PRACTICAL PROBLEMS

will be the following errora rectified?

. H o ww i l l

P u r c h a s e s
Book is overcasted by 7 10,000.
Return Book is overensted by 7
1,000.
P u r c h a s e s

()
(i)
Purchases Return Book's balance is carried forward in
j) ha ses Book's balance is carried forward
Purchases Book by ? 100.
excess
in excess by ? 1,000.
(The above errors have been detected
ote: Theabove. before the preparation of Trial Balance.
2 Howwill
willbe the following errors rectified?
Sales Book is short casted by5,000.
Sales Return Book is short casted by 7 5000.
(ti) Sa
of Book is carried forward short
Sales
(n) Balance by 7 1,000.
Balance
p)Balance of Sal
Sales Return Book is carried forward short by 7 100.
w)

How will you rectity the following

errors?
( Sales Book is overcasted by T 5,000.
) Sales Return Book is short casted by 500.
i Balance of Sales Book is carried forward in excess by 1,000.
(iv) Balance of Sales Return Book is carried forward in excess by 7 100.

Two Sided Errors: Errors of Recording

4. Pass the necessary Journal entries to rectify the following errors:
() Credit sale of R 570 to Mohan was recorded as 750.
() Credit sale of 7 850 to Sohan was recorded as sale to Mohan.
(ii) Credit sale of 850 to Meenu was recorded as sale to Meena as 580.
(iv) Credit sale of R 850 to Ram was recorded in the Purchases Book.
(v) Credit sale of old machinery to Sohan for 1,700 was entered in the Sales Book asT7,100.
(vi) Bill Receivable for 7 5,000 accepted by Mahinder recorded as acceptance given to
Mahinder for 6,000.
Erors of Posting
5. Pass the necessary Journal entries to rectify the following errors:
(9 Credit sale of T 850 to Kishan was posted to Krishan's Account.
(1) Cash sale of 850 to Meenu was posted to the credit of Meena.
l ) Amount of F 1,500 withdrawn from bank by the proprietor for his personal use was
debited to Purchases Account.
asR 7,100.
(0) Credit sale of old furniture to Mohan for 7 1,700 was posted
was credited to Sales Account.
(0) Credit sale of old furniture to Babu Ram for7 3,000
and has been posted to the
(O7) Cheque received from Farid was dishonoured
of 7 1,280
debit of Sales Return Account.
6.
Rectify the following errors:
? 134.
of 7 143 posted to his account as
Sales to Vinod
134.
to his account as
4) Sales to Vinod of 7 143 debited 134.
to his account as
Sales to Vinod of 7 143 credited Vinod Dr. R 277.]
79 and (ii)
**nts: (i) Vinod Dr. 7 9; (ii) Vinod Dr.
Errore of Princlple
Journnl entries to rectily the following
errors:
7. Pass the necessary
as wage» for tho
construction building debited to
ofoffice Salaries Accouunt.
)15,000 paid
( 20,000 spent on the purhnaes of materinl for the construction of building debitect t
Purhases Acrount.

) 50,000 spentthe extension of building wua debited to Building Repairs Account

on

25,00)spent on whitewash ofa new building was charged Building Repairs Account
to
(iv)
()1.000 paid ns instnllation ehargea for newly purchned second hand machinery prosted to
Cartage Account
10.000 paid as repairing charges on the reconditioning ofa newly purchased necond
hand machinery debited to General Expenses Account.
(in5,000 paid as repairing charges ofan existing machine in use charged to Machinery
Account.
(viin 10,000 paid by cheque for a printer was charged to the Office ExpensesAccount.

Errors of Complete Omission

s. Give rectifying Journal entries for the following errors:

Goods returned by Mohan of 7 1,500 not recorded in books.
() Goods distributed as free samples for 7 5,000 not recorded.
(i) Depreciation of machinery of 7 10,000 not charged.
iv) Goods costing 780, selling price 7 1,000 given as charity not recorded.
Compensating Errors
9. Rectify the following errors:
() Goods purchased from Kunal for 8,000 and from Kapil of F 9,000 recorded correctly in the
Purchases Book. However, ,.000 was posted to Kunal and 8,000 toKapil
() Anil's Account was excess debited by 500 while Suraj's Account was short debited by 7 500.
(iii) Parkar's Account was short credited by 700 while Manisha's Account was excess credited
by 7 700.
(iv) Goods sold to Roopak for 1,000 and to Sagar for 71,800 recorded correctly in the Sales Book.
However, & 1,800 was posted to Roopak andR 1,000 to Sagar.

