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

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

NCERT Solutions for Class 11 Chapter 6 Trial balance and Rectification of Errors guarantees the coverage of all the topics. NCERT Solutions of Class 11 Trial balance and Rectification of Errors includes all the exercise problems solutions. The material has been prepared with a thorough and deep study of all the aspects for a better understanding. NCERT Accountancy book Class 11 Solutions PDF has always been a guide for students in their learning process and have successfully solved various queries. NCERT Solutions Class 11 Accountancy Chapter 6 Trial balance and Rectification of Errors provide solutions with a better explanation. It helps you have a thorough revision of the syllabus without any distractions.

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

1. State the meaning of a trial balance? 

Ans: A trial balance is a bookkeeping spreadsheet which carries the balances of all ledgers arranged into debit and credit account column totals that are equal on both sides. The trial balance is generally prepared once a year, usually at the end of the fiscal period. The key goal of preparing a trial balance is to make sure that the entries in an organization's bookkeeping process are monetarily correct. According to William Pickles, "the statement is prepared using ledger balances, at the end of the fiscal year to determine whether the debit total agrees with the credit total is known as trial balance.” 


2. Give two examples of errors of principle? 

Ans: The two following examples of errors of principle are as follows:


i. Incorrect casting : The total of the purchase book has been increased by Rs. 7000. As soon as the total is posted on the purchase account's debit column, it will exceed the debit side by a small amount of Rs. 7000, and the trial balance will not agree.


ii. Incorrect posting of amount: ABC was charged Rs. 900 for goods. It should have been correctly entered in the book, but the amount was misappropriated as Rs. 90 instead of Rs. 900 while posting to ABC's credit column. As a result, the trial balance will not agree.


3. Give two examples of errors of commission? 

Ans: The following are two examples of errors of commission:


i. Incorrect amount posted: Mohit purchased goods for Rs. 9000. However, if the amount posted to Mohit's credit in the purchase book is Rs. 900 instead of Rs. 9000, the trial balance will be different.


ii. Posting on the wrong side: Ram has sold me goods for Rs. 5000. Instead of posting it to the credit side of Ram's account, the entry was recorded on the debit side, causing the trial balance to increase the credit by Rs. 5000. 


4. What are the methods of preparing trial balance? 

Ans: The following methods are used to prepare trial balance:


i. Balance Method: The balance method enters only the amounts that show balances in the trial balance, along with the amount of balances. The amount displaying the debit balance is written on the trial balance's debit side, and the amount displaying the credit balance is recorded on the trial balance's credit side.


ii. Total amount Method: In this method, the sum total of the debit and credit sides of each account is individually written in the trial balance's debit and credit columns.


iii. Total and balance Method: In this method, the balance and total of both sides of the account are displayed in the same trial balance side by side.


5. What are the arrangements made by an accountant to come across the errors in the trial balance? 

Ans: An accountant will take the following steps to locate errors in the trial balance:


i. To double-check the Dr. and Cr. Side additions.

ii. Examine the ledger to see if there is any account with a balance equal to the difference between the trial balance and the current balance.

iii. To double-check the initial balances.

iv. To reassess the ledger account balances.

v. To double-check that the posting in the ledger account corresponds to the journal and other books of original entry.

vi. If the potential error cannot be found or located, the difference between the trial balances is transferred to a temporary account known as the suspense account.


6. What is a suspense account? Is it necessary that a suspense account will balance off after rectification of the errors detected by an accountant? If not, then what happens to the balance still remaining in the suspense account? 

Ans: The suspense account is the account that is created when there are errors in the trial balance and the balances on the debit and credit sides do not match. As a result, this account records the difference between both sides of the trial balance in order to record the difference under its heading. The discrepancy between the amounts in the debit and credit columns is caused by an error in the accounting process.

It is not required that a suspense account shall balance off after rectification of the errors found by an accountant. If the errors for which the suspense account is opened, once those errors get rectified then only the suspense account automatically gets closed. But if the errors are not rectified the balance will still remain in the suspense account.


7. What kinds of errors would cause differences in the trial balance? Also list the mistakes that are not revealed by the trial balance? 

Ans: The types of errors that can impact in the difference in trial balance are given below:


i. Error of Omission

ii. Error of Commission 

iii. Error of Principle

iv. Compensating Errors

Errors could occur in the following situations: - 

i. When the subsidiary book displays either the undercast or overcast amount.

ii. When no posting has been made to one of the accounts involved in the transaction.

iii. When a post is made on the incorrect side of an account.

iv. When an incorrect amount is posted in any column.


8. State the limitations of trial balance? 

Ans: The trial balance has the following limitations: 


i. It is not a conclusive proof of accuracy: The trial balance does not provide assurance of the correctness of the accounting process when the debit and credit sides may even match evenly.


ii. It does not reveal the error in the books of original entry: The trial balance cannot point out the error in any of the trial balance's specific accounts when it is simply indicated by the sides of the trial balance not being evenly matched with one another.


iii. It does not reveal any operational results: There may be cases where transactions were forgotten and not recorded at all. As a result, their impact on the debit and credit sides of the respective accounts was not recorded, causing the trial balance to match evenly. As a result, such operational errors cannot be recorded.


9. State the objectives behind the preparation of trial balance. 

Ans: The following is the goal of preparing the trial balance:


i. It allows you to check the arithmetic accuracy of ledger accounts.

ii. It also aids in the detection of posting errors in necessary accounts.

It also aids in summarizing the accounts.

iv. It aids in the completion of final accounts.

v. Finally, it aids in determining the necessary adjustments to be made in the future.


10. Explain errors of principle and give measures to rectify them accompanied by examples. 

Ans: When an accounting error is made while recording a transaction, it violates the fundamental principles of accounting and is referred to as an error of principle. Here are two examples:


i. Incorrect item posting: When an item is posted to the debit side of an account instead of the credit side, or vice versa. To correct this type of error, we must journalize the entry correctly, i.e. items on the debit side must be posted to the credit side of an account and vice versa.


ii. Incorrect posting of amount: Incorrect posting of an amount in an account must be corrected by posting the original amount in that account.


