Resume from card #1
› 🏦 JAIIB › AFM › Trial Balance, Rectification of Errors and Adjusting & Closing Entries
🏦 JAIIB AFM Trial Balance, Rectification of Errors and Adjusting & Closing Entries 19 cards
Back
All Capsule Cards
View: Vertical
Your Progress
Seen
Remaining
Done
AFM Capsule Cards PRO Trial Balance, Rectificat…
If a Trial Balance does not tally after various checks, where is the difference temporarily transferred?
Tap to reveal answer
Premium Answer

Unlock with a membership plan

Unlock Now
37 Views
Suspense Account Concept
Trial Balance, Rectification of Errors and Adjusting & Closing Entries 37
WA 37
AFM Capsule Cards PRO Trial Balance, Rectificat…
What are two-sided errors in the context of trial balance preparation?
Tap to reveal answer
Premium Answer

Unlock with a membership plan

Unlock Now
33 Views
Two-Sided Errors
Trial Balance, Rectification of Errors and Adjusting & Closing Entries 33
WA 33
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?
Tap to reveal answer
Premium Answer

Unlock with a membership plan

Unlock Now
32 Views
Suspense Account in Balance Sheet
Trial Balance, Rectification of Errors and Adjusting & Closing Entries 32
WA 32
AFM Capsule Cards PRO Trial Balance, Rectificat…
How are one-sided errors rectified if they are detected BEFORE the preparation of the Trial Balance?
Tap to reveal answer
Premium Answer

Unlock with a membership plan

Unlock Now
32 Views
One-Sided Errors Before Trial Balance
Trial Balance, Rectification of Errors and Adjusting & Closing Entries 32
WA 32
AFM Capsule Cards PRO Trial Balance, Rectificat…
What are 'Adjusting Entries' and why are they necessary before preparing final accounts?
Tap to reveal answer
Premium Answer

Unlock with a membership plan

Unlock Now
32 Views
Adjusting Entries
Trial Balance, Rectification of Errors and Adjusting & Closing Entries 32
WA 32
🔓

Enjoying ClearShorts?

Create a free account to track progress, like cards and join discussions.

Register Free Login
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?
Tap to reveal answer
Premium Answer

Unlock with a membership plan

Unlock Now
31 Views
Profit and Loss Adjustment Account
Trial Balance, Rectification of Errors and Adjusting & Closing Entries 31
WA 31
AFM Capsule Cards PRO Trial Balance, Rectificat…
When errors are rectified in the next accounting year, why can't Nominal Accounts be adjusted directly?
Tap to reveal answer
Premium Answer

Unlock with a membership plan

Unlock Now
30 Views
Rectification When Books are Closed
Trial Balance, Rectification of Errors and Adjusting & Closing Entries 30
WA 30
AFM Capsule Cards PRO Trial Balance, Rectificat…
How are one-sided errors rectified if they are detected AFTER the preparation of the Trial Balance?
Tap to reveal answer
Premium Answer

Unlock with a membership plan

Unlock Now
29 Views
One-Sided Errors After Trial Balance
Trial Balance, Rectification of Errors and Adjusting & Closing Entries 29
WA 29
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?
Tap to reveal answer
Premium Answer

Unlock with a membership plan

Unlock Now
29 Views
Posting to the Wrong Side
Trial Balance, Rectification of Errors and Adjusting & Closing Entries 29
WA 29
AFM Capsule Cards PRO Trial Balance, Rectificat…
What constitutes an Error of Principle in accounting?
Tap to reveal answer
Premium Answer

Unlock with a membership plan

Unlock Now
29 Views
Error of Principle
Trial Balance, Rectification of Errors and Adjusting & Closing Entries 29
WA 29
🔓

Enjoying ClearShorts?

Create a free account to track progress, like cards and join discussions.

