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Important Questions Class 11 Accountancy Chapter 6

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An Overview of Important Questions Class 11 Accountancy Chapter 6

Ever wondered why accounts sometimes don't match and how businesses check for mistakes? In Important Questions Class 11 Accountancy Chapter 6, you'll get to understand what a trial balance is and how errors can be spotted and corrected easily.


This chapter is super useful because it shows you step-by-step methods to keep accounts in order—without getting confused. If you ever felt unsure about debits, credits, or fixing errors, these questions will clear things up. You can also review the full syllabus with this handy link: Class 11 Accountancy Syllabus.


Prepared by Vedantu experts and based on the latest NCERT guidelines, these must-practice questions (with answers!) are just what you need to prep well for exams. Don't forget to check more at Class 11 Accountancy Important Questions and level up your confidence!


Study Important Questions for Class 11 Accountancy Chapter 6 - Trial Balance and Rectification of Errors

A. Very Short Answer Questions – 1 Mark

1. Define trial balance?

Ans: A trial balance statement is a statement that balances the debt and credit from a ledger account.


2. When is a trial balance prepared?

Ans: At the end of each fiscal year, a trial balance is routinely prepared.


3. If the ledger account has a debit balance, where it will be placed in the trial balance?

Ans: The debit side of the trial balance is where debit sums are entered.


4. True or false

i. If the trial balance agrees, it implies that the book has no error.

Ans: The book may include two-sided errors. As a result, this sentence is false.

ii. Trial balance is a statement.

Ans: Trial balance is a statement. As a result, this sentence is true.

iii. A Trial balance is prepared after recording transactions in subsidiary books.

Ans: A Trial balance is prepared after posting to the ledger is complete and accounts have been balanced. As a result, this sentence is False

iv. Cash received from Suresh posted to Rajesh is not an accounting error.

Ans: It is not an accounting oversight that Suresh's cash was posted to Rajesh. As a result, this sentence is false.


5. When suspense account is dispose ?

Ans: The suspense account is closed after all account errors have been corrected.


B. Short Answer Questions – 2 marks

1. When a trial balance is prepared?

Ans: Trial balances are typically created at the end of a fiscal year, but they can also be prepared quarterly, monthly, or half-yearly.


2. Name the four types of errors.

Ans: The following are four types of errors:

1. Errors of Commission

2. Errors of Omission

3. Errors of Principle

4. Compensating Errors


3. Name the methods of preparation of trial balance.

Ans: There are three different ways to prepare trial balance:

1. Total method

2. Balance method

3. Total-cum-Balance method


4. Define suspense account.

Ans: Transactions are temporarily entered in this account before being allocated to its final account. This account is closed after all account errors have been corrected.


5. What do you understand by agreed trial balance?

Ans: The financials  are arithmetically correct, according to an agreed-upon trial balance report. However, it will not be evident whether or not every transaction in the diary or ledger was accurately recorded.


C. Short Answer Questions – 3 Marks

1. What are the objectives of preparing a trial balance?

Ans: The following are the three main goals of trial balance preparation:

  • Verify that the ledger account is arithmetically correct.

  • It aids in the detection of account mistakes.

  • It aids in the preparation of the firm's final account.


2. How rectification of errors is done.

Ans: If the error affects just one account, it can be corrected either by creating a journal entry or by providing an explanatory note, however if the error affects many accounts, it can only be corrected by submitting a journal entry.


3. What is the purpose of suspense accounts?

Ans: Even if the trial balance does not match the ledger, the suspense account aids in the preparation of the company's financial statement. They are temporary accounts since they are prepared for a limited length of time and for a specific occasion.


4. What is the process of preparing trial balance?

Ans: The following is the procedure for preparing trial balance:

  • Determine the balance of each ledger account. 

  • Enter the balances of all debit and credit accounts in the appropriate columns.

  • Add up the amounts on both the debit and credit sides.

  • Balance the trial balance on the debit and credit sides.


5. What are the significance of agreement of trial balance?

Ans: The trial balance should balance, meaning the credit and debt sides should be equal. It will demonstrate that transaction inputs are correct and ledger calculations are arithmetically correct. It does not, however, prove that the transactions were accurately recorded.