11. Explain the errors of commission and measures along with examples to rectify them. 

Ans: Errors of commission are mistakes that occur as a result of a bookkeeper's or clerk's negligence in recording a transaction with incorrect amounts, incorrect balancing, incorrect posting, and/or incorrect carrying forward of an account item. The examples below will aid in the process of understanding and correcting the errors listed below. 


i. Let's look at the first example. Mr. X's sales of Rs10,000 were recorded as 1,000 from the invoice. In this case, Mr. X's account was debited with Rs 1,000 rather than Rs 10,000, resulting in a commission error. To correct this commission error, it should be further debited with Rs.9000. This will be fixed by enacting the following legislation:

Mr. X’s A/c                                          Dr.                                         9,000   

        To Sales A/c                                                                                            9,000

(Rs 10,000 in goods sold to Mr X was incorrectly recorded as Rs 1,000, which has now been corrected).


ii. The purchase book was overestimated by Rs 10,000.


This mistake can be corrected in one of two ways:


a. If an error is discovered prior to preparing the trial balance, Rs 10,000 should be recorded on the debit side of the Purchases Account.


b. If an error is discovered after preparing the Trial Balance, the following entry must be recorded.

Purchase A/c                                         Dr.                               10,000

To Suspense A/c                                                                                         10,000


12. What are the different types of errors which usually occur while recording the business transaction? 

Ans: The following are the various types of errors that commonly occur when recording business transactions:

i. Errors of Omission – Errors of omission are errors that occur when the person in charge of building and maintaining the accounts fails to record a specific transaction in the books of account.


ii. Errors of Commission – Errors of commission are defined as errors or mistakes that occur as a result of certain liable actions of the individual who is responsible for maintaining accounts. These errors occur due to a lack of expertise and accounting knowledge, as well as carelessness on the part of the accounting staff. 


13. 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 account 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 a 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 misstatement: 


(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 the credit column. 

Ans: The purchase of pendrive is wrongly debited to the office equipment account. 


a. The balance of office equipment is overstated by Rs. 3500. This is so because the cost of the pendrive of Rs. 3500 was debited twice under two heads. 

b. Since, the cost of the pendrive of Rs. 3500 was debited twice under two heads; the balance of the creditor account is understated by Rs.7000. 

c. The total of the debit column is correctly stated. 

d. The total of the credit column is understated by Rs. 7000. The credit side needs to be balanced against the debit side. 

e. The total of credit column is Rs. 233000 (i.e. Rs. 240000-7000) because it has been wrongly understated by Rs. 7000. 


14. 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.

Ans:

Journal Entries for Rectification of Errors

Date

Particular

L.F

Debit Amount

Credit Amount


Mohan’s A/c Dr.

    To Sales A/c

(These are credit sales to Mohan, and the transaction was not recorded; this has now been corrected)


7000


7000


Purchase A/c Dr.

   To Rohan’s A/c

(It was a credit purchase from Rohan, and the transaction was not recorded; this has now been corrected.)


9000


9000


Rakesh’s A/c Dr.

  To Purchase return A/c

(Since the goods are returned to Rakesh and the transaction was not recorded, this has now been corrected)


4000


4000


Sales return A/c Dr.

     To Mahesh’s A/c

(Since the goods were returned by Mahesh and the transaction was not recorded, this has now been corrected)


1000

                          1000


15. 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.

Ans: 

Journal Entries for Rectification of Errors

Date

Particular

L.F

Debit Amount

Credit Amount


Mohan’s A/c Dr.

    To Sales A/c

(These are credit sales to Mohan, and the transaction was recorded as Rs. 700 instead of Rs. 7000; this has now been corrected)


6300


6300


Purchase A/c Dr.

   To Rohan’s A/c

(It was a credit purchase from Rohan, and the transaction was recorded as Rs. 900 instead of Rs. 9000; this has now been corrected.)


8100


8100


Rakesh’s A/c Dr.

  To Purchase return A/c

(Since the goods are returned to Rakesh and the transaction was recorded as Rs. 400 instead of Rs. 4000, this has now been corrected)


3600


3600


Sales return A/c Dr.

     To Mahesh’s A/c

(Since the goods were returned by Mahesh and the transaction was recorded as Rs. 100 instead of Rs.1000, this has now been corrected)


900

                          900


16. 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.

Ans: 

Journal Entries for Rectification of Errors

Date

Particular

L.F

Debit Amount

Credit Amount


Sales A/c Dr.

    To Mohan’s A/c

(These are credit sales to Mohan, and the transaction was recorded as Rs. 7200 instead of Rs. 7000; this has now been corrected)


200


200


Rohan’s A/c Dr.

   To Purchase A/c

(It was a credit purchase from Rohan, and the transaction was recorded as Rs. 9900 instead of Rs. 9000; this has now been corrected.)


900


900


Purchase return A/c Dr.

  To Rakesh A/c

(Since the goods are returned to Rakesh and the transaction was recorded as Rs. 4040 instead of Rs. 4000, this has now been corrected)


40


40


Mahesh’s A/c Dr.

     To Sales return A/c

(Since the goods were returned by Mahesh and the transaction was recorded as Rs. 1600 instead of Rs.1000, this has now been corrected)


600

                          600


17. Rectify the following errors: 

(a) Salary paid Rs 5,000 was debited to employee’s personal account. 

(b) Rent Paid Rs 4,000 was posted to the landlord's personal account. 

(c) Goods withdrawn by proprietor for personal use Rs 1,000 were debited to sundry expenses account. 

(d) Cash received from Kohli Rs 2,000 was posted to Kapur’s account. 

(e) Cash paid to Babu Rs 1,500 was posted to Sabu’s account.

Ans: 

Journal Entries for Rectification of Errors

Date

Particular

L.F

Debit Amount

Credit Amount


Salary A/c Dr.

    To employee’s A/c

(being salary paid, was incorrectly credited to the employee's personal account, which has now been corrected)


5000


5000


Rent A/c Dr.

   To Landlord's A/c

(Because rent was paid, it was incorrectly posted to the landlord's personal account, which has now been corrected).


4000


4000


Drawings A/c Dr.

  To Sundry Expenses A/c

((Because the goods were withdrawn for personal use, they were incorrectly debited to the sundry expenses account, which has now been corrected).


1000


1000


Kapur’s A/c Dr.

 To Kholi’s A/c

(cash received from Kholi was erroneously posted to Kapur's account, which has now been corrected)


2000

                          2000


Babu’s A/c Dr.

