NCERT Solutions for Class 11-commerce Accountancy Part I Chapter 6 - Trial Balance and Rectification of Errors

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Chapter 6 - Trial Balance and Rectification of Errors Exercise 216

Question SA 1

State the meaning of a Trial Balance.

Solution SA 1

Trial balance is a statement prepared to check the arithmetical accuracy of transactions recorded in the journal, posted into the ledger and balanced in the ledger accounts.  The balance of ledger accounts shows the difference between the total of the debit items and credit items in an account. Personal, real and nominal accounts are considered for preparing the trial balance. Generally, it is prepared at the end of an accounting year. However, it may be prepared at the end of any chosen period, which may be monthly, quarterly, half yearly or annually depending upon when it is required. It helps in the preparation of the financial statements.

Question SA 2

Give two examples of errors of principle?

Solution SA 2

Generally accepted accounting principles are to be followed to record the accounting entries. When accounting entries are recorded in contravention of accounting principles, it is known as an error of principle.

 

  1. Wages paid for installation of new machinery debited to wages account:

    Wages paid for installation of new machinery is a capital expenditure and accordingly machinery account should have been debited. But, here it is treated as revenue expenditure and is debited to wages account. Thus, it violates the accounting principle.

  2. Amount spent on repair of building debited to machinery account: Expense on repair is revenue expenditure and not a capital expenditure. The amount should have been debited to repairs account and to the machinery account which is a capital account. Thus, it violates the accounting principle.
Question SA 3

Give two examples of errors of commission?

Solution SA 3

Errors of commission are committed because of wrong recording, wrong posting, wrong balancing and wrong casting of subsidiary books. Such errors affect the accuracy of the trial balance.

  1. Cash received from a creditor worth Rs.5,000 is recorded in the cash book as Rs.500.

    The transaction is recorded in the cashbook as Rs.500 instead of Rs.5,000. This is an error because of the wrong recording of amount in the cash book.

  2. Amount received from Arun Rs.2,000, is wrongly posted in Tarun's account.

    In this transaction, Tarun's A/c is credited instead of Arun's A/c. This is referred to as an error of wrong posting of transactions.

Question SA 4

What are the methods of preparing trial balance?

Solution SA 4

A trial balance can be prepared in the following three ways :

  1. Totals Method: In this method, the total of the debit and the credit side of the ledger is determined and presented separately in the trial balance. The total of both the sides should match as the accounts are based on double entry system.
  2. Balances Method: In this method, the balances of all ledger accounts are presented in their respective debit and credit columns of the trial balance. The total of both the sides should match as the accounts are based on double entry system and this method of preparing a trial balance is widely used because it helps in the preparation of financial statements.
  3. Totals-cum-balances Method: This method is a blend of the totals and balances method. This method has four columns. The first two columns are to write the totals of the debits and credits of the various accounts and the other two columns are to write the debit or the credit balances of these accounts. This method is time consuming, and hence are not used widely.
Question SA 5

What are the steps taken by an accountant to locate the errors in the trial balance?

Solution SA 5

Steps to identify the errors:

  1. Recast the totals of the debit and credit columns of the trial balance.
  2. Compare each account head and its amount appearing in the trial balance with that of the ledger to detect any difference in amount or omission of any account.
  3. Compare the trial balance of the current year with that of the previous year to check the additions or deletions to any accounts and to verify if there is any unexplained difference in amounts.
  4. Re-check the correctness of balances of individual accounts in their respective ledgers.
  5. Re-check the accuracy of the postings in individual accounts from the transactions entered in the books of original entry.
  6. If the difference between the debit and credit columns is of `1, `10, `100 or `1000, the casting of the subsidiary books should be re-checked.
  7. If the difference between the debit and credit columns is divisible by 2, then there is a possibility that an amount equal to half the difference may have been posted to the wrong side of another ledger account.
  8. The above point may also indicate a complete omission of a posting.
  9. If the difference is divisible by 9, the mistake could be because of transposition of figures.
  10. Still, if it is not possible to locate the errors, the difference in the trial balance for that moment is transferred to the suspense account. All the one-sided errors detected are rectified through this account.

 

Question SA 6

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?

Solution SA 6

In certain cases, when the debit column and the credit column of a trial balance do not agree, then the difference of the trial balance is transferred to a temporary account which is called a suspense account. This account is created to avoid any delay in creation of the financial statements. 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.

