Accountancy Dk Goel 2019 for Class 11 Commerce Accountancy Chapter 12

Question 1:

Rectify the following errors:
(i) Credit sales to Mridula ₹ 5,000 were not recorded.
(ii) Credit purchases from Nayna ₹ 8,000 were not recorded.
(iii) Goods returned to Priya ₹ 12,000 were not recorded.
(iv) Goods returned from Rashi ₹ 10,000 were not recorded.

Answer:

Two-Sided Errors

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
i)	Mridula’s A/c	Dr.		5,000
	To Sales A/c				5,000
	(Credit sales to Mridula were omitted to be recorded)

ii)	Purchases A/c	Dr.		8,000
	To Nayna’s A/c				8,000
	(Credit purchases from Nayna were omitted to be recorded)

iii)	Priya’s A/c	Dr.		12,000
	To Purchases Return A/c				12,000
	(Goods returned to Priya were omitted to be recorded)

iv)	Sales Return A/c	Dr.		10,000
	To Rashi’s A/c				10,000
	(Goods returned from Rashi were omitted to be recorded)

Question 2:

Rectify the following errors:
(i) Credit sales to Mridula ₹ 5,000 were recorded as ₹ 500.
(ii) Credit purchases from Nayna ₹ 8,000 were recorded as ₹ 800.
(iii) Goods returned to Priya ₹ 12,000 were recorded as ₹ 1,200.
(iv) Goods returned from Rashi ₹ 10,000 were recorded as ₹ 1,000.

Answer:

Two Sided Errors

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
i)	Mridula’s A/c	Dr.		4,500
	To Sales A/c				4,500
	(Credit sales to Mridula were recorded as Rs 500 instead of Rs 5,000)

ii)	Purchases A/c	Dr.		7,200
	To Nayna’s A/c				7,200
	(Credit purchases from Nayna were recorded as Rs 800 instead of Rs 8,000)

iii)	Priya’s A/c	Dr.		10,800
	To Purchases Return A/c				10,800
	(Goods returned to Priya were recorded as Rs 1,200 instead of Rs 12,000)

iv)	Sales Return A/c	Dr.		9,000
	To Rashi’s A/c				9,000
	(Goods returned from Rashi were recorded as Rs 1,000 instead of Rs 10,000)

Question 3:

Rectify the following errors:
(i) Credit sales to Mridula ₹ 5,000 were recorded as ₹ 5,400.
(ii) Credit purchases from Nayna ₹ 8,000 were recorded as ₹ 8,800.
(iii) Goods returned to Priya ₹ 12,000 were recorded as ₹ 12,200.
(iv) Goods returned from Rashi ₹ 10,000 were recorded as ₹ 11,000.

Answer:

Two Sided Errors

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
i)	Sales A/c	Dr.		400
	To Mridula’s A/c				400
	(Credit sales to Mridula were recorded as Rs 5,400 instead of Rs 5,000)

ii)	Nayna’s A/c	Dr.		800
	To Purchases A/c				800
	(Credit purchases from Nayna were recorded as Rs 8,800 instead of Rs 8,000)

iii)	Purchases Return A/c	Dr.		200
	To Priya’s A/c				200
	(Goods returned to Priya were recorded as Rs 12,200 instead of Rs 12,000)

iv)	Rashi’s A/c	Dr.		1,000
	To Sales Return A/c				1,000
	(Goods returned from Rashi were recorded as Rs 11,000 instead of Rs 10,000)

Question 4:

Give rectifying entries for the following:
(i) A credit sales of goods to Ram ₹ 2,500 has been wrongly passed through the 'Purchases Book'.
(ii) A credit purchase of goods from Shyam amounting to ₹ 1,000 has been wrongly passed through the 'Sales Book'.
(iii) A return of goods worth ₹ 1,100 to Mohan was passed through the 'Sales Return Book'.
(iv) A return of goods worth ₹ 500 by Ganesh were entered in 'Purchases Return Book'.

Answer:

Two Sided Errors

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
i)	Ram’s A/c	Dr.		5,000
	To Sales A/c				2,500
	To Purchases A/c				2,500
	(Goods sold to Ram wrongly passed through Purchases Book)

ii)	Purchases A/c	Dr.		1,000
	Sales A/c	Dr.		1,000
	To Shyam’s A/c				2,000
	(Goods purchased from Shyam wrongly passed through Sales Book)

iii)	Mohan’s A/c	Dr.		2,200
	To Purchases Return A/c				1,100
	To Sales Return A/c				1,100
	(Goods returned to Mohan wrongly passed through Sales Return Book)

iv)	Sales Return A/c	Dr.		500
	Purchases Return A/c	Dr.		500
	To Ganesh’s A/c				1,000
	(Goods returned by Ganesh wrongly passed through Purchases Return Book)

Question 5:

Rectify the following errors:-
(i) Goods for ₹ 5,500 were purchased from Modern Traders on credit, but no entry has yet been passed.
(ii) Purchase Return for ₹ 1,500 not recorded in the books.
(iii) Goods for ₹ 2,000 sold to 'Geeta Traders' on Credit were entered in the sales book as ₹ 200 only.
(iv) Goods of the value of ₹ 1,800 returned by Sunil & Co. were included in stock, but no entry was passed in the books.
(v) Goods purchased for ₹ 900, entered in the purchases book as ₹ 9,000.
(vi) An invoice for goods sold to X was overcast by ₹ 100.

Answer:

Two Sided Errors

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
i)	Purchases A/c	Dr.		5,500
	To Modern Traders A/c				5,500
	(Credit purchases from Modern Traders were omitted to be recorded)

ii)	Creditors A/c	Dr.		1,500
	To Purchases Return A/c				1,500
	(Purchases return of Rs 1,500 was not recorded)

iii)	Geeta Traders A/c	Dr.		1,800
	To Sales A/c				1,800
	(Goods sold to Geeta Traders were recorded as Rs 200 instead of Rs 2,000)

iv)	Sales Return A/c	Dr.		1,800
	To Sunil & Co.				1,800
	(Goods returned by Sunil & Co. were omitted to be recorded)

v)	Creditors A/c	Dr.		8,100
	To Purchases A/c				8,100
	(Goods purchased for Rs 900 were recorded as Rs 9,000)

vi)	Sales A/c	Dr.		100
	To X				100
	(Invoice for goods sold was overcast by Rs 100)

Question 6:

Rectify the following errors:
(i) Sold old furniture to A for ₹ 11,500 was passed through the Sales Book.
(ii) Credit purchases of ₹ 12,000 from Ojas omitted to be recorded in the books.
(iii) Repairs made were debited to Building Account ₹ 7,000.
(iv) Credit sale of ₹ 1,800 to Avikan was recorded as ₹ 8,100.
(v) ₹ 6,000 paid for office furniture was debited to office expenses account.
(vi) A credit sale of goods of ₹ 15,000 to Ramesh has been wrongly passed through the purchases Book.

Answer:

Journal
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)

(i)	Sales A/c	Dr.		11,500
	To Old Furniture A/c				11,500
	(Furniture sold passed through Sales Book, now rectified)

(ii)	Purchases A/c	Dr.		12,000
	To Ojas A/c				12,000
	(Credit purchased omitted from recording, now rectified)

(iii)	Repairs A/c	Dr.		7,000
	To Building A/c				7,000
	(Repairs debited to Building, now rectified)

(iv)	Sales A/c	Dr.		6,300
	To Avikan’s A/c				6,300
	(Credit sale recorded with wrong amounts, now rectified)

(v)	Office Furniture A/c	Dr.		6,000
	To Office Expenses A/c				6,000
	(Purchase of office furniture debited to office expenses account, now rectified)

(vi)	Ramesh	Dr.		30,000
	To Sales A/c				15,000
	To Purchases A/c				15,000
	(Credit sales recorded as credit purchases, now rectified)

Question 7:

Give Journal Entries to rectify the following errors:-
1. Goods purchased from Ajay for ₹ 2,600 were recorded in Sales Book by mistake.
2. Goods for ₹ 4,400 sold to Surendra was passed through Purchase Book.
3. A customer returned goods worth ₹ 1,000. It was recorded in 'Purchase Return Book'.
4. A credit sale of ₹ 126 to Rajesh was entered in the books as ₹ 162.
5. Sale of old chairs and Table for ₹ 700 was treated as sale of goods.
6. Rent of proprietor's residence, ₹ 800, debited to Rent A/c.

Answer:

Two Sided Errors

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
1)	Purchases A/c	Dr.		2,600
	Sales A/c	Dr.		2,600
	To Ajay’s A/c				5,200
	(Goods purchased from Ajay were recorded in Sales Book)

2)	Surendra’s A/c	Dr.		8,800
	To Sales A/c				4,400
	To Purchases A/c				4,400
	(Goods sold to Surendra recorded in Purchases Book)

3)	Sales Return A/c	Dr.		1,000
	Purchases Return A/c	Dr.		1,000
	To Customer’s A/c				2,000
	(Goods returned by a customer recorded in Purchases Return Book)

4)	Sales A/c	Dr.		36
	To Rajesh’s A/c				36
	(Credit sales of Rs 126 to Rajesh were recorded as Rs 162)

5)	Sales A/c	Dr.		700
	To Furniture A/c				700
	(Sale of furniture was recorded as sale of goods)

6)	Drawings A/c	Dr.		800
	To Rent A/c				800
	(Rent paid for proprietor’s residence, debited to Rent Account)

Question 8:

Rectify the following errors:-
1. A sale of goods to Raja Ram for ₹ 2,500 was passed through the Purchases Book.
2. Salary of ₹ 800 paid to Hari Babu was wrongly debited to his personal account.
3. Furniture purchased on credit from Mohan Singh for ₹ 1,000 was entered in the Purchases Book.
4. ₹ 5,000 spent on the extension of buildings was debited to Buildings Repairs Account.
5. Goods returned by Mani Ram ₹ 1,200 were entered in the Returns Outwards Book.

