Class 11 Accountancy Trial Balance and Rectification of Errors Extra Questions

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Class 11 Accountancy Trial Balance and Rectification of Errors Extra Questions. myCBSEguide has just released Chapter Wise Question Answers for class 11. Accountancy is the process of communicating financial information about a business entity to users such as shareholders and managers. Accountancy describes the duties of an accountant, the person whose job is to keep, inspect and interpret financial accounts. There chapter wise Practice Questions with complete solutions are available for download in myCBSEguide website and mobile app. These Question with solution are prepared by our team of expert teachers who are teaching grade in CBSE schools for years. There are around 4-5 set of solved Accountancy Extra questions from each and every chapter. The students will not miss any concept in these Chapter wise question that are specially designed to tackle Exam. We have taken care of every single concept given in CBSE Class 11 Accountancy syllabus and questions are framed as per the latest marking scheme and blue print issued by CBSE for class 11.

Class 11 Accountancy Extra Questions

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Trial Balance and Rectification of Errors Class 11 Accountancy Important Questions

Trial Balance & Rectification Errors


  1. If the amount is posted in the wrong account or it is written on the wrong side of account, what error is it?
  2. What do you understand by rectification of errors?
  3. Give two examples of two-sided error.
  4. Give one example of one-sided errors.
  5. Discuss the balance method of preparing trial balance.
  6. A book-keeper of a trading concern having failed to agree the trial balance, opened a suspense account and entered the difference in the trial balance.
    The following errors were subsequently discovered

    1. Goods sold to Manohar for Rs 550 was posted as Rs 5,500.
    2. Purchases return book was carried forward as Rs 1,220 instead of Rs 1,120.

    You are required to pass the journal entries for rectification of the above errors

  7. Rectify the following errors
    1. Depreciation provided on machinery Rs 4,000 was not posted.
    2. Bad debts written-off Rs 5,000 were not posted.
    3. Discount allowed to a debtor Rs 100 on receiving cash from him was not posted.
    4. Bill receivable for Rs 2,000 received from a debtor was not posted.
  8. Rectify the following errors
    1. Sales book overcast by Rs 700.
    2. Purchase book overcast by Rs 500.
    3. Sales return book overcast by Rs 300.
    4. Purchase return book overcast by Rs 200
  9. Give the journal entries to rectify the following errors using suspense account, where necessary.
    1. Rs 3,000 received from a customer as an advance against order was credited to sales account.
    2. A sum of Rs 800 written-off as depreciation on machinery, were not posted to depreciation account.
    3. Purchase of a scooter was debited to conveyance account Rs 16,000. Firm charges 10% depreciation on vehicles.
    4. Payment of Rs 500 to Mohan and Rs 600 to Sohan was made but Mohan was debited with Rs 600 and Sohan with Rs 500.
    5. Sales to X Rs 500 were posted to Y ’s account.
  10. Journalise the following transactions. Post them into the ledger and prepare a trial balance.
    DateParticularsAmt (Rs.)
    2013
    Apr 1Vishal started a business with cash16,00,000
    Apr 2Deposited in bank8,00,000
    Apr 3Goods purchased by cheque4,80,000
    Apr 5Goods purchased from Raj3,20,000
    Apr 7Good sold for cash1,60,000
    Apr 10Goods sold to Rohan4,80,000
    Apr 15Cash received from Rohan4,60,000
    He was allowed a discount20,000
    Apr 17Paid to charity4,000
    Apr 18Paid to Raj1,56,000
    Received discount from him4,000
    Apr 25Paid salary20,000
    Paid rent16,000
    Apr 30Purchased furniture from vijay and paid by cheque60,000

Trial Balance & Rectification Errors


Answer

  1. This is an error of commission.
  2. While recording business transactions, some errors are committed.There are 4 kinds of errors, namely;
    1. Error of Principle
    2. The error of Commission.
    3. Error of Omission
    4. Compensatory Error.

    These errors have to be corrected before finalization of account. The process of correcting these errors is known as Rectification of Errors.

