ACCOUNTING PROCESS UNIT -1 BASIC ACCOUNTING PROCEDURES ~ JOURNAL ENTRIES QL, [sMLafFollowing are the transactions entered nto by Rater he started his business. Show how ‘ros accounts wil e affected by these ransactons 2017 Apel (sin 000) 1 | Rstared business with 5000 2 | He purchase turiture or 17200 3 | Padstaryphiselerk 100 [Paid rent 1350 S| Received interest 2000 (G2. _[SM1.2} evelop the accounting equation from folowing Information avalable atthe beginning of accounting pero: Partials (Hsin 000) ‘Capital 51000 an 11500 “Trade payables 5700, aod Assets 12300, lavertory 225500, ‘Trade ocevables 7500 (oshand Bank 15300 ‘tthe end of te account appear as ollows Partieulars (Hsin 000) Gpial + aan 4 11500 ‘Trae payables 5800 hed Assets 1270 Inventory 22300, ‘rade receivables 37500 15,600, (@)_Resettheequstion and find out prot. (&) Prepare Balan Shoot tthe end ofthe accounting period 3, [SM1.3}%r Dravid bas provided following detas related to his Ananda. Find out the mising gure Particulars rs Profi carved ding the ear 5000 Assets atthe binning of year A Utes atthe bopnning of year 12000 assent ie nd le yet A abies atthe end ofthe year c sing ata 35000 ‘Totallinbites including capa atthe end ofthe year 0.00 aaPABAS pemrurs or cxmusnce pvr. 110, Qk, [S141 Analyse transactions of M/s Sahil & Co. forthe month of March, 2017 onthe basis of double ‘entry systm by adoping the allowing approaches (8) Accounting Equation Approach. (@)_Tradiuonal approach. ‘Transactions forthe mont of March, 2017 wereas follows (Figures are in"000) 4. Sabilintodueed capita through bank of Rs.4.000, 2. Gashywithdrawn fom the Cry Bark R520, 3. Loaof Rs 500taken fom MV. 4 Slaves pl forthe month of March, 2017, R&.300 and R100 il payable forthe month of| Maeh, 2017 5. Furniture purchased Rs 500 Required ‘What conlusion ane an draw from tho above analysis QS. [SMLsIfouralse the follwing transactions, Also state the nature ofeach account involved in the Joural ety. Following igures are given in (00) 1. December 1,231, Alitstared busines with capital Rs4,0,000 2, December 3h withdrew cask forbusiness rom the Bank Rs2000 3. December, he purchased goods making payment through barkRs.15,000. 4. December Eh sold eoodsR.1600 and received payment through bank 5. December 10, he parchase furniture and pad by cheque RS.2,500. 6 8 % December 12, he sol goods to Arvind Rs:2400, December 1, purchased goods fm Amrit R-10,000. Decembar 15, be returned goods to Amrit R50. December 16h reclved fom Arvind Rs2,300in ill settlement 410. December 18,he withdrew goods or personal use Rs:,000 11, December 20,he withdrew cash fram busines for personal use Rs2,00, 12, December 24,he pai telephone charges Rs.110. 12, December 26moun paid to Ant all setdoment R59 A50. 14, December 31, pa fo stationery R200, ent Rs5000 and salaries to taf Rs2000. 15, December 31, goods distributed ly way of ree samples R200, G6. —_[SMEbIshow the casictin of the ellowing Accounts under traditional and aecounting equation spproac (a) Bulding: b) Purchases; (Sales (8) Bank Fixed Deposit) Rents (9 Rent Outstanding) Cash: (a) Adjusted Porchases; (Closing Inventory; () Investments () Trade receivables; (Sales Tax Payable, (mn Discos Allowed, (0) Bod Debt; (a) Captal(p) Drvengs (a) Interest Recevabie aaPABAS pesrrvre or conmannce rrr. 170. account (Rent recived in advance account; (5) Prepald salary account; (0) Bad debts recovered ‘sccount (0) Deprecatin acount (4) Personal income“ acount. (Q7. _[SM1.77Transaction of Ramesh fr Apriare