When all the errors are detected and rectified, then the suspense account automatically gets balanced. However, when errors still exist and are not rectified, the suspense account will not balance off and the balance amount of the suspense account will have to be transferred to the balance sheet. The debit balance of the suspense account is shown on the assets side and the credit balance is shown on the liabilities side of the balance sheet.

Question SA 7

What kinds of errors would cause difference in the trial balance? Also list examples that would not be revealed by a trial balance? 

Solution SA 7

One-sided errors are the errors which when committed affect the agreement of the trial balance. These errors affect only one account and any one side i.e. debit or the credit side of the account. Errors of partial omission, recording transactions with wrong amount, casting, posting of incorrect amount are examples of one-sided errors.

Two-sided errors do not affect the agreement of the trial balance. Here, are a few examples which would not be revealed in a trial balance:

  1. Purchases from Mr. Shah, completely omitted to be recorded in the purchase book
  2. Purchases made from Vijesh, recorded in Ritesh's account who is another creditor
  3. Stationary purchased for office use recorded in the purchase book
Question SA 8

State the limitations of trial balance?

Solution SA 8

The limitations of a trial balance are as follows:

  1. A tallied trial balance does not indicate that all the transactions are recorded and posted correctly in the books.
  2. If the effect of an error is cancelled by the effect of another error, it cannot be ascertained by the trial balance. Such types of error are termed as compensatory errors.
  3. In cases where, wrong amount is posted on the wrong side of a correct account or correct amount is posted on the correct side of a wrong account, the trial balance fails to reflect such errors.
  4. Errors of principle such as capital expenditure mistakenly regarded as revenue expenditure may not be exposed in the form of mismatch between the two columns of the trail balance.
  5. When a transaction is recorded wrongly in the books of original entry, it leads to errors of recording which are not revealed in the trail balance. 

Chapter 6 - Trial Balance and Rectification of Errors Exercise 217

Question NUM 1

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

Solution NUM 1

 

Rectification Journal Entries

Date

Particulars

 

L.F.

Dr.

Rs. 

Cr.

 Rs. 

 i.  

Mohan's A/c

Dr.

 

7,000

 

 

To Sales A/c

 

 

 

7,000

 

(Being credit sales to Mohan not recorded, now recorded)

 

 

 

 

 ii.  

Purchases A/c

Dr.

 

9,000

 

 

 To Rohan's A/c

 

 

 

9,000

 

(Being credit purchases from Rohan not recorded, now recorded)

 

 

 

 

 iii.  

Rakesh's A/c

Dr.

 

4,000

 

 

To Purchases return A/c

 

 

 

4,000

 

(Being goods returned to Rakesh not recorded, now

recorded)

 

 

 

 

 iv.  

Sales return A/c

Dr.

 

1,000

 

 

To Mahesh's A/c

 

 

 

1,000

 

(Being goods returned from Mahesh not recorded, now recorded )

 

 

 

 

 

Question NUM 2

Rectify the following errors:

  1. Credit sales to Mohan Rs.7,000 were recorded as Rs.700.
  2. Credit purchases from Rohan Rs.9,000 were recorded as Rs.900.
  3. Goods returned to Rakesh Rs.4,000 were recorded as Rs.400.
  4. Goods returned from Mahesh Rs.1,000 were recorded as Rs.100. 
Solution NUM 2

 

Rectification Journal Entries

Date

Particulars

 

L.F.

Dr.

Rs. 

Cr.

 Rs. 

 i.  

Mohan's A/c

Dr.

 

6,300

 

 

To Sales A/c

 

 

 

6,300

 

(Being credit sales to Mohan Rs.7,000 wrongly recorded as Rs.700, now rectified)

 

 

 

 

 ii.  

Purchases A/c

Dr.

 

8,100

 

 

To Rohan's A/c

 

 

 

8,100

 

(Being credit purchases from Rohan Rs.9,000 wrongly recorded as Rs.900, now rectified )

 

 

 

 

 iii.  

Rakesh's A/c

Dr.

 

3,600

 

 

To Purchases return A/c

 

 

 

3,600

 

(Being goods returned to Rakesh Rs.4,000 wrongly recorded as Rs.400, now rectified)

 

 

 

 

 iv.  

Sales Return A/c

Dr.

