RBSE Class 11 Accountancy Important Questions Chapter 6 Trial Balance and Rectification of Errors

Rajasthan Board RBSE Class 11 Accountancy Important Questions Chapter 6 Trial Balance and Rectification of Errors Important Questions and Answers. 

RBSE Class 11 Accountancy Important Questions Chapter 6 Trial Balance and Rectification of Errors

Very Short Answer Type Questions

Question 1.
What is trial balance?
Answer:
It is a statement of accounts showing closing balance to check the arithmetical accuracy of posting of entries in the ledger accounts. 
 
Question 2. 
Mention the book of accounts which is the collection of all the accounts, debited and credited in the books of original entry.
Answer:
Ledger

Question 3. 
When an account is said to have debit balance?
Answer:
An account is said to have debit balance when the sum of the debit side is more than the sum of the credit side. 

Question 4. 
Why is the preparation of trial balance necessary?
Answer:
It is necessary to prepare the trial balance to check the arithmetical accuracy of posting of all accounting entries in the various accounts.

Question 5.
What is ratifying entry?
Answer:
It is the entry which is passed to correct the incorrect account(s).

Question 6. 
Classify the errors on the balance of agreement and disagreement of trial balance.
Answer:
One sided errors and two sided errors.

Question 7.
Give two examples of errors of omissions.
Answer:
(a) Purchase of goods not recorded anywhere.
(b) Depreciation charged on machinery not posted in the machinery account.

Question 8. 
State two types of errors which do not affect the total of trial balance.
Answer:
(a) Sale of goods not recorded anywhere.
(b) Purchase of machinery debited to purchase account.

Question 9. 
What are the compensating error?
Answer:
Compensating errors are those errors which occur when effect of one error is neutralised by effect of another error.

Question 10. 
What are two sided errors?
Answer:
The errors which do not affect the total of trial balance.

Question 11. 
What is suspense account?
Answer:
When the trial balance does not match, the balance in the trial balance is put in a newly opened account and this account is known as suspense account. 

Question 12. 
What purpose does suspense account serve?
Answer:
Suspense account helps to close the trial balance for the time being till the errors are rectified.

Short Answer Type Questions

Question 1. 
State the objectives of preparing trial balance.
Answer:
Objectives of Preparing Trial Balance:

(a) To Ascertain the Arithmetical Accuracy: With the help of trial balance, we can know whether all accounting entries have been duly posted in their respective accounts or not. It helps us to know whether the accounts have been correctly balanced.

(b) To Help in the Preparation of Financial Statements: With the help of various accounts in the trial balance, financial statements such as Statement of Profit and Loss and Balance sheet is prepared. The former one is prepared with the help of nominal accounts and latter is prepared with real and personal accounts.

(c) To Help in Locating Errors: If the trial balance does not tally, it means there would have been some error in posting. This invites an action to check the posting of all amounts in their respective accounts.

Question 2. 
Name the type of error committed by violating the rules of accounting.
The following errors were detected in the books of M.K.Brothers:
1.The total of sales book ₹ 5500 was not posted to the ledger.
2. Return Inwards book was overcast by ₹ 500.
3. A credit sale of ₹1700 wrongly passed through the purchases book.
4. Renovation charges of sofa ₹ 1300 were debited to furniture account. 
Answer:
1. Error of commission
2. Error of commission
3. Error of commission
4. Error of principle

Question 3. 
On which side of trial balance, the following ledger balances will appear:
(a) Plant and machinery    
(b) Discount allowed
(c) Bad debts    
(d) Bills payable
(e) Bank overdraft    
(f) Sales return
Answer:
(a) Dr (b) Dr (c) Dr (d) Cr (e) Cr (f) Dr

Higher Order Thinking Skills Questions 

Question 1. 
Why does sales account always have credit balance?
Answer:
Sales is an income for the business and incomes have credit balance.

Question 2. 
Trial balance has two sides, debit side and credit side. Is it an account? Explain with reason.
Answer:
Though trial balance has two sides but it cannot be an account because every account increases from one side and decreases from other side. It is a statement to record the closing balances of all accounts at the end of an accounting year. 

Question 3. 
“Trial Balance is a prima facie evidence of the arithmetical accuracy of books of accounts.” Do you agree with this statement? Give reason.
Answer:
Yes. When the totals of all debits and all credits are equal, it is said that the posting and balancing of accounts is arithmetically correct. But there can be errors which are not reflected in the agreement of trial balance and agreement cf trial balance is not the conclusive proof arithmetical accuracy.

Question 4. 
When is the closing stock shown outside the trial balance?
Answer:
Closing stock is shown outside the trial balance when the closing stock is not valued before the preparation of trial balance.

Question 5. 
When is the closing stock shown inside the trial balance?
Answer:
Closing stock is shown inside the trial balance when it is valued before the preparation of trial balance.

Question 6. 
It is essential to show all accounts in the trial balance, still there are certain accounts which are not posted in the trial balance. Identity.
Answer:
The accounts which don’t have any balance or the accounts which have nil balance.

