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Trial Balance and Rectification of Errors — Account STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceAccountTrial Balance and Rectification of Errors1 Mark
MCQ
_______ is opened to rectify the entries in the next accounting period which involves nominal accounts.
  • A
    Memorandum Adjustment Account.
  • ✓
    Profit & Loss Adjustment Account.
  • C
    Capital Adjustment Account.
  • D
    Suspense Account.
✓

Answer

Correct option: B.
Profit & Loss Adjustment Account.
Ideally, all errors have to be rectified before finalization of accounts. If the errors are not identified than these errors need to be transferred to suspense account.

In the next financial year all such rectification need to be passed through profit & loss adjustment account if such entries of nominal account.

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