25 Short Questions and Answers-Rectification of Errors [With PDF]

Today we’ll learn “25 Short Questions and Answers- Rectification of Errors.” You’ll get a basic idea of rectification of errors if you read it from top to bottom with proper focus.

It will also improve your accounting skills and helps you in doing well on any competitive test.

So let’s get started.

Short Questions and Answers-Rectification of Errors

Question-01: What are the errors of the account?

Answer: Errors of account are mistakes or omissions made by accounting assistants and accountants due to a lack of expertise, incompetence, carelessness, job strain, whimsy, or inattention.

Question-02: How many types of errors are there?

Answer: There are two types of errors:

One-sided errors or errors detected by a trial balance.
Two-sided errors or Errors are not detected by trial balance.

Question-03: What are one-sided errors?

Answer: Double entries are more or less recorded in one direction as a result of one-sided errors. The trial balance differs as a result of the mistake, and the trial balance is temporarily balanced with an uncertain or suspense account.

Question-04: What are the different types of one-sided errors?

Answer: the different types of one-sided errors are as follows:

Errors in posting from journal to ledger.
Errors in writing balances from ledger to trial balance.

Errors in casting & balancing.

Question-05: What are the reasons for occurring errors in posting from journal to ledger?

Answer: the reasons for occurring errors in posting from journal to ledger are as follows:

When moving an account from the journal to the ledger, the sum of money is misspelled.
During the transfer from the primary book to the ledger account, the sum of money is written on the wrong side of the account.
If one side of a transaction is properly recorded in the ledger but the other side is not.

Question-06: What are the reasons for occurring errors in writing balances from ledger to trial balance?

Answer: the reasons for occurring errors in writing balances from ledger to trial balance are as follows:

When transferring the balance from the ledger to the trial balance, the sum of the account balance is incorrectly written.

The account’s debit balance is incorrectly written in the trial balance’s credit column, or the credit balance is written in the debit column.
When transferring cash balance and bank balance from cash book, the sum of cash and bank balance is incorrectly written in the trial balance.

Question-07: What are the reasons for occurring errors in casting and balancing?

Answer: the reasons for occurring errors in casting and balancing are as follows:

It might happen when determining the balances of ledger accounts.
This can happen when you’re adding the debit and credit columns to the trial balance.

Question-08: What are the two-sided errors?

Answer: Even if the debit and credit of the trial Balance match, there may be certain types of errors that are not reflected in the trial balance, such errors are called two-sided errors.

Question-09: How many types of two-sided errors are there?

Answer: There are two types of two-sided errors:

Clerical Errors
Errors of Principle

Question-10: What are the clerical errors?

Answer: the clerical errors are inadvertent mistakes made by the accountant and his departmental employees.

Question-11: What are the different types of clerical errors?

Answer: the different types of clerical errors are as follows:

Errors of omission
Errors of commission

Errors of Miss-posting
Compensating Errors

Question-12: What are errors of omission?

Answer: When a transaction is omitted, partially or completely, once it is recorded in the ledger, and when the transfer of an account is omitted, the accounting work is incomplete. Such a mistake in the book of accounts is called the errors of omission.

Question-13: What are errors of commission?

Answer: An error of commission occurs when you write more or less than the actual amount when recording an account transaction.

Question-14: What are the errors of miss-posting?

Answer: These mistakes occur as a result of employees’ carelessness. Assume that Received from Tanisha $ 20,000 in cash. The cash book is correctly debited with $ 20,000, but the Nisha account is credited instead of the Tanisha account when posting to the ledger. Since the number of credits is the same, even if the amount has been allocated to the wrong account, the trial balance would accept.

Question-15: What are compensating errors?

Answer: Compensating errors occur when one error is compensated by another error. For example, Harry A/C was supposed to be debited with $10,000 but only debited $1000. William A/C was mistakenly credited $1,000 instead of $10,000 on another occasion. Even if there are two mistakes in this situation, the sum of both sides of the trial balance would agree. Since both sides would lose the same amount of money, $9,000.

Question-16: What are errors of principle?

Answer: Errors of principles are errors made due to a lack of proper accounting expertise and/or a violation of accepted accounting principles. Such errors occur when capital expenditures are recorded as revenue expenditures and vice versa.

Question-17: What is a suspense account?

Answer: A suspense account is a fictitious account that is only open for a temporary period.

Question-18: In which cases suspense accounts are opened?

Answer: suspense accounts are opened: