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DK Goel Class 11 Accountancy Solutions: Chapter 19 Overview

DK Goel Class 11 Accountancy Solutions: Chapter 19 Overview

Q: 2. How do you solve a problem involving an error of principle, for instance, if the installation charges for new machinery were debited to the Wages Account?

An error of principle occurs when a transaction is recorded without following accounting principles, such as treating a capital expenditure as a revenue expense. To solve this:Identify the error: Installation charges (a capital expenditure) should be added to the cost of the asset (Machinery Account) but were incorrectly debited to an expense account (Wages Account).Determine the correction: The Wages Account was wrongly debited and needs to be credited. The Machinery Account should have been debited and now needs to be.Pass the rectifying entry: The correct journal entry would be: Machinery A/c Dr. To Wages A/c (Being installation charges wrongly debited to wages, now rectified).

Q: 3. What is the solution for an error of commission, for example, if a credit sale to 'Raman' for ₹10,000 was correctly recorded in the Sales Book but posted to 'Rohan's' account?

An error of commission is a clerical error where the correct amount is posted to the correct side, but in the wrong account. The step-by-step solution is:Identify the error: 'Rohan's' account was incorrectly debited instead of 'Raman's' account.Determine the correction: The incorrect debit to 'Rohan' needs to be reversed by crediting his account. The correct debit to 'Raman' needs to be made.Pass the rectifying journal entry:Raman A/c Dr. ₹10,000 To Rohan A/c ₹10,000(Being credit sale to Raman wrongly debited to Rohan, now rectified).

Q: 4. Why is a Suspense Account used to rectify some errors but not others?

A Suspense Account is used exclusively to rectify one-sided errors. These are mistakes that affect only one account, causing the debit and credit totals of the Trial Balance to disagree. The Suspense Account holds this difference temporarily. In contrast, two-sided errors (like errors of principle, complete omission, or compensating errors) affect two or more accounts in such a way that the Trial Balance still agrees. Since there is no disagreement in totals, there is no need for a Suspense Account; these errors are corrected with a direct journal entry between the affected accounts.

Q: 6. If a compensating error does not affect the Trial Balance totals, why is it still necessary to find and solve it?

While a compensating error (where one error's effect is cancelled out by another) does not cause the Trial Balance to disagree, it is crucial to rectify it. The primary reason is that although the totals are correct, the individual account balances are wrong. This leads to inaccurate and misleading financial statements. For example, an overstatement in a sales account compensated by an overstatement in a wages account would result in an incorrect Gross Profit and Net Profit, presenting a false picture of the business's profitability and financial position.

Q: 7. Can the rectification of an error of complete omission ever require a Suspense Account? Explain the correct method.

No, rectifying an error of complete omission never requires a Suspense Account. This is because the error involves completely failing to record a transaction. Since both the debit and credit aspects of the transaction were missed, the Trial Balance remains in agreement. The correct method to solve this is simply to pass the journal entry that should have been recorded in the first place, debiting the appropriate account and crediting the other, with no involvement of the Suspense Account.

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Class 11 DK Goel Solutions Chapter 19 - Rectification of Errors

Rectification of Errors is an interesting part of Accountancy. Its uniqueness as a concept of study makes it very intriguing and students often find it very gripping and look forward to it as an important part of the syllabus for board exams. This chapter talks about various kinds of errors and how we can rectify these.

An accounting error is an unintentional entry error in accounting. When spotted, the error or mistake is often immediately fixed. There are numerous types of errors, the most common accounting errors are human errors /clerical mistakes and errors of accounting principles.

Types of Accounting Errors:

Rectification of Errors in the process of correcting a mistake and making atonement. Error rectification can be broken down into two types. On both sides of an entry, one of the most typical forms of error occurs. This has no bearing on the trial balance and may be corrected with a diary entry.

These errors can happen while posting journal entries to ledger accounts, classifying these accounts, and carrying forward the balance, among other things. In the following part, we'll go over the various forms of these mistakes in further detail.

The nominal account shall not be corrected through the concerned nominal accounts after the Final Accounts have been prepared. While the profits reported in the preceding year differ from the actual profits reported previously. As a result, the Profit and Loss Adjustment Account is used to correct these types of errors.

