From the chapter Rectification of Errors, some of the important questions are covered in this question paper. The questions are covers from the book back and the previous year questions.
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Questions:

Generic 3

6 x 3 = 18

Write a note on one-sided errors and two sided errors.

What are the errors disclosed by a trial balance?

What are the errors not disclosed by a trial balance?

The following errors were located after the preparation of the trial balance. Assume that there exists a suspense account. Rectify them.
(a) Sale of goods on credit to Arun for Rs. 152 posted to his account as Rs. 125.
(b) Bought goods from Lakshmi on credit for Rs. 550, credited to her account as Rs. 505.
(c) Purchase of furniture from Abirupa for Rs. 404 on credit was debited to furniture account as Rs. 440.
(d) Purchased machinery for cash Rs. 200 was not posted to machinery account.
(e) The total of purchases book Rs. 89 was carried forward as Rs. 98.

The following errors were located before the preparation of the trial balance. Rectify them.
(a) Paid Rs. 500 to Angappan were wrongly debited to Angannan’s account.
(b) Sale of furniture for Rs. 750 was credited to sales account.
(c) Purchase of goods from Bagya for Rs. 2,100 was wrongly passed through sales book.
(d) Wages Rs. 1,000 paid on erection of machinery were debited to wages account.

The following errors were located before the preparation of the trial balance. Rectify them.
(a) Goods sold to Anand for Rs. 1,000 on credit was not entered in the sales book.
(b) An amount of Rs. 400 paid for repairs to the machinery stands wrongly posted to machinery account.
(c) Salaries Rs. 2,000 paid to Gandhiraj was wrongly debited to his personal account in the ledger.

Generic 5

2 x 5 = 10

Pass journal entries to rectify the following errors located after the preparation of the trial balance. Assume that there exists a suspense account.
(a) The total of sales book was undercast by Rs. 2,000.
(b) The purchase of machinery for Rs. 3,000 was entered in the purchases book.
(c) A credit sale of goods for Rs. 450 to Mathi was posted in his account as Rs. 540.
(d) The purchases returns book was overcast by Rs. 200.
(e) The total of sales book Rs. 1,122 were wrongly posted in the ledger as Rs. 1,222.

The following errors were located after the preparation of the trial balance. Rectify them.
(a) Paid Rs. 50 to Anitha was wrongly debited to Vanitha account.
(b) Sale of furniture for Rs. 500 was credited to sales account.
(c) Purchased goods from Natarajan on credit for Rs. 750 were wrongly passed through sales book.
(d) Wages Rs. 1,000 paid on erection of machinery was debited to wages account.

Multiple Choice Question

10 x 1 = 10

Which of the following errors will be rectified using suspense account?

(a)

Purchases returns book was undercast by Rs.100

(b)

Goods returned by Narendran was not recorded in the books

(c)

Goods returned by Akila 900 was recorded in the sales returns book as Rs.90

(d)

A credit sale of goods to Ravivarman was not entered in the sales book

10.

The total of purchases book was overcast. Which of the following accounts should be debited in the rectifying journal entry?

(a)

Purchases account

(b)

Suspense account

(c)

Creditor account

(d)

None of the above

11.

A credit purchase of furniture from Athiyaman was debited to purchases account. Which of the following accounts should be debited while rectifying this error?

(a)

Purchases account

(b)

Athiyaman account

(c)

Furniture account

(d)

None of these

12.

Goods returned by Senguttuvan were taken into stock, but no entry was passed in the books. While rectifying this error, which of the following accounts should be debited?

(a)

Senguttuvan account

(b)

Sales returns account

(c)

Returns outward account

(d)

Purchases returns account

13.

Which of the following errors will not affect the trial balance?

(a)

Wrong balancing of an account

(b)

Posting an amount in the wrong account but on the correct side

(c)

Wrong totalling of an account

(d)

Carried forward wrong amount in a ledger account

14.

Wages paid for installation of machinery wrongly debited to wages account is an error of _______.

(a)

Partial omission

(b)

Principle

(c)

Complete omission

(d)

Duplication

15.

A transaction not recorded at all is known as an error of _______.

(a)

Principle

(b)

Complete omission

(c)

Partial omission

(d)

Duplication

16.

The difference in trial balance is taken to _______.

(a)

The capital account

(b)

The trading account

(c)

The suspense account

(d)

The profit and loss account

17.

Errors not affecting the agreement of trial balance are _______.

(a)

Errors of principle

(b)

Errors of overcasting

(c)

Errors of undercasting

(d)

Errors of partial omission

18.

