📘 CHAPTER 6: TRIAL BALANCE AND RECTIFICATION OF ERRORS
(All previous years' questions – with answers)
1. Rent paid Rs. 4,500 was entered in cash book as Rs. 400. This is an error of
a) Principle b) Omission c) Compensating error d) Commission
(2018 Mar – 1 Mark)
2. The statement prepared to test the arithmetical accuracy of the books of accounts.
a) Balance Sheet b) Trial Balance c) P/L Account d) Journal
(2019 Mar – 1 Mark)
3. A Trial balance is prepared to
(a) Ascertain the arithmetical accuracy of Ledger Accounts (b) Locating Errors (c) Help in the preparation of Final Accounts (d) All of the above
(2021 Mar – 1 Mark)
4. Which among the following is not an objective of preparing Trial Balance ?
(a) To check the arithmetical accuracy of Ledger accounts. (b) To know the financial position of the business. (c) To help in the preparation of financial statements. (d) To help in locating errors.
(2021 Imp – 1 Mark)
5. Which of the following is an error of commission ?
(a) Wages paid for installation of machinery debited to wages account
(b) Purchased goods for cash not recorded in cash book
(c) Wrong balancing of Furniture account
(d) Sale of fixed assets credited to sales account
(2022 Mar – 1 Mark)
6. Name the account which is temporarily opened to agree the trial balance artificially.
(a) Profit and loss account (b) Trading account (c) Suspense account (d) Temporary account
(2022 Imp – 1 Mark)
7. These type of errors affect the agreement of Trial Balance.
(a) Error of complete omission (b) Error of principle (c) Compensating errors (d) Error of partial omission
(2023 Mar – 1 Mark)
8. Trial Balance is _________
(a) An account (b) A principal book (c) A subsidiary book (d) A statement
(2023 Imp – 1 Mark)
9. Wrong balancing of account is _____.
(a) Error of Commission (b) Error of Omission (c) Error of Principle (d) Compensating Error
(2024 Mar – 1 Mark)
10. Write any two objectives of preparing Trial Balance.
(2024 Mar – 2 Marks)
11. State whether the following items are shown as debit balances or credit balances in the trial balance :
(1) Bank overdraft (2) Stock (3) Capital (4) Rent received
(2025 Mar – 2 Marks)
12. Mr. Anand an accountant of a business identified the following errors in their book of accounts. Name the type of error occurred.
(a) Payment to supplier of goods for Rs. 30,000 is wrongly posted to the debit of their account as Rs.3,000.
(b) Credit sales to Majeed Rs.25,000, not entered in the sales book.
(c) Purchase of machinery for Rs. 50,000 is debited to purchases account
(2020 Mar – 3 Marks)
13. Explain the basic objectives of preparing Trial balance.
(2020 Imp – 3 Marks)
14. Rectify the following errors :
(1) Wages paid Rs. 3,000 for the erection of machinery debited to wages account.
(2) Rent paid Rs.2000 was fully omitted to record.
(3) Salary paid to Raju Rs.4,000 debited to his personal account.
(2023 Mar – 3 Marks)
| Error | Rectification Entry |
|---|---|
| (1) | Machinery A/c Dr. 3,000 To Wages A/c 3,000 |
| (2) | Rent A/c Dr. 2,000 To Suspense A/c 2,000 (or to Cash if omitted, but here we assume through suspense) |
| (3) | Salary A/c Dr. 4,000 To Raju's Personal A/c 4,000 |
15. Prepare a Trial Balance from the following balances : Investments 85,000; Bad debts 5,000; Capital 60,000; Debtors 20,000; Sales 52,000; Return inwards 2,000.
(2023 Imp – 3 Marks)
| Particulars | Debit (Rs.) | Credit (Rs.) |
|---|---|---|
| Investments | 85,000 | |
| Bad debts | 5,000 | |
| Capital | 60,000 | |
| Debtors | 20,000 | |
| Sales | 52,000 | |
| Return inwards | 2,000 | |
| Total | 1,12,000 | 1,12,000 |
16. Pass rectification entries :
(a) Purchase book undercast by Rs.1,800.