ven below Journals them. a7 Te ‘rit [1 | Ramesh stared busines with “000, ‘prt || Bought o08 for cash 50,000, ‘prt |__| Drew cash fom bank 10000 Art |13 | soto Kristna-goods on cede 150,000 ‘pri | 20. | Bought from Shyam gods on credit 225000 ‘prt | 24 | Rocoived frm Krishna 145000, Apr ‘Allowed hin discount 500 prt | 20 | Paid shyameash 215,000, apr Diseountallowe 10,000 ‘pnt | 30 | Cachsales the month ano Pad Rent 50,000 Pad Salary 4490,000, G8, [SMPLI]Stow thecssifeaton ofthe following Acou approsc Rent oustand Clsing ven Sales Rani ed Depo on at De tonal and accounting equation ‘pal Sales Tax Payable Trade eeivables Depreciation Desi (Q>. _[SMPL.2] Pass Journal Entries forthe following transactions inthe books of Gamma Bros (Employees hal taken Inventory worth Rsi,00,000 (Cost price R75,000) on the eve of ‘Deepal ane the same was deducted from thei salaries inthe subsequent nth, (1) Wages paid or retin of Machinery Rs.18000. (Gi) Income tax labilty of proprietor Rs:,17000 was pald out of petty cash (ts) Purchase of geods from Naveen of the list price of 200,000, He allowed 103 trade discount, 553000 cash scount was also allowed for quick payment. (Q10, _[SMPL]Caleulate th missing amount or the allowing, ‘Assets abilities Goal Z Teonz00| "250.000 z ® q 150,000, 75000 € 7450000, z 7575000 a ‘57.00.00 50000 z aaPABAS psrrvre or conmuence rrr. iro. QL, ISMPL.A]Show the fect of crease = (0, dacresse following ranssctions Goods sold on ede. same amount being due thin. 1h, nerd into an agreement with Mebta& Cato purchase all aw materia fom their company from next yea, Also give reasons for your answers Purchased office furniture payment tbe made next month. Collected cash fo opal services ‘ith drawl of ashby the owner for persona use. Fired an employee as sles manager ofthe north wing ‘Returned goods worth Rs. 0,000, (One of cur debtor agreed to pay bis dues to Me Cwho ia creditor of the company th the (and no change=() onthe assets ofthe G12. |SMPLS|Following the information provided by Me. Gop pertxining to year ended 21 March 2017, Pind the unknowns showing computation to support your answer Parteulars 1. | Particulars Bs Machinery 12,0000 | Trade Receivables 2 Accounts Payable 7,00.000 | Loans| c Taventory £0,000 | sing Capita D Total Lisbiltes induding capil 1415,000 | Opening Capital 09000 ash ‘| Los ncured ding the year 35,000 ‘Bank £0,000 | Capital Introduced duringtheyear | 1,00,000 ‘Addon Infomation: During he year sales of Rs. 15,5500 was made of which Rs. 100.000 have been receivedPASBSAS pesmrvre or coumennce rrr. 70. UNIT -2 LEDGERS 13, {sMa.afPrepare the Stationery Account ofa firm fr the year ended 31122018 duly balanced of, from the folowing details: 21s cs Jani] Iiventonyofaiationary a ‘Aonls | Purchase of stationery by cheque 200 Nov.15 | Purehase of stationery an rei from lve Star Stationery Mart 1280 Dees | Inventory ofsttionery 240 (Q14, {s¥a.z]Prepar the ledger accounts on the bass ofollowng transactions in the books of trader Debi Balances on amiary 1, 2015: Cash n Hand Rs.8000, Cash at Bank R25000, inventory of Goods RS.20,000,Bulding R.10000. Trae receivables: Vij RS.2,000 and Mads R200, (ret Balances on aruary 1, 2015: ‘Trade payables: Anand Rs 500, Capital Rs 55,000 as. Follow Jan Jan Ian jana jana Jan 8 ing were further transactions nthe month of anu Purchased goods worth Rs5000 (payable a cashless 209% trade decount sand 58¢eash dscount Received R900 from Vy Das discount Purchased plant from Mukesh ipa R100 as cartage for bringing the Plant tothe factory sallaton cares. Soa a i a sole and could pay only 50 pase in rupee Sod googiiyam for cash Rs,000 [sM2.3}The folowing data is given by Me, the owner, witha request w compile only the wo persona accounts of Mr Hand Mr. ln his ledger, fo the month of Apr, 2015. 