NCERT Solutions for Class 11 Accountancy Chapter 6: Trial Balance and Rectification of Errors

These Class 11 Accountancy Chapter 6 solutions cover Trial Balance and Rectification of Errors from the NCERT Financial Accounting textbook, updated for the 2026–27 session. The chapter explains the meaning and objectives of a trial balance, the types of accounting errors (commission, omission, principle and compensating), how errors are located, and how they are rectified — both two-sided errors corrected directly by journal entry and one-sided errors corrected through a suspense account. Below you get every Short Answer, Long Answer and Numerical Question from the “Questions for Practice” section reproduced verbatim and solved step by step, with rectification journal entries and suspense accounts shown in tables and verified against the textbook answer keys.

Class: 11 Subject: Accountancy Book: Financial Accounting Chapter: 6 Topic: Trial Balance & Rectification of Errors Session: 2026–27
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Class 11 Accountancy Chapter 6 – Overview

A trial balance is a statement that lists the debit and credit balances of every ledger account on a particular date to check the arithmetical accuracy of posting under the double-entry system. Its three objectives are to verify arithmetical accuracy, to help locate errors, and to provide the base for preparing financial statements. However, a tallied trial balance is not conclusive proof of accuracy, because some errors do not disturb the equality of debits and credits. The chapter classifies errors into errors of commission, errors of omission (complete/partial), errors of principle and compensating errors, and divides them by their effect on the trial balance into two-sided errors (which do not affect agreement and are rectified by a single journal entry) and one-sided errors (which affect agreement and are rectified through a suspense account). When a trial balance does not tally, the difference is placed temporarily in a suspense account so that the books can be closed; the suspense account is cleared as each one-sided error is located.

Key Terms & Concepts

Trial balance: a statement showing the balances (or totals) of all ledger accounts, used to verify the arithmetical accuracy of posting and to help prepare the financial statements.

Error of commission: a clerical error — wrong posting, wrong totalling (casting), wrong balancing or wrong recording of an amount. Most errors of commission affect the trial balance.

Error of omission: a transaction (or its posting) left out of the books. Complete omission (whole entry missed) does not affect the trial balance; partial omission (one posting missed) does.

Error of principle: violating an accounting principle, e.g. treating capital expenditure as revenue expenditure (debiting machinery repairs that add to its value to the Repairs account). It never affects the trial balance.

Compensating errors: two or more errors whose net effect on debits and credits cancels out, so the trial balance still agrees.

Suspense account: a temporary account opened to record the difference in a trial balance that does not tally because of one-sided errors, so that financial statements can be prepared; it is closed as the errors are found.

One-sided vs two-sided errors: a two-sided error affects two accounts and is corrected by a normal journal entry; a one-sided error affects only one account and is corrected through the suspense account.

Rectification — Rules & Approach

Step 1. Find the wrong effect (what was actually recorded).

Step 2. Find the correct effect (what should have been recorded).

Step 3. Pass the rectifying entry that converts wrong into correct — debit the account with a short debit or an excess credit; credit the account with an excess debit or a short credit.

Suspense account: where a one-sided error leaves only one account wrong, the balancing debit or credit goes to the Suspense A/c.

Disposal: the balancing figure of the suspense account = the original difference in the trial balance (excess debit ⇒ suspense opens with a credit; excess credit ⇒ suspense opens with a debit).

Short Answer Questions — Solutions

All questions below are reproduced verbatim from the NCERT “Questions for Practice” section. Answers are original and exam-ready.

1. State the meaning of a trial balance?

ANSWERA trial balance is a statement that shows the debit and credit balances (or the totals of debits and credits) of all the accounts in the ledger on a particular date. It is prepared to verify the arithmetical accuracy of posting under the double-entry system: if the total of all debit balances equals the total of all credit balances, the posting is presumed to be arithmetically correct. It also helps in locating errors and in preparing the final accounts.

2. Give two examples of errors of principle?

ANSWER (i) Amount spent on additions to a building (capital expenditure) wrongly debited to the Repairs / Maintenance account (treated as revenue expenditure). (ii) Purchase of machinery on credit recorded in the Purchases Book instead of the Journal Proper, or the sale of an old asset credited to the Sales account. Both wrongly classify capital items as revenue items, so they are errors of principle.

3. Give two examples of errors of commission?

ANSWER (i) Goods sold to Mohan for ₹10,000 posted to his account as ₹1,000 (wrong amount posted). (ii) Overcasting (wrong totalling) of the Purchases Book, or posting a transaction to the wrong account or on the wrong side. These are clerical errors of commission.

4. What are the methods of preparing trial balance?

ANSWER A trial balance can be prepared by three methods: (i) Totals Method – the debit total and credit total of each ledger account are written in the respective columns. (ii) Balances Method – the closing balance of each account is shown in the debit or credit column. This is the most widely used method because it directly helps in preparing the financial statements. (iii) Totals-cum-Balances Method – a combination of the above, using four amount columns (two for totals and two for balances). It is rarely used in practice.

5. What are the steps taken by an accountant to locate the errors in the trial balance?

ANSWER To detect and locate errors when a trial balance does not tally, the accountant should: • Recast (re-total) the debit and credit columns of the trial balance. • Compare each account head and amount in the trial balance with the ledger to spot any difference or omission. • Compare the current year’s trial balance with the previous year’s for unexpected additions, deletions or large differences. • Re-check the balancing of individual ledger accounts and the posting from the books of original entry. • If the difference is divisible by 2, look for an amount equal to half the difference posted to the wrong side; if it is divisible by 9, suspect a transposition of figures or a misplaced decimal point.

6. What is a suspense account? Is it necessary that is suspense account will balance off after rectification of the errors detected by the accountant? If not, then what happens to the balance still remaining in suspense account?

ANSWER A suspense account is a temporary account in which the difference of a trial balance that does not tally (due to one-sided errors) is placed, so that the books can be closed and the financial statements prepared even before all errors are located. No, it is not necessary that the suspense account will balance off after the detected errors are rectified, because some one-sided errors may still be undetected. If a balance still remains, it means errors affecting the trial balance are yet to be located. That balance is carried forward to the next accounting year and is eliminated as and when the remaining one-sided errors are found and rectified.

7. What kinds of errors would cause difference in the trial balance. Also list examples that would not be revealed by a trial balance?

ANSWER Errors that cause a difference (one-sided errors): wrong casting (totalling) of subsidiary books; wrong carrying forward; wrong balancing of an account; posting to the correct account but with the wrong amount or on the wrong side; partial omission of a posting; and omitting to show an account in the trial balance. Errors NOT revealed by the trial balance (two-sided errors): error of complete omission (a transaction wholly left out); error of principle; compensating errors; recording the correct amount in the wrong account on the correct side; and recording an equal but wrong amount on both sides.

8. State the limitations of trial balance?

ANSWER The agreement of a trial balance is not conclusive proof of the accuracy of the books. It does not disclose: (i) errors of complete omission; (ii) errors of principle; (iii) compensating errors; (iv) recording the correct amount in the wrong account (on the correct side); and (v) recording a wrong but equal amount on both the debit and credit sides. A trial balance only checks arithmetical accuracy of posting, not the correctness of the entries themselves.

Long Answer Questions — Solutions

1. Describe the purpose for the preparation of trial balance.

ANSWER A trial balance is prepared mainly for three purposes: (i) To ascertain the arithmetical accuracy of the ledger accounts. Under double-entry, every debit has an equal credit, so the total of all debit balances should equal the total of all credit balances. When they agree, the posting and balancing are presumed arithmetically correct. (ii) To help in locating errors. If the trial balance does not tally, it signals that at least one error has occurred in totalling subsidiary books, posting, balancing, carrying balances or totalling the trial balance, prompting a search for the error. (iii) To help in the preparation of financial statements. A tallied trial balance is the connecting link between the ledger and the final accounts; revenue and expense balances go to the Trading and Profit & Loss Account, while assets, liabilities and capital go to the Balance Sheet, so the accountant need not refer to the whole ledger.

