Rectification of Errors — Account STD 11 Commerce — Question

Give two advantages of Petty Cash Book.

Which of these errors would be disclosed by the Trial Balance and why:

1. Cheque of ₹ 9,500 from Vikas entered in Vikas's Account as ₹ 5,900.
2. Selling expenses have been debited to Sales Account.
3. Credit sales of ₹ 3,000 entered in both the accounts as ₹ 300.
4. A purchase of ₹ 2,500 was omitted entirely from the books?

If the accounting information is not clearly presented, which of the qualitative characteristic of the accounting information is violated?

What is meant by Compensating Error?

What is a Petty Cash Book?

To record an increase in a Liability Account, it must be credited. Why?

Give one point of distinction between Purchases Book and Purchases Account.

What is meant by Sales?

Proprietor of the firm has withdrawn goods for his personal use. The accountant has recorded it as sale in the books of accounts. Is he correct in doing so?

Give the other name of the Ledger.