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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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
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).
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:
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.
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?
Since accounting is all about double entry systems, so under this method, the total of both debit and credit has to be equal.
Under this method, closing balances of all the accounts are calculated and then are brought forward.
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.
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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.
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 (Frequently Asked Questions)
Q1. Give an Example of Errors of Principle.
Ans: 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.
Q2. What Are the Steps Taken by an Accountant to Find the Errors in a Trial Balance?
Ans: 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.
Q3. How can you rectify the errors without affecting the trial balance?
Ans: 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.
Q4. How can you compensate for the errors?
Ans: 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.
Q5. How can errors be classified?
Ans: 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.
Q6. What are tips to prepare Chapter 6 in an easy way?
Ans: 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.
Q7. What is the importance of the agreement of the trial balance?
Ans: 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.