1 4 5 ra 18 » 2 6 2» » ‘Mr: Somes Mr-R Rs.15,000 Mr Howes M$ R5 20,000. Mr Rod goods worth Rs.60,000g 10% rade iseunt to M.S Mr old Sr goods price at R5.30,000 Recor purchase of Bs. 25,000 net rom R which were sold to Hat profit oF 15,00, Mr S reece 1096 of Mr-R's goods of @ Ape. Mr Sissoed a ssh memo fr Rs 10,000 to Mr. H who came personally for this consignment of foods urgent needed by hr rit ceared hal is ttl dues to Me: S, enjoying 2 149% cath dicount (OF the payment ceived, R52000 was by chegue). Fs total dues ess 10,00 he back) were eared by cheque, enjoying a cash discount of| 11000 onthe payment made. Ghose Hs Ascent 1 record the at because he war dedared bankeupe Balance Rs Aebunt. all bat R25000 was cleared by him, by a cheque,PARAS pesrrrvr or commence rrr. 17D. ws. [sup2.ajlournalize the following transactions, post them inthe Ledger and balance the sezounts on sist Deemer 4 “Xsarted business ith a capital oR 20,000, He purchased goods fom ¥on credit R5.4.000 He pid cash t¥R2,000 He sold goodsto2 R000 He recived cas from 26,000 He further purchased goods from YRs.4.000 He pid cash ¥Rs2,000 He further sold ypods 97 4,000 He reve cas form 285.2000, 2617. _[sa.apciven below isa ledger extract relating tothe busines of X and Co as on March, 31,2016. You are required to prepare the Tra alone by the Totl Amount Method. Dr. Cash Account oe Parteulars 1s, | Partealars cs To Capital fe 70000 | By Fumitare Ae S000 TonamisA/e 25.000 | By Salaries A/e 2500 Tocash Sales 500 | By shyan’s fe 21000 By Cash Purchases ‘1000 By Capital fe 500 ByBalance fd 7500 35,500 35500 Dr. Furniture Account c. Particulars Rs | Particulars os Tach Ale 3,000 [By Balancec/a 3000, 3.000 3,000 Dr a Particulars oS Toca aye 2500 2,500 Dr, cr Particulars Rs. | Particulars Re Toast AE 2100 [By Purchases Aye 2000 ‘To Purchase Returns A/c 1500] (Credit Purchases) ToBalancec/é 3500 25,000 725,000 Dr. Purchases Account ce Partiulars | Particulars Re "To Cash Aj (Cash Purchases) 11000 | By Balance ja 26000, ‘To Sundries as per Purchasas Book (Credit Purchases) 25000 26,000 26,000 Dr, Purchases Returns Account ce Particulars Rs. | Particulars Rs. “To alance ledger: Date | DebitNote No. | Particulars 4012016 OL | Returned to Gayal Mil Surat-5 polyester sarees @ R00 09012018 arg ils Kota- accepted the return of goods (which were purchased ‘oreas) from us- 5 Kotasarees @ RsAD0. 16012016 102 | Returned to Hita Mil, Bangalore-5 sl sarees @ Rs2,60. 0012016 Returned one computer (blag defective) @Rs-35,000 to B & Co. 27. _|mP4.1] Eater he flowing transactions in Sales Book of M/s Pranat Engineers Lx Dll 2016 Jan.2. Sold to M/s. Ajanta Fleets, Delhi 5 pleas of Ovens @ Rs-000/- each less Trade ascoure @ 10%, 8 Sold toM/s. jana Electricals Plaza, 10 pleces of Tablets @ RS8,000/- each ess trade alseou 5%. 