Answer:

Two Sided Errors

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
1)	Raja Ram’s A/c	Dr.		5,000
	To Sales A/c				2,500
	To Purchases A/c				2,500
	(Sale of goods to Raja Ram recorded in Purchases Book)

2)	Salaries A/c	Dr.		800
	To Hari Babu’s A/c				800
	(Salary paid to Hari Babu wrongly debited to his personal account)

3)	Furniture A/c	Dr.		1,000
	To Purchases A/c				1,000
	(Purchase of furniture recorded in Purchases Book)

4)	Building A/c	Dr.		5,000
	To Buildings Repairs A/c				5,000
	(Amount spent on the extension of building debited to Buildings Repairs Account)

5)	Sales Return A/c	Dr.		1,200
	Purchases Return A/c	Dr.		1,200
	To Mani Ram’s A/c				2,400
	(Goods returned by Mani Ram recorded in Returns Outward Book)

Question 9:

Rectify the following errors:
(a) Furniture purchased for ₹ 10,000 wrongly debited to Purchases Account.
(b) Machinery purchased on credit from Raman for ₹ 20,000 was recorded through Purchases Book.
(c) Repairs on machinery ₹ 1,400 debited to Machinery Account.
(d) Repairs on overhauling of second hand machinery purchased ₹ 2,000 was debited to Repairs Account.
(e) Sale of old machinery at book value of ₹ 3,000 was credited to Sales Account.

Answer:

Two Sided Errors

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
a)	Furniture A/c	Dr.		10,000
	To Purchases A/c				10,000
	(Purchase of Furniture wrongly debited to Purchases Account)

b)	Machinery A/c	Dr.		20,000
	To Purchases A/c				20,000
	(Purchase of machinery recorded through Purchases Book)

c)	Repairs A/c	Dr.		1,400
	To Machinery A/c				1,400
	(Repairs incurred on machinery debited to Machinery Account)

d)	Machinery A/c	Dr.		2,000
	To Repairs A/c				2,000
	(Repairs incurred on the purchase of second hand machinery debited to Repairs Account)

e)	Sales A/c	Dr.		3,000
	To Machinery A/c				3,000
	(Sale of old machinery credited to Sales Account)

Question 10:

Pass Journal Entries to rectify the following errors:-
(1) Machinery purchased for ₹ 5,000 has been debited to Purchases A/c.
(2) ₹ 700 paid to Sh. Mohan Kapoor as Legal Charges were debited to his personal account.
(3) ₹ 10,000 paid to Escorts Company for Machinery purchased stand debited to Escorts Company account.
(4) Typewriter purchased for ₹ 6,000 was wrongly passed through purchase book.
(5) ₹ 20,000 paid for the purchase of a Motor Cycle for proprietor has been charged to 'General Expenses' A/c.
(6) ₹ 15,000 paid for the purchase of 'Gas Engine' were debited to 'Purchases' A/c.
(7) Cash paid to Ram ₹ 400 was debited to the account of Shyam.

Answer:

Two Sided Errors

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
1)	Machinery A/c	Dr.		5,000
	To Purchases A/c				5,000
	(Purchase of machinery debited to Purchases Account)

2)	Legal Charges A/c	Dr.		700
	To Mohan Kapoor’s A/c				700
	(Legal charges paid to Mohan Kapoor debited to his personal account)

3)	Machinery A/c	Dr.		10,000
	To Escorts Company A/c				10,000
	(Payment made for machinery debited to company’s account)

4)	Typewriter A/c	Dr.		6,000
	To Purchases A/c				6,000
	(Purchase of typewriter recorded in Purchases Book)

5)	Drawings A/c	Dr.		20,000
	To General Expenses A/c				20,000
	(Purchase of motor cycle for proprietor debited to General Expenses Account)

6)	Gas Engine A/c	Dr.		15,000
	To Purchases A/c				15,000
	(Payment made for purchase of Gas Engine debited to Purchases Account)

7)	Ram’s A/c	Dr.		400
	To Shyam’s A/c				400
	(Rectifying entry made)

Question 11:

Rectify the following errors:-
1. ₹ 4,500 spent on the extension of Buildings were debited to Repairs A/c.
2. Wages paid to the firm's own workmen ₹ 3,600 for the installation of a new machinery were posted to Wages Account.
3. Contractor's bill for the construction of a godown at a cost of ₹ 10,000 has been charged to 'Repairs' A/c.
4. ₹ 1,500 paid as Wages to a worker 'Bahadur Singh', has been debited to his personal account.
5. Old furniture sold for ₹ 500 has been credited to Sales Account.
6. A cheque of ₹ 620 received from Ram, has been wrongly credited to Shyam.

Answer:

Two Sided Errors

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
1)	Building A/c	Dr.		4,500
	To Repairs A/c				4,500
	(Amount spent on the extension of building debited to Repairs Account)

2)	Machinery A/c	Dr.		3,600
	To Wages A/c				3,600
	(Wages paid for installation of new machinery debited to Wages Account)

3)	Building A/c	Dr.		10,000
	To Repairs A/c				10,000
	(Amount spent on the construction of a godown debited to Repairs Account)

4)	Wages A/c	Dr.		1,500
	To Bahadur Singh’s A/c				1,500
	(Wages paid to a worker debited to his personal account)

5)	Sales A/c	Dr.		500
	To Furniture A/c				500
	(Sale of furniture recorded as sale of goods)

6)	Shyam’s A/c	Dr.		620
	To Ram’s A/c				620
	(Cheque received from Ram credited to Shyam)

Question 12:

Pass rectifying entries:-
(i) ₹ 5,000 being the cost of a Radio purchased for the personal use of the proprietor has been debited to Radio account in the ledger.
(ii) Goods taken by the proprietor for ₹ 1,000, has not been entered in the books at all.
(iii) A cheque of ₹ 500 received from X was credited to the account of Y and debited to Cash instead of Bank A/c.
(iv) A cheque of ₹ 1,300 received from Ram Lal was dishonoured and debited to 'General Expenses' A/c.
(v) A sum of ₹ 3,000 drawn by the proprietor for his private travel was debited to 'Travelling Expenses A/c'.
(vi) Credit purchase of ₹ 500 from Ajay were posted to the credit of Vijay A/c.
(vii) An amount of ₹ 1,600 due from Chandan Lal was written off as 'Bad-debt' in previous year, was unexpectedly received this year, and has been credited to the account of Chandan Lal.

Answer:

Two Sided Errors

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
i)	Drawings A/c	Dr.		5,000
	To Radio A/c				5,000
	(Purchase of radio for personal use debited to Radio Account)

ii)	Drawings A/c	Dr.		1,000
	To Purchases A/c				1,000
	(Goods taken by the proprietor omitted to be recorded)

iii)	Y’s A/c	Dr.		500
	Bank A/c	Dr.		500
	To X’s A/c				500
	To Cash A/c				500
	(Cheque received from X debited to Y’s Account and instead of bank, Cash Account is debited)

iv)	Ram Lal’s A/c	Dr.		1,300
	To General Expenses A/c				1,300
	(Cheque received from Ram Lal dishonoured and debited to General Expenses Account)

v)	Drawings A/c	Dr.		3,000
	To Travelling Expenses A/c				3,000
	(Amount spent by the proprietor for private travel debited to Travelling Expenses Account)

vi)	Vijay’s A/c	Dr.		500
	To Ajay’s A/c				500
	(Credit purchase from Ajay posted to the credit of Vijay)

vii)	Chandan Lal’s A/c	Dr.		1,600
	To Bad Debts Recovered A/c				1,600
	(Amount written-off as bad debts were recovered and credited to Debtors Account)

Question 13:

Rectify the following errors which were detected before preparing the Trial Balance:
(i) Purchase book has been overcast by ₹ 1,000.
(ii) Purchase from Ram ₹ 20,000 has been omitted to be posted to his account.
(iii) Purchase from Shyam ₹ 15,000 has been posted to the debit side of his account.
(iv) Purchase from Ghanshyam ₹ 10,000 has been posted to his account as ₹ 1,000.
(v) Purchase from Sita Ram ₹ 5,000 has been posted to his account as ₹ 50,000.

Answer:

One Sided Errors

1. Purchases Book has been overcasted by Rs 1,000. Since it is an error of casting that means individual creditors accounts have been posted correctly and only the total of purchases book has been posted incorrectly to the debit side of Purchases Account. Thus, Purchases Account will be rectified by recording Rs 1,000 on the credit side of Purchases Account.

Purchases Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
					Overcasting of Purchases book		1,000

2. Purchases from Ram Rs 20,000 has been omitted to be posted to his account. This mistake is happened only in Ram’s Account which means that the total of Purchases Book is correct. Thus, in order to rectify this error Rs 20,000 should be posted on the credit side of Ram’s Account.

Ram’s Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
					Omission in posting		20,000

3. Purchase from Shyam Rs 15,000 has been posted to the debit side of his account. It implies that there is no mistake in Purchases account, however, Shyam’s account has been wrongly debited with Rs 15,000 instead of crediting. Thus, rectification will be done by posting the double amount (Rs 30,000) on the credit side of Shyam’s Account.

Shyam’s Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
					Error in posting to the wrong side		30,000

4. Purchases made from Ghanshayam Rs 10,000 have been posted to his account as Rs 1,000. It is a mistake at the time of posting in the ledger account which implies that there is no mistake in the Purchases Account. In this case, Ghanshyam’s Account was credited with lesser amount. So, Rs 9,000 more will be credited to his account for rectification of this error.

