📝 Chapter Test

Trial Balance and Rectification of Errors

Take a notebook and pen first. Solve each question yourself, then pick an option. Only your first choice counts in the score, so do not rush.

Score: 0 / 10 Attempted: 0

Part A: MCQ (1 mark each)

Q1. A trial balance is prepared from:

the journal only
the balances (or totals) of ledger accounts
the balance sheet
the cash book only

A trial balance is a statement listing the debit and credit balances (or totals) of all ledger accounts on a particular date.

Q2. Which of the following errors is NOT revealed by a trial balance?

Sales book undercast by ₹500
Credit sale of ₹2,000 posted to the customer's account as ₹200
Purchase of machinery debited to Purchases A/c
Discount allowed not posted to Discount Allowed A/c

Debiting machinery to Purchases A/c is an error of principle: the debit is recorded, only in the wrong type of account, so the trial balance still agrees. The other three are one-sided errors.

Q3. Wages paid for installing a new machine were debited to Wages A/c. This is an error of:

omission
commission
principle
compensating nature

Installation wages are part of the cost of the machine (capital expenditure). Treating them as a revenue expense violates accounting principles.

Q4. A suspense account is opened when:

the cash book does not agree with the passbook
the trial balance does not agree
a customer cannot pay his dues
the business suffers a loss

The difference in the trial balance is placed temporarily in a suspense account until the errors causing it are found.

Q5. The sales book was undercast by ₹800. The rectification entry is:

Sales A/c Dr. ₹800; To Suspense A/c ₹800
Suspense A/c Dr. ₹800; To Sales A/c ₹800
Debtors A/c Dr. ₹800; To Sales A/c ₹800
Sales A/c Dr. ₹800; To Debtors A/c ₹800

Undercasting gives Sales A/c a short credit of ₹800, so Sales is credited and Suspense takes the debit. Customers' accounts are correct.

Q6. A credit sale of ₹4,000 to Raj was posted to the credit side of Raj's account. The rectification entry is:

Raj's A/c Dr. ₹4,000; To Suspense A/c ₹4,000
Suspense A/c Dr. ₹8,000; To Raj's A/c ₹8,000
Raj's A/c Dr. ₹8,000; To Suspense A/c ₹8,000
Raj's A/c Dr. ₹8,000; To Sales A/c ₹8,000

Raj should have a debit of ₹4,000 but has a credit of ₹4,000. Cancelling the credit and giving the debit needs ₹8,000 on the debit side. Sales A/c is correct, so Suspense is credited.

Q7. Errors that cancel the effect of each other are called:

errors of omission
errors of principle
compensating errors
errors of commission

In compensating errors, an excess debit (or credit) in one account is balanced by an equal excess debit (or credit) elsewhere, so the trial balance agrees.

Q8. The debit total of a trial balance is ₹2,45,000 and the credit total is ₹2,39,500. The suspense account will show:

a debit balance of ₹5,500
a credit balance of ₹5,500
a debit balance of ₹4,84,500
no balance, since the difference is small

The credit side is shorter by 2,45,000 − 2,39,500 = ₹5,500, so the suspense amount is written on the credit side.

Q9. Assertion–Reason Assertion (A): Agreement of a trial balance is not a conclusive proof of the accuracy of the books of accounts.
Reason (R): Errors of principle, errors of complete omission and compensating errors do not affect the agreement of the trial balance.

Both Assertion (A) and Reason (R) are true, and R is the correct explanation of A.
Both Assertion (A) and Reason (R) are true, but R is not the correct explanation of A.
Assertion (A) is true, but Reason (R) is false.
Assertion (A) is false, but Reason (R) is true.

Both statements are true, and R explains A: because some errors leave the totals equal, a tallied trial balance proves only arithmetical accuracy.

Q10. Assertion–Reason Assertion (A): An error of complete omission is rectified through the suspense account.
Reason (R): An error of complete omission affects neither the debit nor the credit total of the trial balance.

Both Assertion (A) and Reason (R) are true, and R is the correct explanation of A.
Both Assertion (A) and Reason (R) are true, but R is not the correct explanation of A.
Assertion (A) is true, but Reason (R) is false.
Assertion (A) is false, but Reason (R) is true.

A is false: a completely omitted transaction is simply recorded now, without a suspense account. R is true: since both sides are omitted, the trial balance still agrees.

