BBA Study Material Bookkeeping Trial Balance Notes

BBA Study Material Bookkeeping Trial Balance Notes

BBA Study Material Bookkeeping Trial Balance Notes : n This Article You Can Find Meaning Bookkeeping Notes and trial balance and profit and loss  Means That Its Is Best Topic of Bookkeeping and Accounting Study material For BBA 1st Semester Year . Here You Find Topic Wise,Chapter Wise, Subject Wise  Study Material BBA MBA final Accounting And other  Links of Related to the Bookkeeping and Accounting.  If we talk about BBA then Bookkeeping and Accounting is one of the most important Topic. Bookkeeping is common to all semesters Here we are presenting BBA Bookkeeping and Accounting Study Material and Notes for all Semesters. BBA Bachelor of Business Administration in Bookkeeping and Accounting notes study material in this website most important chapter and Question paper BBA notes in this page more links to bba notes and study material and question paper mock paper. BBA in accounting and finance is an undergraduate commerce course. BBA study in bookkeeping and accounting, financial planning, economics, business organisation and other similar areas of operation in any business organisation. full BBA course three year degree course consists of Six semesters. the basic eligibility criterion for bba dgree is qualifying 10+2 or equivalent examination in any stream from a recognized board of the country.Bachelor of Business Administration (BBA) in Accounting programs combine the fundamentals of a business program with concentrated coursework in accounting. Find out what these programs entail and what students do after graduation.bba subject bookkeeping and accounting chapter wise notes study material, question paper, mock paper, sample paper, in this website study point to BBA notes. BBA Study Material Bookkeeping Trial Balance Notes

BBA Study Material Bookkeeping Trial Balance Notes
BBA Study Material Bookkeeping Trial Balance Notes

Q.1.        What is the error not disclosed by trial balance even on its agreement ? Discuss briefly.

Ans.       Following errors are not disclosed by a trial balance even when it tallies. These are also known as limitations of trial balance :

  1. Errors of Principle : Sometimes errors are made due to insufficient knowledge of accounting principles, Hence when errors are created due to violation of accounting principles, rules and regulations, then such errors are termed as errors of principles, e.g. if a cloth merchant purchases machinery here machinery account is to be debited, but if purchases account has been debited even then trial balance will tally but there remains a mistake of principle. It means that a clear distinction must to be made between capital and revenue expenditure capital and revenue receipts and capital and revenue losses. If it is not done, it is regarded as an error of principle.
  2. Errors of Omission : When no entry is made for a transaction in journal or in its subsidiary books or posting in ledger then also trial balance will tally. Such errors are known as errors of omission. Such errors are not disclosed by trial balance from being tallied.
  3. Errors of Duplication : If an entry is made twice in journal and its posting is also made twice, th trial balance will tally, but such errors will not be disclosed.
  4. Compensatory Errors : If one account in ledger is debited with ₹ 300 less and other account in ledger is credited with ₹ 300 less then also trial balance will tally. Such Errors are called compensatory errors and they are not disclosed by trial balance.

Errors Disclosed  by Trial Balance (Profit Loss Balance Sheet)

BBA Study Material Bookkeeping Trial Balance Notes
BBA Study Material Bookkeeping Trial Balance Notes

When there are some errors, then trial balance will not tally. Following errors are are disclosed by the trial balance :

  1. While posting from journal to ledger, omission of posting of some account is made, e.g. furniture purchase for cash ₹ 5000. In this case ₹ 500 are recorded in the debit side of furniture account but not recorded in the credit side of cash account.
  2. Balance of cash book is not recorded in trial balance.
  3. Sometimes total of one subsidiary books like sales book is posted in the account of other subsidiary book like purchases book.
  4. Some errors are committed at the time of balancing a ledger account.
  5. Errors is made in totaling the trial balance.
  6. Errors is made at the time of preparing lists of debtors and creditors.
  7. While making posting ledger wrong amount is recorded in one account, e.g. instead of posting ₹ 105 in the debit side of and account ₹ 150 have been posted.
  8. Some balance of ledger accounts have not been recorded in trial balance.

BBA 1st Semester Study Material 

Q.2.        What is accounting equation ?

Ans.       Accounting equation based on ‘Dulity concept’ which explains that at any point of time the assets of any business enterprise are equal in monetary terms to its equities, both internal and external. Internal equities are the amount contributed by proprietor as capital and amount of profit retained in the business External equities are liabilities (amount payable to outsiders). In the later discussions internal equities will be termed as ‘Equity’ and external equities as ‘Liabilities’.

Thus :

Assets = Equity + Liabilities


Full BBA Notes All Semester 

Montey Parjapati




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