AccountancyTrial Balance and Rectification of Errors

Match List – I with List – II. LIST I LIST II A. Error of Principle I…

Match List – I with List – II.

LIST I	LIST II
A. Error of Principle	I. Credit sales of goods to Rajni recorded in sales book but not posted to Rajni's A/c
B. Compensating Error	II. Total of purchases book is carried forward as ₹1000 instead of ₹10,000
C. Error of Omission	III. Commission paid on purchase of land is debited to Commission A/c
D. Error of Commission	IV. A's A/c is debited with ₹100 instead of ₹1000 whereas B's A/c is debited with ₹1000 instead of ₹100

Choose the correct answer from the options given below :

Answer & explanation

Correct answer: option 4

The correct answer is option 4- A-III, B-IV, C-I, D-II.

LIST I	LIST II
A. Error of Principle	III. Commission paid on purchase of land is debited to Commission A/c
B. Compensating Error	IV. A's A/c is debited with ₹100 instead of ₹1000 whereas B's A/c is debited with ₹1000 instead of ₹100
C. Error of Omission	I. Credit sales of goods to Rajni recorded in sales book but not posted to Rajni's A/c
D. Error of Commission	II. Total of purchases book is carried forward as ₹1000 instead of ₹10,000

* Error of Principle- Commission paid on purchase of land is debited to Commission A/c- It should be debited to land as it is related with purchase of land.

* Compensating Error- A's A/c is debited with ₹100 instead of ₹1000 whereas B's A/c is debited with ₹1000 instead of ₹100. This will make nil effect in the company accounts. One error is compensated by other error.

* Error of Omission- Credit sales of goods to Rajni recorded in sales book but not posted to Rajni's A/c. This is partial omission as amount is not posted to Rajni's A/c.

* Error of Commission- Total of purchases book is carried forward as ₹1000 instead of ₹10,000. This is error in carrying forward which is a commission error.