15, Soldto M/s Haryana Traders §plecesofJulers@ Rs3,500/-cach ess tade discount @ 10%. (q28, _[smP42}Postinto the ledger the entries of Sales Book prepared in Question 27PAZSAS pesrrrore or coummnnce rrr. 170. UNIT-5 CASH BOOK (@29, _[9M5.1] Enter te folowing transactions ina Simple Cas Book: 2016 Re fan.) Cash inhand 1200 "5. | ReceWved from Ram ‘300 7 | ald Rent 30 a | sold goods orcas 300 10 | paid wshyam 700 27 | Purchased Furture 200 cai | Paid salares 300 a1_| Ren de, nt yet pal forFanuary 20 (GO. [5M52] __Ganest commence business on 15t Api, 2017 with RS2,000 as capital. He had the folowing cash transactions nthe month of Apr 2017: [Be Re ‘April | Purchased faraiture ‘April? | Pad forpeny expenses 15 sn aid cash 250-8 | cashpurchases 150 2 | Purchased goods 500 4 | sold goods trash 950 v1 | paidforibour 1.000 ss | paidcashto Ram Wotan 560 =6 | Heallowedatscount to|** | raigaita sons 400 +6 | necetved cash from ‘They allowed discount 8 Krishna & Co 600 |-* ‘lowed discount | 2 Male out the two-colimn Cash Hook (Cash and discount column) forthe month of April 2017. (31. _[SM5.3]Enter the owing transactions in Cash Book with Discount and Bank Columns, Cheques are Frsetrented as cash eel. 2016 Re Jani | Chandrika commerces business with Cash 20,000 “3 | Nepaid into Current afc 1,000 “4 | nerecived cheque from Kirt & Co. on account 00 °7- | He paysin bale Key & Ca's cheque 00 10 | ttepays Ratan & Co. by cheque and is alowed discount R20 330 s12_| path co. paysino his Bank ae ans “15. | He receives cheque trom Warsh and allows him discount R25 450 20. | He receives cash 2 7Sand cheque R5.100 fr cash sale 25, | Ha pays into Bansindutingrhennesrovrive an 1th and 2005 21000 27 | He pays by cheque foreash purchase 275, 30 _| repays sundry enensesncash 50PAZAS pemrure or commace evr. iro. 032, _[SM5.4]Preparea Pty Cash Book onthe imprest System fom the following: 2016 rs Jana Recsived Re 00 or petty cash "2 | paid bus fare 50 "2 | Paideartane 250 3) | paid forPostage & Telegrams 500 sa | paid wogesforcasua labourers 600 4 | Pod orstatonery 4.00 4 | Paid tonga charges 200 +5 | pad forthe repairs cals 1500 *5 | bustare 100 "5 |cartage 400 6. | postage and Telegrams 700 6 | Tonga charges 300 °5 | carage 3.00 *6 | staionery 200 +6 _| Refrestmentsto customers 500 {SMS.Snter the folowing transact with Discount and Bank columns Cheques Be 75000 500 3000 3400 Discount received 100 5 | salesthroug creditcard 2800 6 | Received chaqu fom jan 6200 7 | Rndorsed Sean's cheque in favour of Aa 9 | Deposit int Ban 800 10 | Receive chaque fom Avra and deposited the same ito Bank ty allowing discount of Re 50 3600 12 | Aditiformed tha seins cheque ts dshonoured, Now cash secelved frm Sram and mounts pdt Adi ehrough own cheque 15 _ | Salesehrough Debit Card mae 2a | Withdeaen rom 3ank 1800 23 | PaldtoSanchitby chogue 3000 3 _ | Bankcharged19commission on sles through Debit/Credit aresPAZAS nemrur or comence evr. iro. Qs, [SMPS.A] Petry Cash Book on the mprest System. The imprest amount is RsS00, From the flowing informator, show hove his Petty Cash Book would appear for the week ended 12th September, 2015: 79-2015 | Balanceinhand Taso ‘Recelved Cash eimbursement to make up the inpest 3650 Stationery 4990 9.2015 | macellaneots Bepenses 2090 soars | Repairs 15670 109-2015 | Traveling 6.50 119.25 | stoner, mao n9.2015 630 sax0PABAS psrrore or coummnce vr. 170, 3s. wy, UNIT-6 RECTIFICATION OF ERRORS ‘Before Preparation Trial Balance {[8M6.1}low would yea rectly the following errors inthe Book Rama & Co? 1 Theta tothe Purchases Bolehas been undereasty Rs 100. 2 ‘The Retumstnard Book has been undereast by RE. 3. AsumofRs259 written offas deprecation on Machinery has not been debited to Depreciation Account 4. Apaymentof 75 for salaries (to Mohan) has been posted twice to Salaries Account ‘The total of Bis Receivable Book Rs1.500 hasbeen posted tothe cet of Bs Recelvable Account 6 Amamount of Rs:154 fora credit sale to Har lthough in the Sales Book, as ‘een posted as R515. 