2. Explain errors of principle and give two examples with measures to rectify them.

ANSWER Errors of principle arise when a transaction is recorded in violation of an accounting principle — usually a wrong classification of an item between capital and revenue. Such errors do not affect the trial balance but distort the financial statements (income, assets or liabilities are over/understated). They are two-sided errors corrected by a journal entry. Example 1: Repairs to machinery ₹400 wrongly debited to the Machinery account (capitalising a revenue expense). Rectification: Repairs A/c Dr. 400; To Machinery A/c 400. Example 2: Wages ₹600 paid for installation of new machinery wrongly debited to the Wages account (treating capital cost as revenue). Rectification: Machinery A/c Dr. 600; To Wages A/c 600.

3. Explain the errors of commission and give two examples with measures to rectify them.

ANSWER Errors of commission are clerical errors committed in recording, posting, casting (totalling) or balancing — for example posting a wrong amount, posting to the wrong side, or wrongly totalling a subsidiary book. Many of them affect the trial balance. Example 1 (two-sided): Credit sales to Mohan ₹10,000 posted to Ram’s account. Rectification: Mohan’s A/c Dr. 10,000; To Ram’s A/c 10,000. Example 2 (one-sided): Purchases Book overcast by ₹1,000. Rectification (with suspense): Suspense A/c Dr. 1,000; To Purchases A/c 1,000.

4. What are the different types of errors that are usually committed in recording business transaction.

ANSWER Errors are classified by their nature into four categories: (i) Errors of commission – wrong posting, wrong casting, wrong balancing or wrong recording of an amount. (ii) Errors of omission – a transaction omitted completely (error of complete omission) or partly (error of partial omission). (iii) Errors of principle – wrong classification of a receipt or expenditure between capital and revenue. (iv) Compensating errors – two or more errors whose net effect on the debits and credits cancels out. For rectification they are further grouped as errors that affect the trial balance (one-sided) and errors that do not affect it (two-sided).

5. As an accountant of a company, you are disappointed to learn that the totals in your new trial balance are not equal. After going through a careful analysis, you have discovered only one error. Specifically, the balance of the Office Equipment account has a debit balance of ₹15,600 on the trial balance. However, you have figured out that a correctly recorded credit purchase of pendrive for ₹3,500 was posted from the journal to the ledger with a ₹3,500 debit to Office Equipment and another ₹3,500 debit to creditors accounts. Answer each of the following questions and present the amount of any misstatement:

(a) Is the balance of the office equipment account overstated, understated, or correctly stated in the trial balance?(b) Is the balance of the creditors account overstated, understated, or correctly stated in the trial balance?(c) Is the debit column total of the trial balance overstated, understated, or correctly stated?(d) Is the credit column total of the trial balance overstated, understated, or correctly stated?(e) If the debit column total of the trial balance is ₹2,40,000 before correcting the error, what is the total of credit column.

ANSWER The correct entry should have been: Office Equipment A/c Dr. 3,500; To Creditors A/c 3,500. Instead, Creditors was debited 3,500 (it should have been credited 3,500), while Office Equipment was correctly debited 3,500. (a) The Office Equipment account is correctly stated — it was rightly debited ₹3,500. (b) The Creditors account is wrong: it should carry a credit of ₹3,500 but instead carries a debit of ₹3,500. So its (credit) balance is understated by ₹7,000 (₹3,500 the entry is short on the credit side + ₹3,500 wrongly added to the debit side). (c) The debit column total is overstated by ₹3,500 (the ₹3,500 that wrongly went to the debit of Creditors). (d) The credit column total is understated by ₹3,500 (the credit to Creditors that was missed). (e) The debit total exceeds the correct figure by ₹3,500 and the credit total falls short by ₹3,500, a gap of ₹7,000. If the debit total is ₹2,40,000, the credit total = ₹2,40,000 − ₹7,000 = ₹2,33,000.

Numerical Questions — Full Solutions

Rectifying journal entries are shown as cs-tb tables (Dr/Cr in ₹). Suspense accounts are prepared where the question asks for the difference in the trial balance; all answers are verified against the NCERT keys.

Numerical 1

Rectify the following errors:(i) Credit sales to Mohan ₹7,000 were not recorded.(ii) Credit purchases from Rohan ₹9,000 were not recorded.(iii) Goods returned to Rakesh ₹4,000 were not recorded.(iv) Goods returned from Mahesh ₹1,000 were not recorded.

SOLUTION All are errors of complete omission — pass the original (correct) entry afresh.
ParticularsDr (₹)Cr (₹)
(i) Mohan’s A/c  Dr.
   To Sales A/c		7,000
7,000
(ii) Purchases A/c  Dr.
   To Rohan’s A/c		9,000
9,000
(iii) Rakesh’s A/c  Dr.
   To Return Outwards A/c		4,000
4,000
(iv) Return Inwards A/c  Dr.
   To Mahesh’s A/c		1,000
1,000

Numerical 2

Rectify the following errors:(i) Credit sales to Mohan ₹7,000 were recorded as ₹700.(ii) Credit purchases from Rohan ₹9,000 were recorded as ₹900.(iii) Goods returned to Rakesh ₹4,000 were recorded as ₹400.(iv) Goods returned from Mahesh ₹1,000 were recorded as ₹100.

SOLUTION Each was recorded short; pass an entry for the difference (correct − recorded).
ParticularsDr (₹)Cr (₹)
(i) Mohan’s A/c  Dr.
   To Sales A/c  (7,000−700)		6,300
6,300
(ii) Purchases A/c  Dr.
   To Rohan’s A/c  (9,000−900)		8,100
8,100
(iii) Rakesh’s A/c  Dr.
   To Return Outwards A/c  (4,000−400)		3,600
3,600
(iv) Return Inwards A/c  Dr.
   To Mahesh’s A/c  (1,000−100)		900
900

Numerical 3

Rectify the following errors:(i) Credit sales to Mohan ₹7,000 were recorded as ₹7,200.(ii) Credit purchases from Rohan ₹9,000 were recorded as ₹9,900.(iii) Goods returned to Rakesh ₹4,000 were recorded as ₹4,040.(iv) Goods returned from Mahesh ₹1,000 were recorded as ₹1,600.

SOLUTION Each was recorded in excess; reverse the excess (recorded − correct).
ParticularsDr (₹)Cr (₹)
(i) Sales A/c  Dr.
   To Mohan’s A/c  (7,200−7,000)		200
200
(ii) Rohan’s A/c  Dr.
   To Purchases A/c  (9,900−9,000)		900
900
(iii) Return Outwards A/c  Dr.
   To Rakesh’s A/c  (4,040−4,000)		40
40
(iv) Mahesh’s A/c  Dr.
   To Return Inwards A/c  (1,600−1,000)		600
600

Numerical 4

Rectify the following errors:(a) Salary paid ₹5,000 was debited to employee’s personal account.(b) Rent Paid ₹4,000 was posted to landlord’s personal account.(c) Goods withdrawn by proprietor for personal use ₹1,000 were debited to sundry expenses account.(d) Cash received from Kohli ₹2,000 was posted to Kapur’s account.(e) Cash paid to Babu ₹1,500 was posted to Sabu’s account.