Miscellaneous Transactions
10. Following errors affecting the accounts for the year 2018-19 were detected in the books of
Das& Co., Meerut:
() Sale of old furniture for F 5,000 was treated as sales of goods.
(ii) Rent of proprietor's residence 6,000 was debited to Rent Account.
(ii) Cash received from Rajesh7 2,150 was credited to Brajesh.
Pass the rectifying Journal entries.
State the nature of each of these mistakes.
[) Error of Principle, (i) Error of Principle, (ii) Error of Commission.]
11. Rectify the following errors assuming that there is no Suspense Account:
() Salary of 5,000 paid to Rahul was not posted to Salaries Account.
(ii) Sales to Amrish of7 1,430 posted to his account as 1,340.
(ii) Sales to Vijay of? 2,470 posted to his account as 2,740.
(iv) Purchases from Pal ofT 1,430 posted to his account as 1,340.
 hichof the following errors will affoct the Trinl Balanee?
hichtal
n The.
of the Snles Book has not been
to
posted to the
01,000
in 0 paic
paid Sales Account.
ns installation charges of a
Repairs Account.
new machine has heen debited to
ads costing
Goods costin 4,000 tnken by the
Debtor's Account.
proprietor for peraonnl use have heen debited to

,1000 paid for repnirs to building hnve been

debiteed to Building Accrnunt.
(elhi 2007
(Delhi 2007)
7he total of the Salea Bnh han not heen
Sales Account will posted to
affect the Trial Balance.
ctify the following errors n8suming that there is no
The Returns Inward Book hns been overcnsted
Suspense Account:
by ? 200.
Purchases Book carried forward ? 75
les
(i) Sale. Book carried forward ? 41 less on Page 10 and 7 43 more on Page 12.
Goods sold to Gautam were posted as 7 215 instead
of 7251.
14. Following errors are discovered in the books of Sh. Ram Lal. Make the
to rectity them: necessary entries
Purchases Journal was undercasted by 7 2,150.
(500 received from K. Krishna was debited to his account.
An amount of 3,000 withdrawn by the proprietor
posted to the Travelling Expenses Account. of the firm for his personal use was

G) An amount ofR 175 for a credit sale to R.