  To Sabu’s A/c

(cash received from Babu was erroneously posted to Babu's account, which has now been corrected)


1500


1500


18. Rectify the following errors: 

(a) Credit Sales to Mohan Rs 7,000 were recorded in the purchase book. 

(b) Credit Purchases from Rohan Rs 900 were recorded in the sales book. 

(c) Goods returned to Rakesh Rs 4,000 were recorded in the sales return book. 

(d) Goods returned from Mahesh Rs 1,000 were recorded in purchases return book. 

(e) Goods returned from Naresh Rs 2,000 were recorded in the purchase book.

Ans: 

Journal Entries for Rectification of Errors

Date

Particular

L.F

Debit Amount

Credit Amount


Mohan A/c Dr.

    To Sales A/c

   To purchase A/c

(Because credit sales to Mohan are recorded in the purchase book, this has now been corrected)


14000


7000

7000


Sales A/c Dr.

Purchase A/c Dr.

   To Rohan A/c

(Credit purchases from Rohan are recorded in the sales book, which has now been corrected).


900

900



1800


Rakesh A/c Dr.

  To Sales return A/c

  To purchase return A/c

(Goods returned to Rakesh are recorded in the sales return book, which has now been corrected).


8000


4000

4000


Sales return A/c Dr.

Purchase return A/c Dr.

       To Mahesh A/c

(Mahesh's goods were returned and recorded in the purchase return book, which has now been corrected).


1000

1000

                          


2000


Sales return A/c Dr.

  To purchase A/c

(Since goods returned from Nahesh are recorded in the purchase book, which has now been corrected)


2000


2000


19. Rectify the following errors: 

(a) Sales book overcast by Rs 700. 

(b) Purchases book overcast by Rs 500. 

(c) Sales return book overcast by Rs 300. 

(d) Purchase return book overcast by Rs 200.

Ans: 

Journal Entries for Rectification of Errors

Date

Particular

L.F

Debit Amount

Credit Amount


Sales A/c Dr.

    To suspense A/c

(being Rs.700 overcast in the sales book, which has now been corrected)


700


700


Suspense A/c Dr.

 To Purchase A/c

(The purchase book was overcast by Rs.500, which has now been corrected).


500


500



Suspense A/c Dr.

  To Sales return A/c

(being the sales return book was overcast by Rs.300, which has now been corrected).


300


300


Purchase return A/c Dr.

       To Suspense A/c

(The purchase return book was overcast by Rs.200, which has now been corrected).


200

                          

200


20. Rectify the following errors: 

(a) Sales book undercast by Rs 300. 

(b) Purchases book undercast by Rs 400. 

(c) Return Inwards book undercast by Rs 200. 

(d) Return outwards book undercast by Rs 100.

Ans: 

Journal Entries for Rectification of Errors

Date

Particular

L.F

Debit Amount

Credit Amount


Suspense A/c Dr.

    To Sales A/c

(being undercast by Rs.300 in the sales book, which has now been corrected).


300


300


Purchase A/c Dr.

 To Suspense A/c

(The purchase book was undercast by Rs.400, which has now been corrected).


400


400


Return inward A/c Dr.

  To Suspense A/c

(the return inward book was undercast by Rs.200, which has now been corrected).


200


200



Suspense A/c Dr.

To return outwards A/c Dr.

(being the return outwards book was undercast by Rs.100, which has now been corrected).


100

                          

100


21. 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.

Ans: 

Journal Entries for Rectification of Errors

Date

Particular

L.F

Debit Amount

Credit Amount


Mohan A/c Dr.

    To Suspense A/c

(being credit sales to Mohan are not posted, which has now been corrected)


7000


7000



Suspense A/c Dr.

   To Rohan A/c

(Credit purchases from Rohan were not posted; this has now been corrected).


9000


9000


Rakesh A/c Dr.

  To suspense A/c

(being goods returned to Rakesh are not posted, which has now been corrected).


4000


4000



Suspense A/c Dr.

    To Mahesh A/c

(Because goods returned from Mahesh were not posted, this has now been corrected).


1000

                          

1000


Ganesh A/c Dr.

  To suspense A/c

(Cash paid to Ganesh was not posted; this has now been corrected).


3000


3000


Suspense A/c Dr.

  To Sales A/c

Because cash sales are not recorded, this has been corrected).


2000


2000


Suspense A/c

Date

Particulars

J.F.

Amount

Date

Particulars

J.F. 

Amount


To Rohan’s A/c


9000


By Mohan’s A/c


7000


To Mahesh’s A/c


1000


By Rakesh’s A/c


4000


To Sales A/c


2000


By Ganesh’s A/c


3000


To Balance c/d


2000






Total


14000


Total


14000


22. 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 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.

Ans: 

Journal Entries for Rectification of Errors

Date

Particular

L.F

Debit Amount

Credit Amount


Suspense A/c Dr.

    To Mohan’s A/c

(being credit sales to Mohan, and the transaction is recorded as Rs. 9000 rather than Rs. 7000, which has now been corrected)


2000


2000


Suspense A/c Dr.

    To Rohan A/c

(Being a credit purchase from Rohan, the amount is recorded as Rs. 6000 rather than Rs. 9000, which has now been corrected).


3000


3000


Suspense A/c Dr.

  To Rakesh A/c

(being goods returned to Rakesh recorded as Rs. 5000 rather than Rs. 4000, now corrected).


1000


1000


Mahesh’s A/c Dr.

       To Suspense A/c

(Mahesh's goods return was recorded as Rs. 3000 instead of Rs. 1000, which is now being corrected).


2000

                          

2000


Suspense A/c Dr.

  To sales A/c

 (Cash sales were recorded as Rs. 200 rather than Rs. 2000, which has now been corrected.)


1800


1800


Suspense A/c

Date

Particulars

J.F.

Amount

Date

Particulars

J.F.

Amount


To Mohan’s A/c


2000



By Mahesh’s A/c


2000


To Rakesh A/c


1000


By Balance c/d5


5800


To Rohan’s A/c


3000






To Sales A/c


1800






Total


7800


Total


7800


23. 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 of Rs 2,000 were posted to the commission account.

Ans: 

Journal Entries for Rectification of Errors

Date

Particular

L.F

Debit Amount

Credit Amount


Mohan A/c Dr.

