DK Goel Solutions Chapter 14 Trial Balance and Errors

DK Goel Accountancy Class 11 Solutions Chapter 14 Trial Balance and Errors which is outlined by expert Accountancy teachers from the latest version of DK Goel Class 11 Accountancy books. We at BYJU’S provide DK Goel Solutions to assist students to comprehend all the theories in particular. There are numerous concepts in Accountancy, but the concept of Trial Balance, Depreciation and Bank Reconciliation Statement (BRS) is required.

DK Goel Accountancy Class 11 Solutions – Chapter 14

Very Short Answer Question

Question 1

What is the trial balance?

Answer: Trial balance is a worksheet record book that reflects the debit and credit balance of all the registered accounts.

Question 2

State any four functions or objectives of trial balance?

Answer:

The four functions of trial balance are.

(i) To ascertain the calculation of the ledger account

(ii) To detect the error

(iii) To summarize the ledger account

(iv) To prepare final account

Question 3

Is trial balance conclusive proof of the accuracy of the books of accounts?

Answer: No, the trial balance is not conclusive proof of accuracy in the books of account as there are many errors that impacts the trial balance.

Question 4

Name two errors which cannot be disclosed while preparing trial balance.

Answer: The two errors which cannot be disclosed while preparing trial balance are.

(i)Omission errors

(ii) Commission error

Question 5

Define error of Omission.

Answer: If any transaction is not recorded either in subsidiary book or journal it is known as error of omission.

Question 6

Give an example of error of Omission.

Answer: If a product is purchased from Deepak on credit but the transaction is not registered in the book. This Error will affect the trial balance.

Question 7

Explain errors of Commission

Answer: If a wrong transaction is recorded either in subsidiary book or journal is known as error of commission.

Question 8

Give an example of errors of Commission

Answer: If a product is purchased from Hari on credit for ₹ 1000 but the transaction has been registered in the purchase book as ₹ 500

Question 9

Define compensating error.

Answer: When one error is equalized by some other error is known as compensating error.

Question 10

Give an example of compensating error.

Answer: While recording the transaction of Arvind’s account, ₹ 50 was posted in the debit section instead of ₹ 500. Similarly, in Dev’s account ₹500 was posted in credit section instead of ₹50. So, both the transaction neutralized the error and total in the trial balance.

Question 11

What is error of principle?

Answer: When a primary principle is violated while making registering the transaction is known as error of principle.

Question 12

Give an example of error of principle?

Answer: While in recording the transaction if the purchase of furniture is debited to purchase account instead of furniture account.

Question 13

₹2,100 salary was recorded as ₹2,000 is salary account and advertisement costing ₹7,700 was recorded as ₹7,800. Name the type of error

Answer: The error made here is compensating error.

Question 14

Mention the error made when someone violates the rule of account

Answer: The error made here is an error of principle.

Practical Questions

Question 1

Given below are a Cash Book and Ledger extracts relating to the books of M/s Ram Chander & Sons as at 31st January 2015. You are required to prepare a Trial Balance.

Dr.

Cash Book Cr.

Date

Particulars

L.F.

Cash

Bank

Date

Particulars

L.F.

Cash

Bank

2015

2015

Jan. 1

To Capital A/c

5,00,000

Jan. 2

By Bank A/c

C

4,30,000

Jan. 2

To Cash A/c

C

4,30,000

Jan. 3

By Purchases A/c

42,000

Jan. 10

To Sales A/c

36,000

Jan. 12

To Sales A/c

20,000

Jan. 20

By Mukesh

5,52,000

Jan. 27

By Rent A/c

8,000

Jan. 15

To Navdeep

4,70,000

Jan.18

To Onkareshwar

2,65,000

5,36,000

11,85,000

4,38,000

5,94,000

Jan. 31

By Balance c/d

98,000

5,91,000

5,36,000

11,85,000

5,36,000

11,85,000

Feb. 1

To Balance b/d

98,000

5,91,000

Dr.

Capital Account

Cr.

Date

2015

Particulars

J.F.

Amount

Date

Particulars

J.F.

Amount

Jan. 31

By Balance b/d

5,00,000

Jan 1

By Cash A/c

5,00,000

6,40,000

Feb 1

By Balance b/d

5,00,000

Dr.

Purcahse Account

Cr.

Date

2015

Particulars

J.F.

Amount

Date

Particulars

J.F.

Amount

Jan.

3

To Bank A/c

42,000

31

To Sundries as per Purchase Book

6,40,000

Dr.

Purcahse Return Account

Cr.

Date

Particulars

J.F.

