NCERT Solutions for Class 11 Accountancy Financial Accounting Part-1 Chapter 6 - Trial Balance and Rectification of Errors

Short answers : Solutions of Questions on Page Number : 217

Q1 :State the meaning of a Trial Balance?
Answer :
Trial Balance is a statement prepared with debit and credit balances of all accounts in ledger, to verify the arithmetical accuracy of the accounts. It is prepared after balancing all the accounts of ledger. There are two columns in a Trial Balance: debit and credit. While debit side includes all the debit balances, credit side includes all the credit balances of the accounts. It also helps in preparing financial statements, as it is a summarise version of the ledger. It is generally prepared on monthly or yearly basis.

Q2 :Give two examples of errors of principle?
Answer : ‘Errors of principle’ refer to those errors that are committed when recording of transactions is done against the accounting principle. Below given are the examples of error of principle
1. Wages paid for construction of building debited to Wages Account
In this transaction, wages paid for the construction of building is a capital expenditure and accordingly building account should have been debited. However, in this case, it is treated as revenue expenditure and is debited to Wages Account. This error violates the accounting principle.
2. Amount spent on repair of machinery debited to Machinery Account
In this transaction, amount of repair is a revenue expenditure and not a capital expenditure. It should have been debited as ‘Repairs’, but was wrongly debited to the Machinery Account.

Q3 :Give two examples of errors of commission?
Answer :
Errors of Commission refer to those errors that are committed when transactions are recorded with wrong amounts; wrong balancing or wrong posting and/or wrong carrying forwarding is done. Below given are the examples of error of commission.
Goods purchased worth Rs 20,000 on credit are recorded in the Purchases Book as Rs 10,000.
This transaction should have been recorded in the Purchases Book with an amount of Rs 20,000; however, it was recorded as Rs 10,000. This is an error due to wrong recording of amount.
Total of Sales Book is carried forward as Rs 5,000 instead of Rs 500.
In this case, wrong amount is carried forwarded from one accounting period to another or from an end of one page to the beginning of another page. This is referred to as an error of carrying forward.

Q4 :What are the methods of preparing trial balance?
Answer :
Below are diagrammatically explained methods to prepare Trial Balance.

Let us understand these methods of preparing Trial Balance with the help of an abstract account of Mr. A.

Mr.
A’s
Account

Dr.

Cr.

2011

Apr.1

Balance b/d

50,000

Apr.7

Cash

30,000

Apr.3

Sales

20,000

Apr.8

Sales Return

20,000

Apr.10

Sales

40,000

Apr.16

Bank

50,000

Apr.30

Balance c/d

10,000

1,10,000

Totals method: According to the Totals method, the total of debit and credit sides of an account is shown in the debit and credit columns of the Trial Balance. If the total of the debit column and the total of credit column of Trial Balance are equal, then the Trial Balance is said to agree, otherwise not.
For example, in the above example, the total of the debit side of Mr. A Account, i.e., Rs 1,10,000 is shown in the debit column of the Trial Balance and the total of the credit side of Mr. A Account, i.e., Rs 1,10,000 is shown in the credit column of the Trial Balance. The total of debit column and the total of the credit column of the Trial Balance are equal to each other.

Trial Balance as on April 30, 2011
Accounts	L.F.	Debit Total Rs	Credit Total Rs
Mr. A’s Account		1,10,000	1,00,000

Balance method: According to the Balance method, the balance of ledger accounts is shown in the debit and credit column of the Trial Balance. The balance of ledger may be either debit balance or credit balance. In the former case, the debit side of an account exceeds its credit side; whereas, in the latter case the credit side exceeds the debit side of the account. The sum total of the balances in the debit column of the Trial Balance must be equal to the sum total of the balances in the credit columns of the Trial Balance. It is a commonly used method.

For example, Mr A’s account shows a debit balance of Rs 10,000, as the total of the debit side (Rs 1,10,000) exceeds the total of the credit side (Rs 1,00,000). The debit balance of Rs 10,000 will be shown in the debit column of the Trial Balance.

Trial Balance as on April 30, 2011
	Accounts	L.F.	Debit Balance Rs	Credit Balance Rs
	Mr. A’s Account		10,000

Total cum balance method: It is a combination of both of the above methods, i.e., Totals method and Balance method.

Trial Balance as on April 30, 2011
	Accounts	L.F.	Debit Total Rs	Credit Total Rs	Debit Balance Rs	Credit Balance Rs
	Mr. A’s Account		1,10,000	1,00,000	10,000

Q5 :What are the steps taken by an accountant to locate the errors in the trial balance?
Answer : The following are various steps that an accountant takes to locate the errors in the Trial Balance.
Re-totalling of the debit and the credit columns of the Trial Balance to locate the difference in the total of both the columns.
Checking whether any account is omitted to be recorded with the exact difference amount.
Half the difference, then check whether any amount is posted in the wrong column of the Trial Balance.
Divide the difference by 9, if it is completely divisible, it is an error of transposition of figure, i.e. 546 is written as 645.
If there exist differences especially of Rs 1, Rs 10, Rs 100, Rs 1000, etc., it suggests that the casting of Subsidiary Books should be checked once again.
If difference still exists and it is not possible to detect the reason for the difference, then for the time being, the difference is transferred in the suspense account in order to proceed further. Otherwise, a complete checking is suggested.

Q6 :What is a suspense account? Is it necessary that 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?
Answer : When Trial Balance does not agree, i.e., when the total of the debit column does not match that of the credit column, then the difference of the Trial Balance is transferred to a temporary account in order to avoid delay in preparation of the financial statements. This temporary account is termed as Suspense Account. If the debit column falls short of the credit column, then the Suspense Account is debited and if the credit column falls short of the debit column then the Suspense Account is credited.
If all the errors are detected and rectified, then the Suspense Account automatically gets closed (i.e. becomes zero). However, if still there exists any difference, then it should be transferred to the Balance Sheet. If the Suspense Account shows a debit balance, then it is shown in the Assets side and if the Suspense Account shows a credit balance, then it is shown in the Liabilities side of the Balance Sheet.

