NCERT Solutions for Class 11 Accountancy Chapter 6 Trial Balance and Rectification of Errors

Accountancy is a very important subject for Class 11 commerce students. In Class 11, students are introduced to the subject for the very first time and the basics learnt here will stay with them throughout their higher education as well. This makes it very important for students to give proper attention to this subject.

With NCERT Solutions for Class 11 Accountancy Chapter 6 by Extramarks, students get an invaluable resource to help them with their preparation. It includes a compilation of detailed answers to the questions given at the end of Chapter 6, Trial Balance and Rectification of Errors, which students can refer to for their preparations and for help with their assignments.

Class 11 Accountancy NCERT Solutions Chapter 6 Trial Balance and Rectification of Errors

Access NCERT Solutions for Class 11 Accountancy Chapter 6 – Trial Balance and Rectification of Errors

NCERT Accountancy Class 11 Solutions

Class 11 Accountancy Solutions by Extramarks are detailed answers to the questions given at the end of the NCERT textbook chapters. These solutions are prepared by subject matter experts that give special attention to accuracy and provide in-depth explanations for the students’ reference. The NCERT Solutions for Accountancy subject can be used as a quick guide for preparing oneself for the upcoming Class 11 examinations.

What is a Trial Balance?

The trial balance is a bookkeeping spreadsheet that carries balances of all the general ledger accounts assembled into equal debit and credit account columns. Generally, a company prepares a trial balance periodically, at the end of every reporting session. It helps the company ensure that its bookkeeping system is mathematically accurate. The trial balance is considered to be balanced only when the total debits equal the total credits, and at the same time, the ledgers must be free of mathematical errors.

What Are the Two Types of Errors of Principles?

The two types of errors of principles are given below:

  • Wrong Casting: The total of the purchase book has an increased amount of Rs. 7,000 in excess. As soon as this sum of money is posted on the debit column of the purchase account, there will be an excess of Rs. 7,000 on the debit side. Hence, the trial balance will detect a difference, refusing to agree.
  • Wrong Posting of Amount: Suppose some goods have been purchased for Rs. 700 from DCE. While posting this on the credit column, this amount was mistaken for Rs. 70 the trial balance will show a difference and disagreement. The amount should be correctly entered to avoid interruptions.

What Are the Two Errors of Commission?

Given below are the two errors of commission:

  • Posting the Wrong Amount: Let us say that you have bought goods from ABC for Rs. 8,000, but when making the entry of this amount on ABC’S credit column, an amount of Rs. 800 has been mistakenly entered instead of Rs. 8000. In this case, the trial balance will show a difference and will not agree.
  • Posting on the wrong side: Posting on the wrong side error occurs when, for example, the goods purchased from ABC have been recorded on the debit column instead of the credit column. The trial balance will again show a difference and will refuse to agree.

What Are the Methods of Preparing a Trial Balance?

The methods of preparing a trial balance have been given below:

  1. Totals Method: Under the totals method, the total of both the debit and credit columns should be equal because accounting, as we know, is all about the double-entry systems.
  2. Balances Method: The closing balances are in focus under the balance method. In this, the closing balances of the accounts are calculated, and then proceedings are carried forward.
  3. Totals-cum-Balances Method: The totals-cum-balances method uses both the total and balance methods. It has four columns in total, out of which two are used for writing credit details and debit details, and the other two are used for noting down the balances of the accounts.

What is a Suspense Account?

The account used to handle doubtful entries is known as a suspense account. It is a temporarily created account and comes into action to avoid delays in preparing financial statements. A suspense account may represent a repository for financial transactions such as cash receipts and journal entries that have been entered with wrong or invalid account numbers. The account  entered may or may not exist, or it might be a deleted one. This type of situation often occurs when the debit side fails to tally with the credit side.

Fun Facts

  • Did you know that the word “Bookkeeping” is the only English word having three sets of double letters, one after the other?
  • Luca Pacioli, the father of accounting, gave Mathematics lessons to Leonardo da Vinci.

FAQs (Frequently Asked Questions)

When there are bulk errors, and the effect on both the credit and debit sides of errors is null, it can be termed as compensating errors. Compensating errors have zero impact on the tallying of the trial balance. These are generally very difficult to be located since they occur in the same period and the same account.

There are four types of errors in general which are given below:

  • Errors of commission occur due to the incorrect posting of transactions.
  • Errors of omission occur while recording transactions.
  • Errors of principles occur when principles are violated
  • Compensating errors occur when there exist more than two errors.

Trial balances agree at times, but they should not be taken for granted. There are a few limitations to the trial balance like it fails to detect the errors that are not recorded in the journals. The compensating errors and mistakes also go unnoticed by the trial balance. When the transaction that has been originally recorded contains some errors, it is carried forward.