D. Long Answer Questions - 5 Marks

1. Rectify the following errors in journal entry:

Cash sales Rs. 12,000

i) Were posted as 5,000 in sales account.

ii) Were posted to purchase account.

iii) Were not posted to sales account

Ans:

Particular 

Debit 

Credit

(i) Suspense A/c                          Dr. 

To Sales A/c       

(Cash sales of 12,000 were recorded as 5,000 in the sales account, which has since been corrected.)

(ii) Purchase A/c                            Dr.  

To Sales A/c                 

(Cash sales were posted to the purchase account instead of the sales account, which has already been addressed.)

(iii) Suspense A/c                        Dr. 

To Sales A/c  

(Cash sales that were not posted to the sales account have now been corrected.)

7,000







12,000








12,000

7,000








12,000









12,000


2. What are the ways of locating accounting errors by an accountant?

Ans: An accountant's procedure for discovering accounting problems is as follows:

i. Determine whether the totals on both the debit and credit sides are equal.

ii.The ledger account balance should be compared to the trial balance balance.

iii. Compare the total of the debtor's and creditor's accounts to the trial balance and balance them.

iv. Compare the sum of the journal entry book to the ledger.

v. Double-check that all transactions are correctly and accurately recorded in the journal entry book.

vi.Compare the current year's trial balance to the previous year's trial balance prior year's trial balance to see whether any figures are incorrect. Omitted


3. Explain the Various classifications of errors:

Ans:  The Various classifications of errors are explained below:

i. Commission errors: If transactions are recorded incorrectly, transaction totaling is incorrect, transactions are casted incorrectly, or transaction balancing is incorrect.

ii. Omission Inaccuracies: Omission of recording can result in errors in an account; these omissions in transactions might affect the account totally or partially.

iii. Principle Errors: Misplacement of payments and receipts between revenue and capital receipts and revenue and capital expenditure causes errors.

iv. Compensating errors: When two or more errors are reported in such a way that the effect of both is negated.


4. Explain the different methods of preparation of trial balance.

Ans:  A trial balance can be prepared in one of three ways:

i. Totals method: On the same side of the trial balance, the totals of each side as debit and credit of the ledger are indicated. As a result, the debit and credit sides of the trial balance must be balanced.

ii. Account balance: The credit and debit sides of the trial balance reflect the balances of all ledger accounts.

iii. Total-cumulative-balance account: This method combines the total and balance methods. This approach creates four columns, two of which contain debit and credit from the total method while the other two columns contain debit and credit from the balance method.


5. Define the various limitations of trial balance?

Ans:  The following are some of the trial balance's limitations:

i. An entry that is not made in the journal will not appear in any of the ledge accounts. As a result, there will be no variation in trial balance.

ii. If an entry is made in the wrong account but on the proper side, the trial balance is unaffected.

iii. If an incorrect amount is written in the journal, the trial balance cannot be used to identify it.

iv. There will be no difference in the trial balance if the entry is not allocated to the correct account.


Related Study Materials for Class 11 Accountancy Chapter 6 Trial Balance and Rectification of Errors


CBSE Class 11 Accountancy Chapter-wise Important Questions

CBSE Class 11 Accountancy Chapter-wise Important Questions and Answers cover topics from all 9 chapters, helping students prepare thoroughly by focusing on key topics for easier revision.


Additional Study Materials for Class 11 Accountancy

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FAQs on Important Questions Class 11 Accountancy Chapter 6

1. What is a trial balance, and why is it important in CBSE Class 11 Accountancy exams (2025–26)?

A trial balance is a financial statement that lists all ledger account balances at a specific date to verify the arithmetical accuracy of accounting entries. In CBSE Class 11, it helps ensure that total debits equal total credits, which is crucial for proper financial reporting and detecting errors before preparing final accounts.

2. What are the most commonly asked types of errors in CBSE Class 11 trial balance questions (2025–26)?

The most commonly expected errors are:

  • Errors of Omission – leaving out transactions
  • Errors of Commission – wrong amount or account
  • Errors of Principle – violation of accounting principles
  • Compensating Errors – two errors offsetting each other
These are frequently tested in 3-mark and 5-mark Accountancy questions.