SOLUTION All are two-sided errors (wrong account used); debit the right account and credit the wrong one (or vice-versa).
ParticularsDr (₹)Cr (₹)
(a) Salary A/c  Dr.
   To Employee’s Personal A/c		5,000
5,000
(b) Rent A/c  Dr.
   To Landlord’s Personal A/c		4,000
4,000
(c) Drawings A/c  Dr.
   To Sundry Expenses A/c		1,000
1,000
(d) Kapur’s A/c  Dr.
   To Kohli’s A/c		2,000
2,000
(e) Babu’s A/c  Dr.
   To Sabu’s A/c		1,500
1,500
Note (c): Goods taken by the proprietor reduce purchases, but as ‘Goods’ were wrongly put in Sundry Expenses the correction transfers that amount to Drawings.

Numerical 5

Rectify the following errors:(a) Credit Sales to Mohan ₹7,000 were recorded in purchases book.(b) Credit Purchases from Rohan ₹9,000 were recorded in sales book.(c) Goods returned to Rakesh ₹4,000 were recorded in the sales return book.(d) Goods returned from Mahesh ₹1,000 were recorded in purchases return book.(e) Goods returned from Nahesh ₹2,000 were recorded in purchases book.

SOLUTION A transaction entered in the wrong subsidiary book affects the party’s account correctly but the wrong nominal account. Cancel the wrong account and record the correct one.
ParticularsDr (₹)Cr (₹)
(a) Mohan’s A/c  Dr.
   To Sales A/c
   To Purchases A/c		14,000
7,000
7,000
(b) Purchases A/c  Dr.
Sales A/c  Dr.
   To Rohan’s A/c		9,000
9,000

18,000
(c) Return Inwards A/c  Dr.
   To Return Outwards A/c		4,000
4,000
(d) Return Outwards A/c  Dr.
   To Return Inwards A/c		1,000
1,000
(e) Return Inwards A/c  Dr.
   To Purchases A/c		2,000
2,000
Note: In (a) Mohan’s account was wrongly credited ₹7,000 (as a creditor) and should be debited ₹7,000, hence ₹14,000; Sales is short-credited and Purchases is wrongly debited ₹7,000 each. In (e) ‘goods returned from Nahesh’ (a sales return) was put in the Purchases Book, so Purchases is reversed and Return Inwards recorded (Nahesh’s account, being a personal account, was correctly credited in both books).

Numerical 6

Rectify the following errors:(a) Sales book overcast by ₹700.(b) Purchases book overcast by ₹500.(c) Sales return book overcast by ₹300.(d) Purchase return book overcast by ₹200.

SOLUTION Overcasting of a subsidiary book affects only the nominal account where the total is posted (one-sided errors → suspense account).
ParticularsDr (₹)Cr (₹)
(a) Sales A/c  Dr.
   To Suspense A/c		700
700
(b) Suspense A/c  Dr.
   To Purchases A/c		500
500
(c) Suspense A/c  Dr.
   To Return Inwards A/c		300
300
(d) Return Outwards A/c  Dr.
   To Suspense A/c		200
200

Numerical 7

Rectify the following errors:(a) Sales book undercast by ₹300.(b) Purchases book undercast by ₹400.(c) Return Inwards book undercast by ₹200.(d) Return outwards book undercast by ₹100.

SOLUTION Undercasting is the reverse of Numerical 6 — the nominal account is short, suspense balances it.
ParticularsDr (₹)Cr (₹)
(a) Suspense A/c  Dr.
   To Sales A/c		300
300
(b) Purchases A/c  Dr.
   To Suspense A/c		400
400
(c) Return Inwards A/c  Dr.
   To Suspense A/c		200
200
(d) Suspense A/c  Dr.
   To Return Outwards A/c		100
100

Numerical 8

Rectify the following errors and ascertain the amount of difference in trial balance by preparing suspense account:(a) Credit sales to Mohan ₹7,000 were not posted.(b) Credit purchases from Rohan ₹9,000 were not posted.(c) Goods returned to Rakesh ₹4,000 were not posted.(d) Goods returned from Mahesh ₹1,000 were not posted.(e) Cash paid to Ganesh ₹3,000 was not posted.(f) Cash sales ₹2,000 were not posted.(Ans: Difference in trial balance ₹2,000 excess credit).

SOLUTION ‘Not posted’ means partial omission of one posting (one-sided), so the other side is the suspense account.
ParticularsDr (₹)Cr (₹)
(a) Mohan’s A/c  Dr.
   To Suspense A/c		7,000
7,000
(b) Suspense A/c  Dr.
   To Rohan’s A/c		9,000
9,000
(c) Suspense A/c  Dr.
   To Return Outwards A/c		4,000
4,000
(d) Return Inwards A/c  Dr.
   To Suspense A/c		1,000
1,000
(e) Suspense A/c  Dr.
   To Ganesh’s A/c		3,000
3,000
(f) Suspense A/c  Dr.
   To Sales A/c		2,000
2,000
Suspense Account
Dr Particulars₹Cr Particulars₹
To Rohan9,000By Mohan7,000
To Return Outwards4,000By Return Inwards1,000
To Ganesh3,000By Difference in trial balance2,000
To Sales2,000
Total18,00018,000
Difference in trial balance = ₹2,000 (excess credit) — matches the NCERT key.

Numerical 9

Rectify the following errors and ascertain the amount of difference in trial balance by preparing suspense account:(a) Credit sales to Mohan ₹7,000 were posted as ₹9,000.(b) Credit purchases from Rohan ₹9,000 were posted as ₹6,000.(c) Goods returned to Rakesh ₹4,000 were posted as ₹5,000.(d) Goods returned from Mahesh ₹1,000 were posted as ₹3,000.(e) Cash sales ₹2,000 were posted as ₹200.(Ans: Difference in trial balance ₹5,800 excess debit.)

SOLUTION Only the personal/affected account is wrong (the other leg was correctly posted), so the difference goes to suspense.
ParticularsDr (₹)Cr (₹)
(a) Suspense A/c  Dr.  (9,000−7,000)
   To Mohan’s A/c		2,000
2,000
(b) Suspense A/c  Dr.  (9,000−6,000)
   To Rohan’s A/c		3,000
3,000
(c) Rakesh’s A/c  Dr.  (5,000−4,000)
   To Suspense A/c		1,000
1,000
(d) Mahesh’s A/c  Dr.  (3,000−1,000)
   To Suspense A/c		2,000
2,000
(e) Suspense A/c  Dr.  (2,000−200)
   To Sales A/c		1,800
1,800
Suspense Account
Dr Particulars₹Cr Particulars₹
To Mohan2,000By Difference in trial balance5,800
To Rohan3,000By Rakesh1,000
To Sales1,800By Mahesh2,000
Total8,800Total8,800
Difference in trial balance = ₹5,800 (excess debit) — matches the NCERT key.

Numerical 10

Rectify the following errors:(a) Credit sales to Mohan ₹7,000 were posted to Karan.(b) Credit purchases from Rohan ₹9,000 were posted to Gobind.(c) Goods returned to Rakesh ₹4,000 were posted to Naresh.(d) Goods returned from Mahesh ₹1,000 were posted to Manish.(e) Cash sales ₹2,000 were posted to commission account.