7. Diocoust allowed to Satish RE25 has not the Discount Column of the Cash Book the amount hasbeen posted i of his personal account. [sm62]The folowing erors wered ‘entries to correct them. (1) 5500 pa fo-fur 2) Rept re ebited to Bulding Acount for RS, (3) An Simei Rs.100 withdrawn by the proprietor for his personal use has been debited to ‘Trade Egpees Account, (4) Rs:00 paid farvent debited to Landlon’s Account (6) Salary R125 pido a clerk de to hi has een debited to hs personal account (©) 5.100 vouived from Shah & Co, hasbeen wrongly entered as from Shaw 8.00, (7) 700 pid inca for typewriter was charged to fle Expenses Account. [6 3}cive journal entries to rectly the following: (QA purchase of goods from Rar amounting to R150 has been wrongly entered through the Sales Book. (2) A credit sale of goods amounting Rs.120 to Ramesh has bean wrongly passe through the Parehase Book {@) _on3tst December, 2016 goods ofthe value of HS.500 were returned by Hart Saran al wee taken inventory onthe same date but no entry was pase inthe books.PAZAS nero or comnmmnce evr. 110. ws. G4) Anamount of R:200 due from Mahesh Chand, which ad been written 0 a6 Bad Debt in a previous yer, was unexpectedly eecovered, and had een posted to the personal account of| Mahesh Chand (©) Acesque for 100 rceved from Man Mohan was dlshonoured and had been posted to the debit of als Returns Account After Trail Balance But Before Final Accounts {sM6.t}corect the flowing errors (without opening 2 Suspense Account and (i) opening a Suspense Account (The Sales Book hasbeen aed 85.100 short (©) Goode worth R160 returned by Green & Co. have not ben recorded anywhere (0 Goods purehas Re.2S0 have been posted othe debit ofthe supplier Gupta & Co (@ Furniture purtase from Gulab & Bros, Rs,000 has been entered in Purchases Day Book (©) Discount revere ons Red & Black R.5 has not bee entre in the Discount Clumn of the cash Bok, (© Discount allowed to G Mohan & Co, R19 hss not been entered inthe Discount Column ofthe (ash Boo, The account of Mohan & Co has, however, been correct posted. [sm65}Corrct the filling eros found in the books of Me: Dutt The Teal Balance was out by R492 excess credit The diferencetushas been posted toa Suspense Account {@)__Anamount of Re.100 was revived from D. Das on 31st December, 2015 but has been omit tmenterinthecash Book: (b) Theta of Returns Inward Book for December hasbeen cas R100 short (9 The purchase of an office table costing Re.300 hasbeen passed through the Purchases Day Book (© R375 paid fr Wages to workmen for making show-cases had been charged to “Wages Account (©) purchase off.67 had been posted to the rade payables account as R60, (0 A-chegue or R200 received from P. C Josh had been dishonoured and was passed tothe debit of Allowances Acouat. (e) S100 pale for the purchase of a motor cycle for Mr. Dutt had been charged 0 “isellaneous Expenses Account (09 Goods ainounting to Rs.100 had been returned by customer and were taken Int aventory, ‘butoo entry inrespect thereof, was maint the books. ( A-sile of Re.200 to Singh 8 Co. was wrongly credited to their account. Entry was made ‘correctly aden sles bok:PASAS psrrvre or commmnce pvr. 0. Q40, _[SM6.6] The flowing errors affecting the secount fr the year 2015 were detected inthe books of Jain Brothers, Deh () _Stleofold Furniture R150 treated a sale of goods (@ Receipt of R500 from Ram Mohan credited to Shyam Sunder. (©) Goods worth