded as Rs. 1,600.

Question 4.
Rectify the following errors :
(i) Salary paid Rs. 5,000 was debited to employee’s personal account.
(ii) Rent paid Rs. 4,000 was posted to landlord’s personal account.
(iii) Goods withdrawn by proprietor for personal use Rs. 1,000 were debited to sundry expenses account.
(iv) Cash received from Kohli Rs. 2,000 was posted to Kapur’s account.
(v) Cash paid to Babu Rs. 1,500 was posted to Sabu’s account.

Question 5.
Rectify the following errors :
(i) Credit sales to Mohan Rs. 7,000 were recorded in Purchases Books.
(ii) Credit purchases from Rohan Rs. 900 were recorded in Sales Books.
(iii) Goods returned to Rakesh Rs. 4,000 were recorded in the Sales Return Books.
(iv) Goods returned from Mahesh Rs. 1,000 were recorded in Purchases Return Books.
(v) Goods returned from Nahesh Rs. 2,000 were recorded in Purchases Books.

Question 6.
Rectify the following errors :
(i) Sales Book overcast by Rs. 700.
(ii) Purchases Book overcast by Rs. 500.
(iii) Sales Returns Book overcast by Rs. 300.
(iv) Purchase Returns Book overcast by Rs. 200.

Question 7.
Rectify the following errors :
(i) Sales Book undercast by Rs. 300.
(ii) Purchases Book undercast by Rs. 400.
(iii) Returns Inwards Book undercast by Rs. 200.
(iv) Returns Outward Book undercast by Rs. 100.

Question 8.
Rectify the following errors and ascertain the amount of difference in trial balance by preparing suspense account:
(a) Credit sales to Mohan Rs. 7,000 were not posted.
(b) Credit purchases from Rohan Rs. 9,000 were not posted.
(c) Goods returned to Rakesh Rs. 4,000 were not posted.
(d) Goods returned from Mahesh Rs. 1,000 were not posted.
(e) Cash paid to Ganesh Rs. 3,000 was not posted.
(f) Cash sales Rs. 2,000 were not posted.

Note :
In order to match the balance of suspense account, it has been assumed that all errors given in the question are errors of partial commission.

Question 9.
Rectify the following errors and as certain the amount of difference in trial balance by preparing suspense account.
(a) Credit sales to Mohan Rs. 7,000 were posted as Rs. 9,000.
(b) Credit purchases from Rohan Rs. 9,000 were posted as Rs. 6,000.
(c) Goods returned to Rakesh Rs. 4,000 were posted as Rs. 5,000.
(d) Goods returned from Mahesh Rs. 1,000 were posted as Rs. 3,000.
(e) Cash sales of Rs. 2,000 were posted as Rs. 200.

Note : In order to match answer with that of the answer given in the book it has been assumed that all the errors mentioned in the question are that of partial omission.

Question 10.
Rectify the following errors :
(a) Credit sales to Mohan Rs. 7,000 were posted to Karan.
(b) Credit purchases from Rohan Rs. 9,000 were posted to Gobind.
(c) Goods returned to Rakesh Rs. 4,000 were posted to Naresh.
(d) Goods returned from Mahesh Rs. 1,000 were posted to Manish.
(e) Cash sales Rs. 2,000 were posted to commission account.

Question 11.
Rectify the following errors assuming that a suspense account was opened. Ascertain the difference in trial balance.
(a) Credit sales to Mohan Rs. 7,000 were posted to the credit of his account.
(b) Credit purchases from Rohan Rs. 9,000 were posted to the debit of his account as Rs. 6,000.
(c) Goods returned to Rakesh Rs. 4,000 were posted to the credit of his account.
(d) Goods returned from Mahesh Rs. 1,000 were posted to the debit of his account as Rs. 2,000.
(e) Cash sales of Rs. 2,000 were posted to the debit of sales account as Rs. 5,000.
(Ans. : Difference in trial balance Rs. 3,000 excess debit)

Question 12.
Rectify the following errors assuming that a suspense account was opened. Ascertain the difference in trial balance.
(a) Credit sales to Mohan Rs. 7,000 were posted to Karan as Rs. 5,000.
(b) Credit purchases from Rohan Rs. 9,000 were posted to the debit of Gobind as Rs. 10,000.
(c) Good returned to Rakesh Rs. 4,000 were posted to the credit of Naresh as Rs. 3,000.
(d) Goods returned from Mahesh Rs. 1,000 were posted to the debit of Manish as Rs. 2,000.
(e) Cash sales Rs. 2,000 were posted to Commission account as Rs. 200.
(Ans. : Difference in trial balance Rs. 14,800 excess debit)

