Rectification of Errors Detailed Course on Accounting for CA Foundation - June 2023 Nakul Katheria = Lesson 24 + Feb 1, 2023ited ee Caren ea 7 Yr. ae Ald a BeenQuestion 2 (a) Mr. Joshi’s trial balance as on 31st March, 2020 did not agree. The difference was put to a Suspense Account. During the next trading period, the following errors were discovered: (i) The total of the Purchases Book of one page, @ 5,615 was carried forward to the next page as 76,551. (ii) A sale of % 281 was entered in the Sales Book as 821 and posted to the credit of the customer. (ii) A return to creditor, @ 295 was entered in the Returns Inward Book; however, the creditor's account was correctly posted. (iv) Cash received from Senu, #895 was posted to debit of Sethu. (v) Goods worth % 1,400 were dispatched to a customer before the close of the year but no invoice was made out. fit Goodswortl }00 we isis to a customer. it 6 Sales Boo! a i@ option to return The fit i~) e [aS aa aoe re oe SS 00, Take Se ae Ue RN Tod MRSS S rato ae(vii\_2600 due from Mr. Q was omitted to be taken -to the trial balance. aS (uti) SeteOf goods t6 Mr. @ 3,000 was omitted to be recorded- You are required to give journal entries to ¥ectify-the-errors-in-a-way-se-as to show the current year's profit or loss correctly. (10 Marks)Question 2 (a) Mr. Ratan was unable to agree the Trial Balance last year and wrote off the difference to the Profit and Loss Account of that year. Next year, he appointed a Chartered Accountant who examined the old books and found the following mistakes: xfi-Pofchase of a scooter was debited to conveyance account % 30,000. Mr. Ratan charges 10% depreciation on scooter. 3 ft a Purchase account was ove cast by & 0,000 | Goda (iv) Receipt of cash from Mr. Anand was posted fo the ens Tare 00 (as vce. (v) Receipt of cash from Mr. Chandu was posted to the debit of his account, # 5,000. (vi) %5,000 due by Mr. Ramesh was omitted to be taken to the Trial Balance. ‘Adda, (vii) Sale of goods to Mr. Ram for % 20,000 was omitted to be recorded. dibares (viii) Amount of % 23,950 of purchase was wrongly posted as ¢ 25,930. Suggest the necessary rectification entries. (10 Marks)Seeocter- Bre 27000 a SASS OS Pe SES al oe La eee YB vA