    To Karan A/c

(Credit sales to Mohan were incorrectly posted to Karan, which has now been corrected)


7000


7000


Gobind A/c Dr.

   To Rohan A/c

(credit purchases from Rohan were incorrectly posted to Gobind, which has now been corrected)


9000


9000


Rakesh A/c Dr.

  To Naresh A/c

(Being goods returned to Rakesh, they were posted to Naresh, which has now been corrected).


4000


4000


Manish A/c Dr.

    To Mahesh A/c

(The goods returned by Mahesh are now delivered to Manish, which has been corrected).


1000

                          

1000


Commission A/c Dr.

  To Sales A/c

(Because cash sales are posted to the commission account, this has now been corrected)


2000


2000


24. 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 the sales account as Rs 5,000.

Ans: 

Journal Entries for Rectification of Errors

Date

Particular

L.F

Debit Amount

Credit Amount


Mohan A/c Dr.

    To Suspense A/c

 (Credit sales to Mohan are posted to his account, which has now been corrected)


14000


14000



Suspense A/c Dr.

   To Rohan A/c

(being purchased from Rohan for Rs.9000 and posted to the debit of his account for Rs.6000, which has now been corrected).


15000


15000


Rakesh A/c Dr.

  To Suspense A/c

(Rakesh's goods are returned and posted to his account, which has now been corrected).


8000


8000


Suspense A/c Dr.

     To Mahesh A/c

(Mahesh's goods return of Rs.1000 is posted to the debit of his account of Rs.2000, which has now been corrected).


3000

                          

3000


Suspense A/c Dr.

  To Sales A/c

(being cash sales of Rs.2000 are posted to the debit of sales account of Rs.5000, which has now been corrected)


7000


7000


Suspense A/c

Date

Particulars

J.F.

Amount

Date

Particulars

J.F.

Amount


To Rohan’s A/c


15000



By Mohan’s A/c


14000


To Mahesh A/c


3000


By Rakesh’s c/d


8000


To Sale’s A/c


7000


By Balance c/d


3000










Total


25000


Total


25000


25. 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) Goods 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: 

Journal Entries for Rectification of Errors

Date

Particular

L.F

Debit Amount

Credit Amount


Mohan A/c Dr.

    To Karan A/c

   To suspense A/c

(Credit sales to Mohan of Rs.7000 are posted to Karan of Rs.5000, which has now been corrected)


7000


5000

2000


Suspense A/c Dr.

    To Rohan A/c

   To Gobind A/c

(Credit purchase from Rohan of Rs.9000 was posted to Gobind of Rs.10000, which has now been corrected).


19000


9000

10000


Rakesh A/c Dr.

 Naresh A/c Dr.

  To suspense A/c

(Goods returned to Rakesh for Rs.4000 are posted to Naresh for Rs.3000, which has now been corrected).


4000

3000



7000


Suspense A/c Dr.

    To Mahesh A/c

     To Manish A/c

(Mahesh's goods return of Rs.1000 was posted to Manish's account of Rs.2000, which has now been corrected).


3000

                          

1000

2000


Commission A/c Dr.

Suspense A/c Dr.  

 To Sales A/c

(Cash sales of Rs. 2,000 are posted to the commission account of Rs. 2,000, which has now been corrected)


200

1800



2000


Suspense A/c

Date

Particulars

J.F.

Amount

Date

Particulars

J.F.

Amount


To Rohan’s A/c


9000



By Mohan’s A/c


2000


To Mahesh’s A/c


1000


By Rakesh’s A/c


4000


To Sale’s A/c


1800


By Naresh’s A/c 


3000


To Gobind’s A/c


10000


By Balance c/d


14800


To Manish’s A/c


2000






Total


23800


Total


23800


26. Rectify the following errors assuming that the 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 the sales book. However, Rohan’s account was correctly credited. 

(c) Goods returned to Rakesh Rs 4,000 were recorded in sales return book. However, Rakesh’s account was correctly debited. 

(d) Goods returned from Mahesh Rs 1,000 were recorded through purchases return book. However, Mahesh’s account was correctly credited. 

(e) Goods returned to Naresh Rs 2,000 were recorded through the purchase book. However, Naresh’s account was correctly debited.

Ans: 

Journal Entries for Rectification of Errors

Date

Particular

L.F

Debit Amount

Credit Amount


Suspense A/c Dr.

    To Sales A/c

   To Purchase A/c

(Credit sales to Mohan are recorded in the purchase book, which has now been corrected)


14000


7000

7000


Sales A/c Dr.

Purchase A/c Dr.

 To suspense A/c

(Credit purchases from Rohan are recorded in the sales book, which has now been corrected).


9000

9000



18000


Suspense A/c Dr.

  To Sales return A/c

   To Purchase A/c

(Goods returned to Rakesh are recorded in the sales return book, which has now been corrected).


8000



4000

4000


Sales return A/c Dr.

Purchase return A/c Dr.

  To suspense A/c

(Mahesh's goods were returned and recorded in the purchase return book, which has now been corrected).


1000

1000

                          


2000


Suspense A/c Dr.

 To Purchase return A/c 

 To Purchase A/c

(Goods returned from Naresh are recorded in the purchase book, which has now been corrected.)


4000



2000

2000


Suspense A/c

Date

Particulars

J.F.

Amount

Date

Particulars

J.F.

Amount


To Sale’s A/c


7000



By Purchase A/c


9000


To Purchases A/c


7000


By Sales A/c


9000


To Purchases return A/c


4000


By Sales return A/c 


1000


To Sales return A/c


4000


By Purchase return A/c


1000


To Purchases return A/c


2000


By Balance c/d


6000


To purchases A/c


2000






Total


26000


Total


26000


27. 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 20,000 was recorded through the purchase 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 Repairs account. 

(e) Sale of old machinery at book value of Rs 3,000 was credited to sales account.

Ans: 

Journal Entries for Rectification of Errors

Date

Particular

L.F

Debit Amount

Credit Amount


Furniture A/c Dr.

    To Purchase A/c

 (Credit sales to Mohan are recorded in the purchase book, which has now been corrected.)


10000


10000



Machinery A/c Dr.

   To Purchase A/c

(Credit purchases from Rohan are recorded in the sales book, which has now been corrected).


20000


20000


Repairs on machinery A/c Dr.

