Chapter trial-balance-and-rectification-of-errors: Trial Balance and Rectification of Errors Application Questions | accountancy Class 11 CBSE

Chapter trial-balance-and-rectification-of-errors: Trial Balance and Rectification of Errors Application Questions | accountancy Class 11 CBSE | ByteNotes.in

Application Question

Medium difficulty • Concept in a practical situation

Medium

Question 1

Applied Concept

Raj Hans Traders paid Rs 25,000 to Preetpal Traders, a creditor, but Preetpal's account was debited with only Rs 2,500 in the ledger. Identify the type of error, state its effect on the trial balance, and write the rectification entry.

This is an error of commission — wrong amount posted to the correct account (Preetpal's account is debited with Rs 2,500 instead of Rs 25,000), resulting in a short debit of Rs 22,500. The credit to Cash Account is correct. This is a one-sided error affecting only Preetpal's account.
Effect on trial balance: the debit column total will be less than the credit column total by Rs 22,500, causing the trial balance not to tally. A suspense account will be opened with a debit balance of Rs 22,500.
Rectification entry: Debit Preetpal's Account Rs 22,500 and Credit Suspense Account Rs 22,500 (to make up for the short debit in Preetpal's account, which should have been debited with Rs 25,000 but was only debited with Rs 2,500).

ByteNotes

Application Question

Hard difficulty • Concept in a practical situation

Hard

Question 2

Applied Concept

Credit sales to Mohan for Rs 10,000 were recorded in the purchases book instead of the sales book. However, Mohan's account was correctly debited. Identify the type of error and write the rectification entry.

This is an error of commission — the transaction was recorded in the wrong subsidiary book (purchases book instead of sales book). Mohan's account is correctly debited, but the purchases book total was posted to debit of Purchases Account instead of crediting Sales Account.
Effect: Purchases Account has an excess debit of Rs 10,000 and Sales Account has a short credit of Rs 10,000. This is a two-sided error — both accounts are wrong but trial balance may still tally if viewed in totals. However, the net effect on the trial balance depends on how the books total is posted; effectively it is a two-sided error.
Rectification entry: Debit Purchases Account Rs 10,000 (reverse wrong debit by crediting Purchases Account) — actually: Credit Purchases Account Rs 10,000 and Credit Sales Account Rs 10,000, with Debit to Suspense Account Rs 20,000 if it affects TB, OR simply Debit Purchases Account Rs 10,000 and Credit Sales Account Rs 10,000 if it is purely a two-account error not disturbing TB totals.

ByteNotes

Application Question

Medium difficulty • Concept in a practical situation

Medium

Question 3

Applied Concept

An accountant discovers that the sales book has been overcast by Rs 700. With reference to this chapter, identify the error type, explain which accounts are affected, and state the rectification entry.

This is an error of commission (overcasting of subsidiary book) — a one-sided error. The total of the sales book is higher by Rs 700 than it should be, resulting in the Sales Account being credited with Rs 700 extra. Individual debtors' accounts are not affected as they are posted individually.
Effect on trial balance: the credit column total exceeds the debit column total by Rs 700. The accountant opens a suspense account on the debit side with Rs 700 to temporarily balance the trial balance.
Rectification entry: Debit Sales Account Rs 700 and Credit Suspense Account Rs 700. This reduces the Sales Account to its correct balance and correspondingly reduces the suspense account balance.

ByteNotes

Application Question

Medium difficulty • Concept in a practical situation

Medium

Question 4

Applied Concept

Salary paid Rs 5,000 was debited to an employee's personal account instead of the Salary Account. Identify the error, state whether it affects the trial balance, and write the correcting entry.

