Balbharati solutions for Book Keeping and Accountancy [English] 11 Standard Maharashtra State Board chapter 8 - Rectification of Errors [Latest edition]

Answer in One Sentence:

What is meant by rectification of errors?

Answer in One Sentence:

What is meant by error of principle?

Answer in One Sentence:

What is meant by error of partial omission?

Answer in One Sentence:

What is meant by error of complete omission?

Answer in One Sentence:

What are compensating errors?

Give one word/term or phrase for the following statement:

Errors which affect the agreement of Trial Balance.

Give one word/term or phrase for the following statement:

Taking the total more while closing books of accounts.

Give one word/term or phrase for the following statement:

Error which arises when a transaction is partially or completely omitted to be recorded in the books of accounts.

Give one word/term or phrase for the following statement:

Transactions recorded due to violating the accounting principles.

Give one word/term or phrase for the following statement:

Accounts to which difference in Trial Balance is transferred.

Give one word/term or phrase for the following statement:

Error in which the effect of one mistake is nullified by another mistake.

Give one word/term or phrase for the following statement:

Error which are not disclosed by the Trial Balance.

Give one word/term or phrase for the following statement:

Errors of incorrect entries or wrong posting.

Select the most appropriate alternative from those given below and rewrite the sentence:

Rectification entries are passed in ______

Select the most appropriate alternative from those given below and rewrite the sentence:

Rectification entries are passed in ______

Select the most appropriate alternative from those given below and rewrite the sentence:

The type of error for which journal entry is always required for rectification ______

Select the most appropriate alternative from those given below and rewrite the sentence:

Errors occurred due to wrong posting are called as errors of______

Select the most appropriate alternative from those given below and rewrite the sentence:

If transaction is totally omitted from the Books, it is called ______

Select the most appropriate alternative from those given below and rewrite the sentence:

Suspense Account is opened when ____ does not tally

State whether the following statement is True or False with reason:

Trial Balance is prepared from the balance of ledger accounts.

State whether the following statement is True or False with reason:

A Trial Balance can agree in spite of certain errors.

State whether the following statement is True or False with reason:

Rectification entries are passed in Cash Book.

State whether the following statement is True or False with reason:

There is no need to open a Suspense Account if the Trial Balance agrees.

State whether the following statement is True or False with reason:

All the errors can be rectified only through Suspense Account.

Do you agree or disagree with the following statement:

The unintentional omission or commission of amounts and accounts while recording the transactions are known as an error.

Do you agree or disagree with the following statement:

The errors committed due to wrong recording, wrong posting, wrong totalling, wrong balancing, wrong calculations are known as Arithmetical errors.

Do you agree or disagree with the following statement:

When one or more debit errors happen to equal one or more credit errors it is said to be a Compensating error.

Do you agree or disagree with the following statement:

The agreement of Trial balance is not affected when a transaction is not recorded at all in the original Books.

Do you agree or disagree with the following statement:

When a transaction is not recorded according to the principles of accounting it is known as Compensating errors.

Complete the following sentence:

______ is assured only when there are no errors in the books of accounts.

Complete the following sentence:

Transactions recorded in contravention of the accounting principles are known as ______

Complete the following sentence:

______ entry depends generally on when the error is detected.

Complete the following sentence:

Temporary account opened to rectify the entry is known as ______

Complete the following sentence:

Errors are caused due to ______ recording of transactions.

Rectify the following errors:
1. Salary paid to Pravin was wrongly debited to his personal account ₹ 6,500/-
2. Cash Purchases ₹ 12,000/- from Siddhant Traders was debited to Siddhant Trader Account.
3. Paid Rent ₹ 5,000 to landlord Shantilal was debited to his personal account.
4. Received interest ₹ 700 from Bank was wrongly credited to Bank Account.
5. Advertisement expenses ₹ 5,000/- paid to Times of India was debited to Times of India.

Rectify the following errors:
1. Machinery purchased for ₹ 9,000/- has been debited to Purchase Account.
2. ₹ 15,000/- paid to Indus Company for Machinery purchased stand debited to Indus Company Account.
3. Printer Purchased for ₹ 10,000/- was wrongly passed through Purchase Book.
4. ₹ 800/- paid to Mohan as Legal Charges were debited to his personal account.
5. Cash paid to Ramesh ₹ 500/- was debited to Suresh.