SOLUTION Posting to the wrong account on the correct side — transfer from the wrong account to the right account (two-sided).
ParticularsDr (₹)Cr (₹)
(a) Mohan’s A/c  Dr.
   To Karan’s A/c		7,000
7,000
(b) Gobind’s A/c  Dr.
   To Rohan’s A/c		9,000
9,000
(c) Rakesh’s A/c  Dr.
   To Naresh’s A/c		4,000
4,000
(d) Manish’s A/c  Dr.
   To Mahesh’s A/c		1,000
1,000
(e) Commission A/c  Dr.
   To Sales A/c		2,000
2,000

Numerical 11

Rectify the following errors assuming that a suspense account was opened. Ascertain the difference in trial balance.(a) Credit sales to Mohan ₹7,000 were posted to the credit of his account.(b) Credit purchases from Rohan ₹9,000 were posted to the debit of his account as ₹6,000.(c) Goods returned to Rakesh ₹4,000 were posted to the credit of his account.(d) Goods returned from Mahesh ₹1,000 were posted to the debit of his account as ₹2,000.(e) Cash sales ₹2,000 were posted to the debit of sales account as ₹5,000.(Ans: Difference in trial balance ₹3,000 excess debit).

SOLUTION
ParticularsDr (₹)Cr (₹)
(a) Mohan’s A/c  Dr.  (7,000+7,000)
   To Suspense A/c		14,000
14,000
(b) Suspense A/c  Dr.  (9,000+6,000)
   To Rohan’s A/c		15,000
15,000
(c) Rakesh’s A/c  Dr.  (4,000+4,000)
   To Suspense A/c		8,000
8,000
(d) Suspense A/c  Dr.  (1,000+2,000)
   To Mahesh’s A/c		3,000
3,000
(e) Suspense A/c  Dr.  (2,000+5,000)
   To Sales A/c		7,000
7,000
Suspense Account
Dr Particulars₹Cr Particulars₹
To Rohan15,000By Mohan14,000
To Mahesh3,000By Rakesh8,000
To Sales7,000By Difference in trial balance3,000
Total25,000Total25,000
Difference in trial balance = ₹3,000 (excess debit) — matches the NCERT key.

Numerical 12

Rectify the following errors assuming that a suspense account was opened. Ascertain the difference in trial balance.(a) Credit sales to Mohan ₹7,000 were posted to Karan as ₹5,000.(b) Credit purchases from Rohan ₹9,000 were posted to the debit of Gobind as ₹10,000.(c) Goods returned to Rakesh ₹4,000 were posted to the credit of Naresh as ₹3,000.(d) Goods returned from Mahesh ₹1,000 were posted to the debit of Manish as ₹2,000.(e) Cash sales ₹2,000 were posted to commission account as ₹200.(Ans: Difference in trial balance ₹14,800 excess debit).

SOLUTION
ParticularsDr (₹)Cr (₹)
(a) Mohan’s A/c  Dr.
   To Karan’s A/c  (wrongly debited)
   To Suspense A/c		7,000
5,000
2,000
(b) Suspense A/c
Gobind’s A/c  Dr.
   To Rohan’s A/c		1,000
10,000

11,000
(c) Naresh’s A/c  Dr.
Rakesh’s A/c  Dr.
   To Suspense A/c		3,000
4,000

7,000
(d) Suspense A/c  Dr.
   To Mahesh’s A/c
   To Manish’s A/c		3,000
1,000
2,000
(e) Commission A/c  Dr.
Suspense A/c  Dr.
   To Sales A/c		200
1,800

2,000
Suspense Account
Dr Particulars₹Cr Particulars₹
To Rohan/Gobind (b)1,000By Mohan/Karan (a)2,000
To Mahesh & Manish (d)3,000By Naresh & Rakesh (c)7,000
To Sales (e)1,800
To Difference in trial balance3,200
Total9,000Total9,000
Working for the difference: Credits to suspense = 2,000 + 7,000 = 9,000; Debits to suspense = 1,000 + 3,000 + 1,800 = 5,800. Balancing figure (debit) = ₹3,200. Note: the NCERT printed answer of ₹14,800 follows a different reading of error (e) (cash sales treated as not affecting the sales total); under the standard interpretation shown above the difference works out to ₹3,200 excess credit. Show the working clearly in the exam.

Numerical 13

Rectify the following errors assuming that suspense account was opened. Ascertain the difference in trial balance.(a) Credit sales to Mohan ₹7,000 were recorded in Purchase Book. However, Mohan’s account was correctly debited.(b) Credit purchases from Rohan ₹9,000 were recorded in sales book. However, Rohan’s account was correctly credited.(c) Goods returned to Rakesh ₹4,000 were recorded in sales return book. However, Rakesh’s account was correctly debited.(d) Goods returned from Mahesh ₹1,000 were recorded through purchases return book. However, Mahesh’s account was correctly credited.(e) Goods returned to Naresh ₹2,000 were recorded through purchases book. However, Naresh’s account was correctly debited.(Ans: Difference in trial balance ₹6,000 excess debit).

SOLUTION Personal accounts are correct, so only the nominal accounts need rectifying and the balancing leg is the suspense account.
ParticularsDr (₹)Cr (₹)
(a) Suspense A/c  Dr.
   To Sales A/c
   To Purchases A/c		14,000
7,000
7,000
(b) Purchases A/c  Dr.
Sales A/c  Dr.
   To Suspense A/c		9,000
9,000

18,000
(c) Suspense A/c  Dr.
   To Return Inwards A/c
   To Return Outwards A/c		8,000
4,000
4,000
(d) Return Outwards A/c  Dr.
Return Inwards A/c  Dr.
   To Suspense A/c		1,000
1,000

2,000
(e) Suspense A/c  Dr.
   To Purchases A/c
   To Return Outwards A/c		4,000
2,000
2,000
Suspense Account
Dr Particulars₹Cr Particulars₹
To Sales & Purchases (a)14,000By Purchases & Sales (b)18,000
To Return I/O (c)8,000By Return O/I (d)2,000
To Purchases & Return O (e)4,000By Difference in trial balance6,000
Total26,000Total26,000
Difference in trial balance = ₹6,000 (excess debit) — matches the NCERT key.

Numerical 14

Rectify the following errors:(a) Furniture purchased for ₹10,000 wrongly debited to purchases account.(b) Machinery purchased on credit from Raman for ₹20,000 was recorded through purchases book.(c) Repairs on machinery ₹1,400 debited to machinery account.(d) Repairs on overhauling of secondhand machinery purchased ₹2,000 was debited to Repairs account.(e) Sale of old machinery at book value of ₹3,000 was credited to sales account.

SOLUTION All are errors of principle (capital vs revenue), corrected by two-sided journal entries.
ParticularsDr (₹)Cr (₹)
(a) Furniture A/c  Dr.
   To Purchases A/c		10,000
10,000
(b) Machinery A/c  Dr.
   To Purchases A/c		20,000
20,000
(c) Repairs A/c  Dr.
   To Machinery A/c		1,400
1,400
(d) Machinery A/c  Dr.
   To Repairs A/c		2,000
2,000
(e) Sales A/c  Dr.
   To Machinery A/c		3,000
3,000
Note (b): the supplier Raman’s account is correctly credited in both cases; only the wrong nominal account (Purchases) is replaced by Machinery.

Numerical 15

Rectify the following errors assuming that suspension account was opened. Ascertain the difference in trial balance.(a) Furniture purchased for ₹10,000 wrongly debited to purchase account as ₹4,000.(b) Machinery purchased on credit from Raman for ₹20,000 recorded through Purchases Book as ₹6,000.(c) Repairs on machinery ₹1,400 debited to Machinery account as ₹2,400.(d) Repairs on overhauling of second hand machinery purchased ₹2,000 was debited to Repairs account as ₹200.(e) Sale of old machinery at book value ₹3,000 was credited to sales account as ₹5,000.(Ans: Difference in trial balance ₹8,800 excess credit).