3. Explain the main objectives of preparing a trial balance as per CBSE 2025–26.

The objectives of a trial balance include:

  • Checking the arithmetical accuracy of ledger entries
  • Locating errors for early rectification
  • Providing a summary of all accounts for preparing final accounts
These objectives are highly likely to appear in Board important questions.

4. How are accounting errors located if the trial balance does not tally (3-mark type, CBSE 2025–26)?

If the trial balance does not tally, steps to locate errors include:

  • Rechecking additions/subtractions in ledger accounts
  • Comparing ledger balances with trial balance entries
  • Verifying posting of totals or balances on correct sides
  • Comparing current and previous year balances

5. What is a suspense account, and when is it created in the context of trial balance (Class 11 HOTS)?

A suspense account is a temporary account created when the trial balance does not agree due to unknown errors. It allows final accounts to be prepared while errors are traced and rectified. Once all errors are found, the suspense account is closed.

6. Why does an agreed trial balance not always guarantee absence of errors (Frequently-Asked Conceptual, 2025–26)?

Even if a trial balance agrees, certain errors like errors of principle, errors of omission or compensating errors may still exist. These do not affect the equality of total debits and credits but can misstate financial results, a common exam blind spot.

7. Describe the three methods of preparing a trial balance for CBSE Class 11 exams.

Three methods include:

  • Total Method: Shows total debits and credits of each account
  • Balance Method: Shows only balances of each account
  • Total-cum-Balance Method: Shows both totals and balances in four columns
Understanding this is essential for Board short-answer questions.

8. Rectify this error: Wages paid for installation of new machinery debited to Wages Account (5-mark trend, 2025–26).

The correct entry should debit Machinery Account (capital expense). To rectify:

  • Machinery A/c       Dr.
  • To Wages A/c
The original entry is reversed from Wages and posted to Machinery, as per CBSE Board correction technique.

9. How do you differentiate between errors of commission and principle? (Exam Expected FUQ)

Errors of commission involve mistakes in recording (wrong amount, account, side), but the nature of the transaction is right. Errors of principle involve recording a transaction against accounting rules (e.g., treating revenue as capital expense). Both affect accounts differently and are frequent short-answer themes.

10. Why is rectification of errors important before finalizing accounts for Class 11 students? (Expected Board Application Q)

Rectification ensures the financial statements are accurate. If errors persist, profits, assets, and liabilities may be misstated, leading to incorrect analysis and decision-making, which CBSE stresses as a key learning outcome for Accountancy.

11. What marking scheme does CBSE use for Trial Balance and Rectification of Errors questions (2025–26)?

CBSE typically allocates:

  • 1–2 marks for definitions/factual recall (trial balance, types of errors)
  • 3 marks for conceptual/application or process answers (objectives, error location)
  • 5 marks for comprehensive rectification problems or HOTS (journal entries, comparative analysis)
Questions are designed to test both knowledge and understanding of key concepts.

12. Can a transaction be recorded in the wrong account and still allow the trial balance to tally? (CBSE Common Trap FUQ)

Yes, if the amount is posted on the correct side (debit or credit) but in the wrong account, the trial balance will still tally. However, this leads to misclassification and must be corrected for accurate reporting, as highlighted in advanced CBSE questions.

13. What are compensating errors, and how do they affect agreement of the trial balance?

Compensating errors occur when two or more errors offset each other's impact on the trial balance. Thus, debits and credits still match, but individual entries are incorrect. Their detection requires careful scrutiny of ledger entries.

14. State any two limitations of a trial balance for CBSE Class 11 Accountancy (2025–26 important).

Limitations include:

  • Cannot detect errors where equal debit and credit entries are posted to wrong accounts (errors of principle).
  • Fails to reveal omitted entries since both sides are missing the transaction.
Understanding these ensures accurate answers to short-answer Board questions.

15. How does CBSE expect students to present rectification of error journal entries in the exam?

CBSE expects:

  • Proper journal format, mentioning date, particulars, ledger folio, debit and credit amounts
  • Clear narration below each entry explaining the correction
  • Accurate account names as per syllabus terminology
This format is essential to score full marks in 3-mark and 5-mark questions.