Trial Balance and Rectification of Errors
Meghalaya Board · Class 11 · Accountancy
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Quick Quiz: Trial Balance and Rectification of Errors
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What is a trial balance?
Which method of preparing trial balance is most widely used in practice?
What type of error occurs when a transaction is completely omitted from recording?
Which of the following is an example of an error of principle?
Sample Questions
What is a suspense account used for?
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To temporarily record differences in trial balance
A suspense account is used to temporarily record differences in trial balance until errors are located and rectified.
Which type of error does NOT affect the trial balance?
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Error of Principle
An error of principle typically does not affect the trial balance's total, as it involves incorrect classification of transactions.
What does a tallied trial balance guarantee?
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Arithmetical accuracy of posting
A tallied trial balance only ensures that debits and credits are arithmetically equal, but does not guarantee complete accuracy of all entries.
When are compensating errors created?
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When two errors cancel each other's effect
Compensating errors occur when two or more errors are made in such a way that their net effect on debits and credits is zero.
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