NCERT Solutions for Class 11 Accountancy Chapter 7 - Trial Balance and Rectification of Errors

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Short Answer Type Questions

1. State the meaning of a Trial Balance.

Ans. Trial Balance is a statement which shows debit balance and credit balance of all accounts in the ledger to test their arithmetical accuracy. Trial balance provides a basis for preparing the Final Accounts as it contains the balances of all the Ledger Accounts.

2. Give two examples of errors of principle.

Ans. (i) Treating revenue expense as a capital expenses.

Eg. Repair expenses of machinery debited to Machinery Account.

(ii) Treating capital expenses as a revenue expenses.

Eg. Commission paid for purchases of land is debited to Commission Account instead of Land Account.

3. Give two examples of errors of commission.

Ans. Error of Commission are the errors which arise due to wrong recording, wrong posting, wrong carrying forward, wrong casting of subsidiary books, wrong balancing, etc.

Examples:

Goods purchased from Amit for ₹520 recorded as ₹250 in the Purchases Book.
Purchase of goods from Amit recorded in the Sales Book.

4. What are the methods of preparing Trial Balance ?

Ans. (i) Total Method or Gross Trial Balance: Under this method, two sides of the accounts are totalled. The total of the debit side is called the ''debit total’’ and the total of the credit-side is called the “credit total’’. All the debit totals are entered on the debit side of the Trial Balance while the credit total is entered on the credit side of the Trial Balance.

(ii) Net Trial Balance or Balance Method: Under this method, all the ledger accounts are balanced. The balancing figure may be either a i.e. “debit balance’’ or “credit balance’’.

(iii) Compound Method: Under this method, totals of both the side of the accounts are written in the separate columns. Along with this, the balance are also written in the debit column and credit balance are written in the credit column of the trial balance.

5. What are the steps taken by an accountant to locate the errors in the Trial Balance?

Ans. Difference in the Trial Balance, however minor it may be, must be located rectified. Following steps are useful in locating the errors:

(i) Two columns of the Trial Balance should be totalled again.

(ii) The list of Sundry Debtors and Sundry Creditors should be checked to find out whether all balances of debtors and creditors have been correctly written in the Trial Balance or not.

(iii) It should be checked that the balances of every account including cash and bank balances (from Cash Book) have been written in correct column of the Trial Balance.

(iv) If the errors remain undetected, try to locate the error by trial and error techniques such as finding an account showing a balance equal to the difference of the Trial Balance.

6. What is a suspense account? Is it necessary that is suspense account will balance off after rectification of the errors detected by the accountant? If not then what happens to the balance still remaining in Suspense Account.

Ans. When one sided errors are located after the preparation of Trial Balance, then there is a difference in the Trial Balance, which is placed under the head 'Suspense Account to tally the Trial Balance temporarily.

Suspense Account

While preparing the Trial Balance, if an accountant is unable to detect the difference in the totals of the Trial Balance, then the difference is placed in the Suspense Account. Suspense Account is an account to which the difference in the Trial Balance is placed till the errors are detected and rectified.

If total of the debit side of the Trial Balance is short, i.e. credit side of the Trial Balance exceeds the debit side, then difference is put on the debit side under the heading Suspense Account. In this case, Suspense Account is debited, i.e. it will show debit balance.

7. What kinds of errors would cause difference in the Trial Balance? Also list examples that would not be revealed by a Trial Balance.

Ans. There are three kinds of errors which cause a difference in the Trial Balance:

(i) Errors of Partial omission.

(ii) Errors of Principle

(iii) Compensating Errors.

There are the some examples that would not be revealed by the Trial Balance are:

Omission of Posting to an account.
Posting of wrong amount to the Ledger Account.
Error of Posting to the correct account but on the wrong side.
Omitting to show a ledger account or Cash Book balance in the Trial Balance.
Error of Posting correct amount in one account and wrong amount in other account.
Wrong totalling of subsidiary books, i.e. undercasting/overcasting of subsidiary books.
Wrong balancing of a Ledger Account.
Omission of Posting of totals of subsidiary books into the Ledger.
Putting the balance in the wrong column of the Trial Balance.

8. State the limitations of Trial Balance?

Ans. The main limitations of a Trial Balance are as follows:

It may hide errors of omission. Some transactions are not journalised at all. Even a correctly balanced Trial Balance cannot reveal this mistake. If a journal entry with an incorrect amount gets recorded in both accounts, the Trial Balance will not detect that error. A journal entry may have the right amount, but the accountant may have entered it under the wrong accounting heads. The Trial Balance cannot identify such mistakes. If a journal entry is missing in the ledger, it will not reflect in the Trial Balance.

Long Answer Type Question

9. Describe the purpose for the preparation of Trial Balance.

Ans. (i) To ascertain the Arithmetical Accuracy of Ledger Account: If both sides of Trial Balance tally, then it is presumed that posting to the ledger in terms of debit and credit amounts is accurate.

(ii) To help in preparing the Final Accounts or Financial Statements: As the Trial Balance contains the balances of all the Ledger Accounts, it provides a basis for preparing the Final Accounts.

(iii) To obtain a summary of Ledger Accounts: Trial Balance provides a summary of all the Ledger accounts. The position of a particular account can be judged simply by looking at the Trial Balance.

(iv) To Help in Locating Errors: If a Trial Balance does not tally, it indicates that some errors have been committed. Trial Balance helps in locating errors such as errors in totalling, posting on wrong side of the ledger account, etc. However, it must be noted that Trial Balance does not disclose all the errors in Book Keeping.

10. Explain errors of principle and give two examples with measures to rectify them.

Ans. When some fundamental principle of accountancy is violated while recording a transaction, the error is termed as error of principle. These errors are committed in those cases where a proper distinction between capital and revenue items is not made i.e., a capital expenditure is treated as a revenue expenditure or vice-versa.

These errors may be of two types:

(i) When a capital expenditure is treated as revenue expenditure for ex-if the purchase of furniture is treated as an ordinary purchase and is thus debited to purchase account instead of furniture account, if will be an error of principle.

Similarly, if the amount spent on the extension of a building is debited to a repairs account instead of a building account, it is also an error of principle.

(ii) When a revenue expenditure is treated as capital expenditure. For e.g., if the amount spent on the repair of an old machinery is debited to the machinery account instead of the repairs account.

Measures to Rectify errors of Principle: If an irrelevant account has been debited instead of the correct account debit the account that should have been debited. Credit the account that has been erroneously debited.

11. Explain the errors of commission and give two examples with measures to rectify them.

Ans. Error of Commission: If a wrong amount is entered either in the journal or in the subsidiary Books, the Trial Balance will tally because the same amount will be pested in both the accounts affected by the transaction.

For e.g., sale of goods to Ram on credit for ₹420 has been entered in the journal as ₹240. When the entry is posted to ledger, double entry will be completed with ₹240, Ram being debited with ₹240 and sales account being credited with ₹240. In spite of the in accuracy in both the accounts, the Trial Balance will tally.

Measures to Rectify Errors of Commission: Let us consider the first example. Sales return from Megha ₹1,600 were posted to her account as ₹1,000. This is an error of commission. The rectification entry for the above error will be

Suspense A/c	Dr.	600
To Megha A/c		600

(Being sales return from Megha ₹1,600 were posted to her account as ₹1,000 now rectified).