Error of principle arises when _______.

(a)

There is complete omission of a transaction

(b)

There is partial omission of a transaction

(c)

Distinction is not made between capital and revenue items

(d)

There are wrong postings and wrong castings

Generic 2

6 x 2 = 12

19.

Give journal entries to rectify the following errors discovered after the preparation of trial balance:
(a) Purchases book was overcast by Rs.10,000.
(b) Repairs to furniture of Rs.500 was debited to furniture account.
(c) A credit sale of goods to Akilnilavan for Rs.456 was credited to his account as Rs.654.

20.

What are compensating errors?

21.

What is meant by error of complete omission?

22.

What is meant by error of partial omission?

23.

What is meant by error of principle?

24.

What is meant by rectification of errors?

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Answers Key:

Generic 3

6 x 3 = 18

One-sided errors :
(i) When one-sided error is detected before preparing the trial balance, no journal entry is required to be passed in the books. .
(ii) In such cases, the error can be rectified by giving an explanatory note in the account affected as to whether the concerned account is to be debited or credited.
Two-sided errors :
When two-sided error is detected before preparing the trial balance, it must be rectified by passing a rectifying journal entry in the journal proper after analysing the error.

Certain errors affect the agreement of trial balance. If such errors have occurred in the books of accounts, the total of debit and credit balances will not be the same. The trial balance will not tally.
Examples of such errors are follows:
(i) Entered in the journal but posted to one account and omitted to be posted to the other.
(ii) Posting an amount to the wrong side of a ledger account
(iii) Posting twice in a ledger account
(iv) Over-casting or Under-casting in a subsidiary book
(v) Posting a wrong amount to the correct sideof an account
(vi) Posting a wrong amount to the wrong side of an account
(vii) Errors arising in carrying forward the page total from one page to the next page of an account or subsidiary book.
(viii) Errors arising in the balancing of an account.
(ix) Omission to post an entry from a subsidiary book.

Certain errors will not affect the agreement of trial balance. Though such errors occur in the books of accounts, the total of debit and credit balance will be the same. The trial balance will tally.
Examples of such errors are as follows:
(i) Treating revenue expenditure as capital expenditure
(ii) Omitting a transaction completely
(iii) Entering a transaction in a wrong subsidiary book
(iv) Entering a transaction twice in a subsidiary book or journal
(v) Entering the amount of a transaction wrongly in the journal
(vi) Entering the amount of a transaction wrongly in a subsidiary book.

	Particulars		Dr.	Cr.
a	Arun A/c	Dr.	27	27
	To Suspense A/c
	(Wrong amount posted to Arun account rectified)
b	Suspense A/c	Dr.	45
	To Lakshmi A/c			45
	(Short credit to Lakshmi account rectified)
c	Suspense A/c	Dr.	36
	To Furniture A/c			36
	(Excess debit to furniture account rectified)
d	Machinery A/c	Dr	200
	To Suspense A/c			200
	(Omission to debit machinery account rectified)
e	Suspense A/c	Dr	9
	To Purchases A/c			9
	(Excess amount carried forward to purchases account rectified)

	Particulars		Dr.	Cr.
a	Angappan A/c	Dr.	500
	To Angannan A/c			500
	(Being the amount paid to Angappan wrongly debited to Angannan’s account, now rectified)
b	Sales A/c	Dr.	750
	To Furniture A/c			750
	(Being the sale of furniture wrongly credited to sales account, now rectified)
c	Purchases A/c	Dr.	2,100
	Sales A/c	Dr.	2,100
	To Bagya A/c			4,200
	(Being purchases from Bagya wrongly passed through sales book, now rectified)
d	Machinery A/c	Dr.	1,000
	To Wages A/c			1,000
	(Being wages paid for erection of machinery wrongly debited to wages account, now rectified)

Note: Method of deriving the rectifying entries

	Wrong Entry	Correct Entry	Rectifying Entry
a	Angannan A/c Dr. 500 To Cash A/c 500	Angappan A/c Dr. 500 To Cash A/c 500	Angappan A/c Dr. 500 To Angannan A/c 500
b	Cash A/c Dr. 750 To Sales A/c 750	Cash A/c Dr. 750 To Furniture A/c 750	Sales A/c Dr. 750 To Furniture A/c 750
c	Bagya A/c Dr. 2,100 To Sales A/c 2,100	Purchases A/c Dr. 2,100 To Bagya A/c 2,100	Purchases A/c Dr. 2,100 Sales A/c Dr. 2,100 To Bagya A/c 4,200
d	Wages A/c Dr. 1,000 To Cash A/c 1,000	Machinery A/c Dr. 1,000 To Cash A/c 1,000	Machinery A/c Dr. 1,000 To Wages A/c 1,000