Q7 :What kinds of errors would cause difference in the trial balance? Also list examples that would not be revealed by a trial balance?
Answer :
The errors that lead to the differences in the Trial Balance are termed as one-sided errors. These are those errors that affect only one account. Below are given the errors that cause differences in the Trial Balance.
Wrong casting of any account, this is termed as the error of casting.
Wrong carrying forward of the balances from previous year’s books or from one end of page to another. These types of errors are termed as the errors in carrying forward.
If entries are posted in the wrong side of accounts.
Posting of a wrong amount in account, this is termed as the error of posting.
If entries are recorded partially, i.e., the entries are not recorded completely, then due to the error of partial omission, Trial Balance does not agree.
Here are a few examples that would not be revealed in a Trial Balance:
Sales to Mr. X, omitted to be recorded in the Sales Day Book
Purchases made from Mukesh, recorded in Mahesh’s Account, who is an other creditor
Wages paid for construction of building, recorded in the Wages Accoun

Q8 :State the limitations of trial balance?
Answer :
If the Trial Balance agrees, then it should not be taken for granted, that there is absolutely no errors. In fact, there do exist some errors that are not revealed by a Trial Balance. Such ineffectiveness of the Trial Balance is termed as the limitations of Trial Balance. The various limitations of the Trial Balance are given below.
It does not assist to detect errors that arise if an entry is not recorded in the Journal. Such errors are termed as the Errors of Complete Omission.
If the effect of one error is cancelled by the effect of another error, then it cannot be ascertained by the Trial Balance. Such types of errors are termed as Compensatory Errors, which are rare to find.
If correct amount is posted in the correct side; however, in the wrong account and if wrong amount is posted in the wrong side, but in the correct account, then the Trial Balance fails to reflect these errors.
If there arises any error of principle, like capital expenditure mistakenly regarded as revenue expenditure or vice-versa, then such errors may not be revealed in form of mismatch between the two columns of the Trial Balance.
If any transaction is recorded wrongly in the books of original entry, then such mistakes lead to the errors of recording which are not revealed by Trial Balance.

Long answers : Solutions of Questions on Page Number : 218

Q1 :Describe the purpose for the preparation of trial balance.
Answer :
The important purposes for the preparation of Trial Balance are explained with the help of the following points.
Ascertaining the arithmetical accuracy- When the total of all debit balance accounts are equal to all credit balance accounts, it is assumed that at least posting from journal to the respective accounts is arithmetically correct.
Summarising the ledger accounts- Trial Balance acts as a consolidated statement, providing a comprehensive list of all the accounts. Thus, a Trial Balance provides a summarised version of each account.
Preparing final accounts- As the Trial Balance provides a summarised version of each account, so different accounts can be directly transferred to Trading, Profit and Loss Account, and Balance Sheet without referring to different ledgers.
Locating and rectifying errors- If the Trial Balance does not agree, it indicates the occurrence of arithmetical error, which can be easily located. However, Trial Balance only helps in locate and rectify arithmetical error and not other types of errors.

Q2 :Explain errors of principle and give two examples with measures to rectify them.
Answer :
Errors of Principle refer to those errors that are committed when recording of transactions in the original book of entry is done against the accounting principle. These errors are not reflected in the Trial Balance. These errors are committed when proper distinction is not made between capital expenditure and revenue expenditure, or vice versa or between capital income and revenue income or vice versa.
The following examples will illustrate the process of understanding and rectification of such errors.
Let us consider first example. Wages paid for construction of building are debited to Wages Account.
Wrong entry made is:

Wages A/c		Dr.
	To Cash A/c
( Wages paid in cash)

In this case, Wages paid for the construction of building should be treated as a capital expenditure and accordingly should be debited to the building account. However, the Wages Account is wrongly debited. Thus,
the correct entry that should have been made is:
Building A/c

Building A/c

Dr.

To Cash A/c

(Wages paid for construction

of building)

In order to rectify this error, the rectifying entry should be:

Building A/c

Dr.

To Wages A/c

(Wages paid for construction

of building was debited to Wages Account, now rectified)

The second example of errors of principle is the sale of old machinery recorded as sales.
Wrong entry made:

Cash A/c		Dr.
	To Sales A/c
(Sales of old machinery, recorded as sales)

In this case, the sale of old machinery should not be recorded as sales; in fact the Machinery Account should be credited. Thus, the correct entry that should have been made is:

Cash A/c		Dr.
	To Machinery A/c
(Old machinery sold for cash)

In order to rectify this error, Sales Account will be debited, as it is wrongly credited and machinery will be credited, as it will not be recorded in the books. Thus, the rectifying entry will be:

Sales A/c		Dr.
	To Machinery A/c
(Sale of old machinery recorded as sales, now rectified)

Q3 :Explain the errors of commission and give two examples with measures to rectify them.
Answer :
Errors of commission refer to those errors that are committed when transactions are recorded with wrong amounts, wrong balancing is done, wrong posting and/or wrong carrying forwarded is done. The following examples will illustrate the process of understanding and rectification of such errors.
Let us consider the first example. Sales made to Mr. X of Rs10,000 recorded as 1,000 from invoice.In this case, Mr. X’s account has been debited with Rs 1,000 instead of Rs 10,000; hence, the error of commission is committed. This requires a further debit of Rs 9,000, in order to rectify this error of commission. This will be rectified by passing the following entry:

Mr X’s A/c		Dr.	9,000
	To Sales A/c			9,000
(Goods sold to Mr X of Rs 10,000 was wrongly posted as Rs 1,000,now rectified)

Purchase book was undercast by Rs 10,000.
This error can be rectified in any of the following two stages:
a. If an error is located before preparing trial balance, then Rs 10,000 should be recorded in the debit side of Purchases Account.
b. If an error is located after preparing Trial Balance, then the following entry need to be recorded.

