Question 1

What is the primary objective of preparing a Trial Balance?

Accepted Answer

The primary objective of preparing a Trial Balance is to check the arithmetical accuracy of the ledger accounts. It ensures that the total of all debit balances equals the total of all credit balances, thereby verifying that the double-entry system has been correctly applied in posting transactions.

Question 2

Which of the following errors is not disclosed by a Trial Balance?

Accepted Answer

Errors of complete omission are not disclosed by a Trial Balance because if a transaction is completely omitted from the books of accounts, both the debit and credit aspects are left out, and the trial balance will still tally.

Question 3

An error of commission occurs when:

Accepted Answer

An error of commission occurs due to wrong recording, wrong posting, wrong balancing, or wrong casting. These errors happen inadvertently during the routine accounting process and can sometimes affect the agreement of the trial balance.

Question 4

Which of the following errors violates the fundamental principles of accounting?

Accepted Answer

An error of principle occurs when transactions are recorded in contravention of accounting principles, such as treating a capital expenditure as revenue expenditure. Such errors are not revealed by a Trial Balance.

Question 5

Suspense Account is opened when:

Accepted Answer

A Suspense Account is opened temporarily when the Trial Balance does not tally due to one or more unidentified errors, in order to finalize the financial statements without delay.

Trial Balance and Rectification of Errors — NCERT Class 11 Accountancy Important Questions & Revision Notes