Ghanshyam’s Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
					Less amount on the credit side		9,000

5. Purchases made from Sitaram Rs 5,000 have been posted to his account as Rs 50,000. It implies that his account is credited with an excess amount of Rs 45,000 (50,000 – 5,000). Thus, in order to rectify this error Rs 45,000 is debited to Sitaram’s Account.

Sitaram’s Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
	Excess amount on the credit side		45,000

Question 14:

Rectify the following errors which were detected before preparing the Trial Balance:
(i) The total of Sales Book carried forward ₹ 5,000 less.
(ii) A credit sale to Sita ₹ 6,300 posted as ₹ 3,600.
(iii) A credit sale to Radha ₹ 2,400 posted as ₹ 4,200.
(iv) A credit sale to Parbati ₹ 3,000 credited to her account.
(v) A credit sale to Laxmi ₹ 5,600 credited as ₹ 6,500.

Answer:

One Sided Errors

1. Sales book has been undercasted by Rs 5,000. Since it is an error of casting that means individual debtors accounts have been posted correctly and only the total of sales book has been posted incorrectly to the credit side of Sales Account. In this case it has been undercasted accordingly it would be rectified by crediting Sales Account with Rs 5,000.

Sales Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
					Undercasting of Sales Book		5,000

2. Credit sale to Sita Rs 6,300 has been posted to her account as Rs 3,600. It implies that Sita’s Account was debited with lesser amount. Thus, Rs 2,700 more will be debited to her account for rectification of this error.

Sita’s Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
	Less amount on the debit side		2,700

3. Credit sale to Radha Rs 2,400 has been posted to her account as Rs 4,200. In this case, Radha’s Account was debited with an excess amount of Rs 1,800 and accordingly Rs 1,800 should be credited to her account.

Parbati’s Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
					Excess amount on the debit side		1,800

4. A credit sale to Parbati Rs 3,000 has been posted to the credit side of her account. This transaction must have been recorded on the debit side of Parbati’s Account, but, mistakenly it was recorded on the credit side. Thus, Rs 6,000 must be debited to her account.

Parbati’s Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
	Error in posting to the wrong side		6,000

5. A credit sale to Laxmi Rs 5,600 has been posted to the credit side of her account as Rs 6,500. In this case, the transaction was recorded on the wrong side with wrong amount. Thus, Rs 12,100 (5,600 + 6,500) must be debited to her account.

Laxmi’s Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
	Error in posting to the wrong side with wrong amount		12,100

Question 15(A):

Rectify the following errors assuming:-
That no suspense account has been opened with difference in the trial balance.

Answer:

One Sided Errors

1. Purchases of Rs 800 from Sachin have been omitted to be posted to his account. It is a mistake at the time of posting in the ledger. Since the entry in the Purchases Book is correct, total of Purchases Book will also be correct. The mistake is only in Sachin’s account where Rs 800 has not been posted to the credit side of his account. So it would be rectified by crediting Sachin’s account with Rs 800.

Sachin’s Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
					Omission in posting		800

2. Purchases of Rs 800 from Sachin have been posted to his account as Rs 80. It is a mistake at the time of posting in the ledger. Because the entry in the Purchase Book is correct, so there is no mistake in Purchases account, the mistake will affect only Sachin’s Account where lesser amount has been credited to his account. So, Rs 720 more will be credited to his account for rectification of this error.

Sachin’s Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
					Less amount on the credit side		720

3. Purchases of Rs 800 from Sachin have been posted to his account as Rs 880. It is a mistake at the time of posting in the ledger. Because the entry in the Purchase Book is correct, so there is no mistake in Purchases account, the mistake will affect only Sachin’s account where an excess amount of Rs 80 is credited to his account. So Rs 80 will be debited to his account for rectification of this error.

Sachin’s Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
	Excess amount on the credit side		80

4. Purchase of Rs 800 from Sachin have been posted to the debit side of his account. It is a mistake at the time of posting in the ledger. There is no mistake in Purchases account the mistake will affect only Sachin’s account. Sachin’s account has been wrongly debited with Rs 800 instead of crediting his account. Hence rectification would be made by double the amount of entry.

Sachin’s Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
					Error in posting to the wrong side		1,600

5. Purchase of Rs 800 from Sachin have been posted to the debit side of his account as Rs 80. It is a mistake at the time of posting in the ledger. There is no mistake in Purchases account the mistake will affect only Sachin’s account. Sachin’s account has been wrongly debited with Rs 80 instead of crediting his account as Rs 800. Hence rectification would be made by adding these two amounts and Rs 880 will be credited to his account.

Sachin’s Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
					Error in posting to the wrong side with wrongamount		880

Question 15(B):

Rectify the following errors assuming:-
that such a suspense account has been opened.
1. Goods costing ₹ 800 purchased from Sachin on credit were omitted to be credited to his account.
2. Goods costing ₹ 800 purchased from Sachin on credit were credited to his account as ₹ 80.
3. Goods costing ₹ 800 purchased from Sachin on credit were credited to his account as ₹ 880.
4. Goods costing ₹ 800 purchased from Sachin on credit were posted to the debit of his account.
5. Goods costing ₹ 800 purchased from Sachin on credit were posted to the debit of his account as ₹ 80.

Answer:

One Sided Errors

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
1)	Suspense A/c	Dr.		800
	To Sachin’s A/c				800
	(Goods purchased from Sachin omitted to be credited to his account)

2)	Suspense A/c	Dr.		720
	To Sachin’s A/c				720
	(Goods purchased from Sachin credited to his account as Rs 80, instead of Rs 800)

3)	Sachin’s A/c	Dr.		80
	To Suspense A/c				80
	(Goods purchased from Sachin credited to his account as Rs 880, instead of Rs 800)

4)	Suspense A/c	Dr.		1,600
	To Sachin’s A/c				1,600
	(Goods purchased from Sachin debited to his account)

5)	Suspense A/c	Dr.		880
	To Sachin’s A/c				880
	(Goods purchased from Sachin debited to his account as Rs 80)

Question 16:

Rectify the following errors assuming that Suspense Account was opened. Ascertain the difference in Trial Balance.
(a) Credit sales to Mohan ₹ 7,000 were recorded in Purchase Book. However, Mohan's Account was correctly debited.
(b) Credit purchases from Rohan ₹ 9,000 were recorded in Sales Book. However, Rohan's Account was correctly credited.
(c) Goods returned to Rakesh ₹ 4,000 were recorded in Sale Returns Book. However, Rakesh's Account was correctly debited.
(d) Goods returned from Mahesh ₹ 1,000 were recorded through Purchase Returns Book. However, Mahesh's Account was correctly credited.
(e) Goods returned to Naresh ₹ 2,000 were recorded through Purchases Book. However, Naresh's Account was correctly debited.

Answer:

One Sided Errors

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
a)	Suspense A/c	Dr.		14,000
	To Sales A/c				7,000
	To Purchases A/c				7,000
	(Goods sold to Mohan wrongly recorded in Purchases Book)

b)	Purchases A/c	Dr.		9,000
	Sales A/c	Dr.		9,000
	To Suspense A/c				18,000
	(Credit purchases from Rohan recorded in Sales Book)

c)	Suspense A/c	Dr.		8,000
	To Purchases Return A/c				4,000
	To Sales Return A/c				4,000
	(Goods returned to Rakesh recorded in Sales Return Book)

d)	Sales Return A/c	Dr.		1,000
	Purchases Return A/c	Dr.		1,000
	To Suspense A/c				2,000
	(Goods returned from Mahesh recorded in Purchases Return Book)

e)	Suspense A/c	Dr.		4,000
	To Purchases Return A/c				2,000
	To Purchases A/c				2,000
	(Goods returned to Naresh recorded in Purchases Book)

Suspense Account
Dr.			Cr.
Particulars	Amount (Rs)	Particulars	Amount (Rs)
Sales A/c	7,000	Difference as per Trial Balance (Balancing Figure)	6,000
Purchases A/c	7,000	Purchases A/c	9,000
Purchases Return A/c	4,000	Sales A/c	9,000
Sales Return A/c	4,000	Sales Return A/c	1,000
Purchases Return A/c	2,000	Purchases Return A/c	1,000
Purchases A/c	2,000
	26,000		26,000

Question 17:

There was a difference of ₹ 430 in a Trial Balance. It was placed on the Debit side of a Suspense A/c. Later on the following errors were discovered. Pass rectifying entries and prepare Suspense A/c.
1. Purchases book was overcast by ₹ 100.
2. Sales book was overcast by ₹ 1,000.
3. Goods for ₹ 800 purchased from Umakant, though entered in the purchase book, has not been posted to his account.
4. An amount of ₹ 500 has been posted to the credit side of commission account instead of ₹ 570.
5. Goods sold to Bharti for ₹ 4,400 has been posted to her account as ₹ 4,000.
6. Goods sold to X for ₹ 750 were recorded in purchase book.