Purchase A/c		Dr.	10,000
	To Suspense A/c			10,000

Q4 :What are the different types of errors that are usually committed in recording business transaction?
Answer :

Errors of omission- When an entry gets omitted during recording in the book of original entry or during posting the transaction, then error of omission is committed. There are two types of errors of omission, viz.:
Partial omission- When a transaction is correctly recorded in one side of account but is not recorded in the other side of the account. For example, goods sold to Mahesh recorded in sales but omitted to be recorded in Mahesh’s account. It affects the trial balance.
Complete omission- When a transaction gets completely omitted to be recorded in the books, then it is the case of complete omission . For example, transaction related to purchase of goods from Rakesh is not recorded in the purchases book. Such omissions does not affect the trial balance.
Errors of principle- These refer to those errors that are committed when recording of transactions in the book of the original entry is done against the accounting principle. These errors affect the trial balance.
These errors are committed when proper distinction is not made between revenue income or expenditure and capital income or expenditure. These are of two types:
When revenue transactions are treated as capital transactionsWhen capital transactions are treated as revenue transactions.For example, repairs made to machinery, recorded in machinery account.
Errors of commission- These refer to those errors that are committed when transactions are recorded with wrong amounts, wrong balancing, wrong posting and/or wrong carrying forwarded is done.
These are of two types:
Trial balance does not agree
When trial balance does not agree, then there exist one-sided errors that affect only one account and thereby are easily detectable. These one-sided errors exist due to the following reasons:
Wrong casting of subsidiary bookPosting wrong amount in ledgerPosting on the wrong side of accountWrong balancing of account
Trial balance agrees
When the trial balance agrees, then it should not be taken for granted that there are no errors, as the tallied trial balance just ensures the absence of arithmetical errors.These errors are not easily detectable; as these do not affect the trial balance. These errors arise due to:Recording wrong amount in the original book
Posting amount in the wrong account but in the correct side
Compensating errors- When effects of one error are cancelled by the effects of another error of an equal amount, then compensating errors are committed. For example, Mr. A’s account was credited by Rs 2,000 instead of 200 and Mr. B’s account was credited by Rs 200 instead of 2,000. In this case, the error in Mr. A’s account will be compensated by the error in Mr. B’s account

Q5 :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 Rs. 15,600 on the trial balance. However, you have figured out that a correctly recorded credit purchase of pen-drive for Rs 3,500 was posted from the journal to the ledger with a Rs. 3,500 debit to Office Equipment and another Rs. 3,500 debit to creditors accounts. Answer each of the following questions and present the amount of any misstatement :
(a) Is the balance of the office equipment account overstated, understated, or correctly stated in the trial balance?
(b) Is the balance of the creditors account overstated, understated, or correctly stated in the trial balance?
(c) Is the debit column total of the trial balance overstated, understated, or correctly stated?
(d) Is the credit column total of the trial balance overstated, understated, or correctly stated?
(e) If the debit column total of the trial balance is Rs. 2,40,000 before correcting the error, what is the total of credit column.
Answer :
According to the given information, trial balance does not agree. Pen-drive is wrongly debited to office equipment account, instead of stationery account and supplier account is debited instead of crediting. Due to these mistakes, the following errors are committed:
The balance of office equipment is overstated by Rs 3,500.
The balance of creditors account is understated by Rs 7,000.
The total of the debit column of the trial balance is correctly stated.
The total of the credit column of the trial balance is understated by Rs 7,000.
If the total of the debit column of the trial balance is Rs 2,40,000 before rectifying error, the total of the credit column of the trial balance is Rs 2,33,000 (i.e., Rs 2,40,000 – Rs 7,000).

Numerical questions : Solutions of Questions on Page Number : 218

Q1 :Rectify the following errors:
(i)Credit sales to Mohan Rs 7,000 were not recorded.
(ii)Credit purchases from Rohan Rs 9,000 were not recorded.
(iii)Goods returned to Rakesh Rs 4,000 were not recorded.
(iv)Goods returned from Mahesh Rs 1,000 were not recorded.
Answer :

Journal
S.No.	Particulars				L.F.	Debit Amount Rs	Credit Amount Rs
(i)	Mohan			Dr.		7,000
		To Sales A/c					7,000
	(Goods sold to Mohan were not recorded, now recorded)

(ii)	Purchases A/c			Dr.		9,000
		To Rohan					9,000
	(Goods purchased to Rohan were not recorded, now recorded)

(iii)	Rakesh			Dr.		4,000
		To Purchases Return A/c					4,000
	(Goods returned to Rakesh were not recorded, now recorded)

(iv)	Sales Return A/c			Dr.		1,000
			To Mahesh				1,000
	(Goods returned from Mahesh were not recorded, now recorded)

Q2 :Rectify the following errors:
(i)Credit sales to Mohan Rs 7,000 were recorded as Rs 700.
(ii)Credit purchases from Rohan Rs 9,000 were recorded. as Rs 900.
(iii)Goods returned to Rakesh Rs 4,000 were recorded as Rs 400.
(iv)Goods returned from Mahesh Rs 1,000 were recorded as Rs 100.
Answer

Journal
S.No.	Particulars					L.F.	Debit Amount Rs	Credit Amount Rs
(i)	Mohan				Dr.		6,300
		To Sales A/c						6,300
	(Goods sold to Mohan Rs 7,000 were recorded as Rs 700, now rectified)