Only the correcting entries, which are generally related to the items of the Trading and Profit and Loss Account, are made through the Profit and Loss Adjustment Account, which the students must remember. Similarly, the balance of the new Profit and Loss Adjustment Account is moved to the Capital Account when errors are corrected.

When the trial balance refuses to accept one-sided inaccuracies in the books, an accountant places the difference between the debit and credit sides of the trial balance on the shorter side as the Suspense A/c. The balance in the Suspense A/c decreases after locating and correcting the faults and eventually becomes zero. As a result, the Suspense A/C is unclassifiable. This is a temporary account with a debit or credit balance, depending on the circumstances.

When an accountant utilize the Suspense Account to correct one-sided errors, he must follow the steps below:

Determine which account is the source of the issue.
Identifying the excess credit or debit.
The relevant account is debited in the event of a shorter debit or an excess credit in an account. We must credit the equivalent affected account in the event of a short credit or an excess debit in an account.
Then, by debiting or crediting the Suspense A/c, make the relevant journal entry.

Types of Accounting Errors:

There may be different kinds of errors some are as follows:

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Error of Principle:

This occurs when principles of accounting are applied erroneously. For example, an equipment purchase may be posted as an operating expense. The operating expenses are the day-to-day expenses and as a rule, do not include the fixed-asset purchase.

Error of Original Entry:

An error of the original entry occurs when a wrong amount is posted to an account. The error was posted for the wrong amount and also other accounts related to the transaction.

Error of Duplication:

The error of duplication occurs when an entry is added twice, meaning it's debited or credited twice for the same entry.

Compensating Error:

Compensating error is said to have occurred when one error is compensated by an offsetting entry that's also in error.

Error of Commission:

The error of commission is an error that occurs when debit or credit is made to the correct account but the wrong subsidiary account e.g. money received from a customer is credited to the accounts receivable to the wrong customer.

Error of Omission:

An error of omission occurs when an entry is not made or is missed even after a transaction has occurred. This may also occur in case of too many invoices when an invoice gets lost.

Error of Entry Reversal:

The error of entry reversal occurs in case of an entry posted in the wrong direction, meaning a debit is recorded as a credit or vice versa. For example, the cost of goods

sold, which contains raw materials and inventory, is credited instead of debited and finished inventory is debited instead of credited.

Working Notes

The methods of calculation keeping in mind the rules of Rectification Of Errors have been mentioned at the end of each question in DK Goel Accountancy Class 11 Chapter 19 Solutions 2025-26 practical problems. Such step-by-step explanation given in to solving practical questions will help you in adopting a very methodical approach to solving practical Exercise questions.

Preparing from T S Grewal Accountancy Class 11 - Solutions Chapter 19

In addition to the prescribed Accountancy textbook that you must thoroughly read, downloading Class 11 Accounts Chapter 19 practical problems solutions by Vedantu will be of great help. It is a wholesome resource for quick revision and solving numerical questions. The following tips will be helpful for exam preparation:

Writing and practicing helps a lot towards learning the format, you may need to write and practice from Class 11 DK Goel solutions accounting equations regularly to become skilled at solving Accounting Equations.

Refer to DK Goel Class 11 Solutions 2025-26 Chapter 19 numerical with solutions every two days for regular practice.

DK Goel Class 11 Solutions 2025-26 Chapter 19 PDF is easily accessible and is a good resource for quick revision and contains topics like various kinds of errors and their reification with solved numerical examples. DK Goel Class 11 Chapter 19 Solutions 2025-26 for practical questions will help you in understanding the details of the calculations and also how some entries can be rectified in a specific way understanding their origin of errors, once you understand the accountancy rules behind these.

FAQs on DK Goel Class 11 Accountancy Solutions: Chapter 19 Overview

1. What is the correct step-by-step method to rectify errors using a Suspense Account in Class 11 Accountancy?

When a Trial Balance does not agree, the difference is temporarily placed in a Suspense Account. The correct method to rectify the one-sided errors that caused this difference is as follows:

Step 1: Identify the specific account that has been incorrectly posted (e.g., short debit, excess credit).
Step 2: Determine the amount of the error.
Step 3: Pass a rectifying journal entry. Debit or credit the affected account to correct it.
Step 4: Use the Suspense Account for the corresponding debit or credit to complete the journal entry.
Step 5: After all one-sided errors are rectified, the balance in the Suspense Account should become zero.