Gopalan correctly entered in the Sales Book,
has been debited to his account as 157.
15. Pass the Journal entries rectifying the following errors:
( Purchases of 10,000 was omitted to be recorded.
() Purchases of office furniture of T 10,000 was recorded in Purchases Book.
(i) Office Rent of 7 15,000 was debited to the Personal Account of the landlord.
(iw) Old machine sold for T 5,000 was credited to Sales Account.
() Bill for7 800 received from Mukesh for repair of machinery was entered in the Purchases
Book as 700.
16. Rectify the following errors:
() Purchases Book has been undercast by 1,000.
(i) Credit sale to Anu Prakash 7 7,000 was recorded in Purchases Book.
(ii) Credit sale to Rahul 7 7,000 was recorded as 700. (Delhi 2012)
[9 Purchases A/c (Dr.), SuspenseA/e (C.) 1,000.
(i) Anu Prakash (Dr.) 7 14,000,; Purchases A/e (Cr.) 7,000, Sales A/c (Cr.)
7,000.
(ii) Rahul (Dr.); Sales (C.) R 6,300.]
17. Rectify the following errors:
Total of one page of the Sales Book was carried forward to the next page as 7 2,785
instead of 2,587.
A cheque of 7 400 received from Mohan was dishonoured and had been posted to the
debit side of the 'Allowance Account.
4) Return ofgoods worth7 5,000 by a customer was entered in the Purchases Return Book.
 (iv) Sum of 7 200 owed by 'X hns been included in thelist of Sundry Creditors.
() Sale of old furniture worth F 430 was credited to the Sules Account as ? 340. (KVS 2005
18. Rectify the following errors:
() Purchases Book is overcast by ? 500.
(ii) Salary paid to an employee, Mr. Ajay, is debited to his Personal Account 7 3,00o.
(i) Goods sold to Shashi on eredit 300 have been wrongly passed through the Purchases
Book.
(iv) Total of Returns Inward Book has been added 9 short.
(u) Purchase of chair from Happy Traders for 35 has been entered in the Purchases Book
as 53. (MSE Chandigarh 2004)
19. Correct the following errors in Mohan Lal's Book:
() A payment of 5,000 for salaries (to Mr. Ram) has been posted twice to the Salaries
Account.
(ii) 750 received from Rajesh are entered on the debit side of the Cash Book. No posting
was done in Rajesh's Account.
(ii) Sales Book was overcasted by T 3,000.
iv) Goods (Cost 2,000, Sales Price 2,500) distributed as samples among prospective
customers were not recorded anywhere.
(u) A sum of 7 1,500 written off as depreciation on furniture was not debited to
Depreciation Account.
20. Give the rectifying entries of the following:
() Sales of T 20,000 to Manoj was recorded as 2,000 in the Sales Book.
(ii) An amount ofT 25,000 spent for the extension of machinery has been debited to the
Wages Account.
(iii) Discount received from Ram & Co. F 350, has not been entered in the discount column
of the Cash Book.
(iu) Goods of 3,000 sold to Mahesh were recorded in the Purchases Book.
Hint: (ii) Dr. Ram & Co. and Cr. Discount Received Ale by 350.]
21. Correct the following errors in Hari's Books:
(i) Credit sale of T 132 to R. Krishan correctly entered in Sales Journal but posted to his
account as 312.
(ii) The total of the credit side of Ramesh's Account was overcasted by T 2,000.
(ii) Total of the Purchases Journal of 7 5,250 has been posted to Purchases Account as
75,205.
(iv) Printer purchased from R. Ltd. for 4,000 on credit was entered in the Purchases Book.
() An item of T 2,000 entered in the Sales Return Book was posted to the debit of Pandey
who had returned the goods.
 ROCUNcalU

17.39
ulnd that the Trial
found Bnlnnee did not ngree, He
found the following errora:
Mukesh.

M In the Snles Book for the month of

Sales Bool
Jnnunry, totnl of Png« No. 3 wan earried forward
(() eNo. 4 as 1,000 instend of 7 1,200 to
nnd totnl of Pnge 7 No.
Page No. 8 as 5,600 instend ofR 6,000, wnn carried forward to

nds
Go
(i)
returned to Anushkn ? 10,000 were rocorded in the Sales Book.
:11 Receivable for
(i)
800 from Riyn wns dishonoured and posted to the debit
Account. of Allowances
(KVS 2016
Pas the rectify entries for the following:
23.
Sales of goods R 6,000 to Madan were recorded as 7 600 in the Sales Book.
Credit purchase of goods from Mohan amounting to 2,000 has heen
through the Sales Book. wrongly passed
G Return of goods worth R 500 by a customer was entered in Purchases
Return Book'.
i)Cheque of 400 received from Ranjan was dishonoured and debited to the
Discount Account.
)Bill for 820 received from Ramesh for repair of machinery was entered in the Purchases
Book asT 720.
(Delhi 2003)
94. Give rectifying Journal entries for the following errors:
() Sales of goods to Madan 7 6,000 were entered in the Sales Book as 600.
() Credit purchase of 7 1,500 from Ajay has been wrongly passed through the
Sales Book.
(ii) Repairs to building 300 were debited to Building Account.
(iv) T 2,050 paid to Rohit is posted to the debit of Mohit's Account as 7 5,020.
() Purchases Return Book is overcasted by 400.
(MSE Chandigarh 2007)
25. Give rectifying entries for the following:
5,400 received from Mr. A was posted to the debit of his account.
(i) The total of Sales Return Book overcasted by 7 800.
(i) R 2,740 paid for repairs to motor car was debited to Motor Car Account as 1,740.
io) Returned goods to Shyam7 1,500 were passed through Returns Inward Book.
(MSE Chandigarh 2008)