  To machinery A/c

(Goods returned to Rakesh are recorded in the sales return book, which has now been corrected).


1400


1400


Machinery A/c Dr.

     To Repairs A/c

(Mahesh's goods were returned and recorded in the purchase return book, which has now been corrected).


2000

                         

2000


Sales A/c Dr.

  To Machinery A/c

(Goods returned from Naresh are recorded in the purchase book, which has now been corrected)


3000


3000


28. 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 20,000 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 second hand 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: 

Journal Entries for Rectification of Errors

Date

Particular

L.F

Debit Amount

Credit Amount


Furniture A/c Dr.

    To Purchase A/c

   To suspense A/c

(Furniture purchased for Rs. 10,000 was incorrectly debited to the purchases account as Rs.4,000, which has now been corrected)


10000


4000

6000


Machinery A/c Dr.

 To Purchase A/c

 To Raman A/c

(Machinery purchased on credit from Raman for Rs. 20,000 was recorded in the purchases book as Rs. 6,000, which has now been corrected).


20000


6000

14000


Repairs A/c Dr.

Suspense A/c

   To machinery A/c

(being Repairs on machinery of Rs. 1,400 were debited to the machinery account as Rs. 2,400, which has now been corrected).


1400

1000




2400


Machinery A/c Dr.

To Repairs A/c Dr.

  To suspense A/c

(being Repairs on overhauling of used machinery purchased, the Repairs account was incorrectly debited with Rs. 200 instead of crediting the machinery account with Rs. 2,000, which has now been corrected).


2000

                          

200

1800


Sales A/c Dr.

 To Machinery A/c 

 To Suspense A/c

(being the sale of old machinery on book value was credited to the sales account rather than the machinery account, which has now been corrected.)


5000



3000

2000


Suspense A/c

Date

Particulars

J.F.

Amount

Date

Particulars

J.F.

Amount


To Machinery A/c


1000



By Furniture A/c


6000


To Balance c/d


8800


By Machinery A/c


1800






By Sales A/c 


2000


























Total


9800


Total


9800


29. 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.

Ans: 

Journal Entries for Rectification of Errors

Date

Particular

L.F

Debit Amount

Credit Amount


Depreciation A/c Dr.

    To Machinery A/c

 (Credit sales to Mohan are recorded in the purchase book, which has now been corrected.)


4000


4000



Bad debts A/c Dr.

   To Debtors A/c

(Credit purchases from Rohan are recorded in the sales book, which has now been corrected).


5000


5000


Discount allowed A/c Dr.

  To Debtors A/c

(Goods returned to Rakesh are recorded in the sales return book, which has now been corrected).


100


100


Discount allowed A/c Dr.

     To Suspense A/c

(Mahesh's goods were returned and recorded in the purchase return book, which has now been corrected).


100

                          

100


Bills Receivable A/c Dr.

  To Debtors A/c

(Goods returned from Naresh are recorded in the purchase book, which has now been corrected)


2000


7000


30. 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.

Ans: 

Journal Entries for Rectification of Errors

Date

Particular

L.F

Debit Amount

Credit Amount


Depreciation A/c Dr.

    To Machinery A/c

 (Error rectification recording was incorrectly posted as Rs. 400 instead of Rs. 4,000 due to depreciation provided on machinery)


3600


3600



Debtors A/c Dr.

   To bad debts A/c

(Error rectification recording was posted as Rs. 6,000 instead of Rs. 5,000 due to bad debts being written off).


1000


1000


Discount allowed A/c Dr.

  To Debtors A/c

(Error rectification recording, Discount allowed to debtors, was incorrectly posted as Rs. 60 instead of Rs. 100).


40


40


Drawings A/c Dr.

     To purchase A/c

(Error rectification recording, goods withdrawn by proprietor for personal use, was incorrectly posted as Rs. 300 instead of Rs. 800).


500

                          

500


Debtor A/c Dr.

  To Purchases A/c

(Bills receivable from debtors, Error rectification recording, was incorrectly recorded as Rs. 3,000 rather than Rs. 2,000).


1000


1000


31. Rectify the following errors assuming that suspense 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 Debtors 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 account. 

(e) Bill receivable for Rs 2,000 received from a debtor was not posted to Bills receivable account.

Ans: 

Journal Entries for Rectification of Errors

Date

Particular

L.F

Debit Amount

Credit Amount


Depreciation A/c Dr.

    To suspense A/c

 (Depreciation on machinery was provided, but the error rectification recording was not posted to the discount account)


4000


4000



Suspense A/c Dr.

   To Debtors A/c

(Bad debts were written off, but the error rectification recording was not posted to the debtor's account).


5000


5000


Discount allowed A/c Dr.

  To Suspense A/c

(being a debtor's discount allowed after receiving cash, Error rectification recording, was not posted to the discount allowed account).


100


100


Drawings A/c Dr.

     To suspense A/c

(Because the goods were withdrawn by the proprietor for personal use, the error rectification recording was not posted to the drawings account).


800

                          

800


Bills Receivable A/c Dr.

  To suspense A/c

(Error rectification recording was not posted to the Bills receivable account because it was Bills receivable from a debtor).


2000


2000


Suspense A/c

Date

Particulars

J.F.

Amount

Date

Particulars

J.F.

Amount


To Debtors A/c


5000



By Depreciation A/c


4000


To Balance c/d


1900


By Discount allowed A/c


100






By Drawing A/c 


800






By Bills Receivable A/c


2000


















Total


6900


Total


6900


32. Trial balance of Anuj did not agree. It showed an excess credit of Rs 6,000. He put the difference to suspense account. He discovered the following errors Rs 

(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: 

Journal Entries for Rectification of Errors

Date

Particular

L.F

Debit Amount

Credit Amount


Suspense A/c Dr.

    To Ravish A/c

 (Because cash was received from Ravish, the error rectification recording was incorrectly recorded as Rs. 6,000 instead of Rs. 8,000)


2000


2000



Suspense A/c Dr.

   To Return Inward A/c

(The Returns inwards book was overcast by Rs. 1,000, and Error rectification recording was made).


1000


1000


Suspense A/c Dr.

  To Sales A/c

(Being the total of the sales book, the error rectification recording was not previously posted to the sales account).


10000


10000


Purchase A/c Dr.

 Sales A/c Dr.