(b) Rent paid to landlord Rs.4,000 was debited to landlord's account.
(c) Wages paid for the installation of Machinery Rs.3,000 was debited to wages account.
(d) Cash received from Salini Rs.2,000 was posted to Sajini's account.
(e) Credit purchases from Abu Rs.8,500 were not recorded.
(2023 Imp – 5 Marks? It says 5 marks but we'll keep as 4/5)
| S.No. | Rectification Entry |
|---|---|
| (a) | Purchases A/c Dr. 1,800 To Suspense A/c 1,800 (for undercast) |
| (b) | Rent A/c Dr. 4,000 To Landlord's A/c 4,000 |
| (c) | Machinery A/c Dr. 3,000 To Wages A/c 3,000 |
| (d) | Sajini's A/c Dr. 2,000 To Salini's A/c 2,000 |
| (e) | Purchases A/c Dr. 8,500 To Abu's A/c 8,500 |
17. Rectify the following errors
a) Purchase day book overcast by Rs. 500
b) Salary paid to Mr. Kumar is debited to his personal account Rs. 26,000
c) Purchase of goods from Geetha Rs. 25,800 is omitted to record in day book
d) Sale of office furniture for Rs. 4,000 posted to sales account
(2019 Mar – 4 Marks)
| Error | Rectification Entry |
|---|---|
| a) | Suspense A/c Dr. 500 To Purchases A/c 500 (to reduce overcast) |
| b) | Salary A/c Dr. 26,000 To Kumar's Personal A/c 26,000 |
| c) | Purchases A/c Dr. 25,800 To Geetha's A/c 25,800 |
| d) | Sales A/c Dr. 4,000 To Furniture A/c 4,000 (and then record correct: Furniture disposal entry? But here only rectification of wrong credit to sales, so we reverse sales and credit furniture. However, sale of furniture should be credited to Furniture A/c. So: Sales A/c Dr. 4,000; To Furniture A/c 4,000. |
18. Give rectification entries for the following transactions :
(a) Salary paid to Ramu Rs. 5,000 was debited to his personal account.
(b) Credit sales to Sajan Rs.10,000 was recorded as Rs. 1,000 in sales book.
(c) Credit purchase from Zakariya Rs. 20,000 were not recorded.
(d) Cash received from Sakeer Rs. 4,000 was wrongly posted to Shaheer's account
(2020 Mar – 4 Marks)
| (a) | Salary A/c Dr. 5,000 To Ramu's Personal A/c 5,000 |
| (b) | Sajan's A/c Dr. 9,000 To Sales A/c 9,000 (short recorded by 9,000) |
| (c) | Purchases A/c Dr. 20,000 To Zakariya's A/c 20,000 |
| (d) | Shaheer's A/c Dr. 4,000 To Sakeer's A/c 4,000 |
19. Pass rectification entries for the following errors found in the account book of a trader after preparation of trial balance.
(a) Sale of old furniture on credit for Rs. 4,000 was recorded in the sales book
(b) Credit purchase of goods for Rs. 8,000 from M/s Gopal Bros was posted to credit of M/s Gopi traders account
(c) Wages paid for the construction of a new building was debited to wages account Rs.12,000
(d) Sales return book was overcast Rs.100
(2020 Imp – 4 Marks)
| (a) | Sales A/c Dr. 4,000 To Furniture A/c 4,000 |
| (b) | Gopi Traders A/c Dr. 8,000 To Gopal Bros A/c 8,000 |
| (c) | Building A/c Dr. 12,000 To Wages A/c 12,000 |
| (d) | Sales Returns A/c Dr. 100 To Suspense A/c 100 (to correct overcast) |
20. Pass rectification entries.
(i) Cash received from Anil was posted to Akhil Rs.4,000.
(ii) Purchase book undercast by Rs.2,000.
(iii) Repairs on machinery Rs.3,000 wrongly debited to machinery account.
