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🏦 JAIIB AFM Trial Balance, Rectification of Errors and Adjusting & Closing Entries 19 cards
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AFM Capsule Cards PRO Trial Balance, Rectificat…
If a Trial Balance does not tally after various checks, where is the difference temporarily transferred?
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Suspense Account Concept
Trial Balance, Rectification of Errors and Adjusting & Closing Entries 55
WA 55
AFM Capsule Cards PRO Trial Balance, Rectificat…
What are two-sided errors in the context of trial balance preparation?
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Two-Sided Errors
Trial Balance, Rectification of Errors and Adjusting & Closing Entries 46
WA 46
AFM Capsule Cards PRO Trial Balance, Rectificat…
When errors are rectified in the next accounting year, why can't Nominal Accounts be adjusted directly?
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Rectification When Books are Closed
Trial Balance, Rectification of Errors and Adjusting & Closing Entries 45
WA 45
AFM Capsule Cards PRO Trial Balance, Rectificat…
Which account is opened to rectify errors found in Nominal Accounts after the final accounts of that year are closed?
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Profit and Loss Adjustment Account
Trial Balance, Rectification of Errors and Adjusting & Closing Entries 43
WA 43
AFM Capsule Cards PRO Trial Balance, Rectificat…
What are 'Adjusting Entries' and why are they necessary before preparing final accounts?
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Adjusting Entries
Trial Balance, Rectification of Errors and Adjusting & Closing Entries 43
WA 43
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AFM Capsule Cards PRO Trial Balance, Rectificat…
How are one-sided errors rectified if they are detected BEFORE the preparation of the Trial Balance?
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One-Sided Errors Before Trial Balance
Trial Balance, Rectification of Errors and Adjusting & Closing Entries 42
WA 42
AFM Capsule Cards PRO Trial Balance, Rectificat…
If the Return Inward Book total is undercast (totalled short), what kind of error is it and how is it fixed?
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Undercasting Subsidiary Books
Trial Balance, Rectification of Errors and Adjusting & Closing Entries 42
WA 42
AFM Capsule Cards PRO Trial Balance, Rectificat…
If the Suspense Account has a remaining balance at the time of preparing final accounts, where is it shown?
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Suspense Account in Balance Sheet
Trial Balance, Rectification of Errors and Adjusting & Closing Entries 41
WA 41
AFM Capsule Cards PRO Trial Balance, Rectificat…
If an amount is posted to the wrong side of an account (e.g., credited instead of debited), how is the amount rectified?
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Posting to the Wrong Side
Trial Balance, Rectification of Errors and Adjusting & Closing Entries 41
WA 41
AFM Capsule Cards PRO Trial Balance, Rectificat…
How are one-sided errors rectified if they are detected AFTER the preparation of the Trial Balance?
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One-Sided Errors After Trial Balance
Trial Balance, Rectification of Errors and Adjusting & Closing Entries 39
WA 39
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AFM Capsule Cards PRO Trial Balance, Rectificat…
What constitutes an Error of Principle in accounting?
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Error of Principle
Trial Balance, Rectification of Errors and Adjusting & Closing Entries 39
WA 39
AFM Capsule Cards PRO Trial Balance, Rectificat…
If the debit side of the Trial Balance is heavier than the credit side, where is the Suspense Account placed?
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Trial Balance Debit Excess
Trial Balance, Rectification of Errors and Adjusting & Closing Entries 39
WA 39
AFM Capsule Cards PRO Trial Balance, Rectificat…
What should happen to the Suspense Account once all accounting errors are located and rectified?
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Reviewing the Suspense Account
Trial Balance, Rectification of Errors and Adjusting & Closing Entries 33
WA 33
AFM Capsule Cards PRO Trial Balance, Rectificat…
What is the primary purpose of preparing a Trial Balance at the end of the accounting year?
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Purpose of Trial Balance
Trial Balance, Rectification of Errors and Adjusting & Closing Entries 29
WA 29
AFM Capsule Cards PRO Trial Balance, Rectificat…
How do you rectify an overcasting error in the Purchase Book if the trial balance has already been prepared?
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Overcasting Subsidiary Books
Trial Balance, Rectification of Errors and Adjusting & Closing Entries 33
WA 33
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AFM Capsule Cards PRO Trial Balance, Rectificat…
What type of error occurs when a transaction is correctly recorded in subsidiary books but posted to the wrong personal account?