Answer:

One Sided Errors

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
1)	Suspense A/c	Dr.		100
	To Purchases A/c				100
	(Overcasting of Purchases Book)

2)	Sales A/c	Dr.		1,000
	To Suspense A/c				1,000
	(Overcasting of Sales Book)

3)	Suspense A/c	Dr.		800
	To Umakant’s A/c				800
	(Goods purchased from Umakant not posted to his account)

4)	Suspense A/c	Dr.		70
	To Commission A/c				70
	(Amount of Rs 500 posted to the credit side of Commission Account, instead of Rs 570)

5)	Bharti’s A/c	Dr.		400
	To Suspense A/c				400
	(Goods sold to Bharti for Rs 4,400 posted as Rs 4,000)

6)	X’s A/c	Dr.		1,500
	To Sales A/c				750
	To Purchases A/c				750
	(Goods sold to X recorded in Purchases Book)

Suspense Account
Dr.				Cr.
Particulars	Amount (Rs)	Particulars	Amount (Rs)
Difference in Trial Balance	430	Sales A/c	1,000
Purchases A/c	100	Bharti’s A/c	400
Uma Kant’s A/c	800
Commission A/c	70
	1,400		1,400

Question 18:

In taking out the Trial Balance, book-keeper finds that he is out ₹ 3,809 excess debit. Being desirous of closing his books he places the difference to a newly opened Suspense A/c which is carried forward. In the next period he discovered that :-
1. ₹ 17,715 received from X has not been posted to his account.
2. A sum of ₹ 9,500 written off as depreciation on fixtures has not been posted to the Depreciation A/c.
3. ₹ 1,50,000 paid for furniture purchased has been charged to Ordinary Purchases A/c.
4. A discount of ₹ 3,742 allowed to a customer has been credited to him as ₹ 3,648.
5. The total of the Inwards return has been added ₹ 900 short.
6. An item of Sale for ₹ 5,900 was posted as ₹ 9,500 in the Sales Account.
Give the rectifying entries and prepare the Suspense Account.

Answer:

One Sided Errors

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
1)	Suspense A/c	Dr.		17,715
	To X’s A/c				17,715
	(Amount received from X not posted to his account)

2)	Depreciation A/c	Dr.		9,500
	To Suspense A/c				9,500
	(Amount written-off as depreciation not posted to Depreciation Account)

3)	Furniture A/c	Dr.		1,50,000
	To Purchases A/c				1,50,000
	(Amount paid for purchase of furniture debited to Purchases Account)

4)	Suspense A/c	Dr.		94
	To Customer’s A/c				94
	(Discount allowed credited with less amount in Customer’s Account)

5)	Sales Return A/c	Dr.		900
	To Suspense A/c				900
	(Shortfall in return inward book)

6)	Sales A/c	Dr.		3,600
	To Suspense A/c				3,600
	(An item of sale of Rs 5,900 posted as Rs 9,500 in Sales Account)

Suspense Account
Dr.				Cr.
Particulars	Amount (Rs)	Particulars	Amount (Rs)
X’s A/c	17,715	Difference in Trial Balance	3,809
Customer’s A/c	94	Depreciation A/c	9,500
		Sales Return A/c	900
		Sales A/c	3,600
	17,809		17,809

Question 19:

A Book-keeper failed to balance his trial balance, the credit side exceeding the debit side by ₹ 175. This amount was entered in a Suspense Account. Later on the under mentioned errors were discovered:-
1. Goods amounting to ₹ 620 sold to D & Co. were correctly entered in the Sales book, but posted to the Company's A/c as ₹ 260.
2. A credit balance of ₹ 755 of Rent Received account was shown as ₹ 570.
3. The total of Returns Outwards Book amounting to ₹ 200 was not posted to the Ledger.
4. Goods worth ₹ 100 were purchased from Prakash but the amount was entered in the Sales Book. The account of Prakash was correctly credited.
5. Sales Book was undercast by ₹ 100.
6. The total of the credit side of Sohan's account was overcast by ₹ 100.
Give journal entries to rectify these errors and prepare the Suspense Account.

Answer:

One Sided Errors

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
1)	D & Co. A/c	Dr.		360
	To Suspense A/c				360
	(Goods sold to D & Co. for Rs 620 posted to company’s account as Rs 260)

2)	Suspense A/c	Dr.		185
	To Rent A/c				185
	(Credit balance of Rs 755 of rent received shown as Rs 570)

3)	Suspense A/c	Dr.		200
	To Purchases Return A/c				200
	(Total of return outwards book was not posted)

4)	Purchases A/c	Dr.		100
	Sales A/c	Dr.		100
	To Suspense A/c				200
	(Goods purchased from Prakash entered in Sales Book)

5)	Suspense A/c	Dr.		100
	To Sales A/c				100
	(Undercasting of Sales Book)

6)	Sohan’s A/c	Dr.		100
	To Suspense A/c				100
	(Total of credit side of Sohan’s Account was overcasted)

Suspense Account
Dr.				Cr.
Particulars	Amount (Rs)	Particulars	Amount (Rs)
Difference in Trial Balance	175	D & Co.	360
Rent A/c	185	Purchases A/c	100
Purchases Return A/c	200	Sales A/c	100
Sales A/c	100	Sohan’s A/c	100
	660		660

Question 20:

The Trial Balance prepared by a Book-keeper showed a difference of ₹ 1,006 which was placed in a newly opened Suspense Account and carried forward to the next year, when the following errors were discovered:-
(i) Goods purchased for ₹ 99 had been posted to the credit of the supplier as ₹ 990.
(ii) ₹ 75 received as discount from a creditor was duly entered in his account but it was omitted to be posted to discount account.
(iii) Sale of Furniture for ₹ 1,400 had been entered in sales book.
(iv) ₹ 900 due from a customer were omitted to be taken to the Schedule of sundry debtors.
(v) Goods of the value of ₹ 3,000 returned by a customer were taken into the stock but no entry was made in the books.
(vi) ₹ 355 entered in the Sales Returns book had been posted to the debit of the customer who returned the goods.
Give necessary Journal entries to rectify the above errors and prepare suspense account.

Answer:

One Sided Errors

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
i)	Supplier’s A/c	Dr.		891
	To Suspense A/c				891
	(Goods purchased of Rs 99 on credit posted to the credit side of Supplier’s Account as Rs 990)

ii)	Suspense A/c	Dr.		75
	To Discount Received A/c				75
	(Discount received from a creditor omitted to be posted to Discount Account)

iii)	Sales A/c			1,400
	To Furniture A/c				1,400
	(Sale of furniture recorded in Sales Book)

iv)	Sundry Debtors A/c	Dr.		900
	To Suspense A/c				900
	(Amount due from a customer omitted to be included in sundry debtors)

v)	Sales Return A/c	Dr.		3,000
	To Customer’s A/c				3,000
	(Goods returned by a customer were taken into stock but omitted to be recorded)

vi)	Suspense A/c	Dr.		710
	To Customer’s A/c				710
	(Goods returned by a customer posted to the debit side of his/her account)

Suspense Account
Dr.				Cr.
Particulars	Amount (Rs)	Particulars	Amount (Rs)
Difference in Trial Balance	1,006	Supplier’s A/c	891
Discount Received A/c	75	Sundry Debtors A/c	900
Customer’s A/c	710
	1,791		1,791

Question 21:

A book-keeper finds that the debit side of the trial balance is short of ₹ 308 and so for the time being, he balances the side by putting the difference to suspense account. Subsequently, the following errors were disclosed:
(a) An entry for sale of goods for ₹ 102 to Madhav was posted to his account as ₹ 120.
(b) ₹ 100 being the discount allowed to customers were credited to discount received account in the ledger.
(c) ₹ 275 paid by Madhav were credited to Jadav's account.
(d) ₹ 26 appearing in the cash book as paid for the purchase of stationery for office use have not been posted to ledger.
(e) The debit side of purchases account was under-cast by ₹ 100.
You are required to make the necessary journal entries and the suspense account.

Answer:

One Sided Errors

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
a)	Suspense A/c	Dr.		18
	To Madhav’s A/c				18
	(Entry for goods for Rs 102, posted to his account as Rs 120)

b)	Discount Allowed A/c	Dr.		200
	To Suspense A/c				200
	(Total of discount allowed was credited to the account)

c)	Jadav’s A/c	Dr.		275
	To Madhav’s A/c				275
	(Amount paid by Madhav credited to Jadav)

d)	Stationery A/c	Dr.		26
	To Suspense A/c				26
	(Amount paid for stationery omitted to be posted)

e)	Purchases A/c	Dr.		100
	To Suspense A/c				100
	(Debit side of Purchases Account undercasted)

Suspense Account
Dr.				Cr.
Particulars	Amount (Rs)	Particulars	Amount (Rs)
Difference in Trial Balance	308	Discount Allowed A/c	200
Madhav’s A/c	18	Stationery A/c	26
		Purchases A/c	100
	326		326

Question 22:

The accountant of X prepared the Trial Balance at the end of the year on 31st March, 2015. But there was a difference and the accountant put the difference in a Suspense Account. Rectify the following errors found and prepare the Suspense Account:
(a) The total of the returns outward book ₹ 420 has not been posted in the ledger.
(b) A purchase of ₹ 350 from Y has been entered in the sales book. However Y's Account has been correctly entered.
(c) A sale of ₹ 390 to Z has been credited to his account ₹ 290.
(d) Old furniture sold for ₹ 5,400 had been posted as ₹ 4,500 in Sales Account.
(e) Goods taken by the proprietor ₹ 500 have not been entered in the books at all.

Answer:

One Sided Errors

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
a)	Suspense A/c	Dr.		420
	To Purchases Return A/c				420
	(Total of the returns outward book has not been posted to ledger)

b)	Purchases A/c	Dr.		350
	Sales A/c	Dr.		350
	To Suspense A/c				700
	(Purchases from Y has been entered in the Sales Book)

c)	Z’s A/c	Dr.		680
	To Suspense A/c				680
	(Sale to Z of Rs 390 has been credited to his account as Rs 290)

d)	Sales A/c	Dr.		4,500
	Suspense A/c	Dr.		900
	To Furniture A/c				5,400
	(Sale of furniture of Rs 5,400 had been entered as Rs 4,500 in Sales Account)

e)	Drawings A/c	Dr.		500
	To Purchases A/c				500
	(Goods taken by the proprietor omitted to be recorded)

Suspense Account
Dr.				Cr.
Particulars	Amount (Rs)	Particulars	Amount (Rs)
Difference as per Trial Balance (Balancing Figure)	60	Purchases A/c	350
Purchases Return A/c	420	Sales A/c	350
Furniture A/c	900	Z’s A/c	680
	1,380		1,380

Question 23:

Trial Balance of Anuj did not agree. It showed an excess credit of ₹ 6,000. He put the difference to Suspense Account. He discovered the following errors.
(a) Cash received from Ravish ₹ 8,000 posted to his account as ₹ 6,000.
(b) Returns Inwards book overcast by ₹ 1,000.
(c) Total of Sales Book ₹ 10,000 was not posted to Sales Account.
(d) Credit purchases from Nanak ₹ 7,000 were recorded in Sales Book. However, Nanak's Account was correctly credited.
(e) Machinery purchased for ₹ 10,000 was posted to Purchases Account as ₹ 5,000. Rectify the errors and prepare Suspense Account.

