Chapter : 6 

Trial Balance and Rectification of Errors

Questions for Practice 

Short Answers 

1. State the meaning of a trial balance?

Ans: 

2. Give two examples of errors of principle? 

Ans:

3. Give two examples of errors of commission? 

Ans:

4. What are the methods of preparing trial balance?

Ans: 

5. What are the steps taken by an accountant to locate the errors in the trial balance?

Ans:

6. What is a suspense account? Is it necessary that is suspense account will balance off after rectification of the errors detected by the accountant? If not, then what happens to the balance still remaining in suspense account?

Ans: 

7. What kinds of errors would cause difference in the trial balance. Also list examples that would not be revealed by a trial balance? 

Ans:

8. State the limitations of trial balance?

Ans:

Long Answers 

1. Describe the purpose for the preparation of trial balance.

Ans: 

2. Explain errors of principle and give two examples with measures to rectify them.

Ans: 

3. Explain the errors of commission and give two examples with measures to rectify them.

Ans: 

4. What are the different types of errors that are usually committed in recording business transaction

Ans:

5. As an accountant of a company, you are disappointed to learn that the totals in your new trial balance are not equal. After going through a careful analysis, you have discovered only one error. Specifically, the balance of the Office Equipment account has a debit balance of ₹ 15,600 on the trial balance. However, you have figured out that a correctly recorded credit purchase of pendrive for ₹  3,500 was posted from the journal to the ledger with a ₹  3,500 debit to Office Equipment and another ₹  3,500 debit to creditors accounts. Answer each of the following questions and present the amount of any misstatement : 

(a) Is the balance of the office equipment account overstated, understated, or correctly stated in the trial balance? 

(b) Is the balance of the creditors account overstated, understated, or correctly stated in the trial balance? 

(c) Is the debit column total of the trial balance overstated, understated, or correclty stated? 

(d) Is the credit column total of the trial balance overstated, understated, or correctly stated? 

(e) If the debit column total of the trial balance is ₹ 2,40,000 before correcting the error, what is the total of credit column.