Important Questions for CBSE Class 11 Accountancy Chapter 6 – Trial Balance and Rectification of Errors

Important Questions Class 11 Accountancy Chapter 6 – Trial Balance and Rectification of Errors

In Accountancy, the basic principle states that every debit always has equal credit. According to this principle, the debit and the credit balance should always match. But how is matching the debit and credit balances confirmed by the Accountants? Preparation of Trial and Balance helps ascertain the accuracy of the debit and credit amounts and ensures that the transaction is correctly recorded.

Chapter 6 in Class 11 Accountancy is Trial and Balance and Rectification of Errors. This chapter provides an overview of preparing a trial and balance account, identifying the errors, rectifying them and preparing a suspense account. The creation of Trial and Balance is an essential step in the accounting process; hence it will be highly beneficial for the students to go through the Trial Balance Important Questions for Class 11 Accountancy Chapter 6 while studying for this chapter.

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CBSE Class 11 Accountancy Important Questions
Sr No. Chapters Chapters Name
1 Chapter 1 Introduction to Accounting
2 Chapter 2 Theory Base of Accounting
3 Chapter 3 Recording of Transactions – 1
4 Chapter 4 Recording of Transactions II (Financial Accounting – I)
5 Chapter 5 Bank Reconciliation Statement
6 Chapter 6 Trial Balance and Rectification of Errors
7 Chapter 7 Depreciation, Provisions & Reserves
8 Chapter 8 Bill of Exchange
9 Chapter 9 Financial Statements – 1
10 Chapter 10 Financial Statements 2
11 Chapter 11 Accounts from Incomplete Records
12 Chapter 12 Applications of Computers in Accounting
13 Chapter 13 Computerised Accounting System

Trial Balance and Rectification of Errors Class 11 Important Questions with Solutions 

Practising is a must in Accountancy. Regular practice will help students gain confidence in understanding concepts and solving numerical questions.

Here is a list of Important Questions Class 11 Accountancy Chapter 6, which is Trial and Balance and Rectification of errors:

Question 1. What kind of accuracy is tested by the Trial balance-

  • Theoretical
  • Practical
  • Arithmetical
  • None of these.

Answer 1: c) Arithmetical

Explanation: The trial balance checks whether the debits and credits match or not hence it checks for the arithmetical accuracy of the accounts.

Question 2. When is a trial balance prepared?

Answer 2: The trial balance preparation takes place at the end of the accounting year, but some businesses can also prepare it quarterly, monthly or half-yearly.

Question 3. In the Trial balance which item is shown as a debit balance?

  • Purchase Return
  • Outstanding Salary
  • Sales
  • Prepaid Expenses

Answer 3: d) Prepaid Expenses.

Explanation: Prepaid expenses are those that have been paid for in advance but have not yet been recognised as an expense by a business. Prepaid expenses are initially recorded as assets because they have future financial advantages and are expensed when the benefits are realised (the matching principle).

Question 4. What are the objectives of preparing a trial balance? 

Answer 4: Following are the objectives of preparing a trial balance:

  • Determine the arithmetic accuracy of the ledger accounts:

The business can use a trial balance to ascertain the accuracy of the debit and credit balances.

  • Consolidated statement of accounts:

A trial balance provides a consolidated statement including the balance of all the accounts

  • Helps in preparation of final accounts: 

Trial balance helps in the preparation of the final accounts. The Profit & Loss Account, Trading Account and Balance sheet are made without referring to the ledger accounts with the help of the trial balance.

  • Detection of mistakes:

A trial balance helps detect mistakes as it can show a mismatch between the debit and credit balances, revealing the error in recording transactions.

Question 5. What are the different types of errors commonly committed in recording business transactions?

The different types of errors that are usually committed in recording business transactions are:

The Error of Commission: The error of commissions can arise due to the following:

  • Posting incorrect transactions into ledger accounts
  • Totalling errors
  • Improper balancing of accounts
  • Posting in wrong subsidiary books
  • Posting incorrect amounts in journals
  1. The Error of Omission: This type of error takes place during the recording of the transactions in the journal. It can be of two types, namely, partial and complete. The transaction isn’t recorded in the journal books in Complete Omission, whereas, in partial omission, part of the transaction is not recorded.
  2. The Error of Principle: When recorded transactions violate any accounting principles, it is considered the error of principle.
  3. Compensating Error: Compensating errors occur when the net effect of the debit and credit balance errors becomes zero. There is no apparent effect on the trial balance.

