Agreement of trial balance is affected by:

1

(a)

One sided error only

(b)

Two sided error only

(c)

Both a and b

(d)

None of the above

Which of the following is not an error of commission:

1

(a)

Overcasting of sales book

(b)

Credit sales to Ramesh Rs 5,000 credited to his account

(c)

Wrong balancing of machinery account

(d)

Cash sales not recorded in cash book

If suspense account does not balance off even after rectification of errors it implies that

1

(a)

There are some one sided errors only in the books yet to be located

(b)

There are no more errors yet to be located

(c)

There are some two sided error only yet to be located

(d)

There may be both one sided errors and two sided errors yet to be located.

If wages paid for installation of new machinery is debited to wages Account, it is:

1

(a)

An error of commission

(b)

An error of principle

(c)

A compensating error

(d)

An error of omission

Trial balance is:

1

(a)

An account

(b)

A statement

(c)

A subsidiary book

(d)

A principal book

What is meant by rectification of errors?

1

(a)

Rectification of errors means correction of errors by way of passing Journal entries.

Identify two types of errors for the purpose of rectification of errors.

1

(a)

(i) One-sided errors,
(ii) Two-sided errors

What is meant by one-sided errors?

1

(a)

One-sided errors are the errors which affect only one account. Trial Balance does not tally in this case.

What is meant by two-sided errors?

1

(a)

Two-sided errors are the errors which affect two or more than two accounts at the same time. Trial balance will tally in this case.

Mention any two one-sided errors.

1

(a)

(i) Totalling errors.
(ii) Balancing errors.

Name any two errors which affect trial balance.

1

(a)

(i) Errors in carrying forward.
(ii) Errors of posting.

What is meant by Errors of Commission?

1

(a)

Errors of commission are the errors which are committed due to wrong posting of transactions, wrong totalling or balancing of the accounts or wrong casting of the subsidiary books, etc.

Give two examples of Errors of Commission.

1

(a)

What is meant by Errors of Omission?

1

(a)

Errors of omission are the errors which are committed due to omission from recording in the books of original record.

Give two examples of Errors of Omission.

1

(a)

(i) Sale of Goods to Ajay not recorded at all
(ii) Payment of salaries not recorded at all.

State the meaning of a Trial Balance?

3

(a)

Distinguish between Errors of Commission and Errors of Principle.

3

(a)

Explain the Errors of Omission. Give examples.

3

(a)

If suspense account does not balance-off even after rectification of errors, what does it mean?

3

(a)

How is balance remaining in suspense account shown?

3

(a)

Define Trial Balance and name any three errors which are disclosed by the Trial Balance.

4

(a)

Describe the functions of a Trial Balance

4

(a)

Trial Balance of Anant Ram did not agree. It showed an excess credit of Rs 16,000. He put the difference to Suspense A/c. Subsequently the following errors were located:
(i) Cash received from Mohit Rs 4,000 was posted to Mahesh as Rs 1,000.
(ii) Cheque for Rs 5,800 received from Arnav in full settlement of his account of Rs 6,000 was dishonoured. No entry was passed in the books on dishonour of the cheque.
(iii) Rs 800 received from Khanna, whose account had previously been written off as bad, was credited to his account.
(iv) Credit sales to Manav for Rs 5,000 was recorded through the purchases book as Rs 2,000.
(v) Purchases book undercast by Rs 1,000.
(vi) Repairs on Machinery Rs 1,600 wrongly debited to Machinery A/c as Rs 1,000.
(vii) Goods returned by Nathu Rs 3,000 were taken into stock. No entry was passed in the books. Rectify the above errors and prepare suspense A/c.

6

(a)

Describe the purpose for the preparation of Trial Balance.

6

(a)