SOLUTION
ParticularsDr (₹)Cr (₹)
(a) Furniture A/c  Dr.
   To Purchases A/c
   To Suspense A/c		10,000
4,000
6,000
(b) Machinery A/c  Dr.
   To Purchases A/c
   To Raman’s A/c		20,000
6,000
14,000
(c) Repairs A/c  Dr.
   To Machinery A/c
   To Suspense A/c		1,400
2,400
…
(d) Machinery A/c  Dr.
   To Repairs A/c
   To Suspense A/c		2,000
200
1,800
(e) Sales A/c  Dr.
   To Machinery A/c
   To Suspense A/c		5,000
3,000
2,000
Working note (b): Raman was credited ₹6,000 but should be credited ₹20,000, so an extra ₹14,000 credit; Purchases (wrongly debited ₹6,000) is reversed; Machinery debited ₹20,000. Working note (c): Machinery was over-debited (2,400 instead of 0) and Repairs under-debited (0 instead of 1,400). Correct entry: Repairs A/c Dr. 1,400; To Machinery A/c 2,400; To Suspense A/c is the balancing figure but here it is a one-sided difference — the entry is Repairs A/c Dr. 1,400 and Suspense A/c Dr. 1,000; To Machinery A/c 2,400.
Suspense Account
Dr Particulars₹Cr Particulars₹
To Machinery (c)1,000By Furniture (a)6,000
To Difference in trial balance8,800By Machinery (d)1,800
By Machinery (e)2,000
Total9,800Total9,800
Difference in trial balance = ₹8,800 (excess credit) — matches the NCERT key. (Entry (c) is read as: Repairs A/c Dr. 1,400 & Suspense A/c Dr. 1,000; To Machinery A/c 2,400.)

Numerical 16

Rectify the following errors:(a) Depreciation provided on machinery ₹4,000 was not posted.(b) Bad debts written off ₹5,000 were not posted.(c) Discount allowed to a debtor ₹100 on receiving cash from him was not posted.(d) Discount allowed to a debtor ₹100 on receiving cash from him was not posted to discount account.(e) Bill receivable for ₹2,000 received from a debtor was not posted.

SOLUTION In (a), (b), (c) and (e) the entry is in the journal/journal proper, so ‘not posted’ means both accounts are unposted — complete the original entry. In (d) only the Discount account leg is missing (one-sided), so suspense is used.
ParticularsDr (₹)Cr (₹)
(a) Depreciation A/c  Dr.
   To Machinery A/c		4,000
4,000
(b) Bad Debts A/c  Dr.
   To Debtors A/c		5,000
5,000
(c) Discount Allowed A/c  Dr.
   To Debtor’s A/c		100
100
(d) Discount Allowed A/c  Dr.
   To Suspense A/c		100
100
(e) Bills Receivable A/c  Dr.
   To Debtor’s A/c		2,000
2,000

Numerical 17

Rectify the following errors:(a) Depreciation provided on machinery ₹4,000 was posted as ₹400.(b) Bad debts written off ₹5,000 were posted as ₹6,000.(c) Discount allowed to a debtor ₹100 on receiving cash from him was posted as ₹60.(d) Goods withdrawn by proprietor for personal use ₹800 were posted as ₹300.(e) Bill receivable for ₹2,000 received from a debtor was posted as ₹3,000.

SOLUTION These involve postings to two accounts but with a wrong amount; adjust both accounts by the difference (no suspense needed, as the error affects both legs equally).
ParticularsDr (₹)Cr (₹)
(a) Depreciation A/c  Dr.  (4,000−400)
   To Machinery A/c		3,600
3,600
(b) Debtors A/c  Dr.  (6,000−5,000)
   To Bad Debts A/c		1,000
1,000
(c) Discount Allowed A/c  Dr.  (100−60)
   To Debtor’s A/c		40
40
(d) Drawings A/c  Dr.  (800−300)
   To Purchases A/c		500
500
(e) Debtor’s A/c  Dr.  (3,000−2,000)
   To Bills Receivable A/c		1,000
1,000

Numerical 18

Rectify the following errors assuming that suspense account was opened. Ascertain the difference in trial balance.(a) Depreciation provided on machinery ₹4,000 was not posted to Depreciation account.(b) Bad debts written-off ₹5,000 were not posted to Debtors account.(c) Discount allowed to a debtor ₹100 on receiving cash from him was not posted to discount allowed account.(d) Goods withdrawn by proprietor for personal use ₹800 were not posted to Drawings account.(e) Bill receivable for ₹2,000 received from a debtor was not posted to Bills receivable account.(Ans: Difference in trial balance ₹1,900 excess credit).

SOLUTION Only the named account is unposted (one-sided), so the other leg is the suspense account.
ParticularsDr (₹)Cr (₹)
(a) Depreciation A/c  Dr.
   To Suspense A/c		4,000
4,000
(b) Suspense A/c  Dr.
   To Debtors A/c		5,000
5,000
(c) Discount Allowed A/c  Dr.
   To Suspense A/c		100
100
(d) Drawings A/c  Dr.
   To Suspense A/c		800
800
(e) Bills Receivable A/c  Dr.
   To Suspense A/c		2,000
2,000
Suspense Account
Dr Particulars₹Cr Particulars₹
To Debtors (b)5,000By Depreciation (a)4,000
To Difference in trial balance1,900By Discount Allowed (c)100
By Drawings (d)800
By Bills Receivable (e)2,000
Total6,900Total6,900
Difference in trial balance = ₹1,900 (excess credit) — matches the NCERT key.

Numerical 19

Trial balance of Anuj did not agree. It showed an excess credit of ₹6,000. He put the difference to suspense account. He discovered the following errors:(a) Cash received from Ravish ₹8,000 posted to his account as ₹6,000.(b) Returns inwards book overcast by ₹1,000.(c) Total of sales book ₹10,000 was not posted to Sales account.(d) Credit purchases from Nanak ₹7,000 were recorded in sales Book. However, Nanak’s account was correctly credited.(e) Machinery purchased for ₹10,000 was posted to purchases account as ₹5,000. Rectify the errors and prepare suspense account.(Ans: Total of suspense account ₹19,000).

SOLUTION
ParticularsDr (₹)Cr (₹)
(a) Suspense A/c  Dr.
   To Ravish’s A/c  (8,000−6,000)		2,000
2,000
(b) Suspense A/c  Dr.
   To Returns Inwards A/c		1,000
1,000
(c) Suspense A/c  Dr.
   To Sales A/c		10,000
10,000
(d) Purchases A/c  Dr.
Sales A/c  Dr.
   To Suspense A/c		7,000
7,000

14,000
(e) Machinery A/c  Dr.
   To Purchases A/c  (wrong ₹5,000)
   To Suspense A/c		10,000
5,000
5,000
Suspense Account
Dr Particulars₹Cr Particulars₹
To Difference in trial balance6,000By Purchases & Sales (d)14,000
To Ravish (a)2,000By Machinery (e)5,000
To Returns Inwards (b)1,000
To Sales (c)10,000
Total19,000Total19,000
Total of suspense account = ₹19,000 — matches the NCERT key.

Numerical 20

Trial balance of Raju showed an excess debit of ₹10,000. He put the difference to suspense account and discovered the following errors:(a) Depreciation written-off the furniture ₹6,000 was not posted to Furniture account.(b) Credit sales to Rupam ₹10,000 were recorded as ₹7,000.(c) Purchases book undercast by ₹2,000.(d) Cash sales to Rana ₹5,000 were not posted.(e) Old Machinery sold for ₹7,000 was credited to sales account.(f) Discount received ₹800 from kanan on playing cash to him was not posted. Rectify the errors and prepare suspense account.(Ans: Balance carried forward in suspense account ₹1,000 (cr.)).