Cash received from Karim ₹6,000 posted to Nadim. This is an error of commission. The rectification entry for the above error will be:

Nadim	Dr.	6000
To Karim		6,000

(Being cash received from Karim ₹6,000 wrongly posted to Nadim’s account now rectified)

12. What are the different types of errors that are usually committed in recording business transactions.

Ans. Errors of Commission are those errors which arise due to wrong recording, wrong posting, wrong carrying forward, wrong casting of subsidiary books, wrong balancing, etc. Errors of Commission may be of following types:

(i) Error of Recording: This error arises when any transaction is incorrectly recorded in the books of original entry. This error does not affect Trial Balance.

Example: Goods of ₹5,000 purchased on credit from Mohan are recorded in the purchases books as ₹50,000.

(ii) Error of Casting: This error arises when a mistake is committed in totalling. This error affects the Trial Balance.

Example: Purchases Book is totalled as ₹10,000 instead of ₹1,00,000.

(iii) Error in Carrying Forward: This error arises when a mistake is committed in carrying forward a total of one page to the next page. This error affects the Trial Balance.

(iv) Error of Posting: This error arises when transaction recorded in the books of original entry is incorrectly transferred or posted in the Ledger.

Examples: Posting total of the Sales Books in the Purchase Account instead of the Sales Account.

13. As an accountant of a company, you are disappointed to learn that the totals in your new trial balance are not equal. After going through a careful analysis, you have discovered only one error. Specifically, the balance of the Office Equipment account has a debit balance of ₹15,600 on the trial balance. However, you have figured out that a correctly recorded credit purchase of pendrive for ₹3,500 was posted from the journal to the ledger with a ₹3,500 debit to Office Equipment and another ₹3,500 debit to creditors accounts. Answer each of the following questions and present the amount of any misstatement :

(i) Is the balance of the Office Equipment account overstated, understated, or correctly stated in the Trial Balance?

(ii) Is the balance of the creditors account overstated, understated, or correctly stated in the Trial Balance?

(iii) Is the debit column total of the Trial Balance overstated, understated, or correclty stated?

(iv) Is the credit column total of the Trial Balance overstated, understated, or correctly stated?

(v) If the debit column total of the Trial Balance is ₹2,40,000 before correcting the error, what is the total of credit column.

Ans. (i) Based on the given information, it is evident that the purchase of the pen drive was incorrectly debited to the office equipment account. As a result of this error, the balance of the Office Equipment account is overstated by ₹3,500.

(ii) It appears from the provided details that the creditor's account was mistakenly debited instead of being credited, resulting in an understatement of the creditor's account balance by ₹7,000.

(iii) Due to the compensating error, the total of the debit column in the Trial Balance remains accurate.

(iv) The total of the credit column in the Trial Balance is understated by ₹7,000. This is due to the incorrect posting of the creditor's account on the debit side.

(v) Since there is no discrepancy in the debit column of the Trial Balance, any difference in the credit column would have been reflected. In this scenario, if the debit column of the Trial Balance is ₹2,40,000, the total of the credit column should have been ₹2,33,000 (2,40,000 – 7,000); considering the incorrect creditor figure).

Numerical Questions

14. Rectify the following errors:

(i) Credit sales to Mohan ₹7,000 were not recorded.

(ii) Credit purchases from Rohan ₹9,000 were not recorded.

(iii) Goods returned to Rakesh ₹4,000 were not recorded.

(iv) Goods returned from Mahesh ₹1,000 were not recorded.

Ans.

Journal Entries

S. No.	Particulars		L. F.	Amount (Dr.) (₹)	Amount (Cr.) (₹)
(i)	Mohan's A/c	Dr.		7,000
	To Sales A/c				7,000
	(Being credit sales to Mohan not recorded, now rectified)
(ii)	Purchases A/c	Dr.		9,000
	To Rohan's A/c				9,000
	(Being credit purchase from Rohan were not recorded, now rectified)
(iii)	Rakesh's A/c	Dr.		4,000
	To Purchases Return A/c				4,000
	(Being goods returned to Rakesh were not recorded, now rectified )
(iv)	Sales Return A/c		1,000
	To Mahesh's A/c				1,000
	(Being goods returned from Mahesh were not recorded, now rectified)

15. Rectify the following errors:

(i) Credit sales to Mohan ₹7,000 were recorded as ₹700.

(ii) Credit purchases from Rohan ₹9,000 were recorded as ₹900.

(iii) Goods returned to Rakesh ₹4,000 were recorded as ₹400.

(iv) Goods returned from Mahesh ₹1,000 were recorded as ₹100.

Ans.

Journal Entries

S. No.	Particulars		L. F.	Amount (Dr.) (₹)	Amount (Cr.) (₹)
(i)	Mohan's A/c (₹7,000 – ₹700)	Dr.		6,300
	To Sales A/c				6,300
	(Being credit sales to Mohan ₹7,000 wrongly recorded as ₹700, now rectified)
(ii)	Purchases A/c (₹9,000 – ₹900)	Dr.		8,100
	To Rohan's A/c				8,100
	(Being credit purchase from Rohan ₹9,000 wrongly recorded as ₹900, now rectified)
(iii)	Rakesh's A/c (₹4,000 – ₹400)	Dr.		3,600
	To Purchases Return A/c				3,600
	(Being goods returned to Rakesh ₹4,000 wrongly recorded as ₹400, now rectified )
(iv)	Sales Return A/c (₹1,000 – ₹900)	Dr.		900
	To Mahesh's A/c				900
	(Being goods returned from Mahesh ₹1,000 wrongly recorded as ₹100, now rectified)

16. Rectify the following errors:

(i) Credit sales to Mohan ₹7,000 were recorded as ₹7,200.

(ii) Credit purchases from Rohan ₹9,000 were recorded as ₹9,900.

(iii) Goods returned to Rakesh ₹4,000 were recorded as ₹4,040.

(iv) Goods returned from Mahesh ₹1,000 were recorded as ₹1,600.

Ans.

Journal Entries

S. No.	Particulars		L. F.	Amount (Dr.) (₹)	Amount (Cr.) (₹)
(i)	Sales A/c (₹7,200 – ₹7,000)	Dr.		200
	To Mohan's A/c				200
	(Being credit sales to Mohan ₹7,000 wrongly recorded as ₹7,200, now rectified)
(ii)	Rohan'sA/c (₹9,900 – ₹9,000)	Dr.		900
	To Purchases A/c				900
	(Being goods purchased from Rohan ₹9,000 wrongly recorded as ₹9,900, now rectified)
(iii)	Purchases Return A/c (₹4,040 – ₹4,000)	Dr.		40
	To Rakesh's A/c				40
	(Being goods returned to Rakesh ₹4,000 wrongly recorded as ₹4,040, now rectified )
(iv)	Mahesh's A/c (₹1,600 – ₹1,000)	Dr.		600
	To Sales Return A/c				600
	(Being goods returned from Mahesh ₹1,000 wrongly recorded as ₹21,600, now rectified)

17. Rectify the following errors:

(i) Salary paid ₹5,000 was debited to employee’s personal account.

(ii) Rent Paid ₹4,000 was posted to landlord’s personal account.

(iii) Goods withdrawn by proprietor for personal use ₹1,000 were debited to sundry expenses account.

(iv) Cash received from Kohli ₹2,000 was posted to Kapur’s account.

(v) Cash paid to Babu ₹1,500 was posted to Sabu’s account.

Ans.

