Question No 01 Chapter No 16 - USHA Publication 11 Class

Question No 01 Chapter No 16

Table of Contents

The solution of Question No 01 Chapter No 16:-

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

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.

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