Question No 01 Chapter No 16 – USHA Publication 11 Class

Question No 01 Chapter No 16

Question No 01 Chapter No 16

Identification of Errors

01.The following errors occurred in the book of a merchant. You are required to identify the type of error and state with reasons the effect of errors on trail Balance.

  1. Machinery purchased from Delhi wrongly entered in purchase book
  2. Interest on bank loan paid was not recorded in the books
  3. Cash paid to the wife for personal use recorded twice in the book
  4. Salary paid to clerk has not been posted to salary account
  5. Returns inward book was undercast
  6. Payment side of the cash book(cash column) was undercast
  7. Freight paid on purchases of the plant was debited to freight account
  8. Additional capital introduced was not posted to the capital account

The solution of Question No 01 Chapter No 16:-

(a)Error Of Principle
 NO effect on trial Balance
Because Purchases Account debit balance increases and machinery account debit balance decreases with the same amount
  
(b)Error Of Omission
 No effect on trial Balance
Because Interest account debit balance decreased because it was not paid and cash account debit balance increases with the same amount as it was not paid
  
(c)Error Of Commission
 It will not affect the total trail balance
Because by debiting drawings twice the debit balance of drawing account increased and debit balance of cash decreases with the same amount
  
(d)Error Of Commission
 It will reduce the debit side of the trial balance Because by under casting return inward book the debit balance of the return inward account will be reduced
  
(e)Error Of Commission
 It will reduce the debit side of the trial balance Because by under casting return inward book the debit balance of the return inward account will be reduced
  
(f)Error Of Commission
 It will increase the debit side total of the trial balance Because, by undercasting the payment side of the cash book, cash in hand will increase which will increase the debit side of the trail balance
  
(g)Error Of Principle
 It will not affect the trial balance total
Because by debiting freight paid on the purchase of plant to freight account the debit balance freight account will increase and debit side plant account will decrease with the same amount
  
(h)Error Of Commission
 It will reduce the credit side total of the trial balance
Because by not crediting the capital account the credit balance of the capital account will be reduced so the credit side of the trial balance will also be reduced 

 

 

Error Rectification in accounting – Explanation with examples

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Also, Check out the solved question of all Chapters: –

Usha Publication – Elements of Book-Keeping PSEB (Class 11) – Solution

Chapter No. 1 – Introduction

Chapter No. 2 – Theory Base of Accounting 

Chapter No. 3 – Origin of Transactions

Chapter No. 4 – Vouchers and transactions

Chapter No. 5 – Journal

Chapter No. 6 – Accounting for Goods and Services Tax(GST)

Chapter No. 7 – Ledger

Chapter No. 8 – Cash Book

Chapter No. 9 – Other Subsidiary Books

Chapter No. 10 – Journal Proper

Chapter No. 11 – Trial Balance

Chapter No. 12 – Bank Reconciliation Statement

Chapter No. 13 – Depreciation

Chapter No. 14 – Provisions and Reserves 

Chapter No. 15 – Bills of Exchange

Chapter No. 16 – Rectification of Errors 

Chapter No. 17 – Financial Statements – (Without Adjustments)

Chapter No. 18 – Financial Statements – (With Adjustments)

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