Rectifying entries

	Particulars	Dr.	Cr.
a	Anand A/c Dr. To Sales A/c (Being the sale of goods to Anand not entered in sales book, now rectified)	1,000	1,000
b	Repairs A/c Dr. To Machinery A/c (Being the repairs wrongly debited to machinery account, now rectified)	400	400
c	Salaries A/c Dr. To Gandhiraj A/c (Being salaries paid to Gandhiraj wrongly debited to his account, now rectified)	2,000	2,000

Note: Method of deriving the rectifying entries

	Wrong Entry	Correct Entry	Rectifying Entry
a	Nil (Complete Omission)	Anand A/c Dr. 1,000 To Sales A/c 1,000	Anand A/c Dr. 1,000 To Sales A/c 1,000
b	Machinery A/c Dr. 400 To Cash A/c 400	Repairs A/c Dr. 400 To Cash A/c 400	Repairs A/c Dr. 400 To Machinery A/c 400
c	Gandhiraj A/c Dr. 2,000 To Cash A/c 2,000	Salary A/c Dr. 2,000 To Cash A/c 2,000	Salary A/c Dr. 2,000 To Gandhiraj A/c 2,000

Generic 5

2 x 5 = 10

	Particulars		Dr.	Cr.
a	Suspense A/c	Dr	2,000
	To Sales A/c			2,000
	(Under casting in the sales book rectified)
b	Machinery A/c	Dr	3,000
	To Purchases A/c			3,000
	(Purchase of machinery wrongly entered in the purchases book rectified)
c	Suspsense A/c	Dr	9
	To Mathi A/c			9
	(Excess amount posted to the debit of Mathi rectified)
d	Purchase returns A/c	Dr	200
	To Suspense A/c			200
	(Overcasting in the purchase returns book rectified)
e	Sales A/c	Dr	100
	To Suspense A/c			100
	(Excess amount carried forward in the sales book rectified)

	Particulars		Dr.	Cr.
a	Anitha A/c	Dr	50
	To Vanitha A/c			50
	(Amount paid to Anitha wrongly debited to Vanitha account, now rectified)
b	Sales A/c	Dr	500
	To Furniture A/c			500
	(Sale of furniture wrongly credited to sales account, now rectified)
c	Purchases A/c	Dr	750
	Sales A/c	Dr	750
	To Natarajan A/c			1,500
	(Purchases from Natarajan wrongly passed through sales book, now rectified)
d	Machinery A/c	Dr	1.000
	To Wages A/c			1,000
	(Wages paid for erection of machinery wrongly debited to wages account, now rectified)

Multiple Choice Question

10 x 1 = 10

(a)
Purchases returns book was undercast by Rs.100

10.

(b)
Suspense account

11.

12.

(b)
Sales returns account

13.

(b)
Posting an amount in the wrong account but on the correct side

14.

(b)
Principle

15.

(b)
Complete omission

16.

17.

(a)
Errors of principle

18.

Generic 2

6 x 2 = 12

19.

Rectification of Errors S.No. Particulars L.F. Debit Rs Credit Rs (a) Suspense A/c Dr. 10,000 To Purchases A/c 10,000 (Excess overcast in Purchases book now rectified) (b) Furntiure repairs A/c Dr. 500 To Furntiure A/c 500 (Being correcting of wrong debit to furniture account for repairs made) (c) Suspense A/c Dr. 1,110 To Akilnilavan A/c 1,110 (Being credit sale to Akilnilavan was credited to his account as Rs 654 now rectified)

20.

(i) The errors that make up for each other or neutralise each other are known as compensating errors. These errors may occur in related or unrelated accounts.
(ii) Thus, excess debit or credit in one account may be compensated by excess credit or debit in some other account. These are also known as offsetting errors.

21.

It means the failure to record a transaction in the journal or subsidiary book or failure to post both the aspects in ledger. This error affects two or more accounts.

22.

(i) When the accountant has failed to record a transaction partially, it is known as error of partial omission.
(ii) This error usually occurs in posting. This error affects only one account.

23.

Error of principle means the mistake committed in the application of fundamental accounting principles in recording a transaction in the books of accounts.

24.

(i) The correction of accounting errors in a systematic manner is called the rectification of errors.
(ii) In other words, the process of systematically correcting the accounting errors is known as rectification of errors.