Trial Balance and Rectification of Errors Test - 1

Wages paid for the construction of building should be treated as a capital expenditure and debited to the buildings account. Instead if it is debited to the wages account, it has been treated as revenue expenditure.

Suspense account will be opened because the identity of the account responsible for the error is not known.

The recording of transaction has been partly omitted from the books, it is therfore an error of partial omission.

It is an error of commission and will therefore be disclosed by the trial balance.

When a transaction has been misrecorded either wholly or partially, it is known as error of commission.

Trial balance is prepared after the ledger accounts have been balanced to verify the arithmetical accuracy of posting into the ledger accounts.

Because it is a one sided error and trial balance is affected only by one sided errors.

The commission account was debited in excess by Rs.100, so it will now be credited by the same amount to rectify the error.

Time of depiction of an error means the time when the error committed is detected. It may happen before or after the preparation of trial balance or even after the preparation of final accounts.

It is a statement showing the balances or totals of debits and credits of all the ledger accounts, with a view to verify the arithmetical accuracy of posting into the ledger accounts.