Rectification of Errors in Accounting: Before and After Final Accounts

What is the main focus of rectification after the preparation of final accounts?

• Updating the balance sheet

• Revising the trial balance

• Adjusting errors from the previous year in the current year

• Correcting errors in the current year's accounts

Why is a profit and loss adjustment account used in rectification entries?

• To decrease the current year's expenses

• To increase the current year's profit

• To prevent affecting the current year's profit or loss

• To adjust the balance sheet

In the example involving Ravi, what type of error was identified?

• Transposition error

• Casting error

• Single-sided error

• Double-sided error

What account is used to rectify a single-sided error when the trial balance does not agree?

• Suspense account

• Capital account

• Profit and loss account

• Cash account

How is an undercasting error in the sales account rectified?

• By debiting the sales account

• By crediting the sales account

• By using a suspense account

• By adjusting the profit and loss account

What is the purpose of the journal proper in rectification?

• To update the balance sheet

• To adjust the trial balance

• To record transactions not fitting in other special journals

• To record all transactions

What should be replaced with the profit and loss adjustment account in rectification after final accounts?

• Personal accounts

• Capital accounts

• Real accounts

• Nominal accounts