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25. Pass Journal entries rectifying the following errors:

() A cheque for 10,000 was received from Ranjan on which7 200 Cash Discount was
allowed. The cheque was not honoured on due date and the amount of discount was
credited to Discount Received Account.
1i) T 2,000 paid as wages for machinery installation was debited to Wages Account.
(ii) T 5,000 received from Rakesh were credited to his Personal Account. The amount had
been written off as bad debts earlier.
(iv) Repair bill of machinery was recorded as 100 against the bill amount of R 1,000.
 27. Rectily the following errors:

() Sales Book has been totalled ? 1,000 short.

( ) Goods worth 7 1,500 returned by Green & Co. have not been recorded anywhere.
(Gi) Goods puchased worth 2,500 have been posted to the debit ofthe supplier, Gupta & Co.
o) Furniture purchased from Gulab & Co. worth ? 10,000 has been entered in Purchases
Book.
() Cash received from A T 2,500 has not been posted in his account. (KVS 2008)
28. Pass Journal entries to rectify the errors in the following cases:
) A purchase of goods from David amounting to R 150 has been wrongly passed through
the Sales Book.
(i) A credit sale of goods of T 120 to Peter has been wrongly passed through the Purchases
Book.
Gi) * 200, salary paid to Cashier, Bimal, stands wrongly debited to his Personal
(iv) A credit sale of 4,230 to Krishan entered as purchase from Kishan 7 4,320.
Account.
() Ramesh's Account was credited with 7 840 twice instead of once.
(Hint: (iv) Dr. Krishan: 4,230; Kishan: 7 4,320.
Cr. Sales A/c: F 4,230; Purchase A/e: R 4,320.]
29. (i) What are the different causes that make a Trial Balance incorrect?
(ii) Pass the rectifying Journal entries:
(a) A credit sale of goods for 2,500 to Krishna has been wrongly passed through the
Purchases Book.
(b) T 5,000 paid for freight on machinery purchased was debited to the Freight Account
as500.
(c) The Returns Inward Book has been wrongly overcasted by F 100.
(d) An amount of T 500 due from Ramesh which had been written off as bad debt in
previous year was recovered and had been posted to the Personal Account of Ramesh.
(e) A sum of 7 460 owed by Hari had not been included in the list of debtors.

30. Rectify the following errors:

(MSE Chandigarh 2003)
(i) Wages paid for the construction of office debited to the Wages Acount, F
5,000.
(ii) Machinery purchased for 35,000 was passed through the Purchases Book.
(iii) Old furniture sold for 1,000, passed through the Sales Book.
(iu) T2,000 paid to Mehta Bros. against acceptance were debited to
Malhotra Bros. Account.
(w) Sales of 7 204 to Ram debited to his account as T 402 and
Shyam credited to his account as 1,210. purchases of F 1,012 from
31. Pass the rectification entries for the
following transactions:
(i) An amount ofT 2,000 received from Mohan on 1st
Cash Book as having been received on 31st
April, 2019 had been entered in the
March, 2019.
(ii) The balance in the account of Rahim {
1,000 had been written off as bad but no other
account has been debited.
(iii) An addition in the Returns Inward Book had been cast 7 100
short.
(iu) A cheque for 7 200 drawn for the Petty Cash Account has
been posted in the account
of Asif.
R c t i i c a t o no fEIC
E

() A discounted,
nted Bill of Exchange for 20,000 returned by the firm's bank had been credited
A Bank Account and debited to Bills Receivable Account. A cheque was received
to t h e Bank
to
laterfron the customer for T 20,000 and duly paid.
)
esh's Account was credited with ? 840 twice instend of onece.
Ramesh's.

D r . Customer's Alc and Cr. Bills Receivable Ale by 7 20,000.