Question 13.
Rectify the following errors assuming that a suspense account was opened. Ascertain the difference in trial balance.
(a) Credit sales to Mohan Rs. 7,000 were recorded in Purchase Book. However, Mohan’s account was correctly debited.
(b) Credit purchases from Rohan Rs. 9,000 were recorded in Sales Books. However, Rohan’s account was correctly credited.
(c) Goods returned to Rakrsh Rs. 4,000 were recorded in Sales Returns Book. However, Rakesh’s account was correctly debited.
(d) Goods returned from Mahesh Rs. 1,000 were recorded through Purchase Returns Book. However, Mahesh’s account was correctly credited.
(e) Goods returned to Naresh Rs. 2,000 were recorded . through Purchase Returns Book. However, Naresh’s account was correctly debited.
(Ans.: Difference in trial balance Rs. 6,000 excess debit)

Question 14.
Rectify the following errors –
(a) Furniture purchased for Rs. 10,000 wrongly debited to purchases account.
(b) Machinery purchased on credit from Raman for Rs.
20,0 was recorded through purchases book.
(c) Repairs on machinery Rs. 1,400 debited to machinery account.
(d) Repairs on overhauling of secondhand machinery purchased Rs. 2,000 was debited to repair account.
(e) Sale of old machinery at book value of Rs. 3,000 was credited to sales account.

Question 15.
Rectify the following errors assuming that suspension account was opened. Ascertain the difference in trial balance.
(a) Furniture purchased for Rs. 10,000 wrongly debited to purchase account as Rs. 4,000.
(b) Machinery purchased on credit from Raman for Rs.
20,0 recorded through Purchases Book as Rs. 6,000.
(c) Repairs on machinery Rs. 1,400 debited to machinery account as Rs. 2,400.
(d) Repairs on overhauling of secondhand machinery purchased Rs. 2,000 was debited to Repairs account as Rs. 200.
(e) Sale of old machinery at book value Rs. 3,000 was credited to sales account as Rs. 5,000.
(Ans.: Difference in trial balance Rs. 8,800 excess credit.)

Question 16.
Rectify the following errors :
(a) Depreciation provided on machinery Rs. 4,000 was not posted.
(b) Bad debts written off Rs. 5,000 were not posted.
(c) Discount allowed to a debtor Rs. 100 on receiving cash from him was not posted.
(d) Discount allowed to a debtor Rs. 100 on receiving cash from him was not posted to discount account.
(e) Bill receivable for Rs. 2,000 received from a debtor was not posted.

Question 17.
Rectify the following errors :
(a) Depreciation provided on machinery Rs. 4,000 was posted as Rs. 400.
(b) Bad debts written off Rs. 5,000 were posted as Rs. 6,000.
(c) Discount allowed to a debtor Rs. 100 on receiving cash from him was posted as Rs. 60.
(d) Goods withdrawn by proprietor for personal use Rs. 800 were posted as Rs. 300.
(e) Bill receivable for Rs. 2,000 received from a debtor was posted as Rs. 3,000.

Question 18.
Rectify the following errors assuming that suspension account was opened. Ascertain the difference in trial balance.
(a) Depreciation provided on machinery Rs. 4,000 was not posted to depreciation account.
(b) Bad debts written off Rs. 5,000 were not posted to debotrs account.
(c) Discount allowed to a debtor Rs. 100 on receiving cash from him was not posted to discount allowed account.
(d) Goods withdrawn by proprietor for personal use Rs. 800 were not posted to drawings accounts.
(e) Bill receivable for Rs. 2,000 received from to debtor was not posted to bills receivable account.

Question 19.
Trial balance of Anju did not agree. It showed an excess credit of Rs. 6,000. He put the difference to suspense account. He discovered the following errors :
(a) Cash received from Ravish Rs. 8,000 posted to his account as Rs. 6,000.
(b) Returns inwards book overcast by Rs. 1,000.
(c) Total of sales book Rs. 10,000 was not posted to sales account.
(d) Credit purchases from Nanak Rs. 7,000 were recorded in sales book. However, Nanak’s account was correctly credited.
(e) Machinery purchased for Rs. 10,000 was posted to purchases account as Rs. 5,000.
Rectify the errors and prepare Suspense Account.
(Ans. : Total of Suspense Account Rs. 19,000)
Ans.

Question 20.
Trial balance of Raju showed an excess debit of Rs. 10,000. He put the difference to suspense account and discovered the following errors :
(a) Depreciation written off the furniture Rs. 6,000 was not posted to furniture account.
(b) Credit sales to Rupam Rs. 10,000 were recorded as Rs. 7,000
(c) Purchases book undercast by Rs. 2,000.
(d) Cash sales to Rana Rs. 5,000 were not posted.
(e) Old machinery sold for Rs. 7,000 was credited to sales account.
(f) Discount received Rs. 800 from Kanan on paying cash to him was not posted.
Rectify the errors and prepare Suspense A/c.
(Ans.: Balance carried forward in suspense account Rs. 1,000 credit.)