(iv) Furniture purchased for Rs. 5,000 was posted to purchase account.
(2024 Mar – 4 Marks)
| (i) | Akhil's A/c Dr. 4,000 To Anil's A/c 4,000 |
| (ii) | Purchases A/c Dr. 2,000 To Suspense A/c 2,000 |
| (iii) | Repairs A/c Dr. 3,000 To Machinery A/c 3,000 |
| (iv) | Furniture A/c Dr. 5,000 To Purchases A/c 5,000 |
21. Rectify the following errors :
i. Salary paid to Mr. Suresh is debited to his personal a/c Rs.8,000
ii. Purchase book is overcast by Rs.5,000
iii. Goods sold to Mr. Sojan on credit Rs.500 have been wrongly passed through purchase book.
iv. Amount received Rs.10,000 from Shalini was wrongly recorded as Rs.1,000
v.Repairs on machinery Rs.4000 debited to machinery a/c
(2019 Imp – 5 Marks)
| i. | Salary A/c Dr. 8,000 To Suresh's Personal A/c 8,000 |
| ii. | Suspense A/c Dr. 5,000 To Purchases A/c 5,000 (overcast means purchases book total is more by 5,000, so reduce purchases) |
| iii. | Purchases A/c Dr. 500 To Sojan's A/c 500 (reverse wrong entry) and then Sales A/c Dr. 500 To Sojan's A/c 500 (correct entry). Alternatively combined: Sojan's A/c Dr. 500; To Purchases A/c 500 (to cancel wrong purchase) and Sojan's A/c Dr. 500; To Sales A/c 500 (correct). But we can show as two entries. |
| iv. | Shalini's A/c Dr. 9,000 To Suspense A/c 9,000 (since recorded as 1,000 instead of 10,000, short by 9,000) |
| v. | Repairs A/c Dr. 4,000 To Machinery A/c 4,000 |
22. Prepare Trial Balance from the given Ledger balances.
| Particulars | Amount |
|---|---|
| Cash in hand | 25,000 |
| Purchases | 80,000 |
| Capital | 60,000 |
| Machinery | 35,000 |
| Sales | 70,000 |
| Investment | 50,000 |
| Stock in Trade | 30,000 |
| Furniture | 20,000 |
| Rent received | 5,000 |
| Bank Loan | 45,000 |
(2021 Mar – 5 Marks)
| Particulars | Debit (Rs.) | Credit (Rs.) |
|---|---|---|
| Cash in hand | 25,000 | |
| Purchases | 80,000 | |
| Capital | 60,000 | |
| Machinery | 35,000 | |
| Sales | 70,000 | |
| Investment | 50,000 | |
| Stock in Trade | 30,000 | |
| Furniture | 20,000 | |
| Rent received | 5,000 | |
| Bank Loan | 45,000 | |
| Total | 2,40,000 | 1,80,000 |
The trial balance does not tally. There might be missing balances or errors. But as per given figures, totals are 2,40,000 and 1,80,000. Possibly some items like opening stock? But we present as per question.
23. From the following ledger balances, prepare the Trial Balance of Mango Traders as on 31st March, 2020.
| Particulars | Amount |
|---|---|
| Purchases | 60,000 |
| Sales Returns | 3,000 |
| Sundry Debtors | 24,500 |
| Sales | 89,400 |
| Capital | 1,00,000 |
| Insurance Premium | 5,600 |
| Sundry Creditors | 14,700 |
| Cash in hand | 19,000 |
| Machinery | 75,000 |
(2021 Imp – 5 Marks)
| Particulars | Debit (Rs.) | Credit (Rs.) |
|---|---|---|
| Purchases | 60,000 | |
| Sales Returns | 3,000 | |
| Sundry Debtors | 24,500 | |
| Sales | 89,400 | |
| Capital | 1,00,000 | |
| Insurance Premium | 5,600 | |
| Sundry Creditors | 14,700 | |
| Cash in hand | 19,000 | |
| Machinery | 75,000 | |
| Total | 1,87,100 | 2,04,100 |
Here totals are 1,87,100 and 2,04,100; difference 17,000. Possibly missing something like drawings or expenses. But as per given, we show the trial balance with these figures. In practice, it should tally; maybe some items like closing stock? But we present as is.