Part B: Exam-style questions

Dost Sir: In accountancy, marks are given for correct accounts, correct amounts, proper format and narration. First write the full answer in your notebook, then press “Show solution” and compare line by line.

Q1.3 marks

Distinguish between an error of commission and an error of principle on any three bases, giving one example of each.

I got it right

✍️ Write it like this (board answer)

Basis	Error of commission	Error of principle
Meaning	A clerical mistake in recording, posting, totalling or balancing, such as a wrong amount or wrong side.	A mistake of treating an item against accounting principles, such as capital expenditure treated as revenue or vice versa.
Effect on trial balance	May or may not affect the trial balance (e.g. wrong casting affects it; wrong amount in the book of original entry does not).	Does not affect the agreement of the trial balance.
Cause	Carelessness of the clerk.	Lack of knowledge of accounting principles.
Example	Credit sale of ₹5,000 to Vikas posted to his account as ₹500.	Purchase of a computer for office use debited to Purchases A/c.

(1 mark for each correct basis with example.)

Q2.3 marks

Rectify the following errors found in the books of Rawat Traders before preparing the trial balance:
(a) Furniture of ₹15,000 purchased for the office was debited to Purchases A/c.
(b) Cash ₹2,000 received from Aman was credited to Amit's account.
(c) Credit sale of ₹6,000 to Ritu was not recorded in the sales book.

I got it right

✍️ Write it like this (board answer)

All three are two-sided errors, so no suspense account is used.

Date	Particulars	Dr (₹)	Cr (₹)
(a)	Furniture A/c Dr.	15,000
	To Purchases A/c		15,000
	(Being furniture purchased wrongly debited to Purchases A/c, now rectified)
(b)	Amit's A/c Dr.	2,000
	To Aman's A/c		2,000
	(Being cash received from Aman wrongly credited to Amit, now rectified)
(c)	Ritu's A/c Dr.	6,000
	To Sales A/c		6,000
	(Being credit sale to Ritu omitted from the sales book, now recorded)

Q3.4 marks

From the following balances of Verma General Store as on 31 March 2027, prepare a trial balance. The capital figure is missing; find it.

Account	₹	Account	₹
Drawings	18,000	Sales	1,95,000
Furniture	45,000	Debtors	38,000
Machinery	80,000	Creditors	26,000
Purchases	1,20,000	Salaries	24,000
Rent	12,000	Cash in hand	29,000
Cash at bank	55,000	Capital	?

I got it right

✍️ Write it like this (board answer)

Trial Balance of Verma General Store as on 31 March 2027

Name of Account	Debit Balance (₹)	Credit Balance (₹)
Drawings	18,000
Furniture	45,000
Machinery	80,000
Purchases	1,20,000
Debtors	38,000
Salaries	24,000
Rent	12,000
Cash in hand	29,000
Cash at bank	55,000
Sales		1,95,000
Creditors		26,000
Capital (balancing figure)		2,00,000
Total	4,21,000	4,21,000

Debit balances total ₹4,21,000; known credit balances = 1,95,000 + 26,000 = ₹2,21,000. Capital = 4,21,000 − 2,21,000 = ₹2,00,000. (Assets, expenses, purchases and drawings go on the debit side; income, liabilities and capital on the credit side.)

Q4.4 marks

The trial balance of Sethi Electronics did not agree and the difference was put to a suspense account. Pass journal entries to rectify the following errors:
(a) The purchases book was overcast by ₹1,500.
(b) A credit sale of ₹3,200 to Kamal was posted to his account as ₹2,300.
(c) Salaries paid ₹4,000 were posted to Salaries A/c as ₹400.
(d) Goods of ₹1,100 returned to Sonu (a supplier) were correctly entered in the purchases return book but not posted to Sonu's account.

I got it right

✍️ Write it like this (board answer)

Date	Particulars	Dr (₹)	Cr (₹)
(a)	Suspense A/c Dr.	1,500
	To Purchases A/c		1,500
	(Being purchases book overcast, now rectified)
(b)	Kamal's A/c Dr.	900
	To Suspense A/c		900
	(Being credit sale of ₹3,200 posted to Kamal's account as ₹2,300, now rectified)
(c)	Salaries A/c Dr.	3,600
	To Suspense A/c		3,600
	(Being salaries of ₹4,000 posted as ₹400, now rectified)
(d)	Sonu's A/c Dr.	1,100
	To Suspense A/c		1,100
	(Being goods returned to Sonu not posted to his account, now rectified)

(1 mark per correct entry. Workings: Kamal short debit 3,200 − 2,300 = ₹900; Salaries short debit 4,000 − 400 = ₹3,600.)