Question 6. Define the various limitations of trial balance? 

Answer 6: The various limitations of trial balance are as below:

  1. Any entry not made in the journal will not be reflected in any of the ledger accounts. There will be no change in trial balance as a result.
  2. The trial balance is unaffected if an entry is made on the right side but in the wrong account.
  3. The trial balance will not help determine whether an inaccurate amount has been recorded in the journal.
  4. If the entry is not assigned to the proper account, the trial balance will not change.

Question 7. Rectify the following errors:

  • Credit sales to Mohan of Rs 7,000 were not recorded.
  • Credit purchases from Rohan of Rs 9,000 were not recorded.
  • Goods returned to Rakesh for Rs 4,000 were not recorded.
  • Goods returned from Mahesh of Rs 1,000 were not recorded.

Answer 7: The rectification of the errors is shown below:

Journal Recordings to rectify the errors
  Date Particulars L.F Debit

Amount

₹

 Credit

Amount

₹
i. Mohan’s Account Dr. 7,000
To Sales A/c

(Credit Sales made to Mohan, Error rectification recording)

 7,000
ii. Purchases Account Dr. 9,000
To Rohan’s A/c

(Credit purchases from Rohan, Error rectification recording)

 9,000
iii. Rakesh’s Dr. 4,000
To Purchases Return A/c

(Purchases return to Rakesh, Error rectification recording)

 4,000
iv. Sales Return A/c Dr. 1,000
To Mahesh’s A/c

(Purchases return from Mahesh, Error rectification recording)

 1,000

 

Question 8. Rectify the following errors in a journal entry:

Cash sales Rs. 12,000

  1. i) Were posted as 5,000 in the sales account.
  2. ii) Were posted to purchase account.
  3. iii) Were not posted to the sales account

Answer 8: 

Particular  Debit  Credit
(i) Suspense A/c Dr. 

To Sales A/c 

(Cash sales of 12,000 were recorded as 5,000 in the sales account, which has since been corrected.)

(ii) Purchase A/c Dr. 

To Sales A/c 

(Cash sales were posted to the purchase account instead of the sales account, which has already been addressed.) 

(iii) Suspense A/c Dr. 

To Sales A/c 

(Cash sales that were not posted to the sales account and have now been corrected.)

 7000

12000

12000

 700012000

12000

Question 9. Rectify the following errors and find the amount of difference in trial balance by preparing a suspense account:

(a) Credit sales made to Mohan of Rs 7,000 was not posted.

(b) Credit purchases made from Rohan of Rs 9,000 were not posted.

(c) Goods returned to Rakesh for Rs 4,000 was not posted.

(d) Goods returned from Mahesh of Rs 1,000 was not posted.

(e) Cash paid to Ganesh Rs 3,000 was not posted.

(f) Sales made in cash of Rs 2,000 were not posted.

Answer 9: 

Journal Recordings to rectify the errors
  Date Particulars L.F Debit

Amount

₹

 Credit

Amount

₹
i. Mohan’s A/c Dr. 7,000
To Suspense A/c

(Credit sales to Mohan, Error rectification recording, recording was missing)

 7,000
ii. Suspense A/c Dr. 9,000
To Rohan’s A/c

(Credit purchases from Rohan, Error rectification recording, recording was missing)

 9,000
iii. Rakesh’s A/c Dr. 4,000
To Suspense A/c

(Goods returned to Rakesh, Error rectification recording, recording was missing)

 4,000
iv. Suspense A/c Dr. 1,000
To Mahesh’s A/c

(Goods returned from Mahesh, Error rectification recording, recording was missing)

 1,000
v. Ganesh’s A/c Dr. 3,000
To Suspense A/c

(Cash paid to Ganesh, Error rectification recording, recording was missing)

 3,000
vi. Suspense A/c Dr. 2,000
To Sales A/c

(Cash sales, Error rectification recording, recording was missing)

