COMPETENCY – BASED TEST ITEMS

CLASS: XI
SUBJECT: ACCOUNTANCY
NAME OF CHAPTER: TRIAL BALANCE AND RECTIFICATION OF ERRORS

Q. LEARNING QUESTION MARK

NO OUTCOME
/ASSESSMENT
OBJECTIVE
1 LO: – Able to Assertion (A): Trial Balance is a part of Double Entry System. 1
understand the Reason (R): It helps in preparation of final accounts.
concept of Trial (a) Both (A) and (R) are true and (R) Is the correct explanation of
Balance (A).
(b) Both (A) and (R) are true but (R) is not the correct explanation of
(A).
AO:To assess the (c)(A) is true, but (R) is false.
understanding of (d) (A) is false, but (R) is true.
Trial Balance

2 Assertion (A): Trial balance is prepared for a particular period and 1

LO – Ability to not on a particular date.
understand the Reason (R): Errors of omission do not affect the trial balance.
concept of Trial (a) Both (A) and (R) are true and (R) Is the correct explanation of
Balance (A).
AO – To assess the (b) Both (A) and (R) are true but (R) is not the correct explanation of
competency of (A).
learner to apply the (c)(A) is true, but (R) is false.
concept in real life (d) (A) is false, but (R) is true.
situations
3 LO – Ability to Assertion (A): Trial Balance is an account, prepared with debit and 1
understand the credit balances of ledger accounts.
concept of Trial Reason (R): Trial Balance is prepared to test the arithmetical
Balance accuracy of book of accounts.
(a) Both (A) and (R) are true and (R) Is the correct explanation of
AO – To assess the (A).
competency of (b) Both (A) and (R) are true but (R) is not the correct explanation of
learner to apply the (A).
concept in real life (c)(A) is true, but (R) is false.
situations (d) (A) is false, but (R) is true.
4 LO – Ability to Assertion (A): Trial balance is prepared to check the arithmetical 1
understand the accuracy of books of accounts.
concept of Trial Reason (R): Any wrong recording in the book of original entry and
Balance wrong posting in the principal book will lead to mismatch of trial
AO – To assess the balance.
competency of (a) Both (A) and (R) are true and (R) Is the correct explanation of
learner to apply the (A).
concept in real life (b) Both (A) and (R) are true but (R) is not the correct explanation of
situations (A).
(c)(A) is true, but (R) is false.
 (d) (A) is false, but (R) is true.
5 LO: – Able to Assertion (A): Trial balance is conclusive evidence of the accuracy 1
understand the of books of accounts.
concept of Trial Reason (R): Agreement of trial balance gives a primary evidence
Balance that accounts are correct from arithmetic point of view.

AO:To assess the

understanding of
Trial Balance

6 LO: – Able to A is a student of class 12 commerce whereas her cousin B is a 1

understand the commerce graduate. B enquired about her studies and started teasing
concept of Trial her by asking different sorts of questions. B gave different options
Balance and told A to identify which of the following is not an error of
commission:
(a)Cash received from a creditor worth ₹5,000 is recorded in the cash
book as ₹500.
AO – To assess the (b)Amount received from Sita, ₹2,000, is wrongly posted in Gita’s
ability to apply the account.
concept of Trial (c)Purchases book is totalled as ₹8,000 instead of ₹10,000
Balance in taking (d) ₹800 written off as depreciation on Furniture and not been debited
decision in day to to depreciation account.
day life
.

7 Assertion (A): When the rules of double entry are not strictly 1
LO – Ability to followed the errors caused are called errors of principle.
understand Reason (R): Errors of principle are committed in those case where a
different types of proper distinction between capital and revenue items is not made.
errors
AO – To assess the
competency of
learner to apply the
concept in real life
situations
8 LO – Able to Assertion (A): Rent paid to landlord if posted to Landlord’s Account 1
identify different will be an error of commission.
types of errors Reason(R): Purchase of goods for Rs.5000 if recorded in purchase
books as Rs.5500 will also be an error of commission.
AO – To assess the
understanding of
different types of
errors
9 LO – Able to cash worth ₹1,000 taken by the proprietor for personal use was not 1
identify different recorded in the books of accounts. This is an example of which type
types of errors of error
(a)Error of commission
AO – To assess the (b)Error of complete omission
understanding of (c)Error of partial omission
(d)None of the above
 different types of
errors
10 Assertion (A): Errors of posting to the wrong side of an account 1
LO – Ability to will be disclosed by preparing a trial balance.
understand the Reason(R): If Rs.20000 received from Sonam is posted to the debit
concept of one side of her account, the error will be disclosed by preparing a trial
sided error balance
AO – To assess the
competency of
learner to apply the
concept in real life
situations
11 Ramya is working as an accountant in XYZ Ltd and while going 3
LO – Ability to through the books of accounts, before preparing the Trial Balance he
understand could identify that :
different types of The Return Inward book for September has been under casted by
errors and their 2000.
rectification
Q1.Which type of error it is?
AO – To assess the (a)one sided error
competency of (b)two sided error
learner to apply the (c)both one sided and two sided
concept of errors in (d)None of the above
Trial balance and
their rectification Q2.Will such error affect the trial balance?
(a) Yes such error affect the Trial Balance
(b)No such error don't affect Trial balance
(c)Cannot say
(d)Sometimes affect and sometimes won't affect

Q3.How such errors are rectified?

