State the three objectives of Trial Balance.

3

(a)

Distinguish between Errors of Commission and Errors of Principle.

3

(a)

Classify Accounting Errors.

3

(a)

Under which side of the Trial Balance the following ledger balances will appear:
(i) Purchases
(ii) Capital
(iii) Trade Receivable
(iv) Drawings
(v) Discount Received
(vi) Buildings

3

(a)

What do you mean by Trial Balance? An accountant of a company in order to match the trial balance passed a dummy entry without any proof of the transaction and did not even inform the seniors about it. Identify the value being violated by the accountant.

3

(a)

How is balance remaining in suspense account shown?

3

(a)

State the meaning of a Trial Balance.

3

(a)

Give one example of Error of Commission.

3

(a)

What are the steps taken by an accountant to locate the errors in the Trial Balance?

3

(a)

Furniture purchased from M/s Rao Furnishings for Rs 8,000 was entered into the purchases book.
This is the error of ....................
State the wrong entry recorded in the book of accounts.

Correct effect should have been:

 The rectification should have been:

3

(a)