R100 brought from Mohn Narain hae remained unrecordods far. (8) AreumnofRs:20 from Mukesh posted tos debit (5) _Aretur of R90 to Shyam Sunder posted 25 R58 in his account (6) Rent proprietors residence, R600 dbitod to reat Ve. (@) _Apayment ofs.25 to Mahsarumad Sadig posted tos creas R125, (Sales Book added R900 shor. (@) Te total of Ble Receivable Hook R500 lett unposte You are required to pss the necessary rectifying entes and shgyAipw the tial tance would be aflecd by te errors Q41, _[SM67]Wrte ou theJoural Entriesto rectify the following ef (1) Goods of the value of Rs.100 returned by posted therefrom tothe cei oh a ® “ (5) ‘the total of “iscount Allowed” column n the Cash Hook for the month of September, 2015 mounting 1 8.250 was not posted. Correction in Next Accounting Period (Q42, _[SM6.)Mr Roy was unable to agre the Til Balance last year and wrote of te diference tothe Profit and Loss Accoent ofthat year. Next Year, he appointed a Chartered Accountant wt examined the old books and found the following mistakes: (Purchase ofa scooter was debited to conveyance account Rs3,000. (@)_Parchase account was overcast by R51000, {@)__Acrelit purchase of gods from Mr. PforRs:2,000 entered asa sae (4) Recelp fas fr Br. A was pasted to the account of Mr. B RS000 (5) _Recsiptofea from Mr. Cwas posted tothe debit of his ecount, R500. (©) __ReSno dusty Me Qwasomitied to be taken tothe rl balance (} _Saleof gods 0 Mr. Rfor 852,000 was omitted to be recorded. (8) AmountoFRs2395 of purchase was wrongly posted a R593, ‘Mr Roy ued 10% depreciation on vehicles. Suggest the necessary rectification entriesPAZAS perv or conmmnnce v7.20. as. {smP6,a}The trial bance of Mr, W & H alld to agree and the diflerence Rs.20,570 was pt into suspense pending vestigation which dslosed that o Purchase retums day book Had been corecly entered and totalled at R160, but had not been posted tothe ledger (0 Discounts receved RE1,320 had eon debited to discounts allowed, (Qu) ‘The Sales account had heen under added by R.1000 (Wy) _AcreditsaleotRe:1470 had been debited 1a customer account a R8,740. (0) A venice bought orginally for Rs7,000 our years ago and depreciated to Rs1,200 had been sol for Rs:510 inthe begining ofthe year but no entries, other than inthe bank account tad been passed through the books. (vi) An acral of e560 for teophone charges had been completely omitted, (wi) Abad debt of 252,560 had not ben writen of and provston for doubtful debts should have been maintalved at 10% of Trade receivables which are shown in the trial balance at 23,390 wit credit provision for bad des at Rs2.220, (uit) Tools bought fr Rs 1,200 had been inadvertently debited to purchases (be) ‘The propeet had withdrawn, fr personal us, goods worth R160. Noontes had been rade inthe books, Roquied: (Pass resieaton entries without narration to correct the above errors before preparing nual acount (i) Prepavea siatement showing ff of recifeation on the reported net prof before correction ofthese ero [smP6.2}0n going through the Tila! balance of Hill Bearings Co. Ld. you find thatthe debit is fexcess by R150, Ths was credited to “Suspense Account. On a close scrutiny ofthe books the folowing mistakes were note: o a @ 0 o o “Tae totals of eit side of “Expenses Account have been cast in exces by RSS. ‘The*Saes Account hst been totaled in short by "10. ‘Onettem of purchase of 4.25 hasbeen posted from he day bok older as R250, ‘The sale retum of R100 fom a party bas not heen posted to that acount though the