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Error of Commission
Trial Balance, Rectification of Errors and Adjusting & Closing Entries 32
WA 32
AFM Capsule Cards PRO Trial Balance, Rectificat…
Unlike Nominal accounts, what happens to the balances of Personal and Real accounts at year-end?
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Personal Accounts Carry Forward
Trial Balance, Rectification of Errors and Adjusting & Closing Entries 32
WA 32
AFM Capsule Cards PRO Trial Balance, Rectificat…
What happens when a transaction is completely left out of the books of original entry?
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Error of Omission
Trial Balance, Rectification of Errors and Adjusting & Closing Entries 30
WA 30
AFM Capsule Cards PRO Trial Balance, Rectificat…
What is a Compensating Error?
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Compensating Errors
Trial Balance, Rectification of Errors and Adjusting & Closing Entries 30
WA 30
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Trial Balance, Rectification of Errors and Adjusting & Closing Entries — JAIIB AFM Capsules

India's #1 short-form JAIIB preparation app. 500+ capsule cards, unlimited mock tests & PDF notes for JAIIB May & Nov 2026 (PPB, IE-IFS, AFM, RBWM). Learn while commuting. Clear JAIIB in your first attempt. Join 5,000+ bankers.

All 19 cards on this page
Suspense Account Concept If a Trial Balance does not tally after various checks, where is the difference temporarily transferred? Two-Sided Errors What are two-sided errors in the context of trial balance preparation? Rectification When Books are Closed When errors are rectified in the next accounting year, why can't Nominal Accounts be adjusted directly? Profit and Loss Adjustment Account Which account is opened to rectify errors found in Nominal Accounts after the final accounts of that yea… Adjusting Entries What are 'Adjusting Entries' and why are they necessary before preparing final accounts? One-Sided Errors Before Trial Balance How are one-sided errors rectified if they are detected BEFORE the preparation of the Trial Balance? Undercasting Subsidiary Books If the Return Inward Book total is undercast (totalled short), what kind of error is it and how is it fi… Suspense Account in Balance Sheet If the Suspense Account has a remaining balance at the time of preparing final accounts, where is it sho… Posting to the Wrong Side If an amount is posted to the wrong side of an account (e.g., credited instead of debited), how is the a… One-Sided Errors After Trial Balance How are one-sided errors rectified if they are detected AFTER the preparation of the Trial Balance? Error of Principle What constitutes an Error of Principle in accounting? Trial Balance Debit Excess If the debit side of the Trial Balance is heavier than the credit side, where is the Suspense Account pl… Reviewing the Suspense Account What should happen to the Suspense Account once all accounting errors are located and rectified? Purpose of Trial Balance What is the primary purpose of preparing a Trial Balance at the end of the accounting year? Overcasting Subsidiary Books How do you rectify an overcasting error in the Purchase Book if the trial balance has already been prepa… Error of Commission What type of error occurs when a transaction is correctly recorded in subsidiary books but posted to the… Personal Accounts Carry Forward Unlike Nominal accounts, what happens to the balances of Personal and Real accounts at year-end? Error of Omission What happens when a transaction is completely left out of the books of original entry? Compensating Errors What is a Compensating Error?
Chapters in this paper
Definition, Scope & Accounting Standards including Ind AS Balance Sheet Equation Financial Management - An Overview Taxation: Income Tax/TDS/Deferred Tax Basic Accountancy Procedures Preparation of Final Accounts Ratio Analysis Goods & Services Tax Maintenance of Cash/Subsidiary Books and Ledger Company Accounts - I Financial Mathematics - Calculation of Interest and Annuities An Overview of Cost & Management Accounting Bank Reconciliation Statement Company Accounts - II Financial Mathematics - Calculation of YTM Costing Methods
Modules in AFM
MODULE A: Accounting Principles and Processes MODULE B: Financial Statements and Core Banking Systems MODULE C: Financial Management MODULE D: Taxation and Fundamentals of Costing
JAIIB papers
IE-IFS — Indian Economy & Indian Financial System PPB — Principles & Practices of Banking AFM — Accounting & Financial Management for Bankers RBWM — Retail Banking & Wealth Management
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