ch-15

Question 1

What are the objectives of rectifying errors

Answer 1

1. Preparing correct accounting records
2. Ascertaining correct net profit/loss for the accounting period by preparing the profit and loss account with the correct figures
3. Exhibiting a true and fair view of financial position of the concern at a particular date by preparing the balance sheet with the correct accounting data

Question 2

Define 1-sided errors

Answer 2

Errors that effect the debit/credit side of a single account

Question 3

Define 2-sided errors

Answer 3

Errors that effect 2 or more accounts

Question 4

Define error of recording

Answer 4

It means recording the entry in subsidiary books wrongly

Question 5

Define error of posting

Answer 5

It means an entry being not posted at all or partially or being posted by wrong amount or to the wrong account

Question 6

Define error of balancing

Answer 6

It means calculating the balance in account wrongly

Question 7

Define error of casting

Answer 7

It means an error in totalling

Question 8

Define error in carrying forward

Answer 8

It means an error in carrying forward the total of one page to next page

Question 9

Define error of principle

Answer 9

It means recording a transaction in the books of account which is not in accordance with the accounting principles

Question 10

Define error of omission

Answer 10

It means an error committed whereby a transaction is ommitted to be recorded

Question 11

Define errors of commission

Answer 11

Errors caused by wrong recording of transactions

Question 12

define compensating errors

Answer 12

Errors that compensate each other

Question 13

Define suspense account

Answer 13

It is an account opened to temporarily tally the trial balance

Question 14

Define rectifying entries

Answer 14

Entries made in books of account for correction of errors