Journal Entries

S. No.	Particulars		L. F.	Amount (Dr.) (₹)	Amount (Cr.) (₹)
(i)	Sales A/c	Dr.		5,000
	To Employee's A/c				5,000
	(Being Salaries paid ₹5,000 were wrongly debited to employee's personal account, now rectified)
(ii)	Rent A/c	Dr.		4,000
	To Land Lord A/c				4,000
	(Being rent paid ₹4,000 was posted to landlord's account, now rectified)
(iii)	Drawings A/c	Dr.		1,000
	To Sundry expenses A/c				1,000
	(Being goods drawn by proprietor for personal use were wrongly debited to sundry expenses account, now rectified)
(iv)	Kapur's A/c	Dr.		2,000
	To Kohli's A/c				2,000
	(Being cash received from Kohli was posted to Kapur's account, now rectified)
(v)	Babu's A/c	Dr.		1,500
	To Sabu's A/c				1,500
	(Being cash paid to Babu was posted wrongly to Sabu's account, now rectified)

18. Rectify the following errors:

(i) Credit Sales to Mohan ₹7,000 were recorded in purchases book.

(ii) Credit Purchases from Rohan ₹900 were recorded in sales book.

(iii) Goods returned to Rakesh ₹4,000 were recorded in the sales return book.

(iv) Goods returned from Mahesh ₹1,000 were recorded in purchases return book.

(v) Goods returned from Nahesh ₹2,000 were recorded in purchases book.

Ans.

Journal Entries

S. No.	Particulars		L. F.	Amount (Dr.) (₹)	Amount (Cr.) (₹)
(i)	Mohan's A/c	Dr.		14,000
	To Sales A/c				7,000
	To Purchase A/c				7,000
	(Being goods sold on credit to Mohan were recorded in purchases book, now rectified)				7,000
(ii)	Sales A/c	Dr.		900
	Purchases A/c	Dr.		900
	To Rohan's A/c				1,800
	(Being goods purchased from Rohan were recorded in sales book, now rectified)
(iii)	Rakesh's A/c	Dr.		8,000
	To Purchases Return A/c				4,000
	To Sales Return A/c				4,000
	(Goods returned to Rakesh were recorded in sales return book, now rectified)
(iv)	Sales Return A/c	Dr.		1,000
	Purchases Return A/c	Dr.		1,000
	To Mahesh's A/c				2,000
	(Being goods returned from Mahesh were recorded in purchases return book, now rectified)
(v)	Sales Return A/c	Dr.		2,000
	To Purchase A/c				2,000
	(Being goods returned from Naresh were recorded in purchases book, now rectified)

19. Rectify the following errors:

(i) Sales book overcast by ₹700.

(ii) Purchases book overcast by ₹500.

(iii) Sales return book overcast by ₹300.

(iv) Purchase return book overcast by ₹200.

Ans.

Journal Entries

S. No.	Particulars		L. F.	Amount (Dr.) (₹)	Amount (Cr.) (₹)
(i)	Sales A/c	Dr.		700
	To Suspense A/c				700
	(Being sales book overcast by ₹700, now rectified)
(ii)	Suspense A/c	Dr.		500
	Purchases A/c				500
	(Being Purchases Book overcast by ₹500, now rectified)
(iii)	Suspense A/c	Dr.		300
	To Sales Return A/c				300
	(Being sales return book overcast by ₹300, now rectified)
(iv)	Purchases Return A/c	Dr.		200
	To Suspense A/c				200
	(Being purchases return book overcast by ₹200, now rectified)

20. Rectify the following errors:

(i) Sales book undercast by ₹300.

(ii) Purchases book undercast by ₹400.

(iii) Return Inwards book undercast by ₹200.

(iv) Return Outwards book undercast by ₹100.

Ans.

Journal Entries

S. No.	Particulars		L. F.	Amount (Dr.) (₹)	Amount (Cr.) (₹)
(i)	Suspense A/c	Dr.		300
	To Sales A/c				300
	(Being sales book undercast by ₹300, now rectified)
(ii)	Purchases A/c	Dr.		400
	To Suspense A/c				400
	(Being purchases book undercast by ₹400, now rectified)
(iii)	Returned Inward A/c	Dr.		200
	To Suspense A/c				200
	(Being return inwards book undercast by ₹200, now rectified)
(iv)	Suspense A/c	Dr.		100
	To Return Outwards A/c				100
	(Being return outwards book undercast by ₹100, now rectified)

21. Rectify the following errors and ascertain the amount of difference in Trial Balance by preparing suspense account:

(i) Credit sales to Mohan ₹7,000 were not posted.

(ii) Credit purchases from Rohan ₹9,000 were not posted.

(iii) Goods returned to Rakesh ₹4,000 were not posted.

(iv) Goods returned from Mahesh ₹1,000 were not posted.

(v) Cash paid to Ganesh ₹3,000 was not posted.

(vi) Cash sales ₹2,000 were not posted.

Ans.

Journal Entries

S. No.	Particulars		L. F.	Amount (Dr.) (₹)	Amount (Cr.) (₹)
(i)	Mohan's A/c	Dr.		7,000
	To Suspense A/c				7,000
	(Being goods sold on credit to Mohan were not posted in Mohan's Account, now rectified)
(ii)	Suspense A/c	Dr.		9,000
	To Rohan's A/c				9,000
	(Being goods purchased from Rohan were not posted in Rohan's Account, now rectified)
(iii)	Rakesh's A/c	Dr.		4,000
	To Suspense A/c				4,000
	(Goods returned to Rakesh were not posted in Rakesh's Account, now rectified)
(iv)	Suspense A/c	Dr.		1,000
	To Mahesh's A/c				1,000
	(Being goods returned from Mahesh were omitted to be recorded in Mahesh's Account, now rectified)
(v)	Ganesh's A/c	Dr.		3,000
	To Suspense A/c				3,000
	(Being cash paid to Ganesh was not posted to Ganesh's Account, now rectified)
(vi)	Suspense A/c	Dr.		2,000
	To Sales A/c				2,000
	(Being cash receipts from sales, was not posted to Sales Account, now rectified)

Dr.	Suspense Account	Cr.

Date	Particulars	J. F.	Amount (₹)	Date	Particulars	J. F.	Amount (₹)
	To Rohan A/c		9,000		By Mohan A/c		7,000
	To Mahesh A/c		1,000		By Rakesh A/c		4,000
	To Sales A/c		2,000		By Ganesh A/c		3,000
	To Balance c/d		2,000
	(difference in Trial Balance)
			14,000				14,000

Note: In order to match the balance of suspense account, it has been assumed that all errors given in the question are errors of partial omission.

22. Rectify the following errors and ascertain the amount of difference in Trial Balance by preparing suspense account:

(i) Credit sales to Mohan ₹7,000 were posted as ₹9,000.

(ii) Credit purchases from Rohan ₹9,000 were posted as ₹6,000

(iii) Goods returned to Rakesh ₹4,000 were posted as ₹5,000.

(iv) Goods returned from Mahesh ₹1,000 were posted as ₹3,000.

(v) Cash sales ₹3,000 were posted as ₹200.

Ans.