Amount

Date

2015

Particulars

J.F.

Amount

Jan. 31

By Sundries as per Purchase return book

10,000

Dr.

Sales Account

Cr.

Date

Particulars

J.F.

Amount

Date

2015

Particulars

J.F.

Amount

Jan. 10

By Cas A/c

By Bank A/c

By Sundries as per sales book

36,000

20,000

9,25,000

Dr.

Sales Return Account

Cr.

Date

2015

Particulars

J.F.

Amount

Date

2015

Particulars

J.F.

Amount

To Sundries as per sales return book

15,000

Dr.

Mukesh

Cr.

Date

2015

Particulars

J.F.

Amount

Date

2015

Particulars

J.F.

Amount

Jan. 7

To Purchase return A/c

10,000

Jan. 6

By Purchases A/c

6,40,000

20

To Bank A/c

5,52,000

6,40,000

31

To Balance c/d

78,000

Feb. 1

By Balance b/d

78,000

6,40,000

Dr.

Navdeep

Cr.

Date

2015

Particulars

J.F.

Amount

Date

2015

Particulars

J.F.

Amount

Jan.

13

To Sales A/c

6,00,000

Jan. 6

By Purchases A/c

6,40,000

20

To Bank A/c

6,00,000

Jan. 15

By Bank A/c

6,40,000

6,00,000

Jan. 31

By Balance c/d

1,30,000

Feb 1

To Balance c/d

1,30,000

6,00,000

Dr.

Onkareshvar

Cr.

Date

2015

Particulars

J.F.

Amount

Date

2015

Particulars

J.F.

Amount

Jan. 14

To Sales A/c

3,25,000

Jan. 15

By Sales Return A/c

15,000

3,25,000

Jan. 18

By Bank A/c

2,65,000

Feb 1

To Balance c/d

45,000

Jan. 31

By Balance c/d

45,000

3,25,000

Dr.

Rent Account

Cr.

Date

2015

Particulars

J.F.

Amount

Date

2015

Particulars

J.F.

Amount

Jan. 27

To Cash A/c

8,000

Solution:

Trial Balance of M/s Ram Chander & Sons as on January 31, 2015

Name of Accounts

L.F.

Debit ₹

Credit ₹

Cash

98,000

Bank

5,91,000

Capital

5,00,000

Purchases

6,82,000

Purchases Return

10,000

Sales

9,81,000

Sales Return

15,000

Mukesh

78,000

Navdeep

1,30,000

Onkareshvar

45,000

Rent

8,000

Total

15,69,000

15,69,000

Question 2

From the following balances, taken from the books of M/s Dwarka Parshad & Sons as at 31st March 2017, prepare a Trial Balance in proper form :−

Name of Accounts

(₹)

Name of Accounts

(₹)

Cash in Hand

4,500

Machinery

24,000

Bank Overdraft

8,000

Land & Buildings

50,000

Opening Stock

20,000

Debtors

18,400

Purchases

80,000

Creditors

8,500

Purchases Returns

2,000

Bills Receivable

2,850

Sales

1,30,000

Bills Payable

1,650

Sales Returns

5,000

Capital

60,000

Travelling Expenses

1,800

Drawings

6,000

Discount Allowed

600

Rent

3,700

Discount Received

1,500

Salaries

3,600

Loan (Cr.)

10,000

Interest on Loan

1,200

Solution :

Trial Balance of Sh. Dwarka Prashad as on March 31, 2017

Name of Accounts

L.F.

Debit ₹

Credit ₹

Cash in Hand

4,500

Overdraft

8,000

Opening Stock

20,000

Purchases

80,000

Purchases Return

2,000

Sales

1,30,000

Sales Return

5,000

Travelling Expenses

1,800

Discount Allowed

600

Discount Received

1,500

Machinery

24,000

Land & Building

50,000

Debtors

18,400

Creditors

8,500

Bills Receivable

2,850

Bills Payable

1,650

Capital

60,000

Drawings

6,000

Rent

3,700

Salary

3,600

Loan

10,000

Interest on Loan

1,200

Total

2,21,650

2,21,650

Question 3 (A)

Prepare a Trial Balance from the following balances as at 31st March 2017 :−

(₹)

(₹)

Stock on 1-4-2016

28,800

Returns Inwards

7,500

Purchases

82,000

Returns Outwards

5,600

Sales

1,60,000

Carriage Inwards

1,640

Wages

16,160

Carriage Outwards

3,200

Salaries

6,400

Furniture

12,000

Repair Charges

500

Motor Car

80,000

Commission Received

800

Cash in Hand

4,700

Sundry Debtors

24,200

Bank Overdraft

25,400

Sundry Creditors

7,300

Investments

20,000

Capital

90,000

Interest on Investments

2,400

Drawings

4,400

Solution :

Trial Balance as on March 31, 2017

Name of Accounts

L.F.