Question 21.
Trial balance of Madan did not agree and he put the difference to suspense account. He discovered the following errors :
(a) Sales returns book overcast Rs. 800.
(c) Goods purchased on credit from Narula Rs. 4,000 though taken into stock, but no entry was passed in the book.
(d) Installation charges on new machinery purchased Rs. 500 were debited to sundry expenses account as Rs. 50.
(e) Rent paid for residential accommodation of Madan (the proprietor) Rs. 1,400 was debited to Rent A/c as Rs. 1,000.
Rectify the errors and prepare suspense account to ascertain the difference in trial balance.
(Ans.: Difference in trial balance Rs. 2,050 excess credit.)

Question 22.
Trial balance of Kohli did not agree and showed an excess debit of Rs. 16,300. He put the difference to a suspense account and discovered the following errors :
(a) Cash received from Rajat Rs. 5,000 was posted to the debit of Kamal as Rs. 6,000.
(b) Salaries paid to an employee Rs. 2,000 were debited to his personal account as Rs. 1,200.
(c) Goods withdrawn by the proprietor for personal use Rs. 1,000 were credited to sales account as Rs. 1,600.
(d) Depreciation provided on machinery Rs. 3,000 was posted to machinery account as Rs. 300.
(e) Sale of old car for Rs. 10,000 was credited to sales account as Rs. 6,000.
Rectify the errors and prepare suspense account.
(Ans: Total of suspense account: Rs. 17,700.)
Ans.

Question 23.
Give journal entries to rectify the following errors assuming that suspense account had been opened :
(a) Goods distributed as free sample Rs. 5,000 were not recorded.
(b). Goods withdrawn for personal use by the proprietor Rs. 2,000 were not recorded in the books.
(c) Bill receivable received from a debtor Rs. 6000 was not posted to his account.
(d) Total to returns inwards book Rs. 1,200 was posted to returns outwards account.
(e) Discount allowed to Reema Rs. 700 on receiving cash from her was recorded in the books as Rs. 70.
(Ans.: Difference in trial balance Rs. 3,600 excess debit.)

Question 24.
Trial balance of Khatau did not agree. 11e put the difference to Suspense account and discovered tile following
errors :
(a) Credit safes to Manas Rs. 16,000 were recorded in the purchases book as Rs. 10,000 and posted to the debit of Manas as Rs. 1,000.
(b) Furniture purchased from Noor Rs. 6,000 was recorded through purchases book as Rs. 6000 and posted to the debit of Noor Rs. 2,000.
(c) Good returned to Rai Rs. 3,000 recorded through the sales book as Rs. 1,000.
(d) Old machinery sold for Rs. 2,000 to Manish recorded through sales book as Rs. 1,809 and posted to the credit of Manish as Rs. 1,200.
(e) Total of returns inwards book Rs. 2,800 posted to purchase account.
Rectify the above errors and prepare suspense account to ascertain the difference in trial balance.
(Ans.: Diffcrence in trial balance Rs. 15,000 excess debit.)

Question 25.
Trial balance of.John did not agree. He put the difference to suspense account and discovered the following errors
(a) In the sales book for the month of January total of page no. 2 was carried forward to page no.3 as Rs. 1,000 instead of Rs. 1,200 and total of page no. 6 was carried forward to page no. 7 as Rs. 5,600 instead of Rs. 5,000.
(b) Wages paid for installation of machinery Rs. 500 was posted to wages account as Rs. 50.
(c) Machinery purchased from R & Co. for Rs. 10.000 on credit was entered in purchase book as Rs. 6,000 and
posted there from to R & Co. as Rs. IMOO.
(d) Credit sales to Mohan Rs. 5,000 were recorded in purchases book.
(e) Goods returned to Ram Rs. 1,000 were recorded in sales book.
(f) Credit purchases from S & So. for Rs. 6,000 were recorded in sales book. However, S & Co. was correctly credited.
(g) Credit purchases from M & Co. Rs. 6,000 were recorded in sales book as Rs. 2.000 and posted there from to the credit of M & Co. as Rs. lq000.
(h) Credit sales to Ranian Rs. 4,000 posted to the credit of Raghvan as Rs. 1,000.
(I) Bill receivable for Rs. 1,600 from Noor was dishonoured and posted to debit of allowances account.
(j) Cash paid to Mani Rs. 5.000 against our acceptance was debited to Manu.
(k) Old furniture sold for Rs. 3,000 was posted to sales account as Rs. 1,000.
(1) Depreciation provided on furniture Rs. 800 was not posted.
(m) Material Rs. 10,000 and wages Rs. 3,000 were used for construction of building. NO adjustment was ma(Ie in the books.
Rectify the errors and Iwelarc suspense to ascertain (the difference in trial balance.
(Ans.: Difference in trial  Rs. 13,850 excess credit.)

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