 

900

 

 

To Mahesh's A/c

 

 

 

900

 

(Being goods returned from Mahesh Rs.1,000 wrongly recorded as Rs.100, now rectified )

 

 

 

 

 

Question NUM 3

Rectify the following errors:

  1. Credit sales to Mohan Rs.7,000 were recorded as Rs.7,200.
  2. Credit purchases from Rohan Rs.9,000 were recorded as Rs.9,900.
  3. Goods returned to Rakesh Rs.4,000 were recorded as Rs.4,040.
  4. Goods returned from Mahesh Rs.1,000 were recorded as Rs.1,600.
Solution NUM 3

Rectification Journal Entries

Date

Particulars

 

L.F.

Dr.

Rs. 

Cr.

 Rs. 

 i.  

Sales A/c

Dr.

 

200

 

 

To Mohan's A/c

 

 

 

200

 

(Being sales to Mohan Rs.7,000 were recorded as Rs.7,200, now rectified)

 

 

 

 

 ii.  

Rohan's A/c

Dr.

 

900

 

 

To Purchases A/c

 

 

 

900

 

(Being goods purchased from Rohan Rs.9,000 were recorded as Rs.9,900, now rectified )

 

 

 

 

 iii.  

Purchases return A/c

Dr.

 

40

 

 

To Rakesh's A/c

 

 

 

40

 

(Being goods returned to Rakesh Rs.4,000 were recorded as Rs.4,040, now rectified)

 

 

 

 

 iv.  

Mahesh's A/c

Dr.

 

600

 

 

 To Sales return A/c

 

 

 

600

 

(Being goods returned from Mahesh Rs.1,000 were recorded as Rs.1,600,  now rectified )

 

 

 

 

 

Question LA 1

Describe the purpose for the preparation of trial balance. 

Solution LA 1

The important purposes for which the trial balance was prepared are explained with the help of the following points:

  1. Ascertain the arithmetical accuracy of ledger accounts - The trial balance helps to ascertain whether all the debits and credits are properly recorded in the ledger. When the debit and the credit balances are equal, it is said that the posting and the balancing of the accounts is arithmetically correct. However, the tallying of the trial balance cannot be considered as a conclusive proof of accuracy of the books.

 

  1. Helps in locating errors - When a trial balance does not tally, it helps in detecting or locating the errors. The error may have occurred at any one of the stages of an accounting process; namely,

 Totaling of the subsidiary books

 Posting of journal entries in the ledger

 Calculating account balances

 Carrying account balances to the trial balance

 Totaling the trial balance columns

 

  1. Helps in the preparation of the financial statements - Trial balance is a statement which lists the debit and credit balances of all ledger accounts and helps in the preparation of the financial statements. Hence, it is considered as a connecting link between the accounting records and the preparation of financial statements. 
Question LA 2

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

Solution LA 2

Generally accepted accounting principles are to be followed to record the accounting entries. When accounting entries are recorded violating or ignoring these principles, the error, thus, committed is known as error of principle. These errors do not affect the agreement of the trial balance.

 

i. Wages paid for construction of building are debited to wages account.

Wrong entry:

Wages A/c

Dr.

 

To Cash A/c

 

(Being wages paid for construction of building)

 

Wages paid for the construction of building is to be treated as a capital expenditure and has to be debited to the building account instead of the wages account. Thus, the correct entry is

Building A/c

Dr.

 

To Cash A/c

 

(Being wages paid for construction of building)

Hence, to rectify the error Building A/c needs to be debited and Wages A/c needs to be credited as it was wrongly debited. The rectifying entry is:

Building A/c

Dr.

 

To Wages A/c

 

(Being wages paid for construction of building wrongly debited to wages account, now rectified)

 

ii. Furniture purchased for Rs.10,000 wrongly debited to purchases account.

Wrong entry made:

Purchase A/c

Dr.

 

To Cash A/c

 

(Being furniture purchased wrongly debited to purchases account)

Furniture is an asset and the purchase of the same should be debited to furniture account instead of purchases account. Thus, the correct entry is:

Furniture A/c

Dr.

 

To Cash A/c

 

(Being old machinery sold for cash)

 

To rectify this error, Furniture A/c needs to be debited and Purchase A/c needs to be credited as it is wrongly debited. Thus, the rectifying entry is:

Furniture A/c

Dr.