Debit ₹

Credit ₹

Stock

28,800

Purchases

82,000

Sales

1,60,000

Salary

6,400

Repair Charges

500

Wages

16,160

Commission Received

800

Sundry Debtors

24,200

Sundry Creditors

7,300

Capital

90,000

Drawings

4,400

Return Inwards

7,520

Return Outwards

5,600

Carriage Inwards

1,640

Carriage Outwards

3,200

Furniture

12,000

Motor Car

80,000

Cash In Hand

4,700

Bank Overdraft

25,400

Investment

20,000

Interest on Investment

2,400

Total

2,91,500

2,91,500

Question 3 (B)

Prepare a Trial Balance from the following balances taken as at 31st March 2017 :−

(₹)

(₹)

Capital

2,50,000

Purchases

2,15,300

Drawings

24,000

Sales

3,80,000

Debtors

57,000

Miscellaneous Expenses

8,200

Creditors

28,500

Miscellaneous Receipts

3,600

Land & Building

1,80,000

Bad Debts

7,100

Plant

1,20,000

Bills Receivable

5,000

Stock on 1-4-2016

22,800

Loan from X

20,000

Factory Expenses

16,600

Interest on X’s Loan

3,000

Office Expenses

7,700

Cash in hand

8,400

Purchases Return

6,000

Goodwill

10,000

Stationery

500

Freight

2,500

Solution:

Trial Balance as on March 31, 2017

Name of Accounts

L.F.

Debit ₹

Credit ₹

Capital

2,50,000

Drawings

24,000

Debtors

57,000

Creditors

28,500

Land & Building

1,80,000

Plant

1,20,000

Stock on 1-4-2007

22,800

Factory Expenses

16,600

Office Expenses

7,700

Purchases Return

6,000

Stationery

500

Freight

2,500

Purchases

2,15,300

Sales

3,80,000

Miscellaneous Expenses

8,200

Miscellaneous Receipts

3,600

Bad Debts

7,100

Bills Receivable

5,000

Loan from X

20,000

Interest on X’s Loan

3,000

Cash

8,400

Goodwill

10,000

Total

6,88,100

6,88,100

Question 4

Following balances were extracted from the books of Ravinder Associates as at 31st March, 2017 :

(₹)

(₹)

Sundry Debtors

4,10,000

Stock (April 1, 2016)

2,30,000

Sundry Creditors

80,000

Premises

12,00,000

Rent and Taxes

48,000

Fixtures & Fittings

3,10,000

Purchases

34,00,000

Bad Debts written off

8,000

Sales

56,00,000

Rent received from sub-let of part of premises

30,000

Trade Expenses

12,000

Loan from Mukul

1,50,000

Returns Outwards

80,000

Interest on Mukul’s Loan

15,000

Returns Inwards

1,20,000

Drawings

40,000

Expenses

4,000

Cash in hand

75,000

Motor Vehicles

6,50,000

Stock on 31st March, 2017

Electricity

25,000

(not adjusted)

3,80,000

You are required to prepare the trial balance treating the difference as his capital.

Solution :

Trial Balance of Ravinder Associates as on March 31, 2017

Name of Accounts

L.F.

Debit ₹

Credit ₹

Sundry Debtors

4,10,000

Sundry Creditors

80,000

Rent & Taxes

48,000

Purchases

34,00,000

Sales

56,00,000

Trade Expenses

12,000

Return Outwards

80,000

Return Inwards

1,20,000

Expenses

4,000

Motor Vehicles

6,50,000

Electricity

25,000

Opening Stock (on April 01, 2004)

2,30,000

Premises

12,00,000

Fixture & Fittings

3,10,000

Bad Debts written off

8,000

Loan from Mukul

1,50,000

Interest on Mukul’s Loan

15,000

Drawings

40,000

Cash in Hand

75,000

Rent received from Sub-let of part of Premises

30,000

Capital (Balancing Figure)

6,07,000

Total

65,47,000

65,47,000

Note: In this trial balance closing stock of ₹ 3,80,000 will not be registered because it has not been accounted yet.