( e v )

(v
Hint:
errors:

Rectify
the following
f old furniture worth? 3,000 trented ns snlos of goods.
Sale
Sales
Book added T5,000 short.
(i)
Rent of proprietor's residence, R 6,500 debited to Rent Account.
/)
Coodsworth 7
(iv)
11,970 returned by Manav posted to his debit as 7 11,790.(Delhi 201)
in the Trial Balance of M/s. Jain & Sons, prepared for the year ended
difference
dit
e
There was aa
was

3. March, 2009. The accountant put the difference in Suspense Account.

31st

following errors were found:

The
Purchases Return Book total R 400 has not been posted to Ledger Account.
expense for the debited to the
5,100 spent on legal newly acquired Building was

as 1,500.
Building Account
A sale of R 6,540
to Rajat has been credited to his account.
G
and show the Suspense Account with Nil closing balance. (KVS 2010)
Rectify the errors

entries to rectify the following

Give the Journal
errors:
aA

(Purchases Book was overcast by 1,000.

machinery purchased 500 were debited to Sundry
(i) Installation charges on new

Expenses Account as 7 50.

F 500 which was entered in the Purchases Return
(ii) Radhey Shyam returned goods worth
Book.
taken by the proprietor for F 5,000 have not been entered in the books at all.
(iv) Goods
(Delhi 2011)
35. Rectify the following errors:
page of Sales Book carried forward as 7 371 instead of 317.
(i) The total of one was

(i) 540 received from Yatin was posted to the debit of his Account.
(ii) Purchases Returns Book was overcast by 7 300.
to the debit of
(iv) An item of 7 1,062 entered in Sales Return Book had been posted
customer who returned the goods.
(0)1,500 paid for furniture purchased had been charged to ordinary Purchase Account.
(MSE Chandigarh 2011)
36. Rectify the following errors by passing Journal entries:
) Old furniture sold for 500 has been credited to Sales Account.

Machinery purchased on credit from Raman for 2,000 recorded through Purchases
Book as 16,000.
1) Cash received from Rajat 7 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. (MSE Chandigarh 2013)
 e r r o r s by passing
Journal entries:
37. Rectify the following 740.
posted to her debit ns
470 received from Ganga
was
() A s u m of ? account of Mr. John was undercast.
in the personal
(ii) A debit balance of F 550
for 3,000 posted to the credit of Bills Payable Account
(ii) Bills Receivable from Brown
Account.
and credited to Brown's
225 have been entered
in the Returns Outward Book.
(iv) Goods returned by Mridul 7
(MSE Chandigarh 2015)
Mahesh found that
for the ended 31st March, 2014,
38. While trying to close his books year
errors:
He traced the following
the Trial Balance did not agree.
No. 2 w a s carried forward to
the Sales Book for the month of January total of Page
(i) In of Page No. 6 w a s carried forward
No. 3 1,000 instead of F 1,200 and total
Page as

No. 7 as 5,600 instead of ? 5,000.

to Page
recorded in the Sales Book.
Goods returned to Ram 1,000 were
(ii)
1,600 from Noor w a s
dishonoured and posted to debit of Allowances
(iii) Bil Receivable for
Account.
(KVS 2015)
Rectify the above errors.

A/c by 7 400.
[Hints: (i) Dr. Sales Ac and Cr. Suspense
Return A/c by F 1,000.
(ii) Dr. Sales A/c and Cr. Purchase

(iii) Dr. Noor and Cr. Allowance A/c by F 1,600.]