(ii)	Purchases A/c				Dr.		8,100
		To Rohan						8,100
	(Goods purchased from Rohan Rs 9,000 were recorded as Rs 900, now rectified)

(iii)	Rakesh				Dr.		3,600
		To Purchases Return A/c						3,600
	(Goods returned to Rakesh Rs 4,000 were recorded as Rs 400, now rectified)

(iv)	Sales Return A/c			Dr.			900
			To Mahesh					900
	(Goods returned from Mahesh Rs 1,000 were not recorded as Rs 100, now rectified)

Q3 :Rectify the following errors:
(i)Credit sales to Mohan Rs 7,000 were recorded as Rs 7,200.
(ii)Credit purchases from Rohan Rs 9,000 were recorded as Rs 9,900.
(iii)Goods returned to Rakesh Rs 4,000 were recorded as Rs 4,040.
(iv)Goods returned from Mahesh Rs 1,000 were recorded as Rs 1,600.
Answer

Journal
S. No.	Particulars					L.F.	Debit Amount Rs	Credit Amount Rs
(i)	Sales A/c		Dr.				200
		To Mohan						200
	(Goods sold to Mohan Rs 7,000 were recorded as Rs 7,200, now rectified)

(ii)	Rohan		Dr.				900
		To Purchases A/c						900
	(Goods purchased from Rohan Rs 9,000 were recorded as Rs 9,900, now rectified)

(iii)	Purchases Return A/c				Dr.		40
		To Rakesh						40
	(Goods returned to Rakesh Rs 4,000 were recorded as Rs 4,040 now rectified)

(iv)	Mahesh			Dr.			600
		To Sales Return A/c						600
	(Goods returned from Mahesh Rs 1,000 were recorded as Rs 1,600, now rectified)

Q4 : Rectify the following errors:
(a)Salary paid Rs 5,000 was debited to employee’s personal account.
(b)Rent Paid Rs 4,000 was posted to landlord’s personal account.
(c)Goods withdrawn by proprietor for personal use Rs 1,000 were debited to sundry expenses account.
(d)Cash received from Kohli Rs 2,000 was posted to Kapur’s account.
(e)Cash paid to Babu Rs 1,500 was posted to Sabu’s account.
Answer :

Journal
S. No.	Particulars				L.F.	Debit Amount Rs	Credit Amount Rs
(a)	Salaries A/c		Dr.			5,000
		To Employee					5,000
	(Salary paid Rs 5,000 were wrongly debited to Employee’s personal Account, now rectified)

(b)	Rent A/c		Dr.			4,000
		To Land Lord A/c					4,000
	(Rent paid Rs 4,000 was posted to Landlord’s Account, now rectified)

(c)	Drawings A/c		Dr.			1,000
		To Sundry Expenses A/c					1,000
	(Goods drawn by proprietor were wrongly debited to Sundry Expenses Account, now rectified)

(d)	Kapur			Dr.		2,000
		To Kohli					2,000
	(Cash received from Kohli was posted to Kapur’s Account, now rectified)

(e)	Babu		Dr.			1,500
		To Sabu					1,500
	(Cash paid to Babu was posted wrongly to Sabu’s Account, now rectified)

Q5 :Rectify the following errors:
(a)Credit Sales to Mohan Rs 7,000 were recorded in purchases book.
(b)Credit Purchases from Rohan Rs 900 were recorded in sales book.
(c)Goods returned to Rakesh Rs 4,000 were recorded in the sales return book.
(d)Goods returned from Mahesh Rs 1,000 were recorded in purchases return book.
(e)Goods returned from Nahesh Rs 2,000 were recorded in purchases book.
Answer :

Journal
S.No.	Particulars				L.F.	Debit Amount Rs	Credit Amount Rs
(a)	Mohan			Dr.		14,000
		To Sales A/c					7,000
		To Purchases A/c					7,000
	(Goods sold on credit to Mohan were recorded in Purchases Book, now rectified)

(b)	Sales A/c			Dr.		900
	Purchases A/c			Dr.		900
		To Rohan					1,800
	(Goods purchased from Rohan were recorded in Sales Book, now rectified)

(c)	Rakesh			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)

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

(e)	Sales Return A/c		Dr.			2,000
		To Purchases A/c					2,000
	(Goods returned from Mahesh were recorded in Purchases Book, now rectified)

Q6 :Rectify the following errors:
(a)Sales book overcast by Rs 700.
(b)Purchases book overcast by Rs 500.
(c)Sales return book overcast by Rs 300.
(d)Purchase return book overcast by Rs 200.
Answer :

Journal
S.No.	Particulars						L.F.	Debit Amount Rs	Credit Amount Rs
(a)	Sales A/c					Dr.		700
		To Suspense A/c							700
	(Sales Book overcast by Rs 700, now rectified)

(b)	Suspense A/c					Dr.		500
			To Purchases A/c						500
	(Purchases Book overcast by Rs 500, now rectified)

(c)	Suspense A/c				Dr.			300
			To Sales Return A/c						300
	(Sales Return Book overcast by Rs 300, now rectified)

(d)	Purchases Return A/c			Dr.				200
			To Suspense A/c						200
	(Purchases Return Book overcast by Rs 200, now rectified)

Q7 : Rectify the following errors :
(a)Sales book undercast by Rs 300.
(b)Purchases book undercast by Rs 400.
(c)Return Inwards book undercast by Rs 200.
(d)Return outwards book undercast by Rs 100.
Answer :

Journal
S. No.	Particulars				L.F.	Debit Amount Rs	Credit Amount Rs
(a)	Suspense A/c			Dr.		300
		To Sales A/c					300
	(Sales Book undercast by Rs 300, now rectified)

(b)	Purchases A/c			Dr.		400
		To Suspense A/c					400
	(Purchases Book undercast by Rs 400, now rectified)