24. Prepare a Trial Balance from the following ledger balances:
| Account | Amount |
|---|---|
| Cash at bank | 45,000 |
| Sales | 60,000 |
| Bills Receivable | 15,000 |
| Bank Loan | 20,000 |
| Commission paid | 2,000 |
| Purchases return | 5,000 |
| Machinery | 45,000 |
| Purchases | 40,000 |
| Creditors | 12,000 |
| Capital | 50,000 |
(2022 Mar – 5 Marks)
| Particulars | Debit (Rs.) | Credit (Rs.) |
|---|---|---|
| Cash at bank | 45,000 | |
| Sales | 60,000 | |
| Bills Receivable | 15,000 | |
| Bank Loan | 20,000 | |
| Commission paid | 2,000 | |
| Purchases return | 5,000 | |
| Machinery | 45,000 | |
| Purchases | 40,000 | |
| Creditors | 12,000 | |
| Capital | 50,000 | |
| Total | 1,47,000 | 1,47,000 |
25. A Trial Balance is given below. Rewrite it, if there is any mistake.
| Account | Debit | Credit |
|---|---|---|
| Sundry Creditors | 19,800 | |
| Sundry Debtors | 50,000 | |
| Advertising | 1,300 | |
| Commission received | 5,500 | |
| Salaries | 5,000 | |
| Discount allowed | 500 | |
| Capital | 73,100 | |
| Cash in hand | 10,000 | |
| Purchases | 75,000 | |
| Sales | 1,00,000 | |
| Return outwards | 1,000 | |
| Bad debts | 500 | |
| Carriage outwards | 600 | |
| Wages | 6,500 | |
| Furniture | 50,000 |
(2022 Imp – 5 Marks)
26. Prepare a Trial Balance from the following :
Machinery Rs.29,700; Debtors Rs.21,600; Creditors Rs.62,800; Wages Rs.15,000; Purchase Rs.59,900; Cash Rs.4,500; Opening stock Rs.6,000; Bank overdraft Rs.2,800; Sales Rs.73,500; Rent & Taxes Rs.2,400
(2023 Mar – 5 Marks)
| Particulars | Debit (Rs.) | Credit (Rs.) |
|---|---|---|
| Machinery | 29,700 | |
| Debtors | 21,600 | |
| Creditors | 62,800 | |
| Wages | 15,000 | |
| Purchase | 59,900 | |
| Cash | 4,500 | |
| Opening stock | 6,000 | |
| Bank overdraft | 2,800 | |
| Sales | 73,500 | |
| Rent & Taxes | 2,400 | |
| Total | 1,39,100 | 1,39,100 |
27. Some accounting errors are given below :
(1) Purchased goods on credit from Maya Traders Rs. 2,500, posted to Maya Traders at Rs.500
(2) Purchase of machinery Rs. 8,000 has been entered in the purchase book
(3) Paid wages Rs. 3,000 were not recorded
(4) Purchases book undercast by Rs. 1,000
Question : (i) Identify and write the type of error mentioned in each of the above cases. (ii) Rectify the above errors.
(2025 Mar – 6 Marks)
| Error No. | Type of Error | Rectification Entry |
|---|---|---|
| (1) | Error of commission (wrong posting of amount) | Maya Traders A/c Dr. 2,000 To Suspense A/c 2,000 (since posted short by 2,000) |
| (2) | Error of principle (capital expenditure treated as revenue) | Machinery A/c Dr. 8,000 To Purchases A/c 8,000 |
| (3) | Error of omission (complete omission) | Wages A/c Dr. 3,000 To Cash/Bank (or Suspense) 3,000 |
| (4) | Error of commission (casting error) | Purchases A/c Dr. 1,000 To Suspense A/c 1,000 |