2. How do you solve a problem involving an error of principle, for instance, if the installation charges for new machinery were debited to the Wages Account?

An error of principle occurs when a transaction is recorded without following accounting principles, such as treating a capital expenditure as a revenue expense. To solve this:

Identify the error: Installation charges (a capital expenditure) should be added to the cost of the asset (Machinery Account) but were incorrectly debited to an expense account (Wages Account).
Determine the correction: The Wages Account was wrongly debited and needs to be credited. The Machinery Account should have been debited and now needs to be.
Pass the rectifying entry: The correct journal entry would be:
Machinery A/c Dr.
To Wages A/c
(Being installation charges wrongly debited to wages, now rectified).

3. What is the solution for an error of commission, for example, if a credit sale to 'Raman' for ₹10,000 was correctly recorded in the Sales Book but posted to 'Rohan's' account?

An error of commission is a clerical error where the correct amount is posted to the correct side, but in the wrong account. The step-by-step solution is:

Identify the error: 'Rohan's' account was incorrectly debited instead of 'Raman's' account.
Determine the correction: The incorrect debit to 'Rohan' needs to be reversed by crediting his account. The correct debit to 'Raman' needs to be made.
Pass the rectifying journal entry:
Raman A/c Dr. ₹10,000
To Rohan A/c ₹10,000
(Being credit sale to Raman wrongly debited to Rohan, now rectified).

4. Why is a Suspense Account used to rectify some errors but not others?

A Suspense Account is used exclusively to rectify one-sided errors. These are mistakes that affect only one account, causing the debit and credit totals of the Trial Balance to disagree. The Suspense Account holds this difference temporarily. In contrast, two-sided errors (like errors of principle, complete omission, or compensating errors) affect two or more accounts in such a way that the Trial Balance still agrees. Since there is no disagreement in totals, there is no need for a Suspense Account; these errors are corrected with a direct journal entry between the affected accounts.

5. How does the method for rectifying an error affecting a nominal account change if it is discovered after preparing the final accounts?

The method changes significantly. If an error affecting a nominal account (like Sales, Purchases, or any expense/income account) is found before preparing final accounts, you rectify it using the nominal account itself. However, if it's found after preparing the final accounts for the year 2025-26, all nominal accounts are already closed and their balances transferred to the Trading and Profit & Loss Account. Therefore, you cannot use the nominal account directly. Instead, you must use a special account called the 'Profit & Loss Adjustment Account' to make the correction, ensuring the capital account reflects the true profit or loss from the previous period.

6. If a compensating error does not affect the Trial Balance totals, why is it still necessary to find and solve it?

While a compensating error (where one error's effect is cancelled out by another) does not cause the Trial Balance to disagree, it is crucial to rectify it. The primary reason is that although the totals are correct, the individual account balances are wrong. This leads to inaccurate and misleading financial statements. For example, an overstatement in a sales account compensated by an overstatement in a wages account would result in an incorrect Gross Profit and Net Profit, presenting a false picture of the business's profitability and financial position.

7. Can the rectification of an error of complete omission ever require a Suspense Account? Explain the correct method.

No, rectifying an error of complete omission never requires a Suspense Account. This is because the error involves completely failing to record a transaction. Since both the debit and credit aspects of the transaction were missed, the Trial Balance remains in agreement. The correct method to solve this is simply to pass the journal entry that should have been recorded in the first place, debiting the appropriate account and crediting the other, with no involvement of the Suspense Account.

8. How would you solve a problem where goods worth ₹5,000 were sold on credit but were recorded in the Sales Book as ₹500?

This is an error of recording in the books of original entry, which affects both the customer's account and the sales account. To solve this:

Identify the error: Both the Sales account and the Customer's personal account are under-credited and under-debited, respectively, by ₹4,500 (₹5,000 - ₹500).
Determine the correction: You need to debit the customer's account and credit the sales account with the shortfall amount.
Pass the rectifying entry: A supplementary entry is passed to correct the shortfall:
Customer's A/c Dr. ₹4,500
To Sales A/c ₹4,500
(Being shortfall in sales recording, now rectified).