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TS Grewal Class 11 Accountancy Chapter 13 Depreciation Accounting Solutions

Q: 5. What is the correct procedure of Errors Affecting The Trial Balance?

The correction procedure is as follows:Identification of the account that has a problem.Determine if the account has a deficiency or an excess.If a discrepancy arises as a result of an excess of credit and a deficit of debit, debit the account with the difference amount as calculated previously.If there is a discrepancy owing to an excess of debit and a lack of credit, credit the account with the difference.

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TS Grewal Class 11 Accountancy Chapter 13 Depreciation Accounting Solutions

TS Grewal Solution Available on Vedantu

Errors are everywhere, and when they end up coming into your accounts, that’s when the trouble starts to stack up. Accounts are responsible for maintaining every monetary transaction of an organisation, so they need to be accurate.

With the TS Grewal Solutions Class 11 Accountancy Chapter 13, we are trying to discuss various types of errors that can come up in your accounts and the different procedures to rectify them to make the calculations accurate.

The technique of rectifying inaccuracies committed to documenting transactions is referred to as rectification of errors. These errors can happen while posting entries to ledger accounts, categorising accounts, carrying forward balances, and so forth.

The mistakes are divided into two categories:

Correction of errors that have no impact on the trial balance
Correction of errors that have an impact on the trial balance

Errors Not Affecting the Trial Balance

This type of error happens mostly in two or more accounts at the same time. As a result, these errors are said to be two-sided errors. Inaccuracies that do not affect the trial balance, such as those including errors on both sides of the debit and credit, can be corrected by passing a journal entry.

Two-sided mistakes are errors that have an impact on two accounts at the same time. Errors can occur on both the debit and credit sides of the account, and they must be remedied or rectified by submitting a journal entry to rectify the debit and credit.

A mistake can be corrected by reversing the impact of a bad debit or credit entry and restoring the right debit or credit entry.

When there is an excess of credit or a shortfall of debit, the account should be debited; similarly, when there is a shortage of credit and an excess of debit, the account should be credited.

Rectification of Errors Affecting the Trial Balance

This type of error only affects one account in the transaction. As a result, it is said to be a one-sided error. To get this error out of the system, one has to give an explanatory note in the account or pass a journal entry with the help of Suspense A/C.

Errors that affect the trial balance can arise on any side of the trial balance, and these errors can only be corrected by passing a journal entry and creating a suspense account.

Such mistakes are sometimes referred to as one-sided errors since they affect only one side of the account (either debit or credit). Such inaccuracies can be corrected by adding a note to the account or by forwarding a journal item through the Suspense account.

The correction procedure is as follows:

Identification of the account that has a problem.
Determine if the account has a deficiency or an excess.
If a discrepancy arises as a result of an excess of credit and a deficit of debit, debit the account with the difference amount as calculated previously.
If there is a discrepancy owing to an excess of debit and a lack of credit, credit the account with the difference.

In addition to this, in class 11 ts Grewal solutions chapter 13 pdf, there is one more method that can help you solve this error: checking for the error before posting it to the ledger. One can simply cross the wrong amount and write the correct amount above it.

Rectification of Errors in Next Accounting Year

When the error cannot be located before the finalisation of accounts, it needs to be carried on the balance of the Suspense A/C for the next financial year. When the errors that were made in the previous year were fixed, they need to route back to the profit and the loss adjustment A/c for the expenses, losses, incomes, and gains. Thus, making the impact of the error null on the current income statement.

In Conclusion to Class 11 TS Grewal Solution Rectification of Errors

There you have it, and these are some of the class 11 accountancy ts Grewal solutions solution chapter 13 rectification of errors. You can easily download the class 11 ts Grewal solutions chapter 13 pdf from our website and read it anytime you want.

FAQs on TS Grewal Class 11 Accountancy Chapter 13 Depreciation Accounting Solutions

1. How can Vedantu help students prepare for Class 11 Accountancy?

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2. What is rectification?

The mistakes are divided into two categories:

Correction of errors that have no impact on the trial balance
Correction of errors that have an impact on the trial balance

3. What are Errors Not Affecting The Trial Balance?

Inaccuracies that do not affect the trial balance, such as those including errors on both sides of the debit and credit, can be corrected by passing a journal entry. Two-sided mistakes are errors that have an impact on two accounts at the same time. Errors can occur on both the debit and credit sides of the account, and they must be remedied or rectified by submitting a journal entry to rectify the debit and credit. A mistake can be corrected by reversing the impact of a bad debit or credit entry and restoring the right debit or credit entry.

4. What is meant by Errors Affecting The Trial Balance?

Accounting errors that affect the trial balance can arise on any one side of the trial balance. It means that these errors won’t arise on both the debit and credit sides. Hence, they are sometimes also referred to as one-sided errors. Once these errors arise, they can only be corrected by passing a journal entry and creating a suspense account.

Such mistakes affect only one side of the account (either debit or credit). They can be corrected by adding a note to the account or by forwarding a journal item through the Suspense account.

5. What is the correct procedure of Errors Affecting The Trial Balance?

The correction procedure is as follows:

Identification of the account that has a problem.
Determine if the account has a deficiency or an excess.
If a discrepancy arises as a result of an excess of credit and a deficit of debit, debit the account with the difference amount as calculated previously.
If there is a discrepancy owing to an excess of debit and a lack of credit, credit the account with the difference.

6. How to rectify errors in accounting next year?

When the accounting errors cannot be located before the closing of the books of accounts, it needs to be carried forward to the next financial year in the form of a balance transfer to the Suspense A/C. When the errors that were made in the previous year were fixed, they need to route back to the profit and the loss adjustment A/c for the expenses, losses, incomes, and gains. Thus, making the impact of the error null on the current income statement.