 2,000

 

Suspense Account
Dr. Cr.
Date Particulars J.F. Amount

₹

 Date Particulars J.F. Amount

₹
2014 2014
To Rohan’s A/c 9,000 By Mohan’s A/c 7,000
To Mahesh’s A/c 1,000 By Rakesh’s A/c 4,000
To Sales A/c 2,000 By Ganesh’s A/c 3,000
To Balance c/d 2,000
Total 14,000 Total 14,000

Hence, the trial balance shows an excess of ₹ 2,000 as credit

Question 10. Rectify the following errors:

(a) Credit sales made to Mohan of Rs 7,000 was posted to Karan’s account.

(b) Credit purchases made from Rohan of Rs 9,000 were posted to Gobind.

(c) Goods returned to Rakesh for Rs 4,000 was posted to Naresh’s account.

(d) Goods returned from Mahesh of Rs 1,000 were posted to Manish.

(e) Cash sales of Rs 2,000 were posted to the commission account.

Answer 10: 

Journal Recordings to rectify the errors
  Date Particulars L.F Debit

Amount

₹

 Credit

Amount

₹
i. Mohan’s A/c Dr. 7,000
To Karan A/c

(Credit sales to Mohan, Error rectification recording, erroneously recorded in Karan’s account)

 7,000
ii. Gobind’s A/c Dr. 9,000
To Rohan’s A/c

(Credit purchases from Rohan, Error rectification recording, erroneously recorded in Gobind’s account)

 9,000
iii. Rakesh’s A/c Dr. 4,000
To Naresh’s A/c

(Goods returned to Rakesh, Error rectification recording, erroneously recorded in Naresh’s account)

 4,000
iv. Manish’s A/c Dr. 1,000
To Mahesh’s A/c

(Goods returned from Mahesh, Error rectification recording, erroneously recorded in Manish’s account)

 1,000
v. Commission A/c Dr. 2,000
To Sales A/c

(Cash sales, Error rectification recording, erroneously recorded in commission account)

 1,000

Benefits of Solving Important Questions of Trial Balance Class 11

To ensure the journals’ main accuracy, trial balance helps to ensure that the data entered is correct for the transactions that occurred in the organisation. The students can understand the errors that cause a difference and what accountants do for their rectification; hence, by solving Important Questions Class 11 Accountancy Chapter 6, students will gain valuable knowledge about the chapter.

Here is a list of benefits students can get from solving the Important Questions Class 11 Accountancy Chapter 6

  • The list of important questions is created keeping in mind the latest CBSE syllabus to ensure students can rely on these resources for their studies.
  • The Important Questions Class 11 Accountancy Chapter 6 provides an overview of the entire chapter; hence students can revise the important topics while solving these questions.
  • The questions will give students a fair idea of how questions will appear in the examinations so that they can give their 100% while appearing for their exams.
  • The step-by-step solutions provided by subject experts make it easier for students to understand the concepts and apply the principles easily.

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CBSE Class 11 Accountancy Important Questions

Chapter 1 - Introduction to Accounting

Chapter 2 - Theory Base of Accounting

Chapter 3 - Recording of Transactions – 1

Chapter 4 - Recording of Transactions II (Financial Accounting – I)

Chapter 5 - Bank Reconciliation Statement

Chapter 7 - Depreciation, Provisions & Reserves

Chapter 8 - Bill of Exchange

Chapter 9 - Financial Statements – 1

Chapter 10 - Financial Statements 2

Chapter 11 - Accounts from Incomplete Records

Chapter 12 - Applications of Computers in Accounting

Chapter 13 - Computerised Accounting System

FAQs (Frequently Asked Questions)

A trial balance is a statement created to verify the completeness and accuracy of transactions entered into journals, posted to the ledger, and balanced in ledger accounts. The balance reported in the ledger account shows the difference between the total debit and credit items in any given account.

Accountancy is a subject that requires regular practice. Going through NCERT books, reference books, CBSE sample papers, and the Accountancy Class 11 Chapter 6 Important Questions provided by Extramarks, the students will gain clarity of topic and confidence in solving questions which will help them in scoring good grades.