Rectify the following errors:
1. A credit sale of goods to Sanjay ₹ 3,000/- has been wrongly passed through the ‘Purchase Book’.
2. A credit purchase of goods from Sheetal amounting to ₹ 2,000/- has been wrongly passed through the ‘Sales Book’.
3. A return of goods worth ₹ 500/- to Umesh was passed through the ‘Sales Return Book’.
4. A return of goods worth ₹ 900/- by Ganesh was entered in ‘Purchase Return Book’.
5. Credit Purchases from Neha ₹ 10,000/- were recorded as ₹ 11,000/-

Rectify the following errors:
1. Paid Rent ₹ 2,000/- to Nikhil has been debited to his personal account.
2. Total of the Sales Return Book is wrongly taken more by ₹ 200/-
3. Goods sold to Dhanraj ₹ 6,500/- on credit were not posted to his personal account.
4. Old Computer purchased was debited to Repairs account ₹ 8,000/-
5. Repairs to Furniture of ₹ 500/- have been debited to Furniture account.

Rectify the following errors:
1. Wages paid for the construction of Building ₹ 10,000/- was wrongly debited to Wages Account.
2. Cash received from Patel ₹ 5,000/- though recorded in Cash Book was not posted to his personal account in the Ledger.
3. Sold goods worth ₹ 9,000/- to Rohini has been wrongly debited to Mohini’s Account.
4. Material purchased for construction of Building was debited to Purchase Account ₹ 5,000/-

There was a difference of ₹ 1230/- in a Trial Balance. It was placed on the Debit side of Suspense A/c. Later on, the following errors were discovered. Pass rectifying entries and prepare Suspense A/c.
1. Sales Book was overcast by ₹ 1,000/-
2. Goods sold to Aarti for ₹ 4,400/- has been posted to her account as ₹ 4,000/-
3. Purchases Book was overcast by ₹ 100/-
4. An amount of ₹ 500/- received from Ranjeet, has not been posted to his account.
5. Goods sold to Sameer for ₹ 750/- were recorded in Purchase Book.
6. An amount of ₹ 500/- has been posted to the credit side of the Commission Account instead of ₹ 570/-

A bookkeeper finds that the debit side of the Trial Balance is short of ₹ 308/- and so for the time being, the balances of the side by putting the difference to Suspense Account. The following errors were disclosed.
1. The debit side of the purchases account was undercast by ₹ 100/-
2. ₹ 100/- is the monthly total of discount allowed to customers were credited to the discount account in the ledger.
3. An entry for goods sold of ₹ 102/- to Mihir was posted to his account as ₹ 120/-
4. ₹ 26/- appearing in the Cash Book as paid for the purchase of Stationery for office use have not been posted to Ledger.
5. ₹ 275/- paid by Mihir were credited to Mithali’s Account.
You are required to make the necessary Journal Entries and the Suspense Account.

The trial Balance of Anurag did not agree. It showed an excess credit of ₹ 6,000/-. He put the difference to Suspense Account. He discovered the following errors.
1. Cash received from Ramakant ₹ 8,000/- posted to his account as ₹ 6,000/-
2. Credit purchases from Naman ₹ 7,000/- were recorded in Sales Book. However, Naman’s Account was correctly credited.
3. Return Inwards Book overcast by ₹ 1,000/-
4. Total of Sales Book ₹ 10,000/- was not posted to Sales Account.
5. Machinery purchased for ₹ 10,000/- was posted to Purchases Account as ₹ 5,000/-.
Rectify the errors and prepare Suspense Account.

There was an error in the Trial Balance of Mr. Yashwant on 31st March 2019, and the difference in Books was carried to a Suspense Account. Ongoing through the Books you found that.

1. ₹ 1,000/- being purchases return were posted to the debit of Purchase Account.
2. ₹ 4,000/- paid to Badrinath was debited to Kedarnath’s Account.
3. ₹ 5,400/- received from Kishor was posted to the debit of his account.
4. Discount received ₹ 2,000/- was posted to the debit of Discount Allowed Account.
5. ₹ 2,740/- paid to Repairs to Motor Cycle was debited to Motor Cycle Account ₹ 1,740/-
Give Journal Entries to rectify the above errors and ascertain the amount transferred to Suspense Account on 31st March 2019 by showing the Suspense Account, assuming that the Suspense Account is balanced after the above corrections.

Rectify the following errors.
1. Goods purchased from Kishor ₹ 700/- were passed through Sales Book.
2. An item of ₹ 120/- in respect of purchase returns, has been wrongly entered in the Purchase Book.
3. Amount payable to Subhash for repairs done to Printer ₹ 180/- and new Printer supplied for ₹ 1,920/-, were entered in the Purchase Book as ₹ 2,000/-
4. Returned goods to Nitin ₹ 1,500/- was passed through Returns Inward Book.
5. An item of ₹ 450/- relating to the Prepaid Rent account was omitted to be brought forward.