Ch. # 9 RECTIFICATION OF ERRORS

Chapter # 9		RECTIFICATION OF ERRORS
Q.1:	Name different classes of errors?
Ans:	i)       Book keeping errors.ii)    Trial balance errors.
Q.2:	Define book keeping errors?
Ans:	Errors which are committed in the books of original entry or ledgers are called book keeping errors.
Q.3:	Name different classes of book keeping errors?
Ans:	i)       Errors of omission.ii)    Errors of commission
Q.4:	Define errors of omission?
Ans:	The errors resulting from the complete the failure of enter transaction in the books are called errors of omission.
Q.5:	Name different classes of errors of omission.
Ans:	i)       Complete errorsii)    Partial errors.
Q.6:	What do you mean by complete errors and gives its two examples?
Ans:	When any particular transaction has not at all been entered in the book of original entry is known as complete errors.Examples: i)       Cash received from Ali was not recorded in cash book. ii)    Goods sold to Shahid were not recorded in cash book.
Q.7:	What do you men by partial errors and give its two examples?
Ans:	If a transaction has been recorded in a book of original entry but has not been posted in ledger account is called partial error.Examples: i)       Cash received from Ali was not recorded in cash book. ii)    Goods sold to Shahid were not recorded debited to his account.
Q.8:	Define error of commission?
Ans:	Error which occurs when a transaction is wholly or partially incorrectly recorded in the  books of account are called errors of commission.
Q.9:	What re different classes of errors of commission?
Ans:	i)       Errors of principleii)    Compensating errors iii)  Errors of posting iv)   Errors of casting.
Q.10:	Define compensating errors?
Ans:	Compensating errors means errors which are cancelled by other errors of same amount in the same account or error of same amount on the opposite side. These errors are of a neturalizing nature.
Q.11:	Define error of posting?
Ans:	If a transaction has been recorded in the book of original entry but has been posted wrongly in the ledger Account is known as error of posting.
Q.12:	Define errors of casting and give its two examples?
Ans:	The errors which may occur due to short casting or excess casting in any book of original entry or in the ledger account.Examples: i)       Sales day book was under cast. ii)    Purchases day book was overcast.
Q.13:	What do you know about the “Trial balance errors”?
Ans:	Errors which are made in the preparation of Trial balance are called trial balance errors.
Q.14:	What is suspense account?
Ans:	A ledger account in which entries are made on a temporary basis when the correct account cannot be immediately identified is called suspense account.
Q.15:	Give any three examples of trial balance errors?
Ans:	i)       Transfer or balance to the wrong column of the trial balance.ii)    Omission of balance from trial balance. iii)  Wrong casting of trial balance.
Q.16:	Give any two examples of errors of principle?
Ans:	i)       Incorrect application of capital and revenue expenditures.ii)    Wrong estimation of depreciation etc.
Q.17:	Pass the rectifying entry, sale of old furniture has been credited to sales account of Rs. 200.
Ans:	Sales Account                        200                        To Furniture Account                        200
Q.18:	What rectifying entry will be passed, if sales book was under cast by Rs. 300?
Ans:	Suspense Account                 300                        To Sales Account                  300
Q.19:	Name different stages available for rectifying errors in account?
Ans:	i)       Before the preparation of trial balance.ii)    After the preparation of trial balance but before the preparation of final accounts. iii)  After the preparation of final accounts.
Q.20:	Write down the procedure for correcting errors?
Ans:	There are three questions which must be answered before an error can be corrected are:i)       What should happened? ii)    What has happened? iii)  What action will correct the error.
Q.21:	Differentiate between errors of omission and errors of commission.
Ans:	Errors of omission Errors of commission 1)     They represent absolute omission. They represent incorrect recording 2)     They have no effect on agreement of trial balance. They may effect agreement of trial balance.
Q.22:	Give any four types of errors which do not affect the trial balance agreement?
Ans:	1)     Errors of principle.2)     Compensating errors. 3)     Wrong posting in the same head of account 4)     Errors of Complete omission.
Q.23:	Write any two examples of errors which affect agreement of Trial balance?
Ans:	1)     Partial omission2)     Posting to wrong side of ledger.
Q.24:	Differentiate between errors of posting and errors of casting.
Ans:	Errors of posting Errors of casting 1)     They represent wrong posing. They represent wrong casting 2)     They involved transferring of transactions form Journal to ledger. They normally consist on wrong casting of books of original entry or ledger’s account.
Q.25:	What rectifying entry will be passed, if sales book was overcast by Rs. 1500?
Ans:	Sales a/c 1500            To Suspense A/c 1500 (Casting error in sales book rectified)
Q.26:	What rectifying entry will be passed, if purchases day book was overcast?
Ans:	Suspense a/c            To Purchases a/c (Casting errors in purchases book rectified)
Q.27:	What rectifying entry will be assed Rs. 2000 if freight paid on machinery was charged to freight a/c.
Ans:	Machinery a/c 2000            To Freight a/c 2000 (Error in freight recording rectified)