(c)	Return Inwards A/c		Dr.			200
		To Suspense A/c					200
	(Return Inwards Book undercast by Rs 200, now rectified)

(d)	Suspense A/c		Dr.			100
		To Return Outwards A/c					100
	(Return Outwards Book undercast by Rs 100, now rectified)

Q8 :Rectify the following errors and ascertain the amount of difference in trial balance by preparing suspense account:(a)Credit sales to Mohan Rs 7,000 were not posted.
(b)Credit purchases from Rohan Rs 9,000 were not posted.
(c)Goods returned to Rakesh Rs 4,000 were not posted.
(d)Goods returned from Mahesh Rs 1,000 were not posted.
(e)Cash paid to Ganesh Rs 3,000 was not posted.
(f)Cash sales Rs 2,000 were not posted.
Answer :

S. No.	Particulars					L.F.	Debit Amount Rs	Credit Amount Rs
(a)	Mohan				Dr.		7,000
		To Suspense A/c						7,000
	(Goods sold on credit to Mohan were not posted in Mohan’s Account, now rectified)

(b)	Suspense A/c			Dr.			9,000
		To Rohan						9,000
	(Goods purchased from Rohan were not posted in Rohan’s Account, now rectified)

(c)	Rakesh		Dr.				4,000
		To Suspense A/c						4,000
	(Goods returned to Rakesh were not posted in Rakesh’s Account, now rectified)

(d)	Suspense A/c			Dr.			1,000
		To Mahesh						1,000
	(Goods return from Mahesh were not omitted to be recorded in Mahesh’s Account, now rectified)

(e)	Ganesh		Dr.				3,000
		To Suspense A/c						3,000
	(Cash paid to Ganesh was not posted to Ganesh’s Account , now recorded)

(f)	Suspense A/c		Dr.				2,000
		To Sales A/c						2,000
	(Cash receipts from sale, was not posted to Sales Account, now rectified)

Suspense Account
Dr.							Cr.
S. No.	Particulars	J.F.	Amount Rs	S. No.	Particulars	J.F.	Amount Rs
(b)	Rohan		9,000	(a)	Mohan		7,000
(d)	Mahesh		1,000	(c)	Rakesh		4,000
(f)	Sales		2,000	(e)	Ganesh		3,000
	Balance c/d		2,000

			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.

Q9 :Rectify the following errors and ascertain the amount of difference in trial balance by preparing suspense account:
(a)Credit sales to Mohan Rs 7,000 were posted as Rs 9,000.
(b)Credit purchases from Rohan Rs 9,000 were posted as Rs 6,000.
(c)Goods returned to Rakesh Rs 4,000 were posted as Rs 5,000.
(d) Goods returned from Mahesh Rs 1,000 were posted as Rs 3,000.
(e)Cash sales Rs 2,000 were posted as Rs 200.
Answer :

S. No.	Particulars			L.F.	Debit Amount Rs	Credit Amount Rs
(a)	Suspense A/c		Dr.		2,000
		To Mohan				2,000
	(Sold goods to Mohan Rs 7,000 wrongly posted as Rs 9,000, now rectified)

(b)	Suspense A/c		Dr.		3,000
		To Rohan				3,000
	(Purchased goods from Rohan Rs 9,000 wrongly posted as Rs 6,000, now rectified)

(c)	Suspense A/c		Dr.		1,000
		To Rakesh				1,000
	(Goods returened to Rakesh Rs 4,000 wrongly posted as Rs 5,000, now rectified)

(d)	Mahesh		Dr.		2,000
		To Suspense A/c				2,000
	(Goods returned from Mahesh Rs 1,000 wrongly posted as 3,000, now rectified)

(e)	Suspense A/c		Dr.		1,800
		To Sales A/c				1,800
	(Goods sold for cash Rs 2,000 wrongly posted as Rs 200, now rectified)

Suspense Account
Dr.							Cr.
S. No.	Particulars	J.F.	Amount Rs	S. No.	Particulars	J.F.	Amount Rs
(a)	Mohan		2,000	(d)	Mahesh		2,000
(b)	Rohan		3,000
(c)	Rakesh		1,000
(e)	Sales		1,800		Balance c/d		5,800

			7,800				7,800

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

Q10 :Rectify the following errors :
(a)Credit sales to Mohan Rs 7,000 were posted to Karan.
(b)Credit purchases from Rohan Rs 9,000 were posted to Gobind.
(c)Goods returned to Rakesh Rs 4,000 were posted to Naresh.
(d)Goods returned from Mahesh Rs 1,000 were posted to Manish.
(e)Cash sales Rs 2,000 were posted to commission account.
Answer :

S. No.	Particulars			L.F.	Debit Amount Rs	Credit Amount Rs
(a)	Mohan		Dr.		7,000
		To Karan				7,000
	(Goods sold to Mohan wrongly posted to Karan’s Account, now rectified)

(b)	Gobind		Dr.		9,000
		To Rohan				9,000
	(Goods purchased to Gobind wrongly posted to Rohan’s Account, now rectified)

(c)	Rakesh		Dr.		4,000
		To Naresh				4,000
	(Goods returned to Rakesh wrongly posted in Naresh’s Account, now rectified)

(d)	Manish		Dr.		1,000
		To Mahesh				1,000
	(Goods returned from Mahesh wrongly posted in Manish’s Account, now rectified)

(e)	Commission A/c		Dr.		2,000
		To Sales A/c				2,000
	(Goods sold for cash wrongly posted to Commission Account, now rectified)