Party's secounthas ben red, ‘A cheque of R50 sued to the Supers account (shown under Trade payables) towards his esas been wrongly debited wo the purchases, ‘Acre sae ef Rs 0 has been ret tothe Sis andalso to the Trade recelvables Account. You are required to 0 Pass necestary journal entries fr correcting the above 220PAZAS nerve or commence rvr. 10. ws. LU) Showhow theyafec the Profits; and (i) Prepare the“Stspense Account asit would appear inthe ledger. [smP63}Mr. A closed is books of acount on September 30,2016 In ple ofa dference in the trial balance, The ference was RSs30 the credits being short it was carved forwand In @ Suspense ‘Account In 2017 ellowingerors were locate: ()_AsaleofRs2;390w Mt Lala was posted to the credit of Ms. Ma {0 ‘Thotoal ofthe Returns Inward Book fr fly, 2016 Rs1.240 was not poste nthe ledger. (u) Freight paid ona machine R500 was posted to the Freight Account 258.650. (i) While carrying forward the total in the Purchases Account tothe net page, R65, 90 was ‘writen instead of 5.36950. (©) Asale of machine on credit to Mr. Mehta for Rs9,000 on 30th Sept. 2016 was not entered in the boos atall The book vale ofthe machine was Rs6750, ass journal entries to rectify the eros. Have you ay comments to ma [smP6.4]a merchants trl balance a on June 30,2017 ‘spenaeAcrovnt During the neat adn prio, the fll (Theta ofthe Purchases Hook o one Sarre forward tothe next page as Reason AEierence was put to 3 (iA se of RaS72 was entered in (i) Arewrneoa ceo, Rs the Returns near Book: however, the creditor's (9) Cashre 620 was posted to the debit of, Das. (©) Goods worth Fg@¥0 were dispatched toa customer before the cose ofthe year but no invoice vwasmade out (Goods worth fs:,000 were sent on sal or etum asst a customer and entered inthe Sales Boole Atte cose ofthe yet, the customer sil had the option t return the goods. The sale ree was 25%¢above cost ‘You ar required to ve ournal enties to rectly the errors n'a way Sos to show the current year's profieor loss core. ‘Ganesh drew a Til Balance of his operation forthe year ending on 31 March 20X2, There was @ “ference inthe Tell balance which he closed with suspense Account On a sratiny bythe Auditors, the following errors were foun: {@) Purchase day bod forthe month of Apri, 20K1 was overeat by Rs 1,000 (b) Sales day book of ‘October, 20K1 was overcast by Re 10,00.) A furniture purchased for Rs 8100 was enter inthe Furniture Account se Re 810. () A Bl fr Rs 10,00 dravn by Ganesh wa not entered inthe Bills Receivable Hook (e) Amachinery purchased for Rs. 10,000 was entered nthe Purchase Day Book. ass necessary Jourtal Entries to recy the same and ascertain the dierence inthe ral balance that "wasshown nde the Suspense Account in respec of he above items.PAZAS remus oF conmumnce pvr. Lm. 48, A book-ecper, while preparing his tial balance finds that the debit exceeds by Rs. 7:250. ing egulred to prepare the final accounts he places the diflerence toa Suspense Account Inthe next year the following mistakes were discovered (@) A sale of. 4000 has been passed through the Purchase Day-book, The entry in customer's account has been correct recorded. (©) Goods worth Rs, 2,500 taken away by the proprietor fr his use has been debited to repalr acount {0 ABilrecivate for Rs 1300 received om Kesha ha een dshonoured on maturity, but aon pase (q) Salary Rs. 650 pad toa cerchas been debited to ls Personal Account (6) A purchase of Rs, 750 from Rag)uibir has been debited to his account, Purchases Account has been