Rectification of errors is necessary to _________.

Prepare financial statements

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Ensure true and fairness of books of account

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Authenticate and audit the accounts

No worries! We‘ve got your back. Try BYJU‘S free classes today!

All the above

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Open in App

Solution

The correct option is D All the above
Accounting is to be done in such a systematic way so that the financial statement must show a true and fair view of the business. It is necessary to rectify all the errors to ensure that:
The financial statement are prepared
The books of account show true and fair view
The books are arithmetically correct

Suggest Corrections

Similar questions

Q. Where as a result of the examination of the books of account, the auditor concludes that he does not agree with the true and fair view of financial statements under audit, he express ________________.

______________ present a true and fair view of the financial position of the business.

What is a suspense account? Is it necessary that a 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?

Q. ___________ is generally conducted to ascertain whether the Balance Sheet and Profit & Loss A/c presents a true and fair view of the financial position.

A book-keeper of a trading concern having failed to agree to the trial balance opened a suspense account and entered the difference in the trial balance.

The following errors were subsequently discovered.

(i) Goods sold to Manohar for Rs. 550 was posted as Rs. 5,500 in Manohar's account.

(ii) Purchases return book was carried forward as Rs. 1,220 instead of Rs. 1,120.

You are required to pass the journal entries for rectification of the above errors.

Join BYJU'S Learning Program