Account Answer In One Or Two Sentence .(1 Marks)

When the accounting errors affecting assets or personal A/c.do not affect the profit

When the accounting errors affecting the accounts of goods and the accounts of income-expenses then it affects profit.

Suspense Account shows a debit balance, if the credit total of trial balance is more.

Suspense Account is opened, when there is a confusion about the debiting or crediting an account.

Errors of principle do not affect the trial balance because the amount of the transaction is same but instead of one account any other account is debited or credited.

One sided error refers to an error which is committed in respect of either debit or credit effect of an account provided other effect of an account is correctly recorded.

Debit balance of Suspense Account is to be shown on Assets side of Balance Sheet.

Only those errors which affect the trial balance, are corrected with the help of the Suspense Account.

The balance of Suspense Account is shown in the Balance Sheet.

If the debit total of trial balance is more, then the Suspense Account shows a credit balance.

The credit balance of Suspense Account is to be shown on Liabilities side of Balance Sheet.’

Errors which do not affect the trial balance cannot be detected easily.

Errors affecting the trial balance are one sided errors.

Generally following Is the rule to rectify the accounting errors: “Undo what is wrong, Do what is correct.”

Suspense Account is opened on temporary basis.

The difference of trial balance is temporarily transferred to Suspense Account.’

While writing the books of accounts, if the transaction in primary books are recorded either more or less than the correct amount or it is recorded in worng subsidiary book, such an error is known as an error of commission.

Suspense Account is opened when after the preparation of trial balance if the total of debit column of trial balance does not tally with the total of credit column.

When the trial balance does not tally because of some accounting errors, but there is an urgency for preparing final accounts, temporarily the difference in the trial balance is transferred to one account, in order to get it tallied and that account is known as a Suspense Account.

In the books of accounts when more than one error exists but because of their nullifying effects on both debit and credit sides, the trial balance tallies, such errors are called as compensatory errors.

When a transaction is totally omitted to be recorded in the journal or the subsidiary books or the ledger, such an error is known as an error of omission.

An accounting entry which is passed to cancel the wrong accounting effect and to give correct accounting effect to the affected account Is called Rectification Entry’.