cotrectiy debited. (© A sum of Rs. 2.250 writen off as depreciation on furniture has not been debited to depreciation ‘cco. Draft the Journal entries for reetiyingthe above mistakes and prepare Suspense Account. [cA (Foundation) May, 1995] 49. The accountant of X Prepared the Trial Ralance forthe year ended 31" March. But there was a diference and te accountant put the diference in Suspense Account. Rect the following errors found and prepare the Suspense Account: {@) The total ofthe Returns outward book, Rs 420 has not been postedin theledger (©) A purchase of Rs. 350 from Y has been entered in the sale book. However V's acount has been correctly entered (6) Asale of Rs, 390 to has eee wo his account as RS. 290. (@) Old furniture sold for Rs. 5400 had boen entered as Rs 4500 in sales account. (0) Goods taken by proprietor Rs 500 have not been entered in the books all (C8 Fanton) May 1996) G50. On 21 March, 20X2, a boolceeper finds the difference inthe Trial Halance and he puts tin the Suspense Account, Later on he detects the fllosing errors: (© Rs. 50,000 received trom A was posted to the debit of his Account Rs. 20.00 being purchases returns were posted tothe debit of Purchases Account, \)iscount of Rs. 8,000 received were posted to the debit of Discount Account (Ge) Rs. 9,060 paid for repairs of Motor Car was debited to Motor Car Account as Rs. 7,060 (6) Rs. 40,000 pald to B was debited to A's Account. Required: Give Journal Entries to rectify the above ervors and ascertain the amount transferred to Suspense ‘Account on 31° March, 20X2 by showing the Suspense Account, assuming. thatthe Suspense Account is balanced after the above corrections. [A (Foundation) May 2001), (Q51, ‘There was an error in the Trll Balance of Mr, Stel on 31" March, 20X2, and the difference in Rooks was cared toa Suspense Account On going through the Books you find that (©) Rs. 5,400 received from Mr. A was posted to the debit of his account Wi) Rs. 1,000 being purchases return were posted ta the debit of purchases Account ii)Discount received Rs. 2,000 was posted to the debit of Discount Account (We) Rs. 2,740 pald for Repalrs to Motor Car was debited to Motor Car Account as Rs. 1,740. (©) Rs. 4,000 paid to B was debited to As Account. Required: Give Journal Entries to rectly the above error and ascertan the amount wansferred to Suspense ‘Account on 31 March by showing the Suspense Account, assuming that the Suspense Account Is balanced ater the above corrections State which types of errors are not disclosed by the agreementof the Hal Balance. [ca (Foundation May 2002}PABAS prsrrrure or connunnes pvr LD. Q52._The Trial Balance of ABC Lt, as on Dec. 31, 20K2 didnot agree. The ifference was put toa Suspense ‘Account During the next trading period the following errors were discovered (0) Thetotal ofthe Sales-book of one page Rs. 6531 was carried forward tothe next page as Rs. 6351 {4 Goods returned by a customer for Rs. 1.200, but entered in Purchases Return Book. (Personal Car Expenses amounting to RS 250 were debited to Trade Expenses (iv)Sales Return Book was undercast by Re. 2,750. (0) Rs. 0 discount allowed bya supplier, was wrongly posted to debit side of Discount Account (un Item of Purchases of Rs. 151 was entered In Purchases book as Rs. 15 and posted to supplle’s “Account Re. 1, Required: Give Journal Entries to recy the errors through Profit & Loss adjustment A/c in a way so as to show the Current year's prot or loss correcty {cA (Foundation) Nov.2003} rere reece reer