To Suspense A/c

(Error rectification recording was made in the sales book due to credit purchases from Nanak).


7000

7000

                          


14000


Purchase A/c Dr.

  To Purchases A/c

  To Suspense A/c

(Error rectification recording was posted to the purchases account as Rs. 5,000, despite the fact that the machinery was purchased for Rs. 10,000).


10000


5000

5000


Suspense A/c

Date

Particulars

J.F.

Amount

Date

Particulars

J.F.

Amount


To Sales A/c


10000



By Purchase A/c


7000


To Ravish A/c


2000


By Sales A/c


7000


To Return Inwards A/c


1000


By Machinery A/c 


5000


To Balance c/d


6000






















Total


19000


Total


19000


33. 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 playing cash to him was not posted. Rectify the errors and prepare suspense account.

Ans: 

Journal

Date

Particular

L.F

Amount

Amount


Suspense A/c Dr.

    To Furniture A/c

 (Depreciation was written off the furniture, and an error rectification recording was made, but the furniture account was not posted)


6000


6000



Rupam’s A/c Dr.

   To Sales A/c

(Error rectification recording for Credit Sales to Rupam was incorrectly recorded as Rs. 7,000 instead of Rs. 10,000).


3000


3000


Purchases A/c Dr.

  To suspense A/c

(Rectification of Purchases book undercasing, recording of Error rectification).


2000


2000


Cash A/c Dr.

     To sales A/c

(Because they were cash sales, the error rectification recording was not posted earlier).


5000

                          

5000


Sales A/c Dr.

  To Machinery A/c

(Because the old machinery was sold, the error rectification recording was previously credited to the sales account rather than the machinery account).


7000


7000


Karan’s A/c Dr.

 To Discount Receivable

(Because of the discount received from Karan, the error rectification recording was not posted sooner).


800


800


Suspense A/c

Date

Particulars

J.F.

Amount

Date

Particulars

J.F.

Amount


To Furniture A/c


6000



By balance b/d


10000


To Balance c/d


6000


By Purchase A/c


2000










Total


12000


Total


12000


34. Trial balance of Madan did not agree and he put the difference to suspense account. He discovered the following errors: 

(a) Sales return book overcast by Rs 800. 

(b) Purchases return to Sahu Rs 2,000 were not posted. 

(c) Goods purchased on credit from Narula Rs 4,000 though taken into stock, but no entry was passed in the books. 

(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 madam (the proprietor) Rs 1,400 was debited to Rent account as Rs 1,000. Rectify the errors and prepare suspense account to ascertain the difference in trial balance.

Ans: 

Journal Entries for Rectification of Errors

Date

Particular

L.F

Debit Amount

Credit Amount


Suspense A/c Dr.

    To Sales Return A/c

 (The sales return book was overcast by Rs. 800 because it was a Sales return, Error rectification recording, and Sales return book)


800


800



Sahu’s A/c Dr.

   To Purchases return A/c

(Purchases returned to Sahu, Error correction recording, had not previously been recorded).


2000


2000


Purchases A/c Dr.

  To Narula’s A/c

(The error rectification recording was not completed earlier because the goods were purchased on credit from Narula).


4000


4000


Machinery A/c Dr.

 To sundry expenses A/c

To Suspense A/c

(Due to installation charges on new machinery purchased and error rectification recording, the Sundry expenses account was previously debited with Rs. 50 instead of crediting the machinery account with Rs. 500).


500

                          

50

450


Drawings A/c Dr.

  To Rent A/c

  To Suspense A/c

(Being Drawings by the proprietor for payment of personal rent, Error rectification recording, Previously, the Rent account was debited with Rs. 1,000 instead of debiting the Drawings account with Rs. 1,400).


1400


1000

400


Suspense A/c

Date

Particulars

J.F.

Amount

Date

Particulars

J.F.

Amount


To sales return A/c


800



By Machinery A/c


450


To Balance c/d


50


By Drawing A/c


400










Total


850


Total


850


35. 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 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: 

Journal Entries for Rectification of Errors

Date

Particular

L.F

Debit Amount

Credit Amount


Suspense A/c Dr.

    To Rajat’s A/c

    To Kamal’s A/c

 (Because cash was received from Rajat, the error rectification recording was debited to Kamal's account rather than crediting Rajat's account)


11000


5000

6000



Salaries A/c Dr.

   To Employee A/c

   To suspense A/c

(Salaries paid to employees, Error rectification recording, was incorrectly debited to employee's account with Rs. 1,200 instead of debiting salaries account with Rs.2,000).


2000


1200

800


Sales A/c Dr.

  To Drawings A/c

 To Suspense A/c

(Being Goods withdrawn by the proprietor, Error rectification recording, Rs. 1,600 was incorrectly credited to the Sales account instead of crediting the Drawings account with Rs. 1,000).


1600


1000

600


Suspense A/c Dr.

 To Machinery A/c

(Because depreciation was provided on machinery, error rectification recording was recorded as Rs.300 rather than Rs.3,000).


2700

                          

2700


Sales A/c Dr.

 Suspense A/c Dr.

  To Car A/c

(Being Goods withdrawn by the proprietor, Error rectification recording, Rs. 1,600 was incorrectly credited to the Sales account instead of debiting the Drawings account with Rs. 1,000).


6000

4000



10000


Suspense A/c

Date

Particulars

J.F.

Amount

Date

Particulars

J.F.

Amount


To Rajat’s A/c


5000



By Balance b/d


16300


To Kamal’s A/c


6000


By Sales A/c


600


To machinery A/c


2700


By Salaries A/c


800


To Car A/c


4000






Total


17700


Total


17700


36. 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 in the books. 

(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 6,000 was not posted to his account. 

(d) Total of 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: 

Journal Entries for Rectification of Errors

Date

Particular

L.F

Debit Amount

Credit Amount


Marketing A/c Dr.

    To Purchase A/c

 (Error rectification recording was not previously recorded because the goods were distributed as a free sample)


5000


5000



Drawings A/c Dr.

   To Purchases A/c

(Error rectification recording was not previously recorded because the goods were withdrawn for personal use by the proprietor).


2000


2000


Suspense A/c Dr.

  To Debtors A/c

(Due to the fact that the debtor received bills receivable, the error rectification recording was not posted to the debtor's account).