(a)Through a Statement “By Undercasting of Return Inward book for
September by 2000 “
(b)Through a Statement “To Undercasting of Return Inward book for
September by 2000”
(c)Through a Statement “By Overcasting of Return Inward book for
September by 2000”
(d)Through a Statement “To Overcasting of Return Inward book for
September by 2000”

12 LO – Able to Prepare a Trial Balance from the following information:

describe the
concept and Rs
preparation of Trial Prepaid expenses 5,000
balance Outstanding rent 2,000
Bad debts recovered 4,000
AO – To assess the Interest on Investment 1,000
competence to apply Creditor 5,000
the concept of Trial Bank overdraft 2,000
balance and solve Discount allowed 800
numericals Due from Debtor 1,200
Investment 15,000
Patents 4,000
Machinery 6,000
 Capital 18,000
13 LO – Ability to Gurmeet has already prepared his trial balance, when he was going 3
solve numerical though the books of accounts he could identify an error. Wages paid
problems related to for installation of new machinery Rs6000 has been debited to Wages
error and Account.
rectification of
Trial balance Q1.What type of error it is ?
(a)Error of Principle
AO – To assess the (b)Error of commission
competency of (c)Error of Omission
learner to apply the (d)Compensating error
concept in real life
situations. Q2.Will such error affect the trial balance?
(a) Yes
(b)No
(c)Either yes or no
(d)Neither yes nor no

Q3.How such errors will be rectified ?

(a)Machinery A/c Dr 6000
To wages A/c 6000
(b) wages A/c Dr 6000
To cash 6000
(c) Wages A/c Dr 6000
To Machinery A/c 6000
(d) Machinery A/c Dr 6000
To Suspense A/c 6000

14 LO – Ability to Salman is a sole proprietor who lives in Gurugram and deals in 3

prepare Trial sanitary ware. He started his business on 1 April 2021 with capital of
balance correctly Rs. 1,40,000. Salman asked his daughter, Suhina a student of class
12th of Modern school to prepare his trial balance as on 31 March,
AO – To assess the 2022.
competency of
learner to apply the Following is extract of trial balance prepared by Suhina
concept in real life
situations. Name of Accounts Dr. Balance Cr. Balance
Cash in hand 10,000 ————-
Machinery ————- 50,000
Loan from bank 3,000 ————-
Drawings ————- 15,000
Purchases 25,000 ————-
Return Inwards ————- 500
Return outwards 600 ————-
Sundry Expenses 100 ————-
Rent 1,200 ————-
Debtors 1,140 ————-
Creditors ————- 10,000
Total 68,040 75,500

Q1.Suhina has shown machinery in credit balance of Trial Balance.

According to you, where it should be shown
(a) In credit balance
(b) In debit balance
 (c) as an adjustment
(d) should be adjusted against cash

Q2.Identify the items that have been shown incorrectly by Suhina.

(i) Loan from bank (ii) Cash in hand (iii) Drawings (iv)
Purchases
Alternatives
(a) Only (i)
(b) Only (ii)
(c) Both (i) and (iii)
(d) Both (iv) and (ii)

Q3.When the Trial Balance does not agree, the difference is

transferred to:
(a)capital a/c
(b)drawing a/c
(c)suspense a/c
(d)Profit & SLoss a/c
15 LO – Ability to Identify the errors of commission from the following 4
identify the errors
i.purchase goods from Hari on credit for 600 but were recorded in the
AO – To assess the purchases book as 6000
competency of ii. amount paid for the proprietor’s Travelling expense was debited
learner to apply the in general expense account
concept in real life iii.goods amounting to 5000 have been returned to Ramesh but no
situations. entry has been made in the books
iv. an excess debit of 4500 has been made in the account of Shyam,
where as Joseph’s account has been credited by 5000 instead of 500
v. goods sold to Aniket for 650 were recorded as 560 in the Sales
book
vi.typewriter purchased for office use has been debited to purchases
account
vii. goods for 500 have been taken by the proprietor for his personal
use for which No Entry has been passed in the books
(a) I and iii
(b) Ii and iv
(c) Iii and v
(d) I and v

16 LO – Ability to Rectify the following errors 4

identify and rectify
the errors in Trial i.sale of old furniture to Rohit for 1000 not recorded
balance ii.goods purchase from Amit for Rs 200 recorded in Hari’s account
iii.credit purchases from Rohan Rs8000 were recorded as 800
AO – To assess the iv. goods sold to Sumit Rs500 recorded as 300 in the purchases book
competency of
learner to apply the
concept in real life
situations.