Question 7. 
If you are preparing Ledger from Cash Book, which accounts will you not open in Ledger?
Answer:
Cash and bank account.

Question 8. 
If a firm has allowed discount, on which side of discount account, such loss will be shown?
Answer:
Debit side.

Question 9. 
Can we prepare financial statements without preparing trial balance? If it is not prepared, what will be the consequences? Answer:
Yes, the financial statements can be prepared without preparing trial balance but there are likely chances that balance sheet may not match.

Question 10. 
Name the error which is committed by violating the principles of accounting.
Answer:
Error of principle.

Question 11. 
Name the errors which are not rectified through suspense account.
Answer:
Error of principle, compensating errors and errors of full omission.

Question 12. 
How does suspense account take place and gets closed?
Answer:
When the trial balance does not agree, the balance on the either side of the trial balance is transferred to a newly opened account, known as ‘suspense account’. When all one sided errors are rectified, it gets automatically closed.

Question 13. 
Explain with reason how the following transactions will affect the trial balance?
(a) Purchase of goods for ₹ 10,000 were recorded as ₹ 1,000.
(b) Sales of machinery for ₹ 20,000 was omitted to be recorded in the debtors account. 
Answer:
(a) Trial balance will agree as in both purchase book and creditor’s account, same amount has been recorded.
(b) Trial balance will not agree as the transactions was recorded in the sales book but not in the customer’s account.

Question 14. 
Identify the errors which will be disclosed by the trial balance.
(a) Purchase of furniture for ₹ 10,000 from Saurabh was recorded in Sarabh’s Account.
(b) ₹ 5,000 received from Santosh whose account was written off as bad in the previous year, now debited to her account.    
Answer:
(a) It will not affect the trial balance as both sides of accounts recorded same amount.
(b) It will not tally as debit side exceeded by ₹ 5,000.

Question 15. 
Identify the nature of errors in the following cases:
(a) Wages paid on the erection of machinery was debited to wages account.
(b) Credit purchase of furniture was recorded in the purchase book.
(c) Goods purchased for ₹ 10,000 were recorded as ₹ 1,000.
(d) Goods worth ₹ 1,000 returned by the customer were not recorded.
Answer:
(a) Error of principle.
(b) Error of principle.
(c) Error of commission.
(d) Error of omission. 

Multiple Choice Questions:

Question 1. 
The purpose of preparing trial balance is find out the ..............
(a) profit or loss 
(b) financial position
(c) arithmetical accuracy of the accounts 
(d) summary of real accounts and personal accounts
Answer:
(c) arithmetical accuracy of the accounts

 

Question 2. 
Trial balance is a ..............
(a) Summary 
(b) Statement 
(c) Account 
(d) Summary of accounts
Answer:
(d) Summary of accounts

Question 3. 
The balance left in the suspense account in the trial balance is transferred to the ..............
(a) Trading A/c 
(b) Capital Account 
(c) Profit and loss A/c 
(d) Balance sheet
Answer:
(d) Balance sheet

Question 4. 
Credit balance in the suspense account is shown on the ..............
(a) Credit side of Trading A/c 
(b) Profit and Loss A/c
(c) Liabilities side of the balance sheet 
(d) Assets side of the balance sheet
Answer:
(c) Liabilities side of the balance sheet 

Question 5. 
State which of the following errors will not be revealed by preparing Trial Balance....................
1. Errors of complete omission.
2. Errors of principle
3. Error in carrying forward
4. Compensating errors
Choose the correct option:
(a) 1 & 2 only 
(b) 1, 2 & 3 only 
(c) 1, 3 & 4 only 
(d) 1, 2 & 4 only
Answer:
(d) 1, 2 & 4 only

Question 6. 
The errors which affect only one side of trial balance are known as ...................
(a) One sided errors 
(b) Two sided errors 
(c) Errors of principle 
(d) compensating errors
Answer:
(a) One sided errors 

Question 7. 
The amount of wages paid on the repair of second had machine purchased will be debited to ...................
(a) Miscellaneous Expenses A/c 
(b) Wages A/c
(c) Machine A/c 
(d) Repairs A/c
Answer:
(c) Machine A/c 

Question 8. 
Salary paid to Director should be debited to ...................
(a) Director’s Personal Account 
(b) Office Expenses Account
(c) Salary Account 
(d) Commission Account
Answer:
(c) Salary Account 

Question 9. 
Goods taken by the proprietor for domestic use should be credited to ...................
(a) Proprietor’s Drawings Account 
(b) Capital Account
(c) Sales Account 
(d) Purchases Account
Answer: 
(d) Purchases Account

Question 10. 
Amount received from Mohan which were previously written off as bad should be credited to ...................
(a) Mohan’s Account. 
(b) Miscellaneous Income Account.
(c) Bad Debts Recovered Account 
(d) Bad debts Account
Answer: 
(c) Bad Debts Recovered Account