CMA Foundation Dec 2026 | Paper 2 FFCA —Adjustment Entries & Rectification of Errors ALL MCQs Solved

CMA Foundation December 2026 students — this video covers ALL MCQs on Adjustment Entries and Rectification of Errors from Paper 2 (FFCA), solved one by one with clear reasoning for each option. 📌 What's covered in this video: ✅ Error of Omission, Error of Commission, and Error of Principle — how to identify each ✅ Rectification entries for wrongly recorded transactions ✅ Effect of errors and their rectification on gross profit and net profit ✅ Opening stock and closing stock errors — effect on profit ✅ Insurance claim and asset loss adjustments ✅ Capital vs Revenue expenditure errors (error of principle) ✅ Free downloadable PDF with all solved MCQs 🎯 This chapter tests whether your Capital & Revenue and Journal & Ledger concepts are solid — strong fundamentals here mean you'll never confuse an error of commission with an error of principle again. 📥 FREE PDF DOWNLOAD: Link available in the description box below and pinned as the first comment. 💬 Got doubts on any question? Drop them in the comments — I'll help you out. ⏱️ TIMESTAMPS: 0:01 Intro — Adjustment Entries & Rectification of Errors 0:35 Purchase Wrongly Recorded as Sale 1:37 Error of Omission 2:02 Error of Principle — Wages for Installation 3:14 Goods Destroyed by Fire — Insurance Claim 4:21 Building Extension Wrongly Treated as Repair 5:26 Opening/Closing Stock Understatement — Effect on Profit 6:45 Error of Principle Identification 8:54 Furniture Lost by Fire — Loss to P&L 9:37 Error of Commission Definition 9:57 Opening/Closing Stock Overstatement — Net Effect 11:43 Which Statement is Not Correct (Error Types) 12:52 Sales Return Wrongly Recorded with Wrong Amount 14:08 Purchase Return Wrongly Entered as Sales Return 15:29 Drawings Wrongly Debited to Trade Expense 16:20 Prepaid Expense Rectification 16:23 When Should Errors Be Rectified 👉 Subscribe for more CMA Foundation Paper 2 FFCA chapter-wise MCQ solving, free study material, and exam strategy. --- 🔗 Useful Links: Free PDF (Adjustment Entries & Rectification of Errors MCQs Solved): [link in description/pinned comment] Full ICMAI Question Bank Playlist: Must Do Kit For December 2026: ❓ FREQUENTLY ASKED QUESTIONS Q1. What is an error of omission? A. An error of omission occurs when a transaction is completely left out of the books — it was simply forgotten and never recorded at all. Q2. What is an error of commission? A. An error of commission occurs when a transaction is recorded but with a mistake — such as the wrong amount, wrong account, wrong side of an account, wrong total, or wrong carry-forward. The transaction is recorded, just incorrectly. Q3. What is an error of principle? A. An error of principle occurs when accounting is done in violation of accounting principles — most commonly when a capital expenditure is wrongly treated as revenue expenditure, or vice versa. Q4. How does understated opening stock affect net profit? A. Opening stock and profit have an inverse relationship — if opening stock is understated (lower than actual), profit will be overstated (higher than actual), and if opening stock is overstated, profit will be understated. Q5. How does overstated closing stock affect net profit? A. Closing stock and profit have a direct relationship — if closing stock is overstated (higher than actual), profit will also be overstated, and if closing stock is understated, profit will be understated. Q6. When should accounting errors be rectified? A. Errors should be rectified as soon as they are noticed — there's no need to wait for the end of the accounting year or the preparation of the trial balance or final accounts. Q7. If goods are destroyed by fire and an insurance claim is partially admitted, how is the loss calculated? A. The full cost of goods destroyed is credited to the purchase account. The insurance claim amount is debited to the insurance claim account, and the difference (uncovered loss) is debited to the Goods Destroyed by Fire account and transferred to P&L. Q8. What is the rectification entry when a capital expenditure (like building extension) is wrongly treated as a revenue expense (like repair)? A. The correct asset account (e.g., Building) is debited, and the wrongly debited expense account (e.g., Repair) is credited for the same amount — this reverses the error and records it correctly as capital expenditure. 📚 Join Our CA/ CMA Foundation & Intermediate Classes 👉 Modes: Face-to-Face (Kolkata), Live Online, Google Drive, and Pendrive 📞 𝐖𝐡𝐚𝐭𝐬𝐀𝐩𝐩: / 🌐 𝐕𝐢𝐬𝐢𝐭: ‎🌐 𝐖𝐡𝐚𝐭𝐬𝐀𝐩𝐩 𝐂𝐡𝐚𝐧𝐧𝐞𝐥: 🌐 𝐓𝐞𝐥𝐞𝐠𝐫𝐚𝐦: 🌐 𝐈𝐧𝐬𝐭𝐚𝐠𝐫𝐚𝐦: #CMAFoundation #FFCA #RectificationOfErrors #CMAFoundationDecember2026