Journal Entries

S. No.	Particulars		L. F.	Debit (₹)	Credit (₹)
(i)	Suspense A/c (₹9,000 – ₹7,000)	Dr.		2,000
	To Mohan's A/c				2,000
	(Being goods sold on credit to Mohan ₹7,000 wrongly posted as ₹9,000, now rectified)
(ii)	Suspense A/c (₹9,000 – ₹6,000)	Dr.		3,000
	To Rohan's A/c				3,000
	(Being purchased goods from Rohan ₹9,000 wrongly posted as ₹6,000, now rectified)
(iii)	Suspense A/c (₹5,000 – ₹4,000)	Dr.		1,000
	To Rakesh's A/c				1,000
	(Goods returned to Rakesh ₹4,000 wrongly posted as ₹5,000, now rectified)
(iv)	Mahesh's A/c (₹3,000 – ₹1,000)	Dr.		2,000
	To Suspense A/c				2,000
	(Being goods returned from Mahesh ₹1,000 wrongly posted as ₹3,000, now rectified)
(v)	Suspense A/c (₹2,000 – ₹200)	Dr.		1,800
	To Sales A/c				1,800
	(Being goods sold for cash ₹2,000 wrongly posted as ₹200, now rectified)

Dr.	Suspense Account	Cr.

Date	Particulars	J. F.	Amount (₹)	Date	Particulars	J. F.	Amount (₹)
	To Mohan A/c		2,000		By Mahesh A/c		2,000
	To Rohan A/c		3,000		By Balance c/d		5,800
	To Rakesh A/c		1,000		(Difference in Trial Balance)
	To Sales A/c		1,800
			7,800				7,800

Note: In order to match answer with that of the answer given in the book it has been assumed that all the errors mentioned in this question are errors of partial omission.

23. Rectify the following errors:

(i) Credit sales to Mohan ₹7,000 were posted to Karan.

(ii) Credit purchases from Rohan ₹9,000 were posted to Gobind.

(iii) Goods returned to Rakesh ₹4,000 were posted to Naresh.

(iv) Goods returned from Mahesh ₹1,000 were posted to Manish.

(v) Cash sales ₹2,000 were posted to commission account.

Ans.

Journal Entries

S. No.	Particulars		L. F.	Debit (₹)	Credit (₹)
(i)	Mohan's A/c	Dr.		7,000
	To Karan's A/c				7,000
	(Being goods sold to Mohan wrongly posted to Karan's Account, now rectified)
(ii)	Gobind's A/c	Dr.		9,000
	To Rohan's A/c				9,000
	(Being goods purchased to Gobind wrongly posted to Rohan's Account, now rectified)
(iii)	Rakesh's A/c	Dr.		4,000
	To Naresh's A/c				4,000
	(Being goods returned to Rakesh wrongly posted in Naresh's Account, now rectified)
(iv)	Manish's A/c	Dr.		1,000
	To Mahesh's A/c				1,000
	(Being goods returned from Mahesh wrongly posted in Manish's Account, now rectified)
(v)	Commission A/c	Dr.		2,000
	To Sales A/c				2,000
	(Being goods sold for cash wrongly posted to Commission Account, now rectified)

24. Rectify the following errors assuming that a suspense account was opened. Ascertain the difference in Trial Balance.

(i) Credit sales to Mohan ₹7,000 were posted to the credit of his account.

(ii) Credit purchases from Rohan ₹9,000 were posted to the debit of his account as ₹6,000.

(iii) Goods returned to Rakesh ₹4,000 were posted to the credit of his account.

(iv) Goods returned from Mahesh ₹1,000 were posted to the debit of his account as ₹2,000.

(v) Cash sales ₹2,000 were posted to the debit of sales account as ₹5,000.

Ans.

Journal Entries

S. No.	Particulars		L. F.	Debit (₹)	Credit (₹)
(i)	Mohan's A/c	Dr.		14,000
	To Suspense A/c				14,000
	(Being goods to Mohan wrongly credited to his account, now rectified)
(ii)	Suspense A/c (₹9,000 + ₹6,000)	Dr.		15,000
	To Rohan's A/c				15,000
	(Being goods purchased from Rohan ₹9,000 wrongly debited to Rohan's Account as ₹6,000, now rectified)
(iii)	Rakesh's A/c	Dr.		8,000
	To Suspense A/c				8,000
	(Being goods returned to Rakesh wrongly credited to his account, now rectified)
(iv)	Suspense A/c	Dr.		3,000
	To Mahesh's A/c				3,000
	(Being good returned from Mahesh ₹1,000 wrongly debited to his account as ₹2,000, now rectified)
(v)	Suspense A/c	Dr.		7,000
	To Sales A/c				7,000
	(Being goods sold for cash ₹2,000 wrongly debited to Sales Account as ₹5,000, now rectified)

Dr.	Suspense Account	Cr.

Date	Particulars	J. F.	Amount (₹)	Date	Particulars	J. F.	Amount (₹)
	To Rohan A/c		15,000		By Mohan A/c		14,000
	To Mahesh A/c		3,000		By Rakesh A/c		8,000
	To Sales A/c		7,000		By Balance c/d		3,000
			25,000				25,000

25. Rectify the following errors assuming that a suspense account was opened. Ascertain the difference in Trial Balance.

(i) Credit sales to Mohan ₹7,000 were posted to Karan as ₹5,000.

(ii) Credit purchases from Rohan ₹9,000 were posted to the debit of Gobind as ₹10,000.

(iii) Goods returned to Rakesh ₹4,000 were posted to the credit of Naresh as ₹3,000.

(iv) Goods returned from Mahesh ₹1,000 were posted to the debit of Manish as ₹2,000.

(v) Cash sales ₹2,000 were posted to commission account as ₹200.

Ans.

Journal Entries

S. No.	Particulars		L. F.	Debit (₹)	Credit (₹)
(i)	Mohan's A/c	Dr.		7,000
	To Karan's A/c				5,000
	To Suspense A/c				2,000
	(Being goods sold to Mohan ₹7,000 posted wrongly to Karan's Account as ₹5,000, now rectified)
(ii)	Suspense A/c	Dr.		19,000
	To Rohan's A/c				9,000
	To Gobind's A/c				10,000
	(Being goods purchases from Rohan ₹9,000 posted wrongly to Gobind's Account as ₹10,000, now rectified)
(iii)	Rakesh's A/c	Dr.		4,000
	Naresh's A/c	Dr.		3,000
	To Suspense A/c				7,000
	(Being goods returned to Rakesh ₹4,000 posted wrongly to Naresh's Account ₹3,000, now rectified)
(iv)	Suspense A/c	Dr.		3,000
	To Mahesh's A/c				1,000
	To Manish's A/c				2,000
	(Being returned from Mahesh ₹1,000 posted wrongly to Mahesh's account as ₹2,000, now rectified)
(v)	Commission A/c	Dr.		200
	Suspense A/c	Dr.		1,800
	To Sales A/c				2,000
	(Being cash sales ₹2,000 posted wrongly to the commission account ₹200, now rectified)

Dr.	Suspense Account	Cr.

Date	Particulars	J. F.	Amount (₹)	Date	Particulars	J. F.	Amount (₹)
	To Rohan A/c		9,000		By Mohan A/c		2,000
	To Govind A/c		10,000		By Rakesh A/c		4,000
	To Mahesh A/c		1,000		By Naresh A/c		3,000
	To Manish A/c		2,000		By Balance c/d		14,800
	To Sales A/c		1,800		(Difference in Trial Balance)
			23,800				23,800

26. Rectify the following errors assuming that suspense account was opened. Ascertain the difference in Trial Balance.

(i) Credit sales to Mohan ₹7,000 were recorded in Purchase Book. However, Mohan’s account was correctly debited.

(ii) Credit purchases from Rohan ₹9,000 were recorded in sales book. However, Rohan’s account was correctly credited.

(iii) Goods returned to Rakesh ₹4,000 were recorded in sales return book. However, Rakesh’s account was correctly debited.