Answer:

One Sided Errors

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
a)	Suspense A/c	Dr.		2,000
	To Ravish’s A/c				2,000
	(An amount of Rs 8,000 received from Ravish posted as Rs 6,000)

b)	Suspense A/c	Dr.		1,000
	To Sales Return A/c				1,000
	(Overcasting of Return Inwards book)

c)	Suspense A/c	Dr.		10,000
	To Sales A/c				10,000
	(Total of Sales Book omitted to be posted to Sales Account)

d)	Purchases A/c	Dr.		7,000
	Sales A/c	Dr.		7,000
	To Suspense A/c				14,000
	(Credit purchases from Nanak recorded in Sales Book)

e)	Machinery A/c	Dr.		10,000
	To Purchases A/c				5,000
	To Suspense A/c				5,000
	(Purchase of machinery recorded as purchases)

Suspense Account
Dr.				Cr.
Particulars	Amount (Rs)	Particulars	Amount (Rs)
Difference in Trial Balance	6,000	Purchases A/c	7,000
Ravish’s A/c	2,000	Sales A/c	7,000
Sales Return A/c	1,000	Machinery A/c	5,000
Sales A/c	10,000
	19,000		19,000

Question 24:

Trial Balance of Madan did not agree and he put the difference to Suspense Account. He discovered the following errors:
(a) Sales Returns book overcast by ₹ 800.
(b) Purchases returns to Sahu ₹ 2,000 were not posted to his account.
(c) Goods purchased on credit from Narula ₹ 4,000 though taken into stock, but no entry was passed in the books.
(d) Installation charges on new machinery purchased ₹ 500 were debited to sundry expenses account as ₹ 50.
(e) Rent paid for residential accommodation of Madan (the proprietor) ₹ 1,400 was debited to Rent A/c as ₹ 1,000.
Rectify the errors and prepare Suspense Account to ascertain the difference in Trial Balance.

Answer:

One Sided Errors

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
a)	Suspense A/c	Dr.		800
	To Sales Return A/c				800
	(Overcasting of Sales Return Book)

b)	Sahu’s A/c	Dr.		2,000
	To Suspense A/c				2,000
	(Goods returned to Sahu omitted to be posted)

c)	Purchases A/c	Dr.		4,000
	To Narula’s A/c				4,000
	(Goods purchased from Narula omitted to be recorded)

d)	Machinery A/c	Dr.		500
	To Sundry Expenses A/c				50
	To Suspense A/c				450
	(Installation charges on new machinery debited tp Sundry Expenses Account)

e)	Drawings A/c	Dr.		1,400
	To Rent A/c				1,000
	To Suspense A/c				400
	(Rent paid for residential accommodation of proprietor debited to Rent Account)

Suspense Account
Dr.				Cr.
Particulars	Amount (Rs)	Particulars	Amount (Rs)
Difference as per Trial Balance (Balancing Figure)	2,050	Sahu’s A/c	2,000
Sales Return A/c	800	Machinery A/c	450
		Drawings A/c	400
	2,850		2,850

Question 25:

There was an error in the Trial Balance of Mr. Steel on 31st March, 2015, and the difference in Books was carried to a Suspense Account. On going through the Books you find that:
(i) ₹ 5,400 received from Mr. A was posted to the debit of his account.
(ii) ₹ 1,000 being purchases return were posted to the debit of Purchases Account.
(iii) Discount received ₹ 2,000 was posted to the debit of Discount Account.
(iv) ₹ 2,740 paid for Repairs to Motor Car was debited to Motor Car Account as ₹ 1,740.
(v) ₹ 4,000 paid to B was debited to A's Account.
Give Journal Entries to rectify the above errors and ascertain the amount transferred to Suspense Account on 31st March, 2015 by showing the Suspense Account, assuming that the Suspense Account is balanced after the above corrections.

Answer:

One Sided Errors

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
i)	Suspense A/c	Dr.		10,800
	To A’s A/c				10,800
	(Amount received from Mr. A posted to the debit of his account)

ii)	Suspense A/c	Dr.		2,000
	To Purchases Return A/c				1,000
	To Purchases A/c				1,000
	(Purchases return debited to Purchases Account)

iii)	Suspense A/c	Dr.		4,000
	To Discount A/c				4,000
	(Discount received debited to Discount Account)

iv)	Repairs A/c	Dr.		2,740
	To Motor Car A/c				1,740
	To Suspense A/c				1,000
	(Repairs made to motor car debited to Motor Car Account)

v)	B’s A/c	Dr.		4,000
	To A’s A/c				4,000
	(Amount paid to B debited to A’s Account)

Suspense Account
Dr.				Cr.
Particulars	Amount (Rs)	Particulars	Amount (Rs)
A’s A/c	10,800	Difference as per Trial Balance (Balancing Figure)	15,800
Purchases Return A/c	1,000	Repairs A/c	1,000
Purchases A/c	1,000
Discount A/c	4,000
	16,800		16,800

Question 26:

Rajesh Kumar was unable to reconcile his Trial Balance as on 31st March 2014 and has opened a suspense account from the difference. Later on the following errors were discovered:-
(1) There were three compensating errors:-

(a) The total of Sales Return Book was overcast by ₹ 100.
(b) The total of one page of the Purchase Book was carried forward as ₹ 1,286 instead of ₹ 1,826.
(c) Goods purchased from C for ₹ 400 was debited to his account as ₹ 40.

(2) ₹ 425 paid for wages to workmen for making office table were debited to wages account.
(3) Rent paid ₹ 1,500 were posted to the credit of Rent account as ₹ 150.
(4) Cash received from Ghanshyam ₹ 500 were correctly recorded in cash book but were posted to his account as ₹ 50.
(5) ₹ 720 paid to Kamal has been debited to Kamlesh A/c as ₹ 520.
(6) The total of Purchase Return Book ₹ 2,500 was left unposted.
Pass rectifying entries and prepare Suspense A/c.

Answer:

One Sided Errors

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
1)	Purchases A/c	Dr.		540
	To Sales Return A/c				100
	To C’s A/c				440
	(Sales return book overcasted, total of purchases book carried forward less, goods purchased debited to C’s Account, now rectified)

2)	Furniture A/c	Dr.		425
	To Wages A/c				425
	(Wages paid for making office table debited to Wages Account)

3)	Rent A/c	Dr.		1,650
	To Suspense A/c				1,650
	(Rent paid credited to Rent Account)

4)	Suspense A/c	Dr.		450
	To Ghanshyam’s A/c				450
	(Cash received from Ghanshyam posted as Rs 50 instead of Rs 500)

5)	Kamal’s A/c	Dr.		720
	To Kamlesh’s A/c				520
	To Suspense A/c				200
	(Amount paid to Kamal debited to Kamlesh’s Account)

6)	Suspense A/c	Dr.		2,500
	To Purchases Return A/c				2,500
	(Total of Purchases Return Book omitted to be posted)

Suspense Account
Dr.				Cr.
Particulars	Amount (Rs)	Particulars	Amount (Rs)
Ghanshyam’s A/c	450	Difference as per Trial Balance (Balancing Figure)	1,100
Purchases Return A/c	2,500	Rent A/c	1,650
		Kamal’s A/c	200
	2,950		2,950

Question 27:

A Trial Balance showed excess credit of ₹ 2,728, which were placed in a suspense account. Later on the following errors were located. Pass rectifying entries and prepare Suspense A/c.
1. ₹ 825, the total of purchase return book has been posted to the debit of sales return account.
2. Goods purchased from Suresh ₹ 1,800 recorded in Sales Book as ₹ 180.
3. An item of ₹ 328 written off as a bad debt from Ajay Sharma has not been debited to Bad Debts Account.
4. Goods purchased from X ₹ 3,500 and from Y ₹ 4,000, but were recorded in the purchase book as X ₹ 4,000 and Y ₹ 3,500.
5. Goods returned to Ramesh for ₹ 2,600 was correctly recorded in the return outward book but was wrongly posted to his account as ₹ 260.
6. A sum of ₹ 2,210 stolen by an ex-employee stand debited to Suspense A/c.
7. A sum of ₹ 500 written off as depreciation on Machinery, were not posted to Machinery account.