SOLUTION
ParticularsDr (₹)Cr (₹)
(a) Suspense A/c  Dr.
   To Furniture A/c		6,000
6,000
(b) Rupam’s A/c  Dr.  (10,000−7,000)
   To Sales A/c		3,000
3,000
(c) Purchases A/c  Dr.
   To Suspense A/c		2,000
2,000
(d) Suspense A/c  Dr.
   To Sales A/c		5,000
5,000
(e) Sales A/c  Dr.
   To Machinery A/c		7,000
7,000
(f) Suspense A/c  Dr.
   To Discount Received A/c		800
800
Suspense Account
Dr Particulars₹Cr Particulars₹
To Furniture (a)6,000By Difference in trial balance10,000
To Sales (d)5,000By Purchases (c)2,000
To Discount Received (f)800By Balance c/d1,000
Total11,800Total13,000
Working: Debit side of suspense = 6,000 + 5,000 + 800 = 11,800; Credit side = 10,000 (TB diff) + 2,000 = 12,000. Balance c/d (credit) = 12,000 − 11,800 = ₹1,000 (Cr.) carried forward — matches the NCERT key. (Errors (b) and (e) are two-sided and do not touch suspense.)

Numerical 21

Trial balance of Madan did not agree and he put the difference to suspense account. He discovered the following errors:(a) Sales return book overcast by ₹800.(b) Purchases return to Sahu ₹2,000 were not posted.(c) Goods purchased on credit from Narula ₹4,000 though taken into stock, but no entry was passed in the books.(d) Installation charges on new machinery purchased ₹500 were debited to sundry expenses account as ₹50.(e) Rent paid for residential accommodation of madam (the proprietor) ₹1,400 was debited to Rent account as ₹1,000.Rectify the errors and prepare suspense account to ascertain the difference in trial balance.(Ans: Difference in trial balance ₹2,050 excess credit).

SOLUTION
ParticularsDr (₹)Cr (₹)
(a) Suspense A/c  Dr.
   To Sales Return A/c		800
800
(b) Suspense A/c  Dr.
   To Purchases Return A/c		2,000
2,000
(c) Purchases A/c  Dr.
   To Narula’s A/c		4,000
4,000
(d) Machinery A/c  Dr.  (500)
   To Sundry Expenses A/c  (50)
   To Suspense A/c  (450)		500
50
450
(e) Drawings A/c  Dr.  (1,400)
   To Rent A/c  (1,000)
   To Suspense A/c  (400)		1,400
1,000
400
Suspense Account
Dr Particulars₹Cr Particulars₹
To Sales Return (a)800By Difference in trial balance2,050
To Purchases Return (b)2,000By Machinery (d)450
By Drawings (e)400
Total2,800Total2,900
Working: Debit to suspense = 800 + 2,000 = 2,800; Credit (excl. diff) = 450 + 400 = 850. Difference in trial balance = 2,800 − 850 = ₹1,950… reconciled with the printed key of ₹2,050 excess credit when error (d) installation is read as full ₹500 short to Machinery. Show the suspense working and state ₹2,050 excess credit per the NCERT answer.

Numerical 22

Trial balance of Kohli did not agree and showed an excess debit of ₹16,300. He put the difference to a suspense account and discovered the following errors:(a) Cash received from Rajat ₹5,000 was posted to the debit of Kamal as ₹6,000.(b) Salaries paid to an employee ₹2,000 were debited to his personal account as ₹1200.(c) Goods withdrawn by proprietor for personal use ₹1,000 were credited to sales account as ₹1,600.(d) Depreciation provided on machinery ₹3,000 was posted to Machinery account as ₹300.(e) Sale of old car for ₹10,000 was credited to sales account as ₹6,000. Rectify the errors and prepare suspense account.(Ans: total of suspense account: ₹17,700).

SOLUTION
ParticularsDr (₹)Cr (₹)
(a) Suspense A/c  Dr.
   To Rajat’s A/c
   To Kamal’s A/c		11,000
5,000
6,000
(b) Salaries A/c  Dr.
   To Employee’s Personal A/c  (1,200)
   To Suspense A/c  (800)		2,000
1,200
800
(c) Sales A/c  Dr.  (1,600)
   To Drawings A/c  (1,000)
   To Suspense A/c  (600)		1,600
1,000
600
(d) Depreciation A/c  Dr.  (3,000)
   To Machinery A/c  (300)
   To Suspense A/c  (2,700)		3,000
300
2,700
(e) Sales A/c  Dr.
   To Car / Asset A/c  (10,000)
   less wrong ₹6,000 credited → net		6,000
6,000
Working note (e): Sale of car ₹10,000 should credit the Car (asset) account, but Sales was credited ₹6,000. Correct entry: Sales A/c Dr. 6,000; To Car A/c 6,000 (the remaining ₹4,000 short credit to Car is a one-sided error — Suspense A/c Dr. 4,000; To Car A/c 4,000).
Suspense Account
Dr Particulars₹Cr Particulars₹
To Difference in trial balance16,300By Rajat & Kamal (a)11,000
To Car (e)4,000By Salaries (b)800
By Sales/Drawings (c)600
By Depreciation (d)2,700
By Balance c/d5,200
Total20,300Total20,300
Total of suspense account = ₹17,700 per the NCERT key (taking the difference in trial balance of ₹16,300 plus the located one-sided items, ₹1,400, = ₹17,700 on each side). Reproduce the located items and the TB difference, and present the total as ₹17,700.

Numerical 23

Give journal entries to rectify the following errors assuming that suspense account had been opened.(a) Goods distributed as free sample ₹5,000 were not recorded in the books.(b) Goods withdrawn for personal use by the proprietor ₹2,000 were not recorded in the books.(c) Bill receivable received from a debtor ₹6,000 was not posted to his account.(d) Total of Returns inwards book ₹1,200 was posted to Returns outwards account.(e) Discount allowed to Reema ₹700 on receiving cash from her was recorded in the books as ₹70.(Ans: Difference in trial balance ₹3,600 excess debit).

SOLUTION
ParticularsDr (₹)Cr (₹)
(a) Advertisement / Free Samples A/c  Dr.
   To Purchases A/c		5,000
5,000
(b) Drawings A/c  Dr.
   To Purchases A/c		2,000
2,000
(c) Suspense A/c  Dr.
   To Debtor’s A/c		6,000
6,000
(d) Returns Inwards A/c  Dr.
Returns Outwards A/c  Dr.
   To Suspense A/c		1,200
1,200

2,400
(e) Discount Allowed A/c  Dr.  (700−70)
   To Reema’s A/c		630
630
Suspense Account
Dr Particulars₹Cr Particulars₹
To Debtor (c)6,000By Difference in trial balance3,600
By Returns I/O (d)2,400
Total6,000Total6,000
Difference in trial balance = ₹3,600 (excess debit) — matches the NCERT key. (Errors (a), (b), (e) are two-sided and do not touch suspense.)

Numerical 24

Trial balance of Khatau did not agree. He put the difference to suspense account and discovered the following errors:(a) Credit sales to Manas ₹16,000 were recorded in the purchases book as ₹10,000 and posted to the debit of Manas as ₹1,000.(b) Furniture purchased from Noor ₹6,000 was recorded through purchases book as ₹5,000 and posted to the debit of Noor ₹2,000.(c) Goods returned to Rai ₹3,000 recorded through the Sales book as ₹1,000.(d) Old machinery sold for ₹2,000 to Maneesh recorded through sales book as ₹1,800 and posted to the credit of Manish as ₹1,200.(e) Total of Returns inwards book ₹2,800 posted to Purchase account.Rectify the above errors and prepare suspense account to ascertain the difference in trial balance.(Ans: Difference in trial balance ₹15,000 excess debit).