Q11 :Rectify the following errors assuming that a suspense account was opened.
Ascertain the difference in trial balance.
(a)Credit sales to Mohan Rs 7,000 were posted to the credit of his account.
(b)Credit purchases from Rohan Rs 9,000 were posted to the debit of his account as Rs 6,000.
(c)Goods returned to Rakesh Rs 4,000 were posted to the credit of his account.
(d)Goods returned from Mahesh Rs 1,000 were posted to the debit of his account as Rs 2,000.
(e)Cash sales Rs 2,000 were posted to the debit of sales account as Rs 5,000.
Answer :

Journal
S. No.	Particulars			L.F.	Debit Amount Rs	Credit Amount Rs
(a)	Mohan		Dr.		14,000
		To Suspense A/c				14,000
	(Goods sold to Mohan wrongly credited to his account, now rectified)

(b)	Suspense A/c		Dr.		15,000
		To Rohan				15,000
	(Goods purchased from Rohan, Rs 9,000 wrongly debited to Rohan’s Account as Rs 6,000, now rectified)

(c)	Rakesh		Dr.		8,000
		To Suspense A/c				8,000
	(Goods returened to Rakesh wrongly credited to his account, now rectified)

(d)	Suspense A/c		Dr.		3,000
		To Mahesh				3,000
	(Goods returned from Mahesh Rs 1,000 wrongly debited to his account as Rs 2,000, now rectified)

(e)	Suspense A/c		Dr.		7,000
		To Sales A/c				7,000
	(Goods sold for cash for Rs 2,000 wrongly debited to Sales Account as Rs 5,000, now rectified)

Suspense Account
Dr.							Cr.
S. No.	Particulars	J.F.	Amount Rs	S. No.	Particulars	J.F.	Amount Rs
(b)	Rohan		15,000	(a)	Mohan		14,000
(d)	Mahesh		3,000	(c)	Rakesh		8,000
(e)	Sales		7,000		Balance c/d		3,000

			25,000				25,000

Q12 :Rectify the following errors assuming that a suspense account was opened.
Ascertain the difference in trial balance.
(a)Credit sales to Mohan Rs 7,000 were posted to Karan as Rs 5,000.
(b)Credit purchases from Rohan Rs 9,000 were posted to the debit of Gobind as Rs 10,000.
(c)Goods returned to Rakesh Rs 4,000 were posted to the credit of Naresh as Rs 3,000.
(d)Goods returned from Mahesh Rs 1,000 were posted to the debit of Manish as Rs 2,000.
(e)Cash sales Rs 2,000 were posted to commission account as Rs 200.
Answer :

Journal
S. No.	Particulars			L.F.	Debit Amount Rs	Credit Amount Rs
(a)	Mohan		Dr.		7,000
		To Karan				5,000
		To Suspense A/c				2,000
	(Goods sold to Mohan Rs 7,000 posted wrongly to Karan’s Account as Rs 5,000, now rectified)

(b)	Suspense A/c		Dr.		19,000
		To Rohan				9,000
		To Gobind				10,000
	(Goods returned from Rohan Rs 9,000 posted wrongly to Gobind’s Account as Rs 10,000, now rectified)

(c)	Rakesh		Dr.		4,000
	Naresh		Dr.		3,000
		To Suspense A/c				7,000
	(Goods returned to Rakesh Rs 4,000 posted wrongly to Naresh’s Account Rs 3,000, now rectified)

(d)	Suspense A/c		Dr.		3,000
		To Mahesh			1,000
		To Manish				2,000
	(Goods returned from Mahesh Rs 1,000 posted wrongly to Manish’s Account as Rs 2,000, now rectified)

(e)	Commission A/c		Dr.		200
	Suspense A/c		Dr.		1,800
		To Sales A/c				2,000
	(Cash sales Rs 2,000 posted wrongly to the Commission Account as Rs 200, now rectified)

Q13 :Rectify the following errors assuming that suspense account was opened.
Ascertain the difference in trial balance.
(a)Credit sales to Mohan Rs 7,000 were recorded in Purchase Book. However, Mohan’s account was correctly debited.
(b)Credit purchases from Rohan Rs 9,000 were recorded in sales book. However, Rohan’s account was correctly credited.
(c)Goods returned to Rakesh Rs 4,000 were recorded in sales return book. However, Rakesh’s account was correctly debited.
(d)Goods returned from Mahesh Rs 1,000 were recorded through purchases return book. However, Mahesh’s account was correctly credited.
(e)Goods returned to Naresh Rs 2,000 were recorded through purchases book. However, Naresh’s account was correctly debited.
Answer :

Journal
S. No.	Particulars				L.F.	Debit Amount Rs	Credit Amount Rs
(a)	Suspense A/c			Dr.		14,000
		To Sales A/c					7,000
		To Purchases A/c					7,000
	(Goods sold to Mohan wrongly recorded in Purchases Book; however, Mohan’s Account was correctly debited, now rectified)

(b)	Purchases A/c		Dr.			9,000
	Sales A/c		Dr.			9,000
		To Suspense A/c					18,000
	(Purchased goods from Rohan wrongly recorded in Sales Book. However, Rohan’s Account was correctly credited, now rectified)

(c)	Suspense A/c		Dr.			8,000
		To Purchases Return A/c					4,000
		To Sales Return A/c					4,000
	(Goods returned to Rakesh Rs 4,000 wrongly entered in Sales Return Book; however, Rakesh’s Account was correctly debited, now rectified)

(d)	Sales Return A/c		Dr.			1,000
	Purchases Return A/c		Dr.			1,000
		To Suspense A/c					2,000
	(Goods Returned from Mahesh wrongly entered in Purchases Return Book; however, Mahesh’s Account was correctly credited, now rectified)

(e)	Suspense A/c		Dr.			4,000
		To Purchases Return A/c					2,000
		To Purchases A/c					2,000
	(Goods returned to Naresh wrongly entered in Purchases Book; however, correctly debited to Naresh’s Account, now rectified)