This is an error of commission (posting to the wrong account) — a two-sided error. The employee's personal account is wrongly debited instead of the Salary Account. The credit to Cash Account is correct. Both sides of the entry are present (debit and credit), so the trial balance is not affected.
The Salary Account is understated (shows less expense than actual) and the Employee's Personal Account is wrongly shown as a debtor, misrepresenting the financial position.
Rectification entry: Debit Salary Account Rs 5,000 and Credit Employee's Personal Account Rs 5,000. This removes the wrong debit from the personal account and records the expense correctly in Salary Account.

ByteNotes

Application Question

Medium difficulty • Concept in a practical situation

Medium

Question 5

Applied Concept

Furniture purchased for Rs 10,000 was wrongly debited to the Purchases Account. A fellow student says this error will affect the trial balance. Is the student correct? Identify the error type and write the rectification entry.

The student is incorrect. Debiting Purchases Account instead of Furniture Account is an error of principle (capital expenditure treated as revenue expense). Both the debit (purchases account) and credit (supplier's/cash account) are recorded — the trial balance is NOT affected as it remains in balance.
The error, however, is serious for financial statements: the Furniture Account (fixed asset) is understated, and Purchases (expense) is overstated, leading to lower profit and lower asset value on the Balance Sheet.
Rectification entry: Debit Furniture Account Rs 10,000 and Credit Purchases Account Rs 10,000. This removes the Rs 10,000 from the expense account and correctly adds it to the fixed asset account.

ByteNotes

Application Question

Hard difficulty • Concept in a practical situation

Hard

Question 6

Applied Concept

Goods returned to a supplier for Rs 4,000 were recorded in the sales return book instead of the purchase return book. However, the supplier's account was correctly debited. Identify the type of error, state the effect on accounts, and write the rectification entry.

This is an error of commission — the transaction was recorded in the wrong subsidiary book. The supplier's account is correctly debited. However, the sales return book's total was posted to debit of Sales Returns Account instead of the correct Credit to Purchases Returns Account.
Effect: Sales Returns Account has an excess debit of Rs 4,000 (it should not have been affected at all), and Purchases Returns Account has a short credit of Rs 4,000 (it should have been credited). The trial balance is affected as this creates a one-sided imbalance in the respective accounts.
Rectification entry: Credit Sales Returns Account Rs 4,000 (to reverse wrong debit) and Credit Purchases Returns Account Rs 4,000 (to record correct credit), with Debit Suspense Account Rs 8,000 if the trial balance is disturbed, OR: Debit Sales Returns Account and Credit Purchases Returns Account for Rs 4,000 if it is treated as a pure two-account correction.

ByteNotes

Application Question

Easy difficulty • Concept in a practical situation

Easy

Question 7

Applied Concept

Credit sales to Mohan for Rs 10,000 were not recorded in the sales book at all. Identify the type of error, state its effect on the trial balance, and write the rectification entry.

This is an error of complete omission — the transaction has not been recorded in the books of original entry at all. Both Mohan's account (debit) and Sales Account (credit) are missing. As both sides are absent, the trial balance is NOT affected and continues to tally.
Despite not affecting the trial balance, the error is significant: Mohan's account does not show the receivable and Sales Account understates revenue, both distorting the financial statements.
Rectification entry: Debit Mohan's Account Rs 10,000 and Credit Sales Account Rs 10,000. This is the same as the original entry that should have been passed, restoring both accounts to their correct balances.

ByteNotes

Application Question

Medium difficulty • Concept in a practical situation

Medium

Question 8

Applied Concept

Cash received from Karim Rs 6,000 was posted to the account of Nadeem. Identify the error, state whether the trial balance is affected, and write the rectification entry.

This is an error of commission — the correct amount was posted to the wrong personal account. Cash Account is correctly debited in the cash book. Nadeem's account was credited with Rs 6,000 instead of Karim's account. This is a two-sided error (both debit and credit are present) — the trial balance is NOT affected.
However, Karim's account still shows an outstanding balance of Rs 6,000 (the debtor is not settled), and Nadeem's account incorrectly shows a credit (as if he paid, when he did not).
Rectification entry: Debit Nadeem's Account Rs 6,000 and Credit Karim's Account Rs 6,000. This reverses the wrong credit to Nadeem and applies the payment to Karim's account correctly.

