AccountancyCBSE Class 11 · Trial Balance and Rectification of Errors

Rectification of Errors Class 11: Journal Entries, Suspense Account and Effect on Profit

Updated 17 October 2026 · Fact-checked

To rectify an error, find what was done, what should have been done, and pass an entry that brings the accounts to the correct position. Two-sided errors are corrected by a journal entry between the accounts concerned; one-sided errors, which disturbed the trial balance, are corrected through the suspense account, which is closed when all errors are corrected.

Write what was done, what was due, then pass the difference; one-sided errors go through suspense, which must end at nil.

Illustration drawn for QuestionBuddy.

Understand Rectification of Errors: Journal Entries and the Suspense Account

Three-step method (Done, Due, Do).
1. *Done*: write the entry that was actually made.
2. *Due*: write the entry that should have been made.
3. *Do*: reverse the wrong part and add the right part; the net is the rectifying entry.

Two-sided errors (do not disturb the trial balance).

Omission: a transaction wholly omitted: pass the entry now.
Commission: wrong personal/nominal account of the same type, or wrong amount in both aspects.
Principle: capital treated as revenue or vice versa; the entry between the proper heads.
Compensating errors: found separately.

One-sided errors (disturb the trial balance). Only one account is wrongly recorded: wrong amount in one account, or a posting omitted, or posted on the wrong side. The trial balance difference is placed in a Suspense Account (debit if credits exceed debits, credit otherwise). Rectify through the suspense account:

If the error is on the debit side too little, debit the account and credit suspense, and so on.
When all one-sided errors are corrected, the suspense account balance becomes nil.

Check. After rectification, the debit and credit totals of the entry must agree and the suspense account must close.

Effect on profit. Ask whether an expense or income account was over- or understated: an expense debited to an asset overstates profit; capital expenditure charged to profit understates profit; an omitted sale increases profit when corrected (ignoring closing stock changes).

Rectification of Errors: Journal Entries and the Suspense Account: key facts

Method: Done entry made
Due entry that should be made
Do reverse the wrong, post the right; Three steps.
Suspense account: Credits exceed debits: suspense debit
Debits exceed credits: suspense credit
Closes when errors are corrected; Temporary account.
Profit effect: Expense debited to an asset overstates profit
Capital item charged to expense understates profit
Omitted sale understates profit; Correct the direction.

Done	entry made
Due	entry that should be made
Do	reverse the wrong, post the right

How to answer Rectification of Errors: Journal Entries and the Suspense Account questions

Every rectification question follows the same routine.

1Read the error and decide: omission, commission, principle or one-sided.
2Write the wrong entry made (Done) and the entry due.
3Pass the rectifying entry; for one-sided errors, include the suspense account.
4Write the suspense account and check that it closes.
5For profit questions, add or subtract each correction.

Rectification of Errors: Journal Entries and the Suspense Account in real life

The idea, met in an everyday situation. Answer the question in your own words, then compare with the model answer. The one-line hook is what to remember.

Wrong head in the books

Suppose a shop paid ₹12,000 for a new counter, which was debited to Purchases.

Name the error and the correcting entry.

Try it first, then show the solutionSolution

Error of principle: a capital item treated as a revenue item.
Due: Furniture Dr; Cash Cr. Done: Purchases Dr; Cash Cr.
Do: Furniture A/c Dr 12,000; To Purchases A/c 12,000.

Answer: Furniture A/c Dr ₹12,000; To Purchases A/c ₹12,000.

Memory hook: Move it from the wrong head to the right head.

Tricks to remember Rectification of Errors: Journal Entries and the Suspense Account

Short memory aids. Say each one aloud once, then use it on a question the same day.

Done, Due, Do
What was done, what was due, then do the difference.
Use it when: Rectifying entries.
Suspense must vanish
When every one-sided error is corrected the suspense account is nil.
Use it when: Check.

Rectification of Errors: Journal Entries and the Suspense Account: solved examples

Ordered from board level to HOTS. Try each one before you open the solution.

Example 1: An error of principle · 1 mark · MCQBoard level

Furniture bought for ₹12,000 was debited to Purchases A/c. The rectifying entry is:
(a) Purchases A/c Dr; To Furniture A/c
(b) Furniture A/c Dr; To Purchases A/c
(c) Furniture A/c Dr; To Cash A/c
(d) no entry

Try it first, then show the solutionSolution

Furniture should have been debited; purchases debited wrongly, so credit purchases.