6000


6000



Returns Inwards A/c Dr.

Returns Outward A/c Dr.

 To Suspense A/c 

(The total of the returns inwards book, as well as the error rectification recording, was posted to the returns outwards account).


1200

1200

                          


2400


Discount Allowed A/c Dr.

To Reema A/c

Being allowed a discount when receiving cash, the error rectification recording was previously incorrectly recorded as Rs.70 instead of Rs.700.


630


630


Suspense A/c

Date

Particulars

J.F.

Amount

Date

Particulars

J.F.

Amount


To Debtors A/c


6000



By Return Inward A/c


1200






By Return Outward A/c


1200






By Balance b/d


3600










Total


6000


Total


6000


37. Trial balance of Khatau did not agree. He put the difference to suspense account and discovered the following errors: 

(a) Credit sales 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 5,000 and posted to the debit of Noor Rs 2,000. 

(c) Goods returned to Rai Rs 3,000 recorded through the Sales book as Rs 1,000. 

(d) Old machinery sold for Rs 2,000 to Maneesh recorded through sales book as Rs 1,800 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: 

Journal Entries for Rectification of Errors

Date

Particular

L.F

Debit Amount

Credit Amount


Mana’s A/c Dr.

 Suspense A/c Dr.

    To Purchase A/c

   To Sales A/c

 (Being credit sales for Rs.16,000, Error rectification recording, was incorrectly recorded in the purchases book as Rs. 10,000 and posted to Mana's debit as Rs. 1,000)


15000

11000


10000

16000



Furniture A/c Dr.

Suspense A/c Dr.

   To Noor’s A/c

   To purchases A/c

(Error rectification recording for furniture purchased from Noor for Rs. 6,000 was recorded through purchases book as Rs. 5,000 and posted to Noor's debit as Rs. 2,000).


6000

7000



8000

5000


Sales A/c Dr.

Rai’s A/c Dr.

  To return outward A/c

(Being Goods Returned, Error Rectification Entry, was incorrectly recorded as Rs. 1,000 instead of Rs.3,000 in the sales book).


1000

2000



3000


Manish’s A/c Dr.

Sales A/c Dr.

Maneesh’s A/c Dr.

 To Machinery A/c

 To Suspense A/c

(Error Rectification Entry, being old machinery sold to Maneesh for Rs.2,000, was incorrectly recorded through the sales book as Rs. 1,800 and posted to Manish's account as Rs.1,200).


1200

1800

2000

                          



2000

3000


Return Inward A/c Dr.

 To Purchases A/c Dr.

(Error Rectification Entry, being the total of returns inwards book, was incorrectly posted to the purchases account).


2800


2800


Suspense A/c

Date

Particulars

J.F.

Amount

Date

Particulars

J.F.

Amount


To Sales A/c


11000



By Manish’s A/c


3000


To Noor’s A/c


7000


By Balance A/c


15000


















Total


18000


Total


18000


38. 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 2 was carried forward to page 3 as Rs 1,000 instead of Rs 1,200 and total of page 6 was carried forward to page 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 1,000. 

(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 & Co. 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 1,000. 

(h) Credit sales to Raman 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. 

(l) 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 made in the books. Rectify the errors and prepare suspense to ascertain the difference in trial balance.

Ans: 

Journal Entries for Rectification of Errors

Date

Particular

L.F

Debit Amount

Credit Amount


Sales A/c Dr.

    To suspense A/c

 (Because the Sales account was overcasted, the Error rectification recording was incorrectly carried forward in two pages).


400


400



Machinery A/c Dr.

   To wages A/c

   To suspense A/c

(Wages paid for machinery installation, Error rectification recording, were incorrectly posted to the wages account).


500


50

450


Machinery A/c Dr.

Suspense A/c Dr.

  To Purchases A/c

 To R & Co. A/c

(Because the machinery was purchased on credit from R & Co., the error rectification recording was incorrectly entered in the purchases book as Rs. 6,00 and posted into R & Co. as Rs. 1,000).


10000

5000



6000

9000


Mohan’s A/c Dr.

To Sales A/c

 To purchases A/c

(Error rectification recording for credit sales to Mohan was incorrectly recorded in the purchases book).


10000

                          

5000

5000


Sales A/c Dr.

  To Purchases return A/c

(Being Goods Returned to Ram, Error Correction Recording, was incorrectly recorded in the sales book).


1000



1000


Purchases A/c Dr.
Sales A/c Dr.

 To suspense return A/c

(Credit purchases from S & Co., Error rectification recording, were incorrectly recorded in the sales book)


6000
6000



12000


Purchases A/c Dr.

Sales A/c Dr.

To M & Co. A/c

To Suspense A/c

(Credit purchases from M & Co., Error rectification recording, were incorrectly credited in the sales book as Rs. 2,000 and also incorrectly credited to the M & Co. account as Rs. 1,000)


6000

2000



5000

3000


Raman’s A/c Dr.

Raghavan’s A/c Dr.

To Suspense Return A/c

(Credit Sales to Raman for Rs.4,000 was incorrectly credited to Raghavan's account with Rs. 1,000)


4000

1000



5000


Noor’s A/c Dr.

To Allowance A/c

(Noor's bills for Rs. 1,600 were dishonoured, and an error rectification recording was incorrectly posted to the debit of allowance account).


1600


1600


Bills Payable A/c Dr.

To Manu’s A/c

(The error rectification recording was incorrectly debited to Manu's account because cash was paid to Mani in exchange for our acceptance)


5000


5000


Sales A/c Dr.

Suspense A/c Dr.

To Furniture A/c

(Because the old furniture was sold for Rs.3,000, the error rectification recording was incorrectly posted to the sales account as Rs. 1,000)


1000

2000



3000


Depreciation A/c Dr.
To Furniture A/c

(Being provided with depreciation on furniture, Error rectification recording, was not posted earlier)


800


800


Building A/c Dr.

To Purchases A/c

To Wages A/c

(Being Material and wages used in the building's construction, Error rectification recording, was not posted earlier)


13000


10000

3000


Suspense A/c

Date

Particulars

J.F.

Amount

Date

Particulars

J.F.