(iv) Goods returned from Mahesh ₹1,000 were recorded through purchases return book. However, Mahesh’s account was correctly credited.

(v) Goods returned to Naresh ₹2,000 were recorded through purchases book. However, Naresh’s account was correctly debited.

Ans.

Journal Entries

S. No.	Particulars		L. F.	Debit (₹)	Credit (₹)
(i)	Suspense A/c	Dr.		14,000
	To Sales A/c				7,000
	To Purchase A/c				7,000
	(Being goods sold to Mohan wrongly recorded in Purchase Book, However, Mohan's Account was correctly debited, now rectified)
(ii)	Purchase A/c	Dr.		9,000
	Sales A/c	Dr.		9,000
	To Suspense A/c				18,000
	(Being purchased goods from Rohan wrongly recorded in Sales Book. However, Rohan's Account was correctly credited, now rectified)
(iii)	Suspense A/c	Dr.		8,000
	To Purchase Return A/c				4,000
	To Sales Return A/c				4,000
	(Being goods returned to Rakesh wrongly recorded in Sales Return Book; However, Rakesh's Account was correctly debited, now rectified)
(iv)	Sales Return A/c	Dr.		1,000
	Purchase Return A/c	Dr.		1,000
	To Suspense A/c				2,000
	(Being goods returned from Mahesh wrongly enterred in Purchase Return Book; However, Mahesh's Account was correctly credited, now rectified)
(v)	Suspense A/c	Dr.		4,000
	To Purchase return A/c				2,000
	To Purchase A/c				2,000
	(Being goods returned to Naresh wrongly entered in Purchase Book; However, corectly debited to Naresh's Account, now rectified)

Dr.	Suspense Account	Cr.

Date	Particulars	J. F.	Amount (₹)	Date	Particulars	J. F.	Amount (₹)
	To Sales A/c		7,000		By Purchase A/c		9,000
	To Purchase A/c		7,000		By Sales A/c		9,000
	To Purchase Return A/c		4,000		By Sales Return A/c		1,000
	To Sales Return A/c		4,000		By Purchase Return A/c		1,000
	To Purchase Return A/c		2,000		By Balance c/d		6,000
	To Purchase A/c		2,000		(Difference in Trial Balance)
			26,000				26,000

27. Rectify the following errors :

(i) Furniture purchased for ₹10,000 wrongly debited to purchases account.

(ii) Machinery purchased on credit from Raman for ₹20,000 was recorded through purchases book.

(iii) Repairs on machinery ₹1,400 debited to machinery account.

(iv) Repairs on overhauling of secondhand machinery purchased ₹2,000 was debited to Repairs account.

(v) Sale of old machinery at book value of ₹3,000 was credited to sales account.

Ans.

Journal Entries

S. No.	Particulars		L. F.	Debit (₹)	Credit (₹)
(i)	Furniture A/c	Dr.		10,000
	To Purchases A/c				10,000
	(Being furniture purchased wrongly debited to Purchases Account, now rectified)
(ii)	Machinery A/c	Dr.		20,000
	To Purchases A/c				20,000
	(Being Machinery purchased from Raman wrongly entered in the Purchases Book, now rectified)
(iii)	Repairs A/c	Dr.		1,400
	To Machinery A/c				1,400
	(Being repair of machinery wrongly debited to Machinery Account, now rectified)
(iv)	Machinery A/c	Dr.		2,000
	To Repairs A/c				2,000
	(Being overhauling of second hand machine wrongly debited in Repairs Account, now rectified)
(v)	Sales A/c	Dr.		3,000
	To Machinery A/c				3,000
	(Being Machinery sold wrongly credited to sales Account, now rectified)

28. Rectify the following errors assuming that suspension account was opened. Ascertain the difference in Trial Balance.

(i) Furniture purchased for ₹10,000 wrongly debited to purchase account as ₹4,000.

(ii) Machinery purchased on credit from Raman for ₹20,000 recorded through Purchases Book as ₹6,000.

(iii) Repairs on machinery ₹1,400 debited to Machinery account as ₹2,400.

(iv) Repairs on overhauling of second hand machinery purchased ₹2,000 was debited to Repairs account as ₹200.

(v) Sale of old machinery at book value ₹3,000 was credited to sales account as ₹5,000.

Ans.

Journal Entries

S. No.	Particulars		L. F.	Debit (₹)	Credit (₹)
(i)	Furniture A/c	Dr.		10,000
	To Purchase A/c				4,000
	To Suspense A/c				6,000
	(Being furniture purchased ₹10,000 wrongly entered in Purchases Account as ₹4,000, now rectified)
(ii)	Machinery A/c	Dr.		20,000
	To Purchases A/c				6,000
	To Raman's A/c				14,000
	(Being machinery purchased ₹20,000 from Raman wrongly entered in Purchase books as ₹6,000, now rectified)
(iii)	Repairs A/c	Dr.		1,400
	Suspense A/c Dr.			1,000
	To Machinery A/c				2,400
	(Being repair of machinery ₹1,400 wrongly debited to Machinery Account as ₹2,400)
(iv)	Machinery A/c	Dr.		2,000
	To Repairs A/c				200
	To Suspense A/c				1,800
	(Being Overhauling of second hand machine ₹2,000 wrongly debited to Repairs Account as ₹200, now rectified)
(v)	Sales A/c	Dr.		5,000
	To Machinery A/c				3,000
	To Suspense A/c				2,000
	(Being old machinery sold for ₹3,000 wrongly credited to sales account as ₹5,000, now rectified)

Dr.	Suspense Account	Cr.

Date	Particulars	J. F.	Amount (₹)	Date	Particulars	J. F.	Amount (₹)
	To Machinery A/c		1,000		By Furniture A/c		6,000
	To Balance c/d		8,800		By Machinery A/c		1,800
	(Difference in Trial Balance)				By Sales A/c		2,000
			9,800				9,800

29. Rectify the following errors :

(i) Depreciation provided on machinery ₹4,000 was not posted.

(ii) Bad debts written off ₹5,000 were not posted.

(iii) Discount allowed to a debtor ₹100 on receiving cash from him was not posted.

(iv) Discount allowed to a debtor ₹100 on receiving cash from him was not posted to discount account.

(v) Bill receivable for ₹2,000 received from a debtor was not posted.

Ans.

Journal Entries

S. No.	Particulars		L. F.	Debit (₹)	Credit (₹)
(i)	Depreciation A/c	Dr.		4,000
	To Machinery A/c				4,000
	(Being depreciation on machinery was not posted, now rectified)
(ii)	Bad debts A/c	Dr.		5,000
	To Debtors A/c				5,000
	(Being bad debts written off were not posted, now rectified)
(iii)	Discount Allowed A/c	Dr.		100
	To Debtors A/c				100
	(Being discount allowed to debtors was not posted, now rectified)
(iv)	Discount Allowed A/c	Dr.		100
	To Suspense A/c				100
	(Being discount allowed to debtors was not posted in Discount Account, now rectified)
(v)	Bills Receivable A/c	Dr.		2,000
	To Debtors A/c				2,000
	(Being bill receivable from debtor was not posted, now rectified)

30. Rectify the following errors :

(i) Depreciation provided on machinery ₹4,000 was posted as ₹400.

(ii) Bad debts written off ₹5,000 were posted as ₹6,000.

(iii) Discount allowed to a debtor ₹100 on receiving cash from him was posted as ₹60.

(iv) Goods withdrawn by proprietor for personal use ₹800 were posted as ₹300.