ByteNotes

Application Question

Medium difficulty • Concept in a practical situation

Medium

Question 9

Applied Concept

The purchases book was undercast by Rs 400 during the month. With reference to the guiding principles, state which accounts are affected, and write the rectification entry using the suspense account.

Undercasting of the purchases book means the total of the book is recorded as lower than actual, resulting in the Purchases Account being debited with Rs 400 less than the correct amount. Individual supplier accounts are not affected as they are posted individually.
This is an error of commission (undercasting) — a one-sided error affecting only the Purchases Account. The debit column of the trial balance will be short by Rs 400, and the suspense account will be opened with a credit balance of Rs 400.
Rectification entry: Debit Purchases Account Rs 400 and Credit Suspense Account Rs 400. This restores the Purchases Account to its correct higher balance and reduces the suspense account accordingly.

ByteNotes

Application Question

Medium difficulty • Concept in a practical situation

Medium

Question 10

Applied Concept

Depreciation written off on Machinery for Rs 4,000 was not posted to the Depreciation Account, though it was correctly credited to the Machinery Account. Identify the error and write the rectification entry.

This is an error of partial omission — the transaction was recorded through journal proper and posting to Machinery Account (credit) was done correctly, but posting to Depreciation Account (debit) was omitted. This is a one-sided error affecting only the Depreciation Account.
Effect: Depreciation Account is understated by Rs 4,000 — the expense has not been recognised in the debit side. The trial balance will not tally as the credit column (Machinery credited) exceeds the debit column by Rs 4,000.
Rectification entry: Debit Depreciation Account Rs 4,000 and Credit Suspense Account Rs 4,000. This records the missing debit to Depreciation Account and reduces the suspense account balance.

ByteNotes

Premium Access

Unlock all Application Questions

You are viewing 10 free application questions from this chapter. Upgrade to Premium to unlock the remaining 13 questions.

Upgrade to Premium13 questions locked

Chapter sections

Chapter trial-balance-and-rectification-of-errors: Trial Balance and Rectification of Errors | Application Questions

Raj Hans Traders paid Rs 25,000 to Preetpal Traders, a creditor, but Preetpal's account was debited with only Rs 2,500 in the ledger. Identify the type of error, state its effect on the trial balance, and write the rectification entry.

Credit sales to Mohan for Rs 10,000 were recorded in the purchases book instead of the sales book. However, Mohan's account was correctly debited. Identify the type of error and write the rectification entry.

An accountant discovers that the sales book has been overcast by Rs 700. With reference to this chapter, identify the error type, explain which accounts are affected, and state the rectification entry.

Salary paid Rs 5,000 was debited to an employee's personal account instead of the Salary Account. Identify the error, state whether it affects the trial balance, and write the correcting entry.

Furniture purchased for Rs 10,000 was wrongly debited to the Purchases Account. A fellow student says this error will affect the trial balance. Is the student correct? Identify the error type and write the rectification entry.

Goods returned to a supplier for Rs 4,000 were recorded in the sales return book instead of the purchase return book. However, the supplier's account was correctly debited. Identify the type of error, state the effect on accounts, and write the rectification entry.

Credit sales to Mohan for Rs 10,000 were not recorded in the sales book at all. Identify the type of error, state its effect on the trial balance, and write the rectification entry.

Cash received from Karim Rs 6,000 was posted to the account of Nadeem. Identify the error, state whether the trial balance is affected, and write the rectification entry.

The purchases book was undercast by Rs 400 during the month. With reference to the guiding principles, state which accounts are affected, and write the rectification entry using the suspense account.

Depreciation written off on Machinery for Rs 4,000 was not posted to the Depreciation Account, though it was correctly credited to the Machinery Account. Identify the error and write the rectification entry.

Unlock all Application Questions