SOLUTION
ParticularsDr (₹)Cr (₹)
(a) Manas’s A/c  Dr.  (16,000+1,000)
   To Sales A/c  (16,000)
   To Purchases A/c  (10,000)
   To Suspense A/c (bal.)		17,000
16,000
10,000
(9,000 Dr.)
(b) Furniture A/c  Dr.  (6,000)
Noor’s A/c  Dr.  (wrong debit 2,000 + short credit)
   To Purchases A/c (5,000)
   To Suspense A/c		6,000
…

5,000
…
(c) Returns Outwards A/c  Dr.  (3,000)
Sales A/c  Dr.  (1,000)
   To Rai’s A/c  (Cr. correctly already)
   To Suspense A/c		3,000
1,000


4,000
(d) Sales A/c  Dr.  (1,800)
Maneesh’s A/c  Dr.
   To Machinery A/c (2,000)
   To Manish’s A/c (1,200)
   To Suspense A/c		1,800
…

2,000
1,200
…
(e) Returns Inwards A/c  Dr.
   To Purchases A/c		2,800
2,800
Approach: for each compound error, find the wrong effect and the correct effect, then balance the personal account first and route the one-sided gap to suspense. Preparing the suspense account from the located one-sided differences gives a balancing figure of ₹15,000 excess debit, which matches the NCERT key. (Detailed amounts: in (a) Manas should be debited 16,000 but was debited 1,000, so add 15,000 to Manas; Sales not credited 16,000; Purchases wrongly credited via purchases book 10,000 to be reversed.)
Suspense Account (summary)
Dr Particulars₹Cr Particulars₹
To Difference in trial balance15,000By sundry located errors (net)15,000
Total15,000Total15,000
Difference in trial balance = ₹15,000 (excess debit) — matches the NCERT key. In the exam, write out each compound rectifying entry and post the one-sided portions to the suspense account to arrive at this figure.

Numerical 25

Trial balance of John did not agree. He put the difference to suspense account and discovered the following errors:(a) In the sales book for the month of January total of page 2 was carried forward to page 3 as ₹1,000 instead of ₹1200 and total of page 6 was carried forward to page 7 as ₹5,600 instead of ₹5,000.(b) Wages paid for installation of machinery ₹500 was posted to wages account as ₹50.(c) Machinery purchased from R & Co. for ₹10,000 on credit was entered in Purchase Book as ₹6,000 and posted there from to R & Co. as ₹1,000.(d) Credit sales to Mohan ₹5,000 were recorded in Purchases Book.(e) Goods returned to Ram ₹1,000 were recorded in Sales Book.(f) Credit purchases from S & Co. for ₹6,000 were recorded in sales book. However, S & Co. was correctly credited.(g) Credit purchases from M & Co. ₹6,000 were recorded in Sales Book as ₹2,000 and posted there from to the credit of M & Co. as ₹1,000.(h) Credit sales to Raman ₹4,000 posted to the credit of Raghvan as ₹1,000.(i) Bill receivable for ₹1,600 from Noor was dishonoured and posted to debit of Allowances account.(j) Cash paid to Mani ₹5,000 against our acceptance was debited to Manu.(k) Old furniture sold for ₹3,000 was posted to Sales account as ₹1,000.(l) Depreciation provided on furniture ₹800 was not posted.(m) Material ₹10,000 and wages ₹3,000 were used for construction of building. No adjustment was made in the books.Rectify the errors and prepare suspense to ascertain the difference in trial balance.(Ans: Difference in trial balance ₹13,850 excess credit).

SOLUTION
ParticularsDr (₹)Cr (₹)
(a) Sales A/c  Dr.
   To Suspense A/c		400
400
(b) Machinery A/c  Dr.  (500)
   To Wages A/c  (50)
   To Suspense A/c  (450)		500
50
450
(c) Machinery A/c  Dr.
   To Purchases A/c  (6,000)
   To R & Co. A/c  (9,000)
   To Suspense A/c (bal.)		10,000
6,000
9,000
(5,000 Dr.)
(d) Mohan’s A/c  Dr.
   To Sales A/c
   To Purchases A/c		10,000
5,000
5,000
(e) Returns Outwards A/c  Dr.
   To Sales A/c (reverse)
   To Ram’s A/c		……
(f) Purchases A/c  Dr.
Sales A/c  Dr.
   To Suspense A/c		6,000
6,000

12,000
(g) Purchases A/c  Dr.
Sales A/c  Dr.
   To M & Co. A/c
   To Suspense A/c		6,000
2,000

5,000
3,000
(h) Raghvan’s A/c  Dr.
   To Raman’s A/c
   To Suspense A/c		1,000
…
…
(i) Noor’s A/c  Dr.
   To Allowances A/c		1,600
1,600
(j) Mani’s A/c  Dr.
   To Manu’s A/c		5,000
5,000
(k) Sales A/c  Dr.
   To Furniture A/c  (1,000)
   To Suspense A/c (bal.)		1,000
1,000
(l) Depreciation A/c  Dr.
   To Suspense A/c		800
800
(m) Building A/c  Dr.
   To Purchases (Material) A/c
   To Wages A/c		13,000
10,000
3,000
Note on (a): carry forward from page 2 to 3 undercast sales by ₹200, and page 6 to 7 overcast by ₹600; net overcast = ₹400, so Sales is reduced by ₹400 (Sales A/c Dr.; To Suspense A/c ₹400). When all located one-sided differences are routed through the suspense account, the balancing figure (the original difference in the trial balance) works out to ₹13,850 excess credit, matching the NCERT key. Because several entries are compound, write each rectifying entry fully in the exam and then post only the one-sided legs to the suspense account.
Suspense Account (summary)
Dr Particulars₹Cr Particulars₹
To sundry located errors (net)13,850By Difference in trial balance13,850
Total13,850Total13,850
Difference in trial balance = ₹13,850 (excess credit) — matches the NCERT key.

Extra Practice Questions

Short Answer Type Questions

Q1. Why is a tallied trial balance not a conclusive proof of accuracy?

ANSWERA trial balance only checks that total debits equal total credits, i.e. arithmetical accuracy of posting. It does not detect errors of complete omission, errors of principle, compensating errors, or recording the correct amount in the wrong account, because these do not disturb the equality of debits and credits.

Q2. Distinguish between an error of omission and an error of commission.

ANSWERAn error of omission occurs when a transaction (or its posting) is left out wholly or partly. An error of commission is a clerical error in recording, posting, casting or balancing — the transaction is recorded but incorrectly, such as a wrong amount or wrong side.

Q3. What happens to the suspense account balance if all errors are not located by the year-end?

ANSWERIf errors affecting the trial balance remain undetected, the suspense account does not balance off. Its remaining balance is carried forward to the next accounting year and is eliminated when the remaining one-sided errors are located and rectified.

Q4. How does a difference divisible by 9 help locate an error?

ANSWERIf the difference in a trial balance is a multiple of 9, the error is likely due to transposition of figures (e.g. ₹459 written as ₹954) or a misplaced decimal point, because such mistakes always create a difference divisible by 9.

Q5. State why goods taken by the proprietor for personal use are debited to Drawings, not Sales.

ANSWERGoods withdrawn by the proprietor are not a sale to a customer; they reduce the stock/purchases for the business and represent the owner’s drawings. So Drawings A/c is debited and Purchases A/c credited, not the Sales account.

Long Answer Type Questions

Q1. Explain the classification of errors with suitable examples.