(v) Bill receivable for ₹2,000 received from a debtor was posted as ₹3,000.

Ans.

Journal Entries

S. No.	Particulars		L. F.	Debit (₹)	Credit (₹)
(i)	Depreciation A/c (₹4,000 – ₹400)	Dr.		3,600
	To Machinery A/c				3,600
	(Being depreciation provided on machinery ₹4,000 wrongly posted as ₹400, now rectified)
(ii)	Debtors A/c (₹6,000 – 5,000)	Dr.		1,000
	To Bad debt A/c				1,000
	(Being bad debt written off ₹5,000 wrongly posted as ₹6,000, now rectified)
(iii)	Discount Allowed A/c (₹100 – ₹60)	Dr.		40
	To Debtors A/c				40
	(Being discount allowed to debtors ₹100 wrongly posted as ₹60, now rectified)
(iv)	Drawing A/c (₹800 – ₹300)	Dr.		500
	To Purchases A/c				500
	(Being drawing of goods ₹800 wrongly posted as ₹300, now rectified)
(v)	Debtors A/c (₹3,000 – ₹2,000)	Dr.		1,000
	To Bills Receivable A/c				1,000
	(Being Bills receivable for ₹2,000 received from debtors wrongly posted as ₹3,000)

31. Rectify the following errors assuming that suspense account was opened. Ascertain the difference in Trial Balance.

(i) Depreciation provided on machinery ₹4,000 was not posted to Depreciation account.

(ii) Bad debts written-off ₹5,000 were not posted to Debtors account.

(iii) Discount allowed to a debtor ₹100 on receiving cash from him was not posted to discount allowed account.

(iv) Goods withdrawn by proprietor for personal use ₹800 were not posted to Drawings account.

(v) Bill receivable for ₹2,000 received from a debtor was not posted to Bills receivable account.

Ans.

Journal Entries

S. No.	Particulars		L. F.	Amount (Dr.) (₹)	Amount (Cr.) (₹)
(i)	Depreciation A/c	Dr.		4,000
	To Suspense A/c				4,000
	(Being depreciation on machinery was not posted to Depreciation Account, now rectified)
(ii)	Suspense A/c	Dr.		5,000
	To Debtors A/c				5,000
	(Being bad debts written off were not posted to Debtors Account, now rectified)
(iii)	Discount Allowed A/c	Dr.		100
	To Suspense A/c				100
	(Being discount allowed to customers was not posted to Discount Allowed Account, now rectified)
(iv)	Drawing A/c	Dr.		800
	To Suspense A/c				800
	(Being goods withdrawn by proprietors were not posted to Drawings Account, now rectified)
(v)	Bill Receivable A/c	Dr.		2,000
	To Suspense A/c				2,000
	(Being bills receivable received from debtors were not posted to Bills Receivable Account, now rectified)

Dr.	Suspense Account	Cr.

Date	Particulars	J. F.	Amount (₹)	Date	Particulars	J. F.	Amount (₹)
	To Debtors A/c		5,000		By Depreciation A/c		4,000
	To Balance c/d		1,900		By Discount Allowed A/c		100
	(Difference in Trial Balance)				By Drawing A/c		800
					By Bill Receivable A/c		2,000
			6,900				6,900

32. 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:

(i) Cash received from Ravish ₹8,000 posted to his account as ₹6,000.

(ii) Returns inwards book overcast by ₹1,000.

(iii) Total of sales book ₹10,000 was not posted to Sales account.

(iv) Credit purchases from Nanak ₹7,000 were recorded in sales book. However, Nanak’s account was correctly credited.

(v) Machinery purchased for ₹10,000 was posted to purchases account as ₹5,000. Rectify the errors and prepare suspense account .

Ans.

Journal Entries

S. No.	Particulars		L. F.	Amount (Dr.) (₹)	Amount (Cr.) (₹)
(i)	Suspense A/c (₹8,000 – ₹6,000)	Dr.		2,000
	To Ravish's A/c				2,000
	(Being cash received from Ravish ₹8,000 wrongly posted to his account as ₹6,000, now rectified)
(ii)	Suspense A/c	Dr.		1,000
	To Return Inward A/c				1,000
	(Being Return Inward Book overcast by ₹1,000, now rectified)
(iii)	Suspense A/c	Dr.		10,000
	To Sales A/c				10,000
	(Being total of Sales Book was not posted to Sales Account, now rectified)
(iv)	Purchases A/c	Dr.		7,000
	Sales A/c			7,000
	To Suspense A/c				14,000
	(Being goods purchased from Nanak wrongly posted to sales book however, Nanak's Account was correctly credited, now rectified)
(v)	Machinery A/c	Dr.		10,000
	To Purchases A/c				5,000
	To Suspense A/c				5,000
	(Being machinery purchased ₹10,000 wrongly posted to Purchases Account ₹5,000, now rectified)

Dr.	Suspense Account	Cr.

Date	Particulars	J. F.	Amount (₹)	Date	Particulars	J. F.	Amount (₹)
	To Ravish A/c		2,000		By Purchases A/c		7,000
	To Return Inwards A/c		1,000		By Sales A/cc		7,000
	To Sales A/c		10,000		By Machinery A/c		5,000
	To Balance c/d		6,000
	(Difference in Trial Balance)		6,000
			19,000				19,000

33. Trial Balance of Raju showed an excess debit of ₹10,000. He put the difference to suspense account and discovered the following errors :

(i) Depreciation written-off the furniture ₹6,000 was not posted to Furniture account.

(ii) Credit sales to Rupam ₹10,000 were recorded as ₹7,000.

(iii) Purchases book undercast by ₹2,000.

(iv) Cash sales to Rana ₹5,000 were not posted.

(v) Old Machinery sold for ₹7,000 was credited to sales account.

(vi) Discount received ₹800 from Karan on playing cash to him was not posted. Rectify the errors and prepare suspense account.

Ans.

Journal Entries

S. No.	Particulars		L. F.	Amount (Dr.) (₹)	Amount (Cr.) (₹)
(i)	Suspense A/c	Dr.		6,000
	To Furniture A/c				6,000
	(Being depreciation on furniture was not posted to Furniture Account, now rectified)
(ii)	Rupam's A/c (₹10,000 – ₹7,000)	Dr.		3,000
	To Sales A/c				3,000
	(Being goods sold to Rupam ₹10,000 wrongly recorded as ₹7,000, now rectified)
(iii)	Purchases A/c	Dr.		2,000
	To Suspense A/c				2,000
	(Being purchases book undercast by 2,000, now rectified)
(iv)	Cash A/c	Dr.		5,000
	To Sales A/c				5,000
	(Being goods sold for cash to rana were not posted, now rectified)
(v)	Sales A/c	Dr.		7,000
	To Machinery A/c				7,000
	(Being sale of old machinery wrongly recorded in Sales Account, now rectified)
(vi)	Kanan's A/c	Dr.		800
	To Discount Received A/c				800
	(Being discount received from Karan was not posted, now rectified)

Dr.	Suspense Account	Cr.

Date	Particulars	J. F.	Amount (₹)	Date	Particulars	J. F.	Amount (₹)
	To Furniture A/c		6,000		By Balance b/d		10,000
	To Balance c/d		6,000		By Purchases A/c		2,000
			12,000				12,000

Note : As per the solution, suspense account shows the credit balance of ₹6,000. However, in the book the answer is credit balance of ₹1,000. So, in order to match the answer with the book item (iv) is taken as, Cash Sales to Rana ₹5,000 were not posted to the sales account. Thus, the rectifying entry of this error will be:

Suspense A/c	Dr.	5,000
To Sales A/c		5,000

34. Trial Balance of Madan did not agree and he put the difference to suspense account. He discovered the following errors:

(i) Sales return book overcast by ₹800.