Answer:

One Sided Errors

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
1)	Suspense A/c	Dr.		1,650
	To Purchases Return A/c				825
	To Sales Return A/c				825
	(Total of Purchases Return Book posted to the debit of Sales Return Account)

2)	Purchases A/c	Dr.		1,800
	Sales A/c	Dr.		180
	To Suresh’s A/c				1,980
	(Purchases made from Suresh recorded as sale)

3)	Bad Debts A/c	Dr.		328
	To Suspense A/c				328
	(Amount written-off as bad debts omitted to be debited to Bad Debts Account)

4)	X’s A/c	Dr.		500
	To Y’s A/c				500
	(Amount of purchases from X and Y wrongly recorded in Purchases Book)

5)	Ramesh’s A/c	Dr.		2,340
	To Suspense A/c				2,340
	(Goods returned to Ramesh posted to his account as Rs 260 instead of Rs 2,600)

6)	Loss by Theft A/c	Dr.		2,210
	To Suspense A/c				2,210
	(Amount stolen by an ex-employee debited to Suspense Account)

7)	Suspense A/c	Dr.		500
	To Machinery A/c				500
	(Depreciation omitted to be posted to Machinery Account )

Suspense Account
Dr.			Cr.
Particulars	Amount (Rs)	Particulars		Amount (Rs)
Difference in Trial Balance (Balancing Figure)	2,728	Bad Debts A/c		328
Purchases Return A/c	825	Ramesh’s A/c		2,340
Sales Return A/c	825	Loss by Theft A/c		2,210
Machinery A/c	500
	4,878			4,878

Question 28:

A Book-keeper finds the difference in the Trial Balance amounting to ₹ 210 and puts it in the suspense account. Later on he detects the following errors. Rectify these and prepare the Suspense Account:-
1. Goods purchased from Ram ₹ 700 was passed through sales book.
2. Returned goods to Shyam ₹ 1,500 was passed through returns inward book.
3. An Item of ₹ 450 relating to prepaid rent account was omitted to be brought forward.
4. An Item of ₹ 120 in respect of purchase returns, instead of being recorded in Returns outward book has been wrongly entered in the purchase book and posted therefrom to the debit of Personal A/c.
5. Amount payable to Subhash for repairs done to radio ₹ 180 and a new radio supplied for ₹ 1,920, were entered in the Purchase book as ₹ 2,000.
Give full narrations for rectifying journal entries. Which of the above errors affected the agreement of Trial Balance?

Answer:

One Sided Errors

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
1)	Purchases A/c	Dr.		700
	Sales A/c	Dr.		700
	To Ram’s A/c				1,400
	(Goods purchased from Ram passed through Sales Book)

2)	Shyam’s A/c	Dr.		3,000
	To Purchases Return A/c				1,500
	To Sales Return A/c				1,500
	(Goods returned to Shyam passed through Returns Inward Book)

3)	Prepaid Rent A/c	Dr.		450
	To Suspense A/c				450
	(Prepaid rent omitted to be brought forward)

4)	Suspense A/c	Dr.		240
	To Purchases Return A/c				120
	To Purchases A/c				120
	(Purchases return recorded in Purchases Book)

5)	Repairs A/c	Dr.		180
	Radio A/c	Dr.		1,920
	To Purchases A/c				2,000
	To Subhash’s A/c				100
	(Amount paid for purchase of radio and repairs on radio entered in Purchases Book)

Suspense Account
Dr.			Cr.
Particulars	Amount (Rs)	Particulars		Amount (Rs)
Difference in Trial Balance (Balancing Figure)	210	Prepaid Rent A/c		450
Purchase Return A/c	120
Purchase A/c	120
	450			450

Note: Item number 3 & 4 affected the agreement of Trial Balance.

Question 29:

In taking out a Trial Balance, an Accountant finds an excess debit of ₹ 1,098. Being desirous of closing his books, he places the difference to Suspense A/c. Later on he detects the following errors:-
1. Goods purchased from Surinder for ₹ 350 has been credited to his account as ₹ 530.
2. Goods sold to Dinesh for ₹ 800 have been debited to his account as ₹ 880.
3. A cheque of ₹ 1,250 received from a debtor had been correctly entered in the cash book but posted to his Personal A/c as ₹ 1,200.
4. ₹ 780, paid for freight on machinery purchased was debited to Freight Account as ₹ 708.
5. Goods to the value of ₹ 130 returned by a customer Navin Kumar had been posted to the debit of his account.
6. ₹ 1,440 paid for repairs to Motor Car were debited to Motor Car A/c as ₹ 1,400.
7. Total of purchase return book ₹ 500 was posted to the debit of Purchase A/c.
Give necessary rectifying entries and prepare suspense account.

Answer:

One Sided Errors

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
1)	Surinder’s A/c	Dr.		180
	To Suspense A/c				180
	(Goods purchased from Surinder for Rs 350 credited as Rs 530)

2)	Suspense A/c	Dr.		80
	To Dinesh’s A/c				80
	(Goods sold of Rs 800 debited as Rs 880 )

3)	Suspense A/c	Dr.		50
	To Debtor’s A/c				50
	(Cheque received from debtor posted as Rs 1,200 instead of Rs 1,250)

4)	Machinery A/c	Dr.		780
	To Suspense A/c				72
	To Freight A/c				708
	(Freight paid on machinery debited to Freight Account)

5)	Suspense A/c	Dr.		260
	To Navin Kumar’s A/c				260
	(Goods returned by a customer debited to his account)

6)	Repairs A/c	Dr.		1,440
	To Motor Car A/c				1,400
	To Suspense A/c				40
	(Repairs paid for motor car debited to Motor Car Account)

7)	Suspense A/c	Dr.		1,000
	To Purchases A/c				500
	To Purchases Return A/c				500
	(Purchases return posted to debit of Purchases Account)

Suspense Account
Dr.				Cr.
Particulars	Amount (Rs)	Particulars	Amount (Rs)
Dinesh’s A/c	80	Difference as per Trial Balance	1,098
Debtor’s A/c	50	Surinder’s A/c	180
Navin Kumar’s A/c	260	Machinery A/c	72
Purchases A/c	500	Repairs A/c	40
Purchases Return A/c	500
	1,390		1,390

Question 30:

A Book-keeper finds that the totals of his trial balance disagree by ₹ 2,800. He temporarily debits a Suspense Account with this amount and closes the books. On an examination of the books, the following errors are discovered:-
1. The total of Purchase Return Book ₹ 710 was posted Twice.
2. Goods costing ₹ 800 were distributed as free samples but no entry was passed in the books.
3. Purchase of Machinery for ₹ 5,600 on credit was recorded in Purchase Book as ₹ 6,500.
4. Cash Sales to Ram Lal for ₹ 1,200 were recorded in Cash Book as well as in Sales Book and were posted from both.
5. Closing Stock has been overvalued by ₹ 1,500.
6. Sales Return Book was untotalled, though personal accounts were posted ₹ 1,580.
7. No entries have been made in the Cash Book for the Insurance Premium directly paid by bank ₹ 700 and interest charged on overdraft ₹ 320.
8. A sum of ₹ 200 for Drawings on the Credit Side of Cash Book was not posted to the Drawings account.
Pass entries to rectify the above errors. Close the Suspense Account already opened.

Answer:

One Sided Errors

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
1)	Purchases Return A/c	Dr.		710
	To Suspense A/c				710
	(Total of purchases return book posted twice)

2)	Advertisement Expenses A/c	Dr.		800
	To Purchases A/c				800
	(Goods distributed as free samples omitted to be recorded)

3)	Creditors A/c	Dr.		900
	Machinery A/c	Dr.		5,600
	To Purchases A/c				6,500
	(Purchase of machinery for Rs 5,600 recorded in Purchases Account as Rs 6,500)

4)	Sales A/c	Dr.		1,200
	To Ram Lal’s A/c				1,200
	(Cash sales wrongly entered in Sales Book)

5)	Trading A/c	Dr.		1,500
	To Closing Stock A/c				1,500
	(Closing stock overvalued)

6)	Sales Return A/c	Dr.		1,580
	To Suspense A/c				1,580
	(Omitted totalling of Sales Return Book)

7)	Insurance Premium A/c	Dr.		700
	Interest on Overdraft A/c	Dr.		320
	To Bank A/c				1,020
	(Recording is made for payment of insurance premium and interest charged on overdraft)

8)	Drawings A/c	Dr.		200
	To Suspense A/c				200
	(An amount of Rs 200 omitted to be posted to Drawings Account)

Suspense Account
Dr.			Cr.
Particulars	Amount (Rs)	Particulars		Amount (Rs)
Difference as per Trial Balance	2,800	Purchases Return A/c		710
		Sales Return A/c		1,580
		Drawings A/c		200
		Balance b/d		310
	2,800			2,800

Question 31:

Give rectifying journal entries for the following errors:
(a) Sale of goods to Madan ₹ 6,000 were entered in the sales book as ₹ 600.
(b) A credit purchase of ₹ 1,500 from Ajay has been wrongly passed through the sales book.
(c) Repairs to building ₹ 300 were debited to building account.
(d) ₹ 2,050 paid to Rohit is posted to the debit of Mohit's account as ₹ 5,020.
(e) Purchase return book is overcast by ₹ 400.

Answer:

One Sided Errors

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
a)	Madan’s A/c	Dr.		5,400
	To Sales A/c				5,400
	(Goods sold for Rs 6,000 recorded as Rs 600)

b)	Purchases A/c	Dr.		1,500
	Sales A/c	Dr.		1,500
	To Ajay’s A/c				3,000
	(Credit purchases wrongly passed through Sales Book)

c)	Repairs A/c	Dr.		300
	To Building A/c				300
	(Repairs to building debited to Building Account)

d)	Rohit’s A/c	Dr.		2,050
	Suspense A/c	Dr.		2,970
	To Mohit’s A/c				5,020
	(Amount paid to Rohit debited to Mohit’s Account)

e)	Purchases Return A/c	Dr.		400
	To Suspense A/c				400
	(Overcasting of Purchases Return Book)

Question 32:

Rectify the following errors:
(i) The Sales Book has been totalled ₹ 1,000 short.
(ii) Goods worth ₹ 1,500 returned by Green and Co. have not been recorded anywhere.
(iii) Goods purchased worth ₹ 2,500 have been posted to the debit of the supplier, Gupta and Co.
(iv) Furniture purchased from Gulab and Co. worth ₹ 10,000 has been entered in Purchases Day Book.
(v) Cash received from A ₹ 2,500 has not been posted in his account.