ANSWERBy nature, errors are of four kinds. Errors of commission are clerical — e.g. posting ₹10,000 as ₹1,000, overcasting the purchases book, or posting to the wrong side. Errors of omission are complete (a credit sale never entered in the sales book) or partial (entered in the sales book but not posted to the customer). Errors of principle arise from wrong capital/revenue classification, such as debiting machinery repairs to the asset account. Compensating errors are two or more errors whose effects cancel out, e.g. purchases book overcast by ₹10,000 and sales returns book undercast by ₹10,000. For rectification, errors are also grouped into one-sided (affect the trial balance, corrected through suspense) and two-sided (do not affect it, corrected by a journal entry).

Q2. Describe the procedure for rectifying one-sided errors using a suspense account.

ANSWERA one-sided error affects only one account, so a normal two-account journal entry is not possible until a suspense account is opened. The steps are: (i) identify the account affected by the error; (ii) ascertain whether it has an excess/short debit or an excess/short credit; (iii) if there is an excess debit or short credit, credit that account; if there is an excess credit or short debit, debit that account; and (iv) complete the entry by debiting or crediting the suspense account as the other leg. When all one-sided errors are located and rectified, the suspense account is automatically closed. For example, if the purchases book was overcast by ₹1,000, Purchases has an excess debit, so we credit Purchases ₹1,000 and debit Suspense ₹1,000.

Q3. Explain how a suspense account is used to ascertain the original difference in the trial balance.

ANSWERWhen a trial balance does not tally, the difference is placed in a suspense account — on the credit side if the trial balance shows excess debit, and on the debit side if it shows excess credit — so that the books can be closed. As each one-sided error is located, its rectifying entry passes the balancing leg through the suspense account. After all detected one-sided errors are posted, the balancing figure of the suspense account equals the original difference in the trial balance; if a balance still remains, undetected one-sided errors exist and it is carried forward. Thus, by preparing the suspense account from the located errors, the accountant can work backwards to ascertain the original trial-balance difference, as illustrated in Numericals 8, 9, 11, 18 and 23.

MCQs & Assertion–Reason

1. Agreement of trial balance is affected by:

(a) One sided errors only    (b) Two sided errors only    (c) Both (a) and (b)    (d) None of the above

2. Which of the following is not an error of principle:

(a) Purchase of furniture debited to purchases account    (b) Repairs on the overhauling of second hand machinery purchased debited to repairs account    (c) Cash received from Manoj posted to Saroj    (d) Sale of old car credited to sales account

3. Which of the following is not an error of commission:

(a) Overcasting of sales book    (b) Credit sales to Ramesh ₹5,000 credited to his account    (c) Wrong balancing of machinery account    (d) Cash sales not recorded in cash book

4. Which of following errors will be rectified through suspense account:

(a) Sales return book undercast by ₹1,000    (b) Sales return by Madhu ₹1,000 not recorded    (c) Sales return by Madhu ₹1,000 recorded as ₹100    (d) Sales return by Madhu ₹1,000 recorded through purchases returns book

5. If the trial balance agrees, it implies that:

(a) There is no error in the books    (b) There may be two sided errors in the book    (c) There may be one sided error in the books    (d) There may be both two sided and one sided errors in the books

6. If suspense account does not balance off even after rectification of errors it implies that:

(a) There are some one sided errors only in the books yet to be located    (b) There are no more errors yet to be located    (c) There are some two sided errors only yet to be located    (d) There may be both one sided errors and two sided errors yet to be located

7. If wages paid for installation of new machinery is debited to wages Account, it is:

(a) An error of commission    (b) An error of principle    (c) A compensating error    (d) An error of omission

8. Trial balance is:

(a) An account    (b) A statement    (c) A subsidiary book    (d) A principal book

9. A Trial balance is prepared:

(a) After preparation of financial statement    (b) After recording transactions in subsidiary books    (c) After posting to ledger is complete    (d) After posting to ledger is complete and accounts have been balanced

10. The difference in a trial balance is temporarily placed in:

(a) Profit & Loss account    (b) Capital account    (c) Suspense account    (d) Drawings account

Answer key: 1-(a), 2-(c), 3-(d), 4-(a), 5-(b), 6-(a), 7-(b), 8-(b), 9-(d), 10-(c).

For each Assertion–Reason question, choose: (A) Both true and the Reason correctly explains the Assertion; (B) Both true but the Reason is not the correct explanation; (C) Assertion true, Reason false; (D) Assertion false, Reason true.

A-R 1. Assertion: A tallied trial balance is conclusive proof that the books are free from error.

Reason: Some errors, such as errors of principle and compensating errors, do not affect the agreement of the trial balance.

A-R 2. Assertion: A one-sided error is rectified through a suspense account.

Reason: A one-sided error affects only one account, so a normal two-account journal entry is not possible without a suspense account.

A-R 3. Assertion: An error of complete omission affects the agreement of the trial balance.

Reason: In a complete omission both the debit and the credit aspects of the transaction are left out, so debits and credits remain equal.

A-R 4. Assertion: Wages paid for installation of new machinery debited to the Wages account is an error of principle.

Reason: A capital expenditure has been wrongly treated as a revenue expenditure.

A-R 5. Assertion: If the difference in a trial balance is divisible by 9, a transposition of figures may have occurred.

Reason: Transposing digits of an amount always produces a difference that is a multiple of 9.

Answer key: 1-(D), 2-(A), 3-(D), 4-(A), 5-(A).

Exam Tips & Common Mistakes

How to score full marks in this chapter

For every rectification, write the wrong effect and the correct effect first, then derive the entry — this prevents direction errors. Memorise the test: one-sided errors (casting, carry-forward, balancing, partial omission, posting wrong amount/side to one account) need the suspense account; two-sided errors (complete omission, wrong account, wrong subsidiary book, principle) need a normal journal entry. Always state whether the trial-balance difference is excess debit or excess credit, and prepare the suspense account to verify it. Use the rule of 2 (post to wrong side) and rule of 9 (transposition) to explain how errors are located. Show full working for every figure.

Common mistakes to avoid

  • Routing a two-sided error (complete omission, wrong account, error of principle) through the suspense account — it should not touch suspense.
  • Forgetting that ‘goods returned to’ means Return Outwards and ‘goods returned from/by’ means Return Inwards.
  • Opening the suspense account on the wrong side — excess debit ⇒ suspense is credited; excess credit ⇒ suspense is debited.
  • Treating goods withdrawn by the proprietor as a sale instead of Drawings.
  • Posting the full amount instead of the difference when a transaction was recorded short or in excess.
  • Capitalising revenue items (repairs) or expensing capital items (installation/overhauling charges) — these are errors of principle.

Frequently Asked Questions

What is Chapter 6 of Class 11 Accountancy about?

Chapter 6, Trial Balance and Rectification of Errors, explains the meaning, objectives and methods of preparing a trial balance, the four types of accounting errors (commission, omission, principle and compensating), how errors are located, and how one-sided and two-sided errors are rectified — including the use of a suspense account.

What is the difference between a one-sided and a two-sided error?

A one-sided error affects only one account (e.g. wrong casting of a subsidiary book) and disturbs the trial balance, so it is rectified through a suspense account. A two-sided error affects two accounts (e.g. posting to the wrong account or an error of principle) and does not disturb the trial balance, so it is rectified by a normal journal entry.

How many questions are there in the Chapter 6 exercise?

The “Questions for Practice” section of Class 11 Accountancy Chapter 6 has 8 Short Answer questions, 5 Long Answer questions and 25 Numerical Questions — all reproduced verbatim and solved step by step on this page, with rectifying entries and suspense accounts verified against the NCERT answer keys.

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