transactions:
entries for the following
39. Pass the rectification
Account.
F had been charged to Plant and Machinery
() Repairs to plant amounting to 2,000
workmen for making certain additions to machinery amounting
(i) Wages paid to the firm's
to 1,340 were debited to Wages Account.
credited to the account of Ramesh.
received from Sandesh was
(iii) A cheque for 7 7,500
Goods to the value ofT 7,000 returned by Prateek were included in closing stock, but
(iv)
n o entry w a s made in
the books.
the cost
(v) Goods costing 7 5,000 were purchased for various members of the staff and
salaries of the
was included in Purchases'. A similar amount was deducted from the
debited to Salaries Account.
staff members concerned and the net payments to them
the Purchase
(vi) Credit purchase of old machinery from Sohan for 1,70,000 was entered in
on the
Book as purchase from Mohan for 7,10,000. F 30,000 paid as repairing charges
reconditioning of a purchased second had machinery were debited to General
newly
Expenses Account.
400 and
(vii) Debit and Credit totals of discount columns in the Cash Book which come to
T370 respectively have not been posted to Discount Accounts.
(Hints: (v) Dr. Salaries A/c and Cr. Purchases A/c by 5,000.
(vi) Dr. Mohan by 7,10,000; Machinery A/e by R 2,00,000;
Cr. Sohan by ? 1,70,000; Purchase A/c by 7,10,000; and General
Expenses A/c by 30,000.
(vii) (a) Dr. Discount Allowed A/c and Cr. Suspense A/c by 400.
(6) Dr. Suspense A/c and Cr. Discount Received A/c by 370.
A c t i l i c a t i o U

Suspense count
parationof
epare .lance disclosed a difference of 7 417 placed on the credit side of the Suspense
Trial

A
Later on the following errors were located:
Account.

ds worth 7 200 purchased from Sohan had been posted to his account as 7 250.
( i ) A
Diurchase of furniture for R 500 was recorded in the Purchases Book.
p u r c h a s

i ) Instead fnstead of crediting Gian's Account with 7 512, it was debited with 7 215.
uCoods worth7 130 returned by Gian were entered in the Sales Book and posted therefrom
ie)
Personal Account.
of Gian's
to the credit
entries and prepare a Suspense Account. (MSE Chandigarh 2006)
the rectifying
Pass [Total of Suspense Account-R 727.]

was
720 in the Trial Balance which has been transferred to the credit
difference
a a di of
There Account
. Account. Pass the rectifying entries and prepare a Suspense
si de of the Suspense
errors:
rectify the following
to instead
the debit side of the Commission Account
n An amount of
R 375 now posted on

of 275.
to the debit of the Personal Account as 360.
Credit amount of R 260 posted
)
to Surinder recorded in Purchases Book 300.
üi) Goods sold
erection of godown at a cost of 7 1,200 has been charged to the Repairs
(iv) D's bill for (MSE Chandigarh 2005)
Account.
[Total of Suspense Account 720.]
and the difference
an e r r o r in the Trial
Balance of Ram Gopal o n 31st March, 2018
42. There was find that:
Account. On going through the books, you
in booksw a s carried to the Suspense
account.
()T540 received from Mayank was posted to the debit side of his
return w a s posted to the debit
of the Purchases Account.
(i) F 100 being purchases
Discount Account.
Discount of 300 received w a s posted to the debit of the
(ii) 174.
debited to the Motor Car Account as

(iu)374 paid for motor car repairs was

()F 400 paid to Naman was debited to the account of Manan.

carried to
the above errors and state what amount w a s
Pass the Journal entries to rectify
[Suspense Account opened with a Credit of T
1,680.]
the Suspense Account.
credits by T 261. This difference
e x c e s s of debits o v e r
45. Trial Balance of a bookkeeper shows a n o n the following
errors

18 placed in a Suspense Account to

facilitate books closure. Later

were discovered:
Personal Account as 439.
) credit item of 349 has been debited to a
A not been posted to thae
off from fixtures as depreciation has
(02) A sum of 7 625 written
Depreciation Account.
been charged to the Purchases Account.
)9,000 paid for furniture bought have
has been credited to him
as 145 in place of F 154.
) A discount allowed to a customer
in the Sales Account.
posted 495
) of 7 594
A sale was as
short.
has been added T 10
T h e total of Returns Inward Book
the Suspense Account. and prepare
the Journal entries to correct these
errors
*28S
896]
[Total of Suspense Account-
 44, The accountant of a firm finds that the Trial Balance
ns on 31st March, 2019
is out b
excess debit of * 283. He placed the amount in the Suspense Account. In the first y an
April, 2019, he discovered the following errors. Pass the Journal week ot
entrics necessary to
these errors and show the
Suspense Account ns it would appear at the end of the rectify
Have you any comment to make? week
() Cash paid to Amar Nath, 7 75, was
posted to the credit of Amar Singh's Account as 57
(ii) Discount allowed by Brijesh of ? 5 was not entered in the
Cash Book but Brijesh
debited correctly. stands
(ii) No entry was made for goods worth 40 taken away by proprietor for personal use.
iv)500 received from Jhaveri Bros. for interest on loan advanced to them were recorded
in the Cash Book. But the
entry was not posted in the Ledger.
(v) The total of Returns Outward Book was short
by 100.
[Hint: At the end of the week, the Suspense Aecount will be a debit showing balance of 190,
It means that there are still left
some errors
undetected.]