Answer: (b) Furniture A/c Dr; To Purchases A/c

Example 2: Four rectifying entries · 3 marks · Short answerBoard level

Pass the rectifying entries: (i) goods sold to Raju ₹8,500 not recorded at all; (ii) rent ₹4,000 paid debited to the landlord Mr. Gupta; (iii) cash ₹3,000 received from Sunil credited to Sunita. (3 marks)

Try it first, then show the solutionSolution

(i) Raju Dr 8,500; To Sales 8,500.
(ii) Rent A/c Dr 4,000; To Mr. Gupta 4,000.
(iii) Sunita Dr 3,000; To Sunil 3,000.

Answer: (i) Raju Dr/Sales Cr 8,500 (ii) Rent Dr/Gupta Cr 4,000 (iii) Sunita Dr/Sunil Cr 3,000

Example 3: Suspense account · 6 marks · Long answerHarder board level

The trial balance showed the debit total higher by ₹1,200 and a suspense account was opened. Errors then found: (a) the sales book was overcast by ₹1,000; (b) a purchase of ₹5,200 from Meera was credited to her account as ₹2,500; (c) discount allowed ₹500 to a debtor was credited to the debtor but not posted to Discount Allowed A/c. Pass the entries and prepare the Suspense Account. (6 marks)

Try it first, then show the solutionSolution

Opening: suspense credit 1,200 (debits exceeded credits).
(a) Sales A/c Dr 1,000; To Suspense 1,000.
(b) Suspense Dr 2,700; To Meera 2,700.
(c) Discount Allowed A/c Dr 500; To Suspense 500.
Suspense A/c: credit side 1,200 + 1,000 + 500 = ₹2,700; debit side 2,700. The account closes.

Answer: Suspense account totals ₹2,700 on each side and closes.

Example 4: Corrected profit · 4 marks · Short answerHarder board level

The profit shown by the books is ₹1,50,000. Later it is found that (i) repairs of ₹8,000 were debited to Machinery; (ii) wages of ₹6,000 paid for installing a new machine were debited to Wages; (iii) a sale of ₹9,000 to Ravi was omitted entirely; (iv) purchases return of ₹2,000 was not entered. Find the correct profit (ignore the effect on closing stock). (4 marks)

Try it first, then show the solutionSolution

(i) Repairs are an expense: profit falls by 8,000.
(ii) Installation wages are capital: profit rises by 6,000.
(iii) Sale omitted: profit rises by 9,000.
(iv) Purchases return omitted lowers cost: profit rises by 2,000.
Corrected profit = 1,50,000 − 8,000 + 6,000 + 9,000 + 2,000 = ₹1,59,000.

Answer: Corrected profit ₹1,59,000.

Example 5: A tricky pair · 4 marks · Short answerHOTS / competency

A purchase of ₹4,500 from Mohan was entered in the books as ₹5,400 in the purchases book, and Mohan was credited with ₹5,400 (posted from the book). The trial balance agrees. Name the error type, say why the trial balance agrees, and pass the entry to correct it. (4 marks)

Try it first, then show the solutionSolution

Error of commission (wrong amount in the original entry, both aspects equal).
Both Purchases (debit 5,400) and Mohan (credit 5,400) were affected equally, so the trial balance agrees.
Excess recorded = 5,400 − 4,500 = ₹900.
Rectification: Mohan Dr 900; To Purchases 900.

Answer: Commission; hidden; Mohan Dr 900, Purchases Cr 900.

Where students lose marks in Rectification of Errors: Journal Entries and the Suspense Account

The slips examiners see most often, and what to write instead.

Mistake: Reversing both parts
Not working out the difference.
Wrong working
Purchases Dr 12,000 and Furniture Cr 12,000.
Right working
Furniture Dr 12,000; Purchases Cr 12,000.
Do this: Reverse the wrong head, post the right head.
Usually costs: 1 mark
Mistake: Posting the suspense on the wrong side
Not checking which side was short.
Wrong working
Opening suspense balance placed on the debit side although debits exceeded credits.
Right working
Debits exceeded credits, so the opening suspense balance is a credit. A credit that was posted short (for example Meera credited ₹2,500 instead of ₹5,200) is corrected by Suspense Dr 2,700; To Meera 2,700. Such debits to suspense continue until the account closes.
Do this: Draw the account and check it closes.
Usually costs: 1 mark
Mistake: Ignoring the narration
No narration.
Wrong working
Entry without narration.
Right working
Add a one-line narration.
Do this: Narration earns marks in journal entries.
Usually costs: 1/2 mark

Exam tips

Write Done, Due, Do on rough work for each error.
Always prepare the Suspense Account and show that it closes.
For profit questions list each item with a plus or minus sign.
Mark a rectifying entry with the narration "being ... rectified".