 

To Purchase A/c

 

(Being furniture purchased for wrongly debited to purchases account, now rectified)

 

Question LA 3

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

Solution LA 3

The errors which are committed because of wrong posting of transactions, wrong balancing of accounts, wrong casting of subsidiary books, wrong totaling or wrong recording of amount in the books are all error of commission. These errors affect the agreement of the trial balance.

i. Purchases done from Rohan worth Rs.10,000 recorded as Rs.1,000.

Here, the transaction is recorded for Rs.1,000 instead of Rs.10,000. This is an error of wrong recording of amount. Purchases A/c requires a further debit of Rs.9,000 and Rohan's A/c requires a further credit of Rs.9,000.The rectifying entry is:

Purchases A/c

Dr.

9,000

 

 

To Rohan's A/c

 

 

9,000

(Being goods purchased from Rohan of Rs.10,000 wrongly recorded as Rs.1,000, now rectified)

 

 

 

ii. Sales book totaled as Rs.5,000 instead of Rs.50,000.

Here, the total sales of the book are short by Rs.45,000. This error can be rectified at any of the following two stages:

a. If the error is located before preparing trial balance, then Rs.45,000 should be recorded in the credit side of Sales Account.

b. If an error is located after preparing Trial Balance, then assuming that a suspense account is opened the following entry needs to be recorded.

Suspense A/c

Dr.

45,000

 

 

To Sales A/c

45,000

(Being sales book wrongly totaled as Rs.5,000 instead of Rs.50,000)

 

Question LA 4

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

Solution LA 4

According to the nature of errors committed, errors are classified into the following four categories:

  1. Errors of Commission: The errors that are committed because of wrong posting of transactions, wrong balancing of accounts, wrong casting of subsidiary books, wrong totaling or wrong recording of amount in the books are all error of commission. These errors affect the agreement of the trial balance.

 

  1. Errors of Omission: These errors are of two types and are committed when a transactions is partially or completely omitted to be recorded in the books.

a. Error of complete omission - When a transaction is completely omitted to be recorded in the books of accounts or to be posted in the respective ledgers, it is an error of complete omission. Such errors do not affect the agreement of the trial balance.

b. Error of partial omission - When a transaction is partially omitted while recording in the books or amounts or partially omitted from posting in the ledger, it is an error of partial omission. Such errors affect the agreement of the trial balance.

 

  1. Errors of Principle: Accounting transactions are to be recorded following certain principles. If any of the principle of accounting entries are violated or ignored and the error occurring due to such violation is called error of principle.

 

  1. Compensating errors: When two or more errors are committed in such a way that the net effect of these errors on the debits and credits of accounts is nil, such errors are called compensating errors. 
Question LA 5

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.

Solution LA 5

Pen-drive is wrongly debited to office equipment account, instead of stationery account and supplier account is debited instead of crediting. Because of these mistakes, the following errors are committed:

a. The balance of office equipment is overstated by Rs.3,500

b. The balance of creditors account is understated by Rs.7,000

c. The total of the debit column of the trial balance is correctly stated.

d. The total of the credit column of the trial balance is understated by Rs.7,000.

e. 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).

Chapter 6 - Trial Balance and Rectification of Errors Exercise 218

Question NUM 4

Rectify the following errors:

  1. Salary paid Rs.5,000 was debited to employee's personal account.
  2. Rent paid Rs.4,000 was posted to landlord's personal account.
  3. Goods withdrawn by proprietor for personal use Rs.1,000 were debited to sundry expenses account.
  4. Cash received from Kohli Rs.2,000 was posted to Kapur's account.
  5. Cash paid to Babu Rs.1,500 was posted to Sabu's account. 
Solution NUM 4

Rectification Journal Entries

Date

Particulars

 

L.F.

Dr.

Rs. 

Cr.

 Rs. 

 i.  

Salaries A/c

Dr.

 

5,000

 

 

 To Employee's A/c

 

 

 

5,000

 

(Being salaries paid Rs.5,000 wrongly debited to employee's personal account, now rectified )

 

 

 

 

 ii.  

Rent A/c

Dr.

 

4,000

 

 

 To Land Landlord's A/c

 

 

 

4,000

 

(Being rent paid Rs.4,000 was wrongly posted to landlord's account, now rectified )

 

 

 

 

 iii.  

Drawings A/c

Dr.