Answer:

One Sided Errors

Rectifying Journal Entries
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
i)	Suspense A/c	Dr.		1,000
	To Sales A/c				1,000
	(Undercasting of Sales Book)

ii)	Sales Return A/c	Dr.		1,500
	To Green & Co.				1,500
	(Goods returned by Green & Co. omitted to be recorded)

iii)	Suspense A/c	Dr.		5,000
	To Gupta & Co.				5,000
	(Goods purchased debited to supplier account)

iv)	Furniture A/c	Dr.		10,000
	To Purchases A/c				10,000
	(Purchase of furniture recorded in Purchases Book)

v)	Suspense A/c	Dr.		2,500
	To A’s A/c				2,500
	(Cash received from A omitted to be posted to his account)

Question 33:

Rectify the following errors by means of Journal entries:
(i) A cheque of ₹ 5,000 received from Ashish was dishonoured and was debited to Discount Account.
(ii) Purchase of ₹ 540 from Ramneek was written in Sales day book, but was correctly posted to correct side of Ramneek’s Account.
(iii) Salary paid to Miss Yugakshi ₹ 1,000 was debited to her personal account as ₹ 900.
(iv) Furniture costing ₹ 500, purchased from Jyoti, was wrongly entered in Purchase book as ₹ 450.

Answer:

One Sided Errors

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
i)	Ashish’s A/c	Dr.		5,000
	To Discount A/c				5,000
	(Cheque received from Ashish dishonoured and debited to Discount Account)

ii)	Purchases A/c	Dr.		540
	Sales A/c	Dr.		540
	To Suspense A/c				1,080
	(Purchases recorded in Sales Book)

iii)	Salaries A/c	Dr.		1,000
	To Yugakshi’s A/c				900
	To Suspense A/c				100
	(Payment of salary debited to personal account of Yugakshi)

iv)	Furniture A/c	Dr.		500
	To Purchases A/c	Dr.			450
	To Jyoti’s A/c				50
	(Furniture purchased from Jyoti entered in Purchases Book)

Question 34:

During the course of an accounting year, the accountant prepared a trial balance which did not tally. He put the difference in a suspense account. Subsequently, he located the following errors in his books of account:
(i) The total of the returns outwards book, ₹ 21,500 has not been posted.
(ii) A sale of ₹ 4,300 to Ramesh has been credited to him as ₹ 3,400.
(iii) A sale of ₹ 2,960 to Shyam has been recorded in sales book as ₹ 2,690.
(iv) Old furniture sold for cash worth ₹ 5,400 has been posted in sales account as ₹ 4,500. There was no profit or loss on sale.
(v) Goods taken by proprietor worth ₹ 1,000 have not been recorded in the books of account at all.
Pass journal entries of rectify the above mentioned errors and prepare suspense account assuming no error has remained undetected.

Answer:

One Sided Errors

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
i)	Suspense A/c	Dr.		21,500
	To Purchases Returns A/c				21,500
	(Total of Return Outwards Book omitted to be posted)

ii)	Ramesh’s A/c	Dr.		7,700
	To Suspense A/c				7,700
	(Sale of Rs 4,300 to Ramesh credited to him as Rs 3,400)

iii)	Shyam’s A/c	Dr.		270
	To Sales A/c				270
	(Sales of Rs 2,960 recorded as Rs 2,690 in Sales Book)

iv)	Sales A/c	Dr.		4,500
	Suspense A/c	Dr.		900
	To Furniture A/c				5,400
	(Sale of furniture recorded in Sales Account)

v)	Drawings A/c	Dr.		1,000
	To Purchases A/c				1,000
	(Goods taken by the proprietor omitted to be recorded)

Suspense Account
Dr.				Cr.
Particulars	Amount (Rs)	Particulars	Amount (Rs)
Purchases Return A/c	21,500	Difference as per Trial Balance (Balancing Figure)	14,700
Furniture A/c	900	Ramesh’s A/c	7,700
	22,400		22,400

Question 35:

During the course of an accounting year, an Accountant found a difference in the tiral balance. He puts this difference in a newly opened suspense account. Subsequently, he located the following errors in his books of account:
(i) Goods purchased from Shiv for ₹ 10,000, but entered in sales book.
(ii) Received a bill receivable for ₹ 18,000 from Ganesh, but recorded in bills payable book.
(iii) An item of ₹ 4,000 in respect of purchases returns, wrongly debited to purchases account.
(iv) An item of ₹ 2,000 relating to pre-paid salary account omitted to be brought forward.
(v) Paid ₹ 1,000 on account of repair of furniture, but wrongly debited to furniture account.
Pass journal entries to rectify the above mentioned errors and prepare suspense account assuming that no error remained undetected.

Answer:

One Sided Errors

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
i)	Purchases A/c	Dr.		10,000
	Sales A/c	Dr.		10,000
	To Shiv’s A/c				20,000
	(Purchases from Shiv entered in Sales Book)

ii)	Bills Receivable A/c	Dr.		18,000
	Bills Payable A/c	Dr.		18,000
	To Ganesh’s A/c				36,000
	(Bills receivable recorded as bills payable)

iii)	Suspense A/c	Dr.		8,000
	To Purchases A/c				4,000
	To Purchases Returns A/c				4,000
	(Purchases return wrongly debited to Purchases Account)

iv)	Prepaid Salaries A/c	Dr.		2,000
	To Suspense A/c				2,000
	(Prepaid salary omitted to be brought forward)

v)	Repairs A/c	Dr.		1,000
	To Furniture A/c				1,000
	(Repair of furniture debited to Furniture Account)

Suspense Account
Dr.				Cr.
Particulars	Amount (Rs)	Particulars	Amount (Rs)
Purchases A/c	4,000	Difference as per Trial Balance (Balancing Figure)	6,000
Purchases Return A/c	4,000	Prepaid Salaries A/c	2,000
	8,000		8,000

Question 36:

Pass journal entries to rectify the following errors. The trial balance had ₹ 1,260 excess credit. The difference has been posted to a suspense account:
(i) The total of returns inwards book has been cast ₹ 2,000 short.
(ii) The purchase of an office table costing ₹ 6,000 has been passed through the purchases day book.
(iii) A sum of ₹ 7,500 paid to workman for wages for making showcases has been charged to wages account.
(iv) A purchase of ₹ 1,340 has been posted to the creditor's account as ₹ 600.
(v) A cheque of ₹ 4,000 received from Y has been dishonoured; it has been posted to the debit of allowances account.
After passing journal entries, prepare the suspense account.

Answer:

One Sided Errors

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
i)	Sales Return A/c	Dr.		2,000
	To Suspense A/c				2,000
	(Undercasting of Sales Return Book)

ii)	Furniture A/c	Dr.		6,000
	To Purchases A/c				6,000
	(Purchase of office table recorded as purchases)

iii)	Furniture A/c	Dr.		7,500
	To Wages A/c				7,500
	(Payment made for making showcases debited to Wages Account)

iv)	Suspense A/c	Dr.		740
	To Creditor’s A/c				740
	(Purchases recorded with less amount in Creditor’s Account)

v)	Y’s A/c	Dr.		4,000
	To Allowances A/c				4,000
	(Cheque received from Y dishonoured and debited to Allowances Account)

Suspense Account
Dr.				Cr.
Particulars	Amount (Rs)	Particulars	Amount (Rs)
Difference in Trial Balance	1,260	Sales Return A/c	2,000
Creditor’s A/c	740
	2,000		2,000

Question 37:

The books of Ramesh did not agree. The difference of ₹ 12,700 in trial balance was placed to the debit of suspense account. Subsequently, the following errors were located. Pass journal entries to rectify the errors and prepare the suspense account:
(i) The total of the purchases returns book, ₹ 2,100 has not been posted.
(ii) A sale of ₹ 4,300 to Ram has been credited to his account as ₹ 3,400.
(iii) A purchase from Suresh for ₹ 4,000 has been entered in the sales book. However, Suresh has been correctly credited with ₹ 4,000.
(iv) Old furniture sold on credit for ₹ 5,400 has been recorded in the sales account as ₹ 4,500.
(v) Goods taken away by Ramesh, the proprietor for his personal use worth ₹ 750 has not been recorded in the books of accounts at all.

Answer:

One Sided Errors

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
i)	Suspense A/c	Dr.		2,100
	To Purchases Returns A/c				2,100
	(Total of Purchases Return Book omitted to be posted)

ii)	Ram’s A/c	Dr.		7,700
	To Suspense A/c				7,700
	(Sale of Rs 4,300 to Ram credited to his account as Rs 3,400)

iii)	Purchases A/c	Dr.		4,000
	Sales A/c	Dr.		4,000
	To Suspense A/c				8,000
	(Purchases were recorded in Sales Book)

iv)	Suspense A/c	Dr.		900
	Sales A/c	Dr.		4,500
	To Furniture A/c				5,400
	(Sale of furniture of Rs 5,400 recorded in Sales Account as Rs 4,500)

v)	Drawings A/c	Dr.		750
	To Purchases A/c				750
	(Goods taken by the proprietor omitted to be recorded)

Suspense Account
Dr.				Cr.
Particulars	Amount (Rs)	Particulars	Amount (Rs)
Difference in Trial Balance	12,700	Purchases A/c	4,000
Purchases Return A/c	2,100	Sales A/c	4,000
Furniture A/c	900	Ram’s A/c	7,700
	15,700		15,700

Question 38:

Rectify the following errors by passing Journal entries:
(i) Old furniture sold for ₹ 500 has been credited to Sales Account.
(ii) Machinery purchased on credit from Raman for ₹ 2,000 recorded through Purchases Book as ₹ 16,000.
(iii) Cash received from Rajat ₹ 5,000 was posted to the debit of Bhagat as ₹ 6,000.
(iv) Depreciation provided on machinery ₹ 3,000 was posted to Machinery Account as ₹ 300.