Register Free Login
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?
Tap to reveal answer
Premium Answer

Unlock with a membership plan

Unlock Now
27 Views
Undercasting Subsidiary Books
Trial Balance, Rectification of Errors and Adjusting & Closing Entries 27
WA 27
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?
Tap to reveal answer
Premium Answer

Unlock with a membership plan

Unlock Now
26 Views
Trial Balance Debit Excess
Trial Balance, Rectification of Errors and Adjusting & Closing Entries 26
WA 26
AFM Capsule Cards PRO Trial Balance, Rectificat…
What should happen to the Suspense Account once all accounting errors are located and rectified?
Tap to reveal answer
Premium Answer

Unlock with a membership plan

Unlock Now
22 Views
Reviewing the Suspense Account
Trial Balance, Rectification of Errors and Adjusting & Closing Entries 22
WA 22
AFM Capsule Cards PRO Trial Balance, Rectificat…
What is the primary purpose of preparing a Trial Balance at the end of the accounting year?
Tap to reveal answer
Premium Answer

Unlock with a membership plan

Unlock Now
18 Views
Purpose of Trial Balance
Trial Balance, Rectification of Errors and Adjusting & Closing Entries 18
WA 18
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?
Tap to reveal answer
Premium Answer

Unlock with a membership plan

Unlock Now
21 Views
Error of Commission
Trial Balance, Rectification of Errors and Adjusting & Closing Entries 21
WA 21
🔓

Enjoying ClearShorts?

Create a free account to track progress, like cards and join discussions.

Register Free Login
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?
Tap to reveal answer
Premium Answer

Unlock with a membership plan

Unlock Now
21 Views
Overcasting Subsidiary Books
Trial Balance, Rectification of Errors and Adjusting & Closing Entries 21
WA 21
AFM Capsule Cards PRO Trial Balance, Rectificat…
Unlike Nominal accounts, what happens to the balances of Personal and Real accounts at year-end?
Tap to reveal answer
Premium Answer

Unlock with a membership plan

Unlock Now
21 Views
Personal Accounts Carry Forward
Trial Balance, Rectification of Errors and Adjusting & Closing Entries 21
WA 21
AFM Capsule Cards PRO Trial Balance, Rectificat…
What is a Compensating Error?
Tap to reveal answer
Premium Answer

Unlock with a membership plan

Unlock Now
19 Views
Compensating Errors
Trial Balance, Rectification of Errors and Adjusting & Closing Entries 19
WA 19
AFM Capsule Cards PRO Trial Balance, Rectificat…
What happens when a transaction is completely left out of the books of original entry?
Tap to reveal answer
Premium Answer

Unlock with a membership plan

Unlock Now
18 Views
Error of Omission
Trial Balance, Rectification of Errors and Adjusting & Closing Entries 18
WA 18
Comments

No comments yet. Be the first!

Share

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? Suspense Account in Balance Sheet If the Suspense Account has a remaining balance at the time of preparing final accounts, where is it sho… One-Sided Errors Before Trial Balance How are one-sided errors rectified if they are detected BEFORE the preparation of the Trial Balance? Adjusting Entries What are 'Adjusting Entries' and why are they necessary before preparing final accounts? Profit and Loss Adjustment Account Which account is opened to rectify errors found in Nominal Accounts after the final accounts of that yea… Rectification When Books are Closed When errors are rectified in the next accounting year, why can't Nominal Accounts be adjusted directly? One-Sided Errors After Trial Balance How are one-sided errors rectified if they are detected AFTER the preparation of the Trial Balance? 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… Error of Principle What constitutes an Error of Principle in accounting? Undercasting Subsidiary Books If the Return Inward Book total is undercast (totalled short), what kind of error is it and how is it fi… 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? Error of Commission What type of error occurs when a transaction is correctly recorded in subsidiary books but posted to the… Overcasting Subsidiary Books How do you rectify an overcasting error in the Purchase Book if the trial balance has already been prepa… Personal Accounts Carry Forward Unlike Nominal accounts, what happens to the balances of Personal and Real accounts at year-end? Compensating Errors What is a Compensating Error? Error of Omission What happens when a transaction is completely left out of the books of original entry?
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
Study formats
All formats Capsule Cards Memory Tricks Infographics JAIIB Mock Tests 2026 All capsules
App Icon
Install ClearShorts App
Study offline, anytime