An Overview of Important Questions Class 11 Accountancy Chapter 6
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
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
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
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
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)
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.
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