Question 5

The following trial balance has been prepared by an inexperienced accountant. Redraft it in a correct form :−

Name of Accounts

Debit ₹

Credit ₹

Land and Building

1,20,000

Plant and Machinery

92,000

Wages

18,200

Discount Allowed

1,620

Discount Received

730

Purchases

1,26,000

Sales

2,40,000

Return Inwards

6,500

Return Outwards

3,370

Opening Stock

15,000

Debtors

30,000

Creditors

20,000

Carriage on Sales

3,280

Carriage on Purchase

2,800

Insurance

1,500

General Expenses

6,100

Cash in Hand

2,400

Bank Overdraft

12,100

Capital

1,54,000

Drawings

4,800

Total

4,30,200

4,30,200

Solution :

Trial Balance

Name of Accounts

L.F.

Debit ₹

Credit ₹

Land & Building

1,20,000

Plant & Machinery

92,000

Wages

18,200

Discount Allowed

1,620

Discount Received

730

Purchases

1,26,000

Sales

2,40,000

Return Inwards

6,500

Return Outwards

3,370

Opening Stock

15,000

Debtors

30,000

Creditors

20,000

Carriage on Sales

3,280

Carriage on Purchases

2,800

Insurance A/c

1,500

General Expenses

6,100

Cash in Hand

2,400

Bank Overdraft

12,100

Capital

1,54,000

Drawings

4,800

Total

4,30,200

4,30,200

Question 6

Following is the Trial Balance as at 31st March, 2015 :

Heads of Account

L.F.

Debit ₹

Credit ₹

Capital

3,20,000

Fixed Assets

1,80,000

Drawings

60,000

Debtors

2,40,000

Creditors

1,80,000

Purchases

7,10,000

Sales

10,50,000

Bank Balance

45,000

Cash in Hand

30,000

Salary

1,65,000

Rent

1,20,000

15,50,000

15,50,000

Having prepared the Trial Balance, it was discovered that following transactions remained unrecorded :

(i) Goods were sold on credit amounting to ₹ 40,000.

(ii) Paid to creditors ₹ 22,000 by cheque.

(iii) Goods worth ₹ 7,000 were returned to a supplier.

(iv) Paid salary ₹ 15,000 by cheque.

Required:

(i) Pass Journal entries for the above mentioned transactions and post them into Ledger.

(ii) Redraft the Trial Balance.

Solution :

Journal Entry of Sh. Venkteshwar

Date

Particulars

L.F.

Debit ₹

Credit ₹

i.

Debtors A/c

Dr.

40,000

To Sales A/c

40,000

(Sold goods on credit)

ii.

Creditors A/c

Dr.

22,000

To Bank A/c

22,000

(Cheque given to creditors)

iii.

Creditors A/c

Dr.

7,000

To Purchases Return A/c

7,000

(Returned goods to a supplier)

iv.

Salary A/c

Dr.

15,000

To Bank A/c

15,000

(Paid salary)

Dr.

Debtors Account

Cr.

Date

Particulars

J.F.

Amount ₹

Date

Particulars

J.F.

Amount ₹

Balance b/d

2,40,000

Balance c/d

2,80,000

Sales A/c

40,000

2,80,000

2,80,000

Balance b/d

2,80,000

Dr.

Sales Account

Cr.

Date

Particulars

J.F.

Amoun ₹

Date

Particulars

J.F.

Amount ₹

Balance c/d

10,90,000

Balance b/d

10,50,000

Debtors A/c

40,000

10,90,000

10,90,000

Balance b/d

10,90,000

Dr.

Creditors Account

Cr.

Date

Particulars

J.F.

Amount ₹

Date

Particulars

J.F.

Amount ₹

Bank A/c

22,000

Balance b/d

1,80,000

Purchases Return

7,000

Balance c/d

1,51,000

1,80,000

1,80,000

Balance b/d

1,51,000

Dr.

Bank Account

Cr.

Date

Particulars

J.F.

Amount ₹

Date

Particulars

J.F.

Amount ₹

Balance b/d

45,000

Creditors A/c

22,000

Salary A/c

15,000

Balance c/d

8,000

45,000

45,000

Balance b/d

8,000

Dr.

Purchases Return Account

Cr.

Date

Particulars

J.F.

Amount ₹

Date

Particulars

J.F.

Amount ₹

Balance c/d

7,000

Creditors A/c

7,000

7,000

7,000

Balance b/d

7,000

Dr.

Salary Account

Cr.

Date

Particulars

J.F.

Amount ₹

Date

Particulars

J.F.

Amount ₹

Balance b/d

1,65,000

Balance c/d

1,80,000

Bank A/c

15,000

1,80,000

1,80,000

Balance b/d

1,80,000

Trial Balance

Name of Accounts

L.F.