Amount


To Purchase


5000



By Sales A/c


400


To Furniture A/c


2000


By Machinery A/c


450


To Balance A/c


13850


By Purchase b/d


6000






By Sales A/c


6000






By purchase A/c


3000






By Raman’s A/c


4000






By Raghavan’s A/c


1000










Total


20850


Total


20850

 

NCERT Accountancy Class 11 Solutions

What is a Trial Balance?

Trial balance is a bookkeeping technique for tallying the balance of both the debit and credit side of the ledger account. Trial balance is usually prepared on an annual basis or at the end of the Financial period to check the accuracy of the ledgers. The main objective of this is to check if there is any monetary error. In simple words, the balances of ledger accounts are carried forward at the end of each financial period to check the monetary accuracy. CBSE Class 11 Accountancy provides a thorough knowledge of the topic.


What Are the Two Types of Errors of Principles?

Following Are the Two Errors of Principles

1. Wrong Casting

The sum of the purchase book has added Rs. 8000 in excess. As soon as the total is carried forward to the debit side of the purchase account, it will exceed the debit side by Rs. 8000 and thus the trial balance will show a difference and won’t agree (consult Chapter 6 of accounts for the better overview).


2. Wrong Posting of Amount 

If the goods of Rs. 800 have been bought from BCD but while posting to BCD’s credit column the amount was mistaken as Rs. 80. Hence, the trial balance will show a difference.


What Are the Two Errors of Commission?

Following are the two errors of commission:

1. Posting of the Wrong Amount

Goods of Rs. 8000 have been purchased from Rahul but while making the entry to Rohit’s credit side in the purchase book, the amount posted is Rs. 800 instead of Rs. 8000. Hence, the trial balance will show a difference.


2. Posting on the Wrong Side

If the goods purchased from Rahul are recorded at the debit side instead of the credit side. Hence, the trial balance will show a difference.


What Are the Methods of Preparing a Trial Balance?

1. Totals Method

Since accounting is all about double entry systems, so under this method, the total of both debit and credit has to be equal.


2. Balances Method

Under this method, closing balances of all the accounts are calculated and then are brought forward.


3. Totals-cum-Balances Method 

It makes the use of both the above methods. This method consists of four columns, of which two are used for writing debit and credit totals, meanwhile, the other two are for writing balances of these accounts.


What is a Suspense Account?

There are certain cases when the debit side total won’t tally with the credit side. So to avoid the delay in the preparation of financial statements, a temporary account named “suspense account” is created. If the credit column falls short then the credit column is credited and vice versa.


(Image to be added soon)


Solved Example

Q. State the Limitations of the Trial Balance

Ans: There are times when trial balance agrees but this shouldn’t be taken as granted. There are some mistakes or errors that do get unnoticed like that of the compensating errors. Also, it doesn’t find the errors that aren’t recorded in journals. Also, if the transaction originally recorded has some error, that error is usually carried forward. Students must go through the Trial balance and Rectification of Errors Class 11 NCERT Solutions for better understanding.


Q. Give an Example of Errors of Commission

Ans: Goods bought for Rs. 10,000 have been recorded as Rs. 5000 in the purchase book. Under this, the amount of Rs. 5000 is recorded instead of Rs. 10000. Thus leading to the error of commission.


Fun Facts

A large number of transactions are being performed by business all year round but they don’t count until they are properly recorded. Thus the trial balance fulfils this need by summarising those transactions like cash flow statements or balance sheets. Thus NCERT Class 11 Chapter 6 provides a thorough understanding of the same. Students must consult Class 11 accounts Chapter 6 NCERT Solutions for better understanding.

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

1. Give an Example of Errors of Principle.

The Accountancy Class 11 Chapter 6 deals with the topic of trial balance and maintaining books of accounts. It also highlights some of the most imperative principles related to errors in accounting. Wages paid for construction purposes are debited to the wages account. Under this, the wages which are being paid for construction purposes are debited to the wages account instead of being a capital expenditure. According to this, the business account should have been debited. Thus leading to the Errors of principle. Refer to NCERT Accountancy book Class 11 Solutions Chapter 6 PDF for a better overview and to gain more knowledge about the topic.

2. What Are the Steps Taken by an Accountant to Find the Errors in a Trial Balance?

When it comes to the aspect of maintaining accounts, the person responsible to record the books must be aware of how errors can be identified while the final balance sheet is being prepared at the end of the financial year. With the help of Class 11 accounts Chapter 6 NCERT Solutions, we can now identify these errors effectively.

  • Rechecking the total of the debit and credit columns to make the difference.

  • Dividing the difference by 9 and if the result is completely divisible, then the error is called the error of transposition.

  • Checking if by chance any entry is yet to be made or is omitted

  • Checking if any account is left to be recorded with the same amount.

3. How can you rectify the errors without affecting the trial balance?

As per Chapter 6 Class 11 Accountancy, rectifying the errors can be classified into two categories. One is the errors that do not have any effect on the trial balance, and the other is which affects the trial balance. The errors, which do not affect the trial balance can be in one or two accounts and can be rectified easily. The errors that are affected cannot be rectified through the journal entry; it has to be rectified by passing a nullifying entry in the accounts to be rectified.

4. How can you compensate for the errors?

When there are more errors committed, and the effect on the errors on both debit and the credit is nil is called the compensating errors. These do not affect the tallying of the trial balance. Vedantu website offers free assistance through the mobile app as well. The solutions could be found on the link Chapter 6 Class 11 Accountancy for better understanding.

5. How can errors be classified?

There are four types of error. They are:

  • Errors of commission, which is due to wrong posting of the transactions.

  • Errors of omission are committed while recording the transaction.

  • Errors of principles are the errors in the principles that are violated.

  • Compensating errors are the errors when there are more than two errors, and the effect of these errors is nil on debit and credit accounts.

6. What are tips to prepare Chapter 6 in an easy way?

Chapter 6 has many topics. Each topic becomes very easy if the understanding is thorough. Each topic has to be read and analysed, the important points have to be remembered in each topic, and the learning must be done stepwise. This will help you to remember the topic very easily.

7. What is the importance of the agreement of the trial balance?

The importance of the trial balance is that the balance should tally. If the trial balance is tallied, it means both debit and the credit entries are correct. However, the trial balance cannot be the perfect proof of the accuracy of the accounts. It can only be to a certain extent. There might be errors in the entry itself. Some common errors are totalling, the totalling in the subsidiary books, errors in posting journal entries, and more.

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