Q5.6 marks

The trial balance of Mehta Hardware as on 31 March 2027 did not agree. The accountant put the difference to a suspense account. Later the following errors were located:
(i) The sales book was overcast by ₹2,000.
(ii) Credit purchases of ₹7,500 from Vinod were posted to the debit of Vinod's account.
(iii) Goods costing ₹3,000 taken by the proprietor for personal use were not recorded.
(iv) Cash paid to Harish ₹4,200 was posted to his account as ₹2,400.
(v) Repairs ₹1,350 were posted to Repairs A/c as ₹1,530.
(vi) Discount received ₹500 from Vinod was entered in the cash book but not posted to Discount Received A/c.
Pass rectification entries, prepare the suspense account and find the difference in the trial balance.

I got it right

✍️ Write it like this (board answer)

Date	Particulars	Dr (₹)	Cr (₹)
(i)	Sales A/c Dr.	2,000
	To Suspense A/c		2,000
	(Being sales book overcast, now rectified)
(ii)	Suspense A/c Dr.	15,000
	To Vinod's A/c		15,000
	(Being credit purchases posted to the debit of Vinod's account, now rectified)
(iii)	Drawings A/c Dr.	3,000
	To Purchases A/c		3,000
	(Being goods withdrawn by the proprietor, now recorded)
(iv)	Harish's A/c Dr.	1,800
	To Suspense A/c		1,800
	(Being ₹4,200 paid to Harish posted as ₹2,400, now rectified)
(v)	Suspense A/c Dr.	180
	To Repairs A/c		180
	(Being repairs of ₹1,350 posted as ₹1,530, now rectified)
(vi)	Suspense A/c Dr.	500
	To Discount Received A/c		500
	(Being discount received not posted to Discount Received A/c, now rectified)

Dr.Suspense AccountCr.

Particulars	₹	Date	Particulars	₹
To Vinod's A/c	15,000	2027 Mar 31	By Difference as per Trial Balance	11,880
To Repairs A/c	180		By Sales A/c	2,000
To Discount Received A/c	500		By Harish's A/c	1,800
	15,680			15,680

Error (iii) is an error of complete omission and does not pass through the suspense account. Debit side = 15,000 + 180 + 500 = ₹15,680; credits from errors = 2,000 + 1,800 = ₹3,800. Difference in trial balance = 15,680 − 3,800 = ₹11,880, placed on the credit side of the trial balance (credit column was short). (Entries 4 marks, suspense account 2 marks.)

Q6.Case Study · 4 marks

Meena runs Meena Kirana Store. In April 2026 her new helper made two mistakes: (a) a new weighing machine bought for ₹9,000 in cash was debited to Purchases A/c; (b) cash sales of ₹4,800 were correctly entered in the cash book but posted to Sales A/c as ₹8,400. At the end of the month the trial balance did not tally.

(i) Name the type of each error. (1 mark)
(ii) Which error caused the trial balance to disagree? On which side, and with what amount, will the suspense account appear? (1 mark)
(iii) Pass rectification entries for both errors. (2 marks)

I got it right

✍️ Write it like this (board answer)

(i) (a) Error of principle (capital expenditure treated as revenue expenditure). (b) Error of commission (wrong amount posted).

(ii) Only (b). Sales A/c was credited ₹3,600 in excess (8,400 − 4,800), so the credit total exceeded the debit total by ₹3,600. Suspense A/c appears on the debit side with ₹3,600.

(iii)

Date	Particulars	Dr (₹)	Cr (₹)
(a)	Weighing Machine A/c Dr.	9,000
	To Purchases A/c		9,000
	(Being weighing machine wrongly debited to Purchases A/c, now rectified)
(b)	Sales A/c Dr.	3,600
	To Suspense A/c		3,600
	(Being cash sales of ₹4,800 posted as ₹8,400, now rectified)

🏆 Ready for more? Enter the Challenge Zone
4 topper-level HOTS problems for this chapter, with hints and full solutions.