17 LO – Ability to Pass necessary journal entries to rectify the following errors: 4

identify and rectify i.Outstanding telephone charges of 660 had been completely omitted
the errors in Trial ii.Sale of old furniture for 1500 was treated sale of goods
balance
 iii. A bill for 10000 drawn on Ramesh was not entered in the bills
AO – To assess the Receivable book
competency of iv.a machinery purchased for 20000 was entered in the purchases day
learner to apply the book.
concept in real life
situations.
18 LO – to develop the Ritu, a fresh graduate joined as an accountant in ABC Ltd . She was 6
concept of told to prepare the Trial Balance of the organization. As she had
meaning, nature, never prepared Trial balance earlier, she was not feeling confident
feature and ,therefore she was explained in detail about the features and
limitation of Trial importance of Trial Balance.
balance
Q1.When is a Trial Balance prepared?
AO – To assess the (a)Before recording the transactions in the Journal
competency of (b)Before Ledger posting
learner to apply the (c)After completion of posting from journal to the ledger
concept in real life (d)Both a and b
situations.
Q2.Which of the following is not a feature of Trial Balance?
(a)It is a complete record of all ledger accounts and cash book
(b) It is prepared as a result of the double entry system of book
keeping, though it is not a part of it.
(c) It assists in verifying the arithmetic accuracy of posting entries
from journal to ledger accounts
(d) It is a conclusive proof of the accuracy of the books of account

Q3.What is the reason behind agreement of total of debit side of Trial

Balance with the credit side?
(a)Single entry system
(b)Double entry system
(c)Application of accrual concept
(d)Application of matching concept

Q4.What is the nature of Trial Balance?

(a)Real account
(b)Nominal account
(c)Personal account
(d)List of ledger balances

Q5.Preparation of Trial Balance will further facilitate:

(a)preparation of profit and loss account only
(b)preparation of balance sheet only
(c)preparation of final accounts
(d)preparation of trading account

Q6. Trial Balance might match in spite of presence of:

(a) Errors of complete omission, Errors of principle ,
b) Errors of partial omission, compensating Errors
c) Errors of Double posting in a single account
d) Errors of wrong casting
19 LO – Ability to Pass necessary journal entries to rectify the following errors using 6
identify and rectify suspense account.
the errors through i. total of returns outward of 16500 was posted as 15600
suspense account
 AO – To assess the ii. discount allowed by a supplier was credited to his
ability of learner to account Rs 50, though correctly posted to discount
apply the concept of received account
rectification of iii. total of sales book was overcast by 600
errors in real life iv. Salaries paid Rs1000 were debited to salaries account
situations. twice
v. payment to Rakesh Rs 780 was posted as 870 in his
account
vi. A cheque of 800 received from Rajat was correctly
entered in cash book but wrongly debited to his account as
700
20 LO – Ability to After preparation of trial balance the following errors were detected 6
identify and rectify .pass necessary rectification entries.
the errors through
suspense account i.Goods returned to Rohan 3000 were posted to the credit of Naveen
1000
AO – To assess the ii. goods sold to Akash for 1200 was credited to him as 200
competency of iii. the sales of 430 to Harish was credited in his account as 340
learner to apply the iv.credit sales to Mohit for 7000 was debited to Sachin account as
concept of 5000
rectification of error v.Goods returned from Rohit for 3000 were posted to the debit of
in real life situations. Dinesh as 6000
vi.an item of 110 written off as bad debt from Arun has not been
debited to bad debts account

ANSWERS:
Q. NO ANSWER
1 D
2 D
3 D
4 C
5 D
6 D
7 A
8 B
9 B
10 A
11 A
 A
B
12 Trial Balance Total 32000
13 A
b
A
14 B
C
c
15 D
16 iRohit dr 1000 To Furniture 1000
ii.Hari dr200 To Amit 200
iii.purchases dr 7200 To Rohan 7200
iv.Sumit dr 800 To purchases 300 To sales 500
17 i.telephone charges a/c dr 660 To outstanding telephone charges660
ii.sales a/c dr 1500 to furniture a/c1500
iii.Bills Receivable a/c dr10000 To Ramesh 10000
iv.Machinery a/c dr 20000 To purchases a/c 20000
18 C
D
B
D
C
A
19 i.suspense a/c dr 900 To return outward a/c 900
ii.supplier’s a/c dr 100 To suspense a/c 100
iii.sales a/c dr 600 To suspense a/c 600
iv. suspense a/c dr 1000 To salaries a/c 1000
v. suspense a/c dr 90 To Rakesh 90
vi. suspense a/c dr 1500 To Rajat 1500
20 i.rohan dr 3000 naveen dr 1000 To suspense a/c4000
ii.Akash dr 1400 To suspense a/c1400
iii.harish dr 770 To suspense a/c770
iv.mohit dr 7000 To sachin 5000 to suspense 2000
v.suspense a/c dr 9000 To rohit a/c 3000 To dinesh 6000
vi bad debts a/c dr 110 To suspense a/c 110
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SOE ICSE Groups

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Nageen CBSE Channels

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  Click to Join JEE/NEET Channel
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Nageen ICSE Channels

 Click to Join Nageen ICSE Kindergarten Channel
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 Click to Join Nageen ICSE Class 11 (Science) Channel
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 Click to Join Nageen ICSE Class 12 (Science) Channel
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 Click to Join JEE/NEET Channel
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