  3. Two-sided errors refer to those errors that do not affect the agreement (tallying) of the trial balance.
    1. Machinery purchased recorded in the purchases book.
    2. Old furniture sold is recorded as sales of goods.
  4. Errors due to partial omission is an example of one-sided error.
  5. Trial balance is a statement that is prepared to make sure that the transactions for a particular period have been duly recorded in the journal and properly posted to the relevant ledger accounts. It has debit and credit columns to record the balances extracted from ledger accounts with a view to test the arithmetical accuracy of the books of accounts. Under balance method the following procedure is adopted to draw up a trial balance:
    1. First of all the name of all accounts is written along with serial number.
    2. The total balances of all accounts are taken and debit balances are written in the debit column & credit balances in the credit column in the Trial Balance.
    3. The total of debit & credit columns of the Trial Balance is calculated. Total of both columns of Trial Balance should be equal.
  6. Journal

    DateParticularsL/FDebit

    Amount

    (Rs)

    Credit

    Amount

    (Rs)

    Suspense A/c

    To Manohar’s A/c
    (Being the sales of goods-wrongly over-debited to customer, now rectified)

    Dr4,9504,950
    Purchase Return A/c

    To Suspense A/c
    (Being the error in carrying forward of total of purchases return book, now rectified)

    Dr100100

    A suspense account is a general ledger account in which amounts are temporarily recorded. The suspense account is used because the appropriate general ledger account could not be determined at the time that the transaction was recorded.

  7. Rectification Journal Entries

    S. No.ParticularsL.F.Dr. (Rs)Cr. (Rs)
    1Depreciation A/c

    To Machinery A/c
    (Being depreciation omitted to be recorded earlier, now recorded.)

    Dr4,0004,000
    2Bad Debts A/c

    To Debtor’s A/c
    (Being bad debts written-off omitted to be recorded earlier, now recorded.)

    Dr5,0005,000
    3Discount Allowed A/c

    To Debtor’s A/c
    (Being discount allowed to debtors omitted to be recorded earlier, now recorded.)

    Dr100100
    4Bills Receivable A/c

    To Debtor’s A/c
    (Being bills receivable from debtors omitted to be recorded earlier, now recorded)

    Dr2,0002,000
    11,10011,100
  8. DateParticularsLFAmt (Dr)Amt (Cr)
    Sales A/cDr700
    To Suspense A/c
    (Being sales books overcast by 700, now rectified)
    700
    Suspense A/cDr500
    To Purchases A/c
    (Being purchase book overcast by Rs 500, now rectified)
    500
    Suspense A/cDr300
    To Sales Return A/c
    (Being sales return book overcast by Rs 300, now rectified)
    300
    Purchases Return A/cDr200
    To Suspense A/c
    (Being purchase return book overcast by Rs 200, now rectified)
    200

    In all the given cases, one-sided errors can be discovered as there has been an overcasting of the accounts. Therefore, the rectification has been done by reversing the accounts opposite to their normal balance.

  9. Rectifying Entries

    S. No.ParticularsL.F.Dr. (Rs.)Cr. (Rs.)
    1.Sales A/cDr.3,000
      To Customer’s Personal A/c3,000
    (Being advance received from a customer, wrongly credited to Sales A/c, now corrected.)
    2.Depreciation A/cDr.800
      To Suspense A/c800
    (Being Depreciation on machinery not entered in the Depreciation A/c, now corrected.)
    3.Scooter A/cDr.16,000
      To Conveyance A/c16,000
    (Being purchase of a scooter, wrongly debited to conveyance A/c, now corrected.)
    Depreciation A/cDr.1,600
      To Scooter A/c1,600
    (Being 10% Depreciation on scooter not charged earlier, now corrected.)
    4.SohanDr.100
      To Mohan100
    (Being Mohan’s a/c overcast by Rs. 100 and Sohan’s a/c undercast by Rs. 100, now corrected.)
    5.XDr.500
      To Y500
    (Being goods sold to Mr. X, wrongly posted to Mr.Y, now corrected.)
  10. A journal is a detailed account that records all the financial transactions of a business, to be used for future reconciling of and transfer to other official accounting records, such as the general ledger. Manual systems usually had a variety of journals such as a sales journal, purchases journal, cash receipts journal, cash disbursements journal, and a general journal.

