Accounting Process-Books of Accounts - Fundamental Errors (CA Foundation Principles of Accounting): Questions 1 - 8 of 12

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Question number: 1

» Accounting Process » Books of Accounts - Fundamental Errors

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What is meant by the term error of commission?

Question number: 2

» Accounting Process » Books of Accounts - Fundamental Errors

Essay Question▾

Describe in Detail

Mention the types of errors that take place during the accounting process?

Explanation

An error can occur in the accounting process at any step. The errors that take place while recording a transaction are classified as follows:

  • On the basis of their effect on the trial balance

    • Errors effecting the agreement of the trial balance

    • Errors not effecting the agreement of the trial… (45 more words) …

Question number: 3

» Accounting Process » Books of Accounts - Fundamental Errors

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State the steps to rectify the errors if the errors are identified after the preparation of final accounts.

Question number: 4

» Accounting Process » Books of Accounts - Fundamental Errors

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What is meant by errors?

Question number: 5

» Accounting Process » Books of Accounts - Fundamental Errors

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What is meant by the term suspense account?

Question number: 6

» Accounting Process » Books of Accounts - Fundamental Errors

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State the three questions which decide the criteria for rectification of errors?

Question number: 7

» Accounting Process » Books of Accounts - Fundamental Errors

Essay Question▾

Describe in Detail

Mr. Tendulkar’s trial balance showed a suspense A/C of Rs. 32600 on the debit side. On rechecking the books, the following errors were discovered:

  • An amount of Rs. 10000 received from Mr. Ganguly was posted to the debit side of Mr. Ashwin as Rs. 12000.

  • Salary paid to driver Rs. 4000 was debited to his personal A/C as Rs. 2400

  • Drawings of Rs. 2000 was credited to sales A/C as Rs. 3200

  • An amount of Rs. 6000 accounting for depreciation on car was posted as Rs. 600

  • Sale of an old bat Rs. 20000 was credited to sales A/C as Rs. 12000. Pass the journal entries to rectify the errors

Explanation

The journal entries in the books of Mr. Tendulkar would be as follows:

Rectification of errors

Journal entries in the books of Mr. Tendulkar

Date

Particulars

L. F

Debit Amount

Credit Amount

(i)

Suspense A/C Dr

2000

Ganguly A/C Dr

10000

To Ashwin A/C

12000

(Being the excess amount received… (67 more words) …

Question number: 8

» Accounting Process » Books of Accounts - Fundamental Errors

Short Answer Question▾

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What is meant by compensating errors?

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