(ii) Purchases return to Sahu ₹2,000 were not posted.

(iii) Goods purchased on credit from Narula ₹4,000 though taken into stock, but no entry was passed in the books.

(iv) Installation charges on new machinery purchased ₹500 were debited to sundry expenses account as ₹50.

(v) Rent paid for residential accommodation of Madan (the proprietor) ₹1,400 was debited to Rent account as ₹1,000.

Rectify the errors and prepare suspense account to ascertain the difference in trial balance.

Ans.

Journal Entries

S. No.	Particulars		L. F.	Debit (₹)	Credit (₹)
(i)	Suspense A/c	Dr.		800
	To Sales Return A/c				800
	(Being Sales Return Book overcast by ₹800, now rectified)
(ii)	Sahu's A/c	Dr.		2,000
	To Purchases Return A/c				2,000
	(Being goods returned to Sahu, were not posted, now rectified)
(iii)	Purchases A/c	Dr.		4,000
	To Narula's A/c				4,000
	(Being goods purchased from Narula were not posted, now rectified)
(iv)	Machinery A/c	Dr.		500
	To Sundry Expenses A/c				50
	To Suspense A/c				450
	(Being installation charge on machinery ₹500 wrongly debited to Sundry Expenses Account as ₹50, now rectified)
(v)	Drawing A/c	Dr.		1,400
	To Rent A/c				1,000
	To Suspense A/c				400
	(Being rent paid for residential accommodation of proprietors as ₹1,400, was posted to Rent Account as ₹1,000, now rectified)

Dr.	Suspense Account	Cr.

Date	Particulars	J. F.	Amount (₹)	Date	Particulars	J. F.	Amount (₹)
	To Sales Return A/c		800		By Machinery A/c		450
	To Balance c/d		50		By Drawing A/c		400
	(Difference in Trial Balance)
			850				850

Note : As per the solution, suspense account shows the credit balance of ₹50. However, as per the answer given in the book, it is a credit balance of ₹2,050. In order to match answer with the book item (ii) is taken as, Purchases return to Sahu ₹2,000 were not posted to Sahu's Account. Thus, the rectifying entry for this error will be as:

Sahu's A/c	Dr.	2,000
To Suspense A/c		2,000

35. Trial Balance of Kohli did not agree and showed an excess debit of ₹16,300. He put the difference to a suspense account and discovered the following errors:

(i) Cash received from Rajat ₹5,000 was posted to the debit of Kamal as ₹6,000.

(ii) Salaries paid to an employee ₹2,000 were debited to his personal account as ₹1,200.

(iii) Goods withdrawn by proprietor for personal use ₹1,000 were credited to sales account as ₹1,600.

(iv) Depreciation provided on machinery ₹3,000 was posted to Machinery account as ₹300.

(v) Sale of old car for ₹10,000 was credited to sales account as ₹6,000. Rectify the errors and prepare suspense account.

Ans.

Journal Entries

S. No.	Particulars	L. F.	L. F.	Amount (Dr.) (₹)	Amount (Cr.) (₹)
(i)	Suspense A/c	Dr.		11,000
	To Rajat's A/c				5,000
	To Kamal's A/c				6,000
	(Being cash received from Rajat ₹5,000 wrongly posted in the debit of Rajat's Account as ₹6,000, now rectified)
(ii)	Salaries A/c	Dr.		2,000
	To Employee's A/c				1,200
	To Suspense A/c				800
	(Being salaries paid to employee wrongly posted to Employee's Account as ₹1,200, now rectified)
(iii)	Sales A/c	Dr.		1,600
	To Suspense A/c				600
	To Purchases A/c				1,000
	(Being goods drawn by proprietor for personal use ₹1,000 wrongly credited to Sales Account as ₹1,600, now rectified)
(iv)	Suspense A/c (₹3,000 – ₹300)	Dr.		2,700
	To Machinery A/c				2,700
	(Being depreciation on machinery ₹3,000 wrongly credited to Machinery Account as ₹300, now rectified)				2,700
(v)	Sales A/c	Dr.		6,000
	Suspense A/c	Dr.		4,000
	To Car A/c				10,000
	(Being sale of old car for ₹10,000 wrongly posted to Sales Account as ₹6,000, now rectified)

Dr.	Suspense Account	Cr.

Date	Particulars	J. F.	Amount (₹)	Date	Particulars	J. F.	Amount (₹)
	To Rajat A/c		5,000		By Salaries A/c		800
	To Kamal A/c		6,000		By Sale A/c		600
	To Machinery A/c		2,700		By Balance c/d		16,300
	To Car A/c		4,000		(Difference in Trial Balance)
			17,700				17,700

36. Give journal entries to rectify the following errors assuming that suspense account had been opened.

(i) Goods distributed as free sample ₹5,000 were not recorded in the books.

(ii) Goods withdrawn for personal use by the proprietor ₹2,000 were not recorded in the books.

(iii) Bill receivable received from a debtor ₹6,000 was not posted to his account.

(iv) Total of Returns inwards book ₹1,200 was posted to Returns outwards account.

(v) Discount allowed to Reema ₹700 on receiving cash from her was recorded in the books as ₹70.

Ans.

Journal Entries

S. No.	Particulars		L. F.	Amount (Dr.) (₹)	Amount (Cr.) (₹)
(i)	Advertisement A/c	Dr.		5,000
	To Purchases A/c				5,000
	(Being goods distributed as free sample ₹5,000 were not recorded, now rectified)
(ii)	Drawings A/c	Dr.		2,000
	To Purchases A/c				2,000
	(Being goods withdrawn by proprietor for personal use were not recorded, now rectified)
(iii)	Suspense A/c	Dr.		6,000
	To Debtors A/c				6,000
	(Being Bills receivables received from debtors was not posted to his accounts now rectified)
(iv)	Return Inward A/c	Dr.		1,200
	Return Outward A/c	Dr.		1,200
	To Suspense A/c				2,400
	(Being total Return Inwards Books ₹1,200 wrongly posted to Returns Outwards Account, now rectified)
(v)	Discount Allowed A/c (₹700 – ₹70)	Dr.		630
	To Reema's A/c				630
	(Being discount allowed to Reema ₹700 wrongly recorded as ₹70, now rectified)

Dr.	Suspense Account	Cr.

Date	Particulars	J. F.	Amount (₹)	Date	Particulars	J. F.	Amount (₹)
	To Debtors A/c		6,000		By Return Inward A/c		1,200
					By Return Outward A/c		1,200
					By Balance c/d		3,600
					(Difference in Trial Balance)
			6,000				6,000

37. Trial Balance of Khatau did not agree. He put the difference to suspense account and discovered the following errors :

(i) Credit sales to Manas ₹16,000 were recorded in the purchases book as ₹10,000 and posted to the debit of Manas as ₹1,000.

(ii) Furniture purchased from Noor ₹6,000 was recorded through purchases book as ₹5,000 and posted to the debit of Noor ₹2,000.

(iii) Goods returned to Rai ₹3,000 recorded through the sales book as ₹1,000.

(iv) Old machinery sold for ₹2,000 to Maneesh recorded through sales book as ₹1,800 and posted to the credit of Manish as ₹1,200.