Practice questions on Rectification of Errors: Journal Entries and the Suspense Account

Write each answer on paper first. Open the hint only if you are stuck, and the answer only when you have finished.

Q1 · 1 mark · MCQBoard level
A purchase of goods from Anil was not recorded in any book. The entry to rectify is:
(a) Anil Dr; To Purchases
(b) Purchases Dr; To Anil
(c) Purchases Dr; To Cash
(d) no rectification is needed
Hint
Complete omission.
Answer
(b) Purchases Dr; To Anil
Q2 · 3 marks · Short answerHarder board level
Rectify: (i) cash paid to Rina ₹2,600 was debited to Rani; (ii) wages ₹3,500 were debited to Furniture; (iii) salaries ₹7,000 were posted to the debit of Salaries as ₹700 (the cash credit is correct). (3 marks)
Hint
The third is one-sided.
Answer
(i) Rina Dr 2,600; To Rani 2,600. (ii) Wages Dr 3,500; To Furniture 3,500. (iii) Salaries Dr 6,300; To Suspense 6,300 (debits were short by 6,300, so suspense had been debited and is now credited).
Q3 · 5 marks · Short answerHarder board level
The trial balance is out by ₹2,650 (credit higher), shown in suspense. Errors: (a) a sale to Dev of ₹2,000 was entered in the sales book but not posted to Dev's account; (b) the sales book total was overcast by ₹650. Pass the rectifying entries and prepare the Suspense Account to show that it closes. (5 marks)
Hint
Which side is each error?
Answer
Opening: suspense debit 2,650 (credits higher). (a) Dev not debited: debits short by 2,000. (b) Sales overcast: credits too high by 650. Rectify (a): Dev Dr 2,000; To Suspense 2,000. Rectify (b): Sales Dr 650; To Suspense 650. Suspense A/c: debit 2,650; credit 2,000 + 650 = 2,650. The account closes.
Q4 · 1 mark · Assertion-reasonHarder board level
Assertion (A): An error of principle does not affect the agreement of the trial balance.
Reason (R): Both the debit and the credit aspects are recorded for the same amount.
(a) Both A and R are true, and R is the correct explanation of A.
(b) Both A and R are true, but R is not the correct explanation of A.
(c) A is true, but R is false.
(d) A is false, but R is true.
Hint
Wrong head, right amounts.
Answer
(a) Both A and R are true, and R is the correct explanation of A.
Q5 · 4 marks · Short answerHOTS / competency
A machine costing ₹1,20,000 was debited to Repairs A/c, and the accountant did not charge depreciation on it. The rate is 10% on cost and the machine was bought on the first day of the year. Show the rectification and the net effect on profit. (4 marks)
Hint
Two corrections: capitalise and charge depreciation.
Answer
Machinery A/c Dr 1,20,000; To Repairs A/c 1,20,000. Depreciation A/c Dr 12,000; To Machinery A/c 12,000 (10% of 1,20,000). Net effect on profit: +1,20,000 (repairs wrongly charged) − 12,000 = +₹1,08,000 (profit was understated by this amount).

Test your recall

Answer in your head or on paper first, then open the card. Pulling an answer out of memory makes it stick far better than re-reading.

1.What are the three steps?Show answer
Done, Due, Do.
2.When is a suspense account opened?Show answer
When the trial balance does not agree.
3.Error of principle example?Show answer
Capital item debited to an expense account.
4.Do errors of omission disturb the trial balance?Show answer
No, if both aspects are omitted.
5.What is the suspense balance after all rectifications?Show answer
Nil.

Rectification of Errors: Journal Entries and the Suspense Account: frequently asked questions

Why use a suspense account?

To make the trial balance agree temporarily so that final accounts can be prepared.

Can the suspense account have a debit and credit?

Yes, depending on whether debits or credits fell short.

Do rectifying entries need narration?

Yes; a brief narration is expected.