    In the books of Vishal
    Journal entries

    DateParticularsLFDebit Amount (Rs.)Credit Amount (Rs.)
    1/4/2013Cash A/c Dr.16,00,000
      To Capital A/c16,00,000
    (Being Business started with cash)
    2/4/2013Bank A/c  Dr.8,00,000
      To Cash A/c8,00,000
    (Being cash deposited into the bank)
    3/4/2013Purchases A/c  Dr.4,80,000
      To Bank A/c4,80,000
    (Being goods purchased and a cheque issued)
    5/4/2013Purchases A/c  Dr.3,20,000
      To Raj A/c3,20,000
    (Being goods purchased from Raj on credit)
    7/4/2013Cash A/c  Dr.1,60,000
      To Sales A/c1,60,000
    (Being goods sold for cash)
    10/4/2013Rohan A/c  Dr.4,80,000
      To Sales A/c4,80,000
    (Being goods sold to Rohan on cash)
    15/4/2013Cash A/c  Dr.4,60,000
    Discount allowed A/c Dr.20,000
      To Rohan A/c4,80,000
    (Being cash received from Rohan and discount allowed to him)
    17/4/2013Charity A/c  Dr.4,000
      To Cash a/c4,000
    (Being charity paid in cash)
    18/4/2013Raj A/c  Dr.1,60,000
      To Cash A/c1,56,000
      To Discount Received A/c4,000
    (Being cash paid to Raj and discount allowed by him)
    25/4/2013Salary A/c  Dr.20,000
    Rent A/c  Dr.16,000
      To Cash A/c“`36,000
    (Being Salary and Rent paid in cash)
    30/4/2013Furniture  A/c  Dr.60,000
      To Bank  a/c60,000
    (Being furniture purchased from Vijay and cheque issued to him)

    A ledger is the principal book or computer file for recording and totalling economic transactions measured in terms of a monetary unit of account by account type, with debits and credits in separate columns and a beginning monetary balance and ending monetary balance for each account.