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45. Rectify the following found in the books of Bheem. Trial Balance had 7 930
errors
excess
credit. The difference has been posted to a
Suspense Account:
(i) The total of Returns Inward Book has been cast 1,000 short.
(ii) The purchase of an office table costing7 3,000 has been passed through the Purchases
Book.
(ii) F 3,750 paid for wages to workmen for making showcases had been charged to the
Wages Account.
(iv) A purchase of 670 had been posted to the Creditors' Account as 600.
(u) A cheque for T 2,000 received from Nakul had been dishonoured and was passed to the
debit of the Allowances Account.
(vi) An amount of 7 15,720 due from Prasad written off as had in a previous year, was
recovered and credited to the Personal Account of Prasad.
After rectification reflect the transactions in the Suspense Account.
[Hint: (vi) Dr. Prasad and Cr. Bad Debts Recovered A/c by 7 15,720.]
46. The Trial Balance of M/s. Gupta & Sons shows a difference of T 52,200. To prepare the
Final Aceount on 31st March, 2019, this difference is placed in a Suspense Account.
Afterwards the following errors were disclosed. Pass the necessary entries to rectify them
and show the Suspense Account.
(i) Purchases Book total had been undercasted by 7 20,000.
(ii) A cheque received from Vasudev for T 7,800 had been debited in the Cash Book but not
posted in Vasudev's Personal Account.
(iii) Returns Outward Book had been overcasted by 7 10,000.
(iv) Goods returned by Yash Pal worth 7 15,000 have been entered in Returns Outward
Book. However, Yash Pal's Account is correctly posted. (Delhi 2006, Modified)
A A O

Balance of S. Sen did not gree nnd the difforenee in honka was carrieel ti a
7he
Trial

ecount. Pass the entries required to rectify the following errora which nceeunted
Suspense Ac

hthe diference. Also. prepare the Suspense Account:

for
Sales Invoice for 1,000 for goods soled on eredit to , Busu wns entered in the Purchases
the nmount Correetly debitod to the nccount of B. Basu.
Rook but in the Ledger,
WIN

credt from Ram Lal for ? 1,500 were wrongly debited to his account
oods bought on
as5.100.

An amount of R275 was posted as 325 to the debit side of the Commission Account.

p) The Sales Book for the month of April was undercasted by 7 100.

4 6 0 paid for building repairs was debited to the Building Account as 7 640.
[Suspense Account opened with a Credit of? 8,930.]

The bookkeeper of a firm found that his Trial Balance was out (excess credit) by ? 742. He
nlaced the amount in a Suspense Acount and subsequently found the following errors:
A discount of 178 was allowed to Ramesh but in his account only 7 100 is recorded.
) The total of the Purchases Book was 1,000 short.
) A sale of 375 to Kohli was entered in the Sales Book as 735.
(i) From the Purchases Book, Bose's Account was debited with 175.
() Cash T 250 received from Maitra against debt previously written off was credited to
his account.
(vi) Purchase of office furniture worth 750 on credit from Delhi Furnitures was entered
in the Purchases Book.
(vi) While carrying forward the total of the Sales Book from one page to another the amount
of 11,358 was written as 11,538.
uii) The proprietor took goods of the value of 7 150 for his domestic consumption. No record
of it has been made in the books.
(ix) Repairs bill of 7 410 for the proprietor's personal car, has been paid by the firm and
debited to the Repairs Account.
() A sale to Kassim of 700 has been entered in the Purchases Book.
Kectify the errors by means of suitable Journal entries and show the
Suspense Account.