(v) Total of Returns inwards book ₹2,800 posted to Purchase account.

Rectify the above errors and prepare suspense account to ascertain the difference in Trial Balance.

Ans.

Journal Entries

S. No.	Particulars		L. F.	Amount (Dr.) (₹)	Amount (Cr.) (₹)
(i)	Suspense A/c	Dr.		11,000
	Manas's A/c	Dr.		15,000
	To Purchases A/c				10,000
	To Sales A/c				16,000
	(Being goods sold to Manas ₹16,000 wrongly recorded in Purchasses Book as ₹10,000 and debited to Manas's Account as ₹1,000, now rectified)
(ii)	Furniture A/c	Dr.		6,000
	Suspense A/c	Dr.		7,000
	To Noor's A/c				8,000
	To Purchases A/c				5,000
	(Being furniture purchased ₹6,000 from Noor wrongly recorded in Purchases Book as ₹5,000 and debited to Noor's Account as ₹2,000, now rectified)
(iii)	Sales A/c	Dr.		1,000
	Rai's A/c	Dr.		2,000
	To Return Outwards A/c				3,000
	(Being goods returned to Rai ₹3,000 wrongly recorded in the Sales Book as ₹1,000, now rectified)
(iv)	Manish's A/c	Dr.		1,200
	Sales A/c	Dr.		1,800
	Maneesh's A/c	Dr.		2,000
	To Machinery A/c				2,000
	To Suspense A/c				3,000
	(Being old machinery sold to Maneesh ₹2,000 wrongly recorded in the sale book as ₹1,200 and wrongly credited to Manish's Account as ₹1,200, now rectified)
(v)	Return Inwards A/c	Dr.		2,800
	To Purchases A/c				2,800
	(Being total of Return Inwards book wrongly posted to Purchases Account, now rectified)

Dr.	Suspense Account	Cr.

Date	Particulars	J. F.	Amount (₹)	Date	Particulars	J. F.	Amount (₹)
	To Sales A/c		11,000		By Manish A/c		3,000
	To Noor’s A/c		7,000		By Balance c/d		15,000
					(Difference in Trial Balance)
			18,000				18,000

38. Trial Balance of John did not agree. He put the difference to suspense account and discovered the following errors :

(i) In the sales book for the month of January total of page 2 was carried forward to page 3 as ₹1,000 instead of ₹1200 and total of page 6 was carried forward to page 7 as ₹5,600 instead of ₹5,000.

(ii) Wages paid for installation of machinery ₹500 was posted to wages account as ₹50.

(iii) Machinery purchased from R & Co. for ₹10,000 on credit was entered in Purchase Book as ₹6,000 and posted there from to R & Co. as ₹1,000.

(iv) Credit sales to Mohan ₹5,000 were recorded in Purchases Book.

(v) Goods returned to Ram ₹1,000 were recorded in Sales Book.

(vi) Credit purchases from S & Co. for ₹6,000 were recorded in sales book. However, S & Co. was correctly credited.

(vii) Credit purchases from M & Co. ₹6,000 were recorded in Sales Book as ₹2,000 and posted there from to the credit of M & Co. as ₹1,000.

(viii) Credit sales to Raman ₹4,000 posted to the credit of Raghvan as ₹1,000.

(ix) Bill receivable for ₹1,600 from Noor was dishonoured and posted to debit of Allowances account.

(x) Cash paid to Mani ₹5,000 against our acceptance was debited to Manu.

(xi) Old furniture sold for ₹3,000 was posted to Sales account as ₹1,000.

(xii) Depreciation provided on furniture ₹800 was not posted.

(xiii) Material ₹10,000 and wages ₹3,000 were used for construction of building. No adjustment was made in the books.

Rectify the errors and prepare suspense to ascertain the difference in Trial Balance.

Ans.

Journal Entries

S. No.	Particulars		L. F.	Debit (₹)	Credit (₹)
(i)	Sales A/c	Dr.		400
	To Suspense A/c				400
	(Being error in carry forward of sales book, now rectified)
(ii)	Machinery A/c	Dr.		500
	To Wages A/c				50
	To Suspense A/c				450
	(Wages paid for installation of machinery ₹500 wrongly posted as ₹50 to Wages Account, now rectified)
(iii)	Machinery A/c	Dr.		10,000
	Suspense A/c	Dr.		5,000
	To Purchases A/c				6,000
	To R & Co. A/c				9,000
	(Being purchased machinery from R & Co. ₹10,000 wrongly posted to Purchases Book as ₹6,000 and posted to R & Co. Account ₹1,000, now rectified)
(iv)	Mohan’s A/c	Dr.		10,000
	To Sales A/c				5,000
	To Purchases A/c				5,000
	(Being goods sold to Mohan ₹5,000 wrongly recorded in the Purchases Book, now rectified)
(v)	Sales A/c	Dr.		1,000
	To Purchases Return A/c				1,000
	(Being goods returned to Ram ₹1,000 wrongly recorded in the sales book, now rectified)
(vi)	Purchases A/c	Dr.		6,000
	Sales A/c	Dr.		6,000
	To Suspense A/c				12,000
	(Being purchased goods from S & Co. wrongly recorded in the Sales Book; However, correctly credited to S & Co. Account, now rectified)
(vii)	Purchases A/c	Dr.		6,000
	Sales A/c	Dr.		2,000
	To M & Co. A/c				5,000
	To Suspense A/c				3,000
	(Being purchased goods from M & Co. ₹6,000 wrongly recorded in Sales Book as ₹2,000 and credited to M & Co. Account as ₹1,000, now rectified)
(viii)	Raman's A/c	Dr.		4,000
	Raghvan's A/c	Dr.		1,000
	To Suspense A/c				5,000
	(Being Sold goods to Raman ₹4,000 wrongly posted to the credit of Raghavan's Account as ₹1,000, now rectified)
(ix)	Noor’s A/c	Dr.		1,600
	To Allowance A/c				1,600
	(Being bill receivable dishonoured, which was received from Noor, wrongly debited to Allowance Account instead of Noor, now rectified)
(x)	Bills Payable A/c	Dr.		5,000
	To Monu’s A/c				5,000
	(Being amount of bill payables to Monu wrongly debited to Monu’s Account, now rectified)
(xi)	Sales A/c	Dr.		1,000
	Suspense A/c	Dr.		2,000
	To Furniture A/c				3,000
	(Being old furniture sold for ₹3,000 wrongly posted to Sales Account as ₹1,000, now rectified)
(xii)	Depreciation A/c	Dr.		800
	To Furniture A/c				800
	(Being depreciation on furniture was not posted, now rectified)
(xiii)	Building A/c	Dr.		13,000
	To Purchases A/c				10,000
	To Wages A/c				3,000
	(Being material ₹10,000 and wages ₹3,000 that were used for construction of building were not recorded, now rectified)

Note : In item (xiii), it has been assumed that the materials used in the construction of building are part.

Dr.	Suspense Account	Cr.

Date	Particulars	J. F.	Amount (₹)	Date	Particulars	J. F.	Amount (₹)
	To Purchases A/c		5,000		By Sales A/c		400
	To Furniture A/c		2,000		By Machinery A/c		450
	To Balance c/d		13,850		By Purchases A/c		6,000
	(Difference in Trial Balance)				By Sales A/c		6,000
					By Purchases A/c		3,000
					By Raman A/c		4,000
					By Raghvan A/c		1,000
			20,850				20,850