Debit ₹

Credit ₹

Capital

3,20,000

Fixed Assets

1,80,000

Drawings

60,000

Debtors

2,80,000

Creditors

1,51,000

Purchases

7,10,000

Sales

10,90,000

Bank Balance

8,000

Cash in Hand

30,000

Salary

1,80,000

Rent

1,20,000

Purchases Return

7,000

Total

15,68,000

15,68,000

Question 7

The following is the Trial Balance prepared by an inexperienced accountant. Redraft it in a correct form and give necessary notes : −

Trial balance for the year ending 31st March, 2017

Particulars

Amount

Particulars

Amount

Cash in Hand

5,200

Bank Overdraft

16,400

Plant & Machinery

75,000

Capital

50,000

Typewriter

6,400

Goodwill

8,000

Stock (1-4-2016)

13,100

Sundry Creditors

8,200

Purchases

84,100

Sales

1,60,000

Carriage Inwards

2,800

Return Inwards

2,400

Carriage Outwards

1,600

Drawings

2,120

Sundry Debtors

18,300

Investments

4,000

Bills Payable

12,000

Rent Paid

9,600

Wages

16,500

Advertisement

4,500

Discount Received

3,200

2,52,300

2,51,120

Solution:

Trial Balance as on March 31, 2017

Name of Accounts

L.F.

Debit ₹

Credit ₹

Cash in Hand

5,200

Plant & Machinery

75,000

Typewriter

6,400

Stock (1-4-2003)

13,100

Purchases

84,100

Carriage Inwards

2,800

Carriage Outwards

1,600

Sundry Debtors

18,300

Bills Payable

12,000

Rent Paid

9,600

Wages

16,500

Advertisement

4,500

Discount Received

3,200

Bank Overdraft

16,400

Capital

50,000

Goodwill

8,000

Sundry Creditors

8,200

Sales

1,60,000

Return Inwards

2,400

Drawings

2,120

Investment

4,000

Suspense A/c (Balancing Figure)

3,820

Total

2,53,620

2,53,620

Note: Here, the trial balance does not match, so the difference amount ₹ 3,820 will be transferred to the Credit Balance of Trial Balance.

Question 8

A book-keeper extracted the following Trial Balance as at 31st March, 2017 :

Name of Accounts

Debit ₹

Credit ₹

Stock on 1.4.2016

2,50,000

Purchases

6,50,000

Sales

10,00,000

Motor Vans

3,80,000

Debtors and Creditors

1,50,000

94,000

Premises

3,00,000

Shop fittings

20,000

Interest on Bank Overdraft

16,000

Purchases Returns

10,000

Sales Returns

20,000

Lighting and heating

18,000

Capital

5,00,000

Discount Received

2,000

Repairs

2,500

Electricity

6,500

Bank Overdraft

2,00,000

Stock on 31.3.2017

3,30,000

Rent from subletting

15,000

Bills Receivable

8,000

Suspense Account (difference in books)

13,000

Total

19,92,500

19,92,500

Solution:

Trial Balance as on March 31, 2017

Name of Accounts

L.F.

Debit ₹

Credit ₹

Stock on 1.4.2004

2,50,000

Purchases

6,50,000

Sales

10,00,000

Motor Van

3,80,000

Debtors

1,50,000

Creditors

94,000

Premises

3,00,000

Shop Fittings

20,000

Interest on Bank Overdraft

16,000

Purchases Return

10,000

Sales Return

20,000

Lighting & Heating

18,000

Capital

5,00,000

Discount Received

2,000

Repairs

2,500

Electricity

6,500

Bank Overdraft

2,00,000

Rent from subletting

15,000

Bills Receivable

8,000

Total

18,21,000

18,21,000

Note: In trial balance the closing stock of ₹ 3,30,000 will not be mentioned, because it has not been accounted yet.

Question 9

From the following ledger balances prepare trial balance :

Capital ₹ 20,800, Rent outstanding ₹ 1,420, Amount due to Param, ₹ 15,000, Drawing ₹ 2,800, Goodwill ₹ 12,000, Interest received ₹ 2,000, Discount received ₹ 1,580, Amount due from Deepan ₹ 26,000.

Solution:

Trial Balance

Name of Accounts

L.F.

Debit ₹

Credit ₹

Capital

20,800

Outstanding Rent

1,420

Due to Param

15,000

Drawings

2,800

Goodwill A/c

12,000

Interest Received

2,000

Discount Received

1,580

Due from Deepan

26,000

Total

40,800

40,800

Also Check: DK Goel Solution for Chapter 15 Bank Reconciliation Statement
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