Answer:

One Sided Errors

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
i)	Sales A/c	Dr.		500
	To Furniture A/c				500
	(Sale of furniture recorded in Sales Account)

ii)	Machinery A/c	Dr.		2,000
	Raman’s A/c	Dr.		14,000
	To Purchases A/c				16,000
	(Purchase of machinery of Rs 2,000 recorded through Purchases Book with Rs 16,000)

iii)	Suspense A/c	Dr.		11,000
	To Rajat’s A/c				5,000
	To Bhagat’s A/c				6,000
	(Cash received from Rajat debited to Bhagat)

iv)	Suspense A/c	Dr.		2,700
	To Machinery A/c				2,700
	(Depreciation provided on machinery posted to Machinery Account as Rs 300 instead of Rs 3,000)

Question 39:

Pass Journal entries of rectify the following errors which were located after preparing the Trial Balance:
(a) The Sales Book was overcast by ₹ 500.
(b) Credit purchases from Aradhya ₹ 6,000 were posted to the debit of her account as ₹ 9,000.
(c) Goods returned from Ayan ₹ 8,000 were recorded in Purchases Return Book.
(d) Wages paid ₹ 3,980 were recorded in the Cash Book as ₹ 3,890.

Answer:

One Sided Errors

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
1)	Sales A/c	Dr.		500
	To Suspense A/c				500
	(Overcasting of Sales Book)

2)	Suspense A/c	Dr.		15,000
	To Aradhya’s A/c				15,000
	(Purchases of Rs 6,000 from Aradhya debited to her account as Rs 9,000)

3)	Sales Return A/c	Dr.		8,000
	Purchases Return A/c	Dr.		8,000
	To Ayan’s A/c				16,000
	(Return inwards recorded in Purchases Return Book)

4)	Wages A/c	Dr.		90
	To Cash A/c				90
	(Wages paid Rs 3,980 recorded as Rs 3,890)

Question 40:

Rectify the following errors:-
(a) ₹ 500 paid for the purchases of Radio set for the proprietor debited to General expenses account.
(b) Goods sold to Ram for ₹ 300 have been entered in the purchase book. However the account of Ram stands correctly posted.
(c) An amount of ₹ 50 paid to Kewal has been credited to the account of Kanwal.
(d) A sum of ₹ 450 paid as rent has been debited to Landlord's personal account.
(e) Wages paid for the month ₹ 300 was posted twice.
(f) Sales return book was undercast by ₹ 10.
(g) Goods for ₹ 100 have been returned by a customer. These have been taken into stock but no entry in respect thereof has been made in the books.
(h) Repairs ₹ 500 debited to machinery account as ₹ 550.

Answer:

One Sided Errors

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
a)	Drawings A/c	Dr.		500
	To General Expenses A/c				500
	(Amount paid for purchase of radio for proprietor debited to General Expenses Account)

b)	Suspense A/c	Dr.		600
	To Sales A/c				300
	To Purchases A/c				300
	(Goods sold to Ram entered in Purchases Book)

c)	Kewal’s A/c	Dr.		50
	Kanwal’s A/c	Dr.		50
	To Suspense A/c				100
	(Amount paid to Kewal credited to Kanwal)

d)	Rent A/c	Dr.		450
	To Landlord’s Personal A/c				450
	(Payment of rent debited to Landlord’s Personal Account)

e)	Suspense A/c	Dr.		300
	To Wages				300
	(Payment of wages posted twice)

f)	Sales Return A/c	Dr.		10
	To Suspense A/c				10
	(Undercasting of Sales Return Book)

g)	Sales Return A/c	Dr.		100
	To Customer’s A/c				100
	(Goods returned by a customer omitted to be recorded)

h)	Repairs A/c	Dr.		500
	Suspense A/c	Dr.		50
	To Machinery A/c				550
	(Repairs debited to Machinery Account)

Question 41:

Pass journal entries to rectify the following errors detected during preparation of Trial Balance:
(i) Purchases book is undercast by ₹ 1,000.
(ii) Wages paid for construction of office debited to wages account ₹ 20,000.
(iii) A credit sale of goods ₹ 1,200 to Ramesh has been wrongly passed through the purchase book.
(iv) Goods purchased for ₹ 5,000 were posted as ₹ 500 to the purchases account.
(v) An amount of ₹ 2,000 due from Mahesh Chand, which had been written off as a bad debt in a previous year was unexpectedly recovered and has been posted to the personal account of Mahesh Chand.
(vi) A credit purchase of ₹ 1,040 from Ramesh was passed in the books as ₹ 1,400.
(vii) Goods (Cost ₹ 5,000; Sales Price ₹ 6,000) distributed as free samples among prospective customers was not recorded anywhere.
(viii) Goods worth ₹ 1,500 returned by Green and Co. have not been recorded anywhere.

Answer:

One Sided Errors

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
i)	Purchases A/c	Dr.		1,000
	To Suspense A/c				1,000
	(Undercasting of Purchases Book)

ii)	Building A/c	Dr.		20,000
	To Wages A/c				20,000
	(Payment made for construction of building debited to Wages Account)

iii)	Ramesh’s A/c	Dr.		2,400
	To Sales A/c				1,200
	To Purchases A/c				1,200
	(Credit sale recorded as purchases)

iv)	Purchases A/c	Dr.		4,500
	To Suspense A/c				4,500
	(Goods purchased for Rs 5,000 posted as Rs 500)

v)	Mahesh Chand’s A/c	Dr.		2,000
	To Bad Debts Recovered A/c				2,000
	(Bad debts recovered posted to the personal account of Mahesh Chand)

vi)	Ramesh’s A/c	Dr.		360
	To Purchases A/c				360
	(Purchases from Ramesh recorded as Rs 1,400 instead of Rs 1,040)

vii)	Advertisement Expenses A/c	Dr.		5,000
	To Purchases A/c				5,000
	(Goods distributed as free samples omitted to be recorded)

viii)	Sales Return A/c	Dr.		1,500
	To Green & Co.				1,500
	(Sales return omitted to be recorded)

Question 42:

Rectify the following errors found in the books of Mr. Suhail by passing entries:
(i) One item of purchase of ₹ 250 has been posted from the purchases book to the ledger as ₹ 350.
(ii) Sales return of ₹ 2,000 from a party has not been posted to that account, through the party's account has been credited.
(iii) A cheque of ₹ 600 issued to the suppliers account (shown under Sundry Creditors) toward his dues had been wrongly debited to the purchases account.
(iv) Credit sale of ₹ 1,000 has been credited to the sales and also to the Sundry Debtor's Account.

Answer:

Journal
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
(i)	Creditor A/c	Dr.		100
	To Suspense A/c				100
	(Creditor account overcasted, now rectified)

(ii)	Sales Return A/c	Dr.		2,000
	To Suspense A/c				2,000
	(Return of goods by customers omitted from Sales Return, now rectified)

(iii)	Sundry Creditors A/c	Dr.		600
	To Purchases A/c				600
	(Payment to creditors debited to Purchases, now rectified)

(iv)	Sundry Debtors A/c			2,000
	To Suspense A/c				2,000
	(Sundry Debtors mistakenly credited, now rectified)

Question 43:

Rectify the following errors:
(a) Bought Radio for ₹ 1,000 for the proprietor was debited to General Expenses A/c.
(b) Bought goods from Mohan ₹ 2,000 was passed through the Sales Book, however, the account of Mohan was credited correctly.
(c) Wages due ₹ 1,500 has not been taken into account.
(d) Goods Returned by Kamal ₹ 240 has been debited to his account ₹ 420.

Answer:

Journal
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)

(a)	Drawings A/c	Dr.		100
	To General Expenses A/c				100
	(Radio bought for proprietor debited to General Expenses A/c, now rectified)

(b)	Purchases A/c	Dr.		2,000
	Sales A/c	Dr.		2,000
	To Suspense A/c				4,000
	(Goods bought on credit passed through Sales Book but supplier’s account correctly credited, now rectified)

(c)	Wages A/c	Dr.		1,500
	To Wages Outstanding A/c				1,500
	(Outstanding wages omitted, now rectified)

(d)	Suspense A/c	Dr.		660
	To Kamal’s A/c				660
	(Goods returned by Kamal debited to his account with wrong amount, now rectified)

Question 44:

Rectify the following errors found in the books of Mr. Aryan by passing entries:
(i) The purchase of ₹ 610 from Kabir was entered into sales book but Kabir's personal account was rightly credited.
(ii) Sale of old furniture of ₹ 2,500 was credited to sales account as ₹ 250.
(iii) An item of ₹ 500 relating to prepaid insurance account was omitted to be brought forward from the previous year's books.
(iv) ₹ 220 discount received from a creditor had been duly entered in his account but not posted to discount received account.

Answer:

Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
(i)	Sales A/c	Dr.		610
	Purchases A/c	Dr.		610
	To Suspense A/c				1,220
	(purchases from Kabir wrongly entered in sales book)

(ii)	Sales A/c	Dr.		250
	Suspense A/c	Dr.		2,250
	To Furniture A/c				2,500
	(sale of old furniture wrongly credited to sales A/c)

(iii)	Prepaid insurance A/c	Dr.		500
	To Suspense A/c				500
	(prepaid insurance omitted to be brought forward)

(iv)	Suspense A/c			220
	To Discount received A/c				220
	(discount received omitted to be recorded)

Accountancy Dk Goel 2019 for Class 11 Commerce Accountancy Chapter 12 - Rectification Of Errors

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