Q14 : Rectify the following errors:
(a)Furniture purchased for Rs 10,000 wrongly debited to purchases account.
(b)Machinery purchased on credit from Raman for Rs 20,000 was recorded through purchases book.
(c)Repairs on machinery Rs 1,400 debited to machinery account.
(d)Repairs on overhauling of secondhand machinery purchased Rs 2,000 was debited to Repairs account.
(e)Sale of old machinery at book value of Rs 3,000 was credited to sales account.
Answer :

Journal
S. No.	Particulars			L.F.	Debit Amount Rs	Credit Amount Rs
(a)	Furniture A/c		Dr.		10,000
		To Purchases A/c				10,000
	(Furniture purchased wrongly debited to Purchases Account, now rectified)

(b)	Machinery A/c		Dr.		20,000
		To Purchases A/c				20,000
	(Machinery purchased from Raman wrongly entered in the Purchases Book, now rectified)

(c)	Repairs A/c		Dr.		1,400
		To Machinery A/c				1,400
	(Repair of machinery wrongly debited to Machinery Account, now rectified)

(d)	Machinery A/c		Dr.		2,000
		To Repairs A/c				2,000
	(Overhauling of second hand machine wrongly debited in Repairs Account, now rectified)

(e)	Sales A/c		Dr.		3,000
		To Machinery A/c				3,000
	(Machinery sold wrongly credited to Sales Account, now rectified)

Q15 :Rectify the following errors assuming that suspension account was opened.
Ascertain the difference in trial balance.
(a)Furniture purchased for Rs 10,000 wrongly debited to purchase account as Rs 4,000.
(b)Machinery purchased on credit from Raman for Rs 20,000 recorded through Purchases Book as Rs 6,000.
(c)Repairs on machinery Rs 1,400 debited to Machinery account as Rs 2,400.
(d)Repairs on overhauling of second hand machinery purchased Rs 2,000 was debited to Repairs account as Rs 200.
(e)Sale of old machinery at book value Rs 3,000 was credited to sales account as Rs 5,000.
Answer :

Journal
S. No.	Particulars						L.F.	Debit Amount Rs	Credit Amount Rs
(a)	Furniture A/c				Dr.			10,000
			To Purchases A/c						4,000
			To Suspense A/c						6,000
	(Furniture purchased Rs 10,000 wrongly entered in Purchases Account as Rs 4,000, now rectified)

(b)	Machinery A/c			Dr.				20,000
			To Purchases A/c						6,000
			To Raman						14,000
	(Machinery purchased Rs 20,000 from Raman wrongly entered in Purchases Book as Rs 6,000, now rectified)

(c)	Repairs A/c			Dr.				1,400
	Suspense A/c			Dr.				1,000
			To Machinery A/c						2,400
	(Repair of machinery Rs 1,400 wrongly debited to Machinery Account as Rs 2,400)

(d)	Machinery A/c					Dr.		2,000
		To Repairs A/c							200
		To Suspense A/c							1,800
	(Overhauling of second hand machine Rs 2,000 wrongly debited to Repairs Account as Rs 200, now rectified)

(e)	Sales A/c					Dr.		5,000
		To Machinery A/c							3,000
		To Suspense A/c							2,000
	(Old machinery sold for Rs 3,000 wrongly credited to Sales Account as Rs 5,000, now rectified)

Q16 :Rectify the following errors :
(a)Depreciation provided on machinery Rs 4,000 was not posted.
(b)Bad debts written off Rs 5,000 were not posted.
(c)Discount allowed to a debtor Rs 100 on receiving cash from him was not posted.
(d)Discount allowed to a debtor Rs 100 on receiving cash from him was not posted to discount account.
(e)Bill receivable for Rs 2,000 received from a debtor was not posted.
Answer :

Journal
S. No.	Particulars				L.F.	Debit Amount Rs	Credit Amount Rs
(a)	Depreciation A/c		Dr.			4,000
		To Machinery A/c					4,000
	(Depreciation on machinery was not posted, now rectified)

(b)	Bad debts A/c			Dr.		5,000
		To Debtors A/c					5,000
	(Bad debts written off were not posted, now rectified)

(c)	Discount Allowed A/c			Dr.		100
		To Debtors A/c					100
	(Discount allowed to debtors was not posted, now rectified)

(d)	Discount Allowed A/c			Dr.		100
		To Suspense A/c					100
	(Discount allowed to debtors was not posted in Discount Account, now rectified)

(e)	Bills Receivable A/c			Dr.		2,000
		To Debtors A/c					2,000
	(Bill receivable received from debtor was not posted, now rectified)

Q17 : Rectify the following errors:
(a)Depreciation provided on machinery Rs 4,000 was posted as Rs 400.
(b)Bad debts written off Rs 5,000 were posted as Rs 6,000.
(c)Discount allowed to a debtor Rs 100 on receiving cash from him was posted as Rs 60.
(d)Goods withdrawn by proprietor for personal use Rs 800 were posted as Rs 300.
(e)Bill receivable for Rs 2,000 received from a debtor was posted as Rs 3,000.
Answer :

Journal
S. No.	Particulars				L.F.	Debit Amount Rs	Credit Amount Rs
(a)	Depreciation A/c			Dr.		3,600
		To Machinery A/c					3,600
	(Depreciation provided on machinery Rs 4,000 wrongly posted as Rs 400, now rectified)

(b)	Debtors A/c		Dr.			1,000
		To Bad debt A/c					1,000
	(Bad debt written off Rs 5,000 wrongly posted as Rs 6,000, now rectified)

(c)	Discount Allowed A/c		Dr.			40
		To Debtors A/c					40
	(Discount allowed to debtors Rs 100 wrongly posted as Rs 60, now rectified)

(d)	Drawings A/c		Dr.			500
		To Purchases A/c					500
	(Drawings of goods Rs 800 wrongly posted as Rs 300, now rectified)

