Trial Balance and Rectification of Errors Account - Trial Balance and Rectification of Errors

Debit balance in which of these a/c indicate error in the A/c ___________.

Rs.10,000 paid in cash for repair of a newly purchased old machine were debited to repairs account. This error:

Balance of suspense A/c is transferred to____________.

₹ 1,500 received from Bahadur whose account was previously written off as bad-debt should be credited to:

Which of the following errors is revealed by the Trial Balance:

If a cheque received from a customer is dishonoured, it will be debited to the Customer's Account.

Goods taken by the proprietor for domestic use will be credited to Drawings Account.

Suspense Account always shows debit balance.

Interest received from Mohan will be credited to Mohan's Account.

Goods given as charity should be credited to Purchase Account.

Assertion (A): Trial balance is prepared to check the arithmetical accuracy of books of accounts.
Reason (R): Any wrong recording in the book of original entry andwrong posting in the principal book will lead to mismatch of trial balance.

Assertion (A): Trial Balance is an account, prepared with debit and credit balances of ledger accounts.
Reason (R): Trial Balance is prepared to test the arithmeticalaccuracy of book of accounts.

Assertion (A): Trial balance is prepared for a particular period and not on a particular date.
Reason (R): Errors of omission do not affect the trial balance.

Assertion (A): Trial Balance is a part of Double Entry System.
Reason (R): It helps in preparation of final accounts.

Give one example of error of Commission.

What are errors of Commission?

Salary of ₹ 2,100 paid was posted as ₹ 2,000 in Salary A/c and Advertisement of ₹ 7,700 was posted as ₹ 7,800. Identify the type of error.

Give two features of Trial Balance.

Is Trial Balance prepared for a particular period?

What is the reason for agreement of a Trial Balance?

Trial Balance is a link between ledger and final accounts.

Rectify the following errors:

1. Purchases Book has been undercast by ₹ 1,000.
2. Credit sale to Anu Prakash ₹ 7,000 was recorded in Purchases Book.
3. Credit sale to Rahul ₹ 7,000 was recorded as ₹ 700.

What are Errors of Principle?

Is the agreement of a Trial Balance absolute proof of the accuracy of the books of account? If not, what are the errors which remain even after agreement?

Give rectifying Journal entries for the following errors:

1. Goods returned by Mohan of ₹ 1,500 not recorded in books.
2. Goods distributed as free samples for ₹ 5,000 not recorded.
3. Depreciation of machinery of ₹ 10,000 not charged.
4. Goods costing ₹ 780, selling price ₹ 1,000 given as charity not recorded.

What is error of principle? Give two examples.

Rectify the following errors:

1. Credit sales to Mridula ₹ 5,000 were recorded as ₹ 500.
2. Credit purchases from Nayna ₹ 8,000 were recorded as ₹ 800.
3. Goods returned to Priya ₹ 12,000 were recorded as ₹ 1,200.
4. Goods returned from Rashi ₹ 10,000 were recorded as ₹ 1,000.

Rectify the following errors by passing Journal entries:

1. A sum of ₹ 470 received from Ganga was posted to her debit as ₹ 740.
2. A debit balance of ₹ 550 in the personal account of Mr. John was undercast.
3. Bills Receivable from Brown for ₹ 3,000 posted to the credit of Bills Payable Account and credited to Brown’s Account.
4. Goods returned by Mridul ₹ 225 have been entered in the Returns Outward Book.

Complete the following Rectification Entries:

What kinds of errors would cause difference in the trial balance. Also list examples that would not be revealed by a trial balance?

Rectify the following errors assuming that a suspense account was opened. Ascertain the difference in trial balance.

1. Credit sales to Mohan ₹ 7,000 were posted to the credit of his account.
2. Credit purchases from Rohan ₹ 9,000 were posted to the debit of his account as ₹ 6,000.
3. Goods returned to Rakesh ₹ 4,000 were posted to the credit of his account.
4. Goods returned from Mahesh ₹ 1,000 were posted to the debit of his account as ₹ 2,000.
5. Cash sales ₹ 2,000 were posted to the debit of sales account as ₹ 5,000.

Rectify the following errors:

1. Credit Sales to Mohan ₹ 7,000 were recorded in purchases book.
2. Credit Purchases from Rohan ₹ 9,00 were recorded in sales book.
3. Goods returned to Rakesh ₹ 4,000 were recorded in the sales return book.
4. Goods returned from Mahesh ₹ 1,000 were recorded in purchases return book.
5. Goods returned from Nahesh ₹ 2,000 were recorded in purchases book.

What is Trial Balance? Does the balancing of this ensure accuracy of books of accounts.

Pass the Journal entries rectifying the following errors:

1. Purchases of ₹ 10,000 was omitted to be recorded.
2. Purchases of office furniture of ₹ 10,000 was recorded in Purchases Book.
3. Office Rent of ₹ 15,000 was debited to the Personal Account of the landlord.
4. Old machine sold for ₹ 5,000 was credited to Sales Account.
5. Bill for ₹ 800 received from Mukesh for repair of machinery was entered in the Purchases Book as ₹ 700.

Prepare a Trial Balance from the following information:

	Rs.
Prepaid expenses	5,000
Outstanding rent	2,000
Bad debts recovered	4,000
Interest on Investment	1,000
Creditor	5,000
Bank overdraft	2,000
Discount allowed	800
Due from Debtor	1,200
Investment	15,000
Patents	4,000
Machinery	6,000
Capital	18,000

Gurmeet has already prepared his trial balance, when he was goingthough the books of accounts he could identify an error. Wages paidfor installation of new machinery Rs6000 has been debited to WagesAccount.
Q1.What type of error it is ?
(a)Error of Principle
(b)Error of commission
(c)Error of commission
(d)Compensating error

Q2.Will such error affect the trial balance?
(a)Yes
(b)No
(c)Either yes or no
(d)Neither yes nor no

Q3.How such errors will be rectified ?
(a)Machinery A/c Dr 6000To wages A/c 6000
(b) wages A/c Dr 6000To cash 6000
(c) Wages A/c Dr 6000To Machinery A/c 6000
(d) Machinery A/c Dr 6000To Suspense A/c 6000

Ritu, a fresh graduate joined as an accountant in ABC Ltd . She wastold to prepare the Trial Balance of the organization. As she hadnever prepared Trial balance earlier, she was not feeling confident,therefore she was explained in detail about the features andimportance of Trial Balance.

Q1.When is a Trial Balance prepared?
(a)Before recording the transactions in the Journal
(b)Before Ledger posting
(c)After completion of posting from journal to the ledger
(d)Both a and b

Q2.Which of the following is not a feature of Trial Balance?
(a)It is a complete record of all ledger accounts and cash book
(b) It is prepared as a result of the double entry system of bookkeeping, though it is not a part of it.
(c) It assists in verifying the arithmetic accuracy of posting entriesfrom journal to ledger accounts
(d) It is a conclusive proof of the accuracy of the books of account

Q3.What is the reason behind agreement of total of debit side of TrialBalance with the credit side?
(a)Single entry system
(b)Double entry system
(c)Application of accrual concept
(d)Application of matching concept

Q4.What is the nature of Trial Balance?
(a)Real account
(b)Nominal account
(c)Personal account
(d)List of ledger balances