Error of principle arises when _______.

A transaction not recorded at all is known as an error of _______.

The total of purchases book was overcast. Which of the following accounts should be debited in the rectifying journal entry?

The failure of the accountant to record a transaction in the books of accounts is known as ________________

When errors are located and rectified, _______________ automatically gets closed.

______________ is prepared to avoid the delay in the preparation of final accounts.

Assertion (A): Many business enterprises have shifted from manual accounting to computerised accounting.
Reason (R): Error means recording or classifying or summarising the accounting transactions wrongly or omissions to record them by a clerk or an accountant unintentionally.
Select the correct answer.
(a) Both (A) and (R) are true and (R) is the correct explanation of (A)
(b) Both (A) and (R) are true and (R) is not the correct explanation of (A)
(c) (A) is true, but (R) is false.
(d) (A) is false, but (R) is true.

Assertion (A): The errors that make up for each other or neutralise each other are known as compensating errors.
Reason (R): These are also known as error of omission.
(a) Both (A) and (R) are true and (R) is the correct explanation of (A)
(b) Both (A) and (R) are true and (R) is not the correct explanation of (A)
(c) (A) is true, but (R) is false.
(d) (A) is false, but (R) is true.

Sale of furniture for Rs. 750 was credited to sales account.
(a) Sales A/c        Dr
            To Furniture A/c
(b) Furniture A/c    Dr
            To Sales A/c
(c) Cash A/c    Dr
          To Sales A/c   
(d) Purchase A/c   Dr
         To Sales A/c

(i) Suspense account will remain in the books until the location and rectification of errors.
(ii) Error of partial omission and error of commission affect the agreement of trial balance.
(iii) One-sided errors are not revealed by trial balance.
(a) (i) is correct
(b) (ii) is correct
(c) (i) and (ii) are correct
(d) (i), (ii) and (iii) are correct

What is meant by rectification of errors?

What is meant by error of partial omission?

What are compensating errors?

Rectify the following errors discovered before the preparation of the trial balance:
(a) Sales book was undercast by Rs. 100
(b) Purchases returns book was overcast by Rs. 200

Rectify the following errors after preparation of trial balance:
(a) Salary paid to Ram Rs.1,000 was wrongly debited to his personal account.
(b) A credit sale of goods to Balu for Rs.450 was debited to Balan.

What is error of omission?

Will the trial balance agree in case of errors of partial omission? Why?

The following errors were located before the preparation of the trial balance. Rectify them.
(a) Paid Rs. 500 to Angappan were wrongly debited to Angannan’s account.
(b) Sale of furniture for Rs. 750 was credited to sales account.
(c) Purchase of goods from Bagya for Rs. 2,100 was wrongly passed through sales book.
(d) Wages Rs. 1,000 paid on erection of machinery were debited to wages account.

Write a note on error of principle by giving an example.

What are the errors not disclosed by a trial balance?

Write a note on one-sided errors and two sided errors.

Rectify the following journal entries.

The following errors were located at the time of preparing trial balance. Rectify them.
(a) A personal expense of the proprietor Rs. 200 was debited to travelling expenses account.
(b) Goods of Rs.400 purchased from Ramesh on credit was wrongly credited to Ganesh’s account.
(c) An amount of Rs.500 paid as salaries to Mathi was debited to his personal account.
(d) An amount of Rs.2,700 paid for extension of the building was debited to repairs account.
(e) A credit sale of goods of Rs.700 on credit to Mekala was posted to Krishnan’s account.

Rectify the following journal entries

The book-keeper of a firm found that the trial balance was out by Rs.922 (excess credit). He placed the amount in the suspense account and subsequently found the following errors:
(a) The total of discount column on the credit side of the cash book Rs.78 was not posted in the ledger.
(b) The total of purchases book was short by Rs.1,000.
(c) A credit sale of goods to Natarajan for Rs.375 was entered in the sales book as Rs.735.
(d) A credit sale of goods to Mekala for Rs.700 was entered in the purchases book.
You are required to give rectification entries and prepare suspense account.