(e)	Debtors A/c		Dr.			1,000
		To Bills Receivable A/c					1,000
	(Bills receivable for 2,000 received from debtors wrongly posted as Rs 3,000)

Q18 :Rectify the following errors assuming that suspense account was opened.
Ascertain the difference in trial balance.
(a)Depreciation provided on machinery Rs 4,000 was not posted to Depreciation account.
(b)Bad debts written-off Rs 5,000 were not posted to Debtors account.
(c)Discount allowed to a debtor Rs 100 on receiving cash from him was not posted to discount allowed account.
(d)Goods withdrawn by proprietor for personal use Rs 800 were not posted to Drawings account.
(e)Bill receivable for Rs 2,000 received from a debtor was not posted to Bills receivable account.
Answer :

Journal
S. No.	Particulars			L.F.	Debit Amount Rs	Credit Amount Rs
(a)	Depreciation A/c		Dr.		4,000
		To Suspense A/c				4,000
	(Depreciation on machinery was not posted to Depreciation Account, now rectified)

(b)	Suspense A/c		Dr.		5,000
		To Debtors A/c				5,000
	(Bad debts written off were not posted to Debtors Account, now rectified)

(c)	Discount Allowed A/c		Dr.		100
		To Suspense A/c				100
	(Discount allowed to customers was not posted to Discount Allowed Account, now rectified)

(d)	Drawings A/c		Dr.		800
		To Suspense A/c				800
	(Goods withdrawn by proprietors were not posted to Drawings Account, now rectified)

(e)	Bills Receivable A/c		Dr.		2,000
		To Suspense A/c				2,000
	(Bill Receivable received from debtors were not posted to Bills Receivable Account, now rectified)

Suspense Account
Dr.							Cr.
S. No.	Particulars	J.F.	Amount Rs	S. No.	Particulars	J.F.	Amount Rs
(b)	Debtors		5,000	(a)	Depreciation		4,000
				(e)	Discount Allowed		100
				(d)	Drawing		800
	To Balance c/d		1,900	(e)	Bills Receivable		2,000
			6,900				6,900

Q19 :Trial balance of Anuj did not agree. It showed an excess credit of Rs 6,000.
He put the difference to suspense account. He discovered the following erro Rs
(a)Cash received from Ravish Rs 8,000 posted to his account as Rs 6,000.
(b)Returns inwards book overcast by Rs 1,000.
(c)Total of sales book Rs 10,000 was not posted to Sales account.
(d)Credit purchases from Nanak Rs 7,000 were recorded in sales Book. However, Nanak’s account was correctly credited.
(e)Machinery purchased for Rs 10,000 was posted to purchases account as Rs 5,000. Rectify the errors and prepare suspense account.
Answer :

Journal
S. No.	Particulars			L.F.	Debit Amount Rs	Credit Amount Rs
(a)	Suspense A/c		Dr.		2,000
		To Ravish				2,000
	(Cash received from Ravish Rs 8,000 wrongly posted to his account as Rs 6,000, now rectified)

(b)	Suspense A/c		Dr.		1,000
		To Return Inwards A/c				1,000
	(Return Inwards Book overcast by Rs 1,000, now rectified)

(c)	Suspense A/c		Dr.		10,000
		To Sales A/c				10,000
	(Total of Sales Book was not posted to Sales Account, now rectified)

(d)	Purchases A/c		Dr.		7,000
	Sales A/c				7,000
		To Suspense A/c				14,000
	(Goods purchased from Nanak wrongly posted to Sales Book; however, Nanak’s Account was correctly credited, now rectified)

(e)	Machinery A/c		Dr.		10,000
		To Purchases A/c				5,000
		To Suspense A/c				5,000
	(Machinery purchased Rs 10,000 wrongly posted to Purchases Account Rs 5,000, now rectified)

Suspense Account
Dr.							Cr.
S. No.	Particulars	J.F.	Amount Rs	S. No.	Particulars	J.F.	Amount Rs
	Balance b/d		6,000	(d)	Purchases		7,000
(a)	Ravish		2,000		Sales		7,000
(b)	Return Inwards		1,000	(e)	Machinery		5,000
(c)	Sales		10,000
			19,000				19,000

Q20 : Trial balance of Raju showed an excess debit of Rs 10,000. He put the difference to suspense account and discovered the following errors:
(a)Depreciation written-off the furniture Rs 6,000 was not posted to Furniture account.
(b)Credit sales to Rupam Rs 10,000 were recorded as Rs 7,000.
(c)Purchases book undercast by Rs 2,000.
(d)Cash sales to Rana Rs 5,000 were not posted.
(e)Old Machinery sold for Rs 7,000 was credited to sales account.
(f)Discount received Rs 800 from Kanan on playing cash to him was not posted. Rectify the errors and prepare suspense account.
Answer :

Journal
S. No.	Particulars					L.F.	Debit Amount Rs	Credit Amount Rs
(a)	Suspense A/c			Dr.			6,000
			To Furniture A/c					6,000
	(Depreciation on furniture was not posted to Furniture Account, now rectified)

(b)	Rupam				Dr.		3,000
			To Sales A/c					3,000
	(Goods sold to Rupam Rs 10,000 wrongly recorded as Rs 7,000, now rectified)

(c)	Purchases A/c				Dr.		2,000
		To Suspense A/c						2,000
	(Purchases Book undercast by Rs 2,000, now rectified)

(d)	Cash A/c				Dr.		5,000
		To Sales A/c						5,000
	(Goods sold for cash to Rana were not posted, now rectified)

(e)	Sales A/c				Dr.		7,000
			To Machinery A/c					7,000
	(Sale of old machinery wrongly recorded in Sales Account, now rectified)

(f)	Kanan				Dr.