    Ledger Posting

    Dr.Cash A/cCr.
    DateParitcularsJFAmount (Rs.)DateParticularsJFAmount  (Rs.)
    1/4/13To Capiral A/c16,00,0002/4/13By Bank A/c8,00,000
    7/4/13To Sales A/c1,60,00017/4/13By Charity A/c4000
    15/4/13To Rohan A/c4,60,00025/4/13By Salary A/c20,000
    25/4/13By Rent A/c16,000
    18/4/13By Raj A/c1,56,000
    30/4/13By Balance C/d12.24.000
    Total22,20,000Total22,20,000
    1/5/13To Balance b/d12,24,000
    Dr.Capital A/cCr.
    DateParitcularsJFAmount (Rs.)DateParticularsJFAmount  (Rs.)
    30/4/13To balance c/d16,00,0001/4/13By Cash A/c16,00,000
    16,00,00016,00,000
    1/5/13By balance b/d16,00,000
    Dr.Bank A/cCr.
    DateParticularsJFAmount (Rs.)DateParticularsJFAmount  (Rs.)
    2/4/13To Cash A/c8,00,0003/4/13By Purchases A/c4,80,000
    30/4/13By Furniture A/c60,000
    30/4/13By balance C/d2,60,000
    8,00,0008,00,000
    1/5/13To balance b/d2,60,000
    Dr.Purchase A/cCr.
    ParticularsJFAmount (Rs.)DateParticularsJFAmount  (Rs.)
    3/4/13To bank A/c4,80,00030/4/13By balance c/d8,00,000
    5/4/13To Raj A/c3,20,000
    8,00,0008,00,000
    1/5/13To balance b/d8,00,000
    Dr.Raj A/cCr.
    ParticularsJFAmount (Rs.)DateParticularsJFAmount  (Rs.)
    18/4/13To Cash A/c1,56,0005/4/13By Purchase A/c3,20,000
    18/4/13To Discount A/c4,000
    30/4/13To balance c/d1,60,000
    3,20,0003,20,000
    1/5/13By balance b/d1,60,000
    Dr.Rohan A/cCr.
    ParticularsJFAmount (Rs.)DateParticularsJFAmount  (Rs.)
    10/4/13To Sales A/c4,80,00015/4/13By Cash A/c4,60,000
    15/4/13By Discount A/c20,000
    4,80,0004,80,000
    Dr.Sales A/cCr.
    ParticularsJFAmount (Rs.)DateParticularsJFAmount  (Rs.)
    30/4/13To Balnce c/d6,40,0007/4/13By Cash A/c1,60,000
    10/4/13By Rohan A/c4,80,000
    6,40,0006,40,000
    1/5/13By balance b/d6,40,000
    Dr.Discount Allowed  A/cCr.
    ParticularsJFAmount (Rs.)DateParticularsJFAmount  (Rs.)
    15/4/13To Rohan A/c20,00030/4/13By balance c/d20,000
    20,00020,000
    1/5/13To balance b/d20,000
    Dr.Charity A/cCr.
    ParticularsJFAmount (Rs.)DateParticularsJFAmount  (Rs.)
    17/4/13To Cash A/c4,00030/4/13By balance c/d4,000
    4,0004,000
    1/5/13To balance b/d4,000
    DR.Salary A/cCr.
    ParticularsJFAmount (Rs.)DateParticularsJFAmount  (Rs.)
    25/4/13To Cash A/c20,00030/4/13By balance c/d20,000
    20,00020,000
    1/5/13To balance b/d20,000
    DR.Rent A/cCr.
    ParticularsJFAmount (Rs.)DateParticularsJFAmount  (Rs.)
    25/4/13To Cash A/c16,00030/4/13By balance c/d16,000
    16,00016,000
    1/5/13To balance b/d16,000
    Dr.Furniture A/cCr.
    ParticularsJFAmount (Rs.)DateParticularsJFAmount  (Rs.)
    30/4/13To Bank A/c60,00030/4/13By balance c/d60,000
    60,00060,000
    1/5/13To balance b/d60,000
    Dr.Discount Receivable A/cCr.
    ParticularsJFAmount (Rs.)DateParticularsJFAmount  (Rs.)
    30/4/13To Balance c/d4,00018/04/13By Raj A/c4,000
    4,0004,000
    1/5/13By balance b/d4,000

    A trial balance is a bookkeeping or accounting report that lists the balances in each of an organization’s general ledger accounts. (Often the accounts with zero balances will not be listed.) The debit balance amounts are listed in a column with the heading “Debit balances” and the credit balance amounts are listed in another column with the heading “Credit balances.” The total of each of these two columns should be identical.

    The trial balance is not a financial statement. It is mainly an internal report that is/was useful in a manual accounting system. If the trial balance did not “balance” it signaled an error somewhere between the journal and the trial balance. Often the cause of the difference was a miscalculation of an account balance, posting a debit amount as a credit (or vice versa), transposing digits within an amount when posting or preparing the trial balance, etc.

    Today’s accounting software has been written to eliminate those errors. Hence, the trial balance is less important for bookkeeping purposes since it is almost certain that the general ledger and the trial balance will have the debits equal to the credits.

    The trial balance continues to be useful for auditors and accountants who wish to show 1) the general ledger account balances prior to their proposed adjustments, 2) their proposed adjustments, and 3) all of the account balances after the proposed adjustments. The adjusted amounts make up the adjusted trial balance and the adjusted amounts will be used in the organization’s financial statements.

    Trial Balance

    ParticularsDebit Amount(Rs.)Credit Amount (Rs)
    Cash12,24,000
    Capital16,00,000
    Bank2,60,000
    Purchases8,00,000
    Creditors(Raj)1,60,000
    Discount Receivable4,000
    Sales6,40,000
    Discount Allowed20,000
    Charity4,000
    Salary20,000
    Rent16,000
    Furniture60,000
    Total24,04,00024,04,000



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