 

1,000

 

 

 To Sundry Expenses A/c

 

 

 

1,000

 

(Being goods drawn by proprietor for personal use wrongly debited to sundry expenses, now rectified)

 

 

 

 

 iv.  

Kapur's A/c

Dr.

 

2,000

 

 

 To Kohli's A/c

 

 

 

2,000

 

(Being cash received from Kohli was posted to Kapur's account, now rectified )

 

 

 

 

 v.  

Babu's A/c

 

 

1,500

 

 

 To Sabu's A/c

 

 

 

1,500

 

(Being cash paid to Babu was posted wrongly to Sabu's account, now rectified )

 

 

 

 

 

Question NUM 5

Rectify the following errors:

  1. Credit Sales to Mohan Rs.7,000 were recorded in purchases book 
  2. Credit Purchases from Rohan Rs.900 were recorded in sales book 
  3. Goods returned to Rakesh Rs.4,000 were recorded in the sales return book 
  4. Goods returned from Mahesh Rs.1,000 were recorded in purchases return book 
  5. Goods returned from Mahesh Rs.2,000 were recorded in purchases book 
Solution NUM 5

Rectification Journal Entries

Date

Particulars

 

L.F.

Dr.

Rs. 

Cr.

 Rs. 

 i.  

Mohan A/c

Dr.

 

14,000

 

 

 To Sales A/c

 

 

 

7,000

 

 To Purchases A/c

 

 

 

7,000

 

(Being credit sales to Mohan recorded in purchase Book, now rectified)

 

 

 

 

 ii.  

Sales A/c

Dr.

 

900

 

 

Purchases A/c

Dr.

 

900

 

 

 To Rohan A/c

 

 

 

1,800

 

(Being credit purchases from Rohan recorded in sales book, now rectified )

 

 

 

 

 iii.  

Rakesh A/c

Dr.

 

8,000

 

 

 To Purchases Return A/c

 

 

 

4,000

 

 To Sales Return A/c

 

 

 

4,000

 

(Being goods returned to Rakesh were recorded in sales return book, now rectified

 

 

 

 

 iv.  

Sales Return A/c

Dr.

 

1,000

 

 

Purchases Return A/c

Dr.

 

1,000

 

 

 To Mahesh A/c

 

 

 

2,000

 

(Being goods returned from Mahesh were recorded in purchases return book, now rectified)

 

 

 

 

 v.  

Sale Return A/c

Dr.

 

2,000

 

 

 To Purchases A/c

 

 

 

2,000

 

 (Being goods returned from Mahesh were recorded in purchases book, now rectified )

 

 

 

 

 

Question NUM 6

Rectify the following errors:

  1. Sales book overcast by Rs.700. 
  2. Purchases book overcast by Rs.500. 
  3. Sales return book overcast by Rs.300. 
  4. Purchase returns book overcast by Rs.200. 
Solution NUM 6

Rectification Journal Entries

Date

Particulars

 

L.F.

Dr.

Rs. 

Cr.

 Rs. 

 i.  

Sales A/c

Dr.

 

700

 

 

 To Suspense A/c

 

 

 

700

 

(Being sales book overcast by Rs.700, now rectified )

 

 

 

 

 ii.  

Suspense A/c

Dr.

 

500

 

 

 To Purchases A/c

 

 

 

500

 

(Being purchases book overcast by Rs.500, now rectified )

 

 

 

 

 iii.  

Suspense A/c

Dr.

 

300

 

 

 To Sales return A/c

 

 

 

300

 

(Being sales returned book overcast by Rs.300, now rectified)

 

 

 

 

 iv.  

Purchase return A/c

Dr.

 

200

 

 

 To Suspense A/c

 

 

 

200

 

(Being purchases return book overcast by Rs.200, now rectified)

 

 

 

 

 

 

 

 

 

 

Note:

It is assumed that the suspense account is opened to rectify the errors in the trial balance.

Question NUM 7

Rectify the following errors:

  1. Sales book undercast by Rs.300. 
  2. Purchases book undercast by Rs.400. 
  3. Return inwards book undercast by Rs.200. 
  4. Return outwards book undercast by Rs.100. 
Solution NUM 7

Rectification Journal Entries

Date

Particulars

 

L.F.

Dr.

Rs. 

Cr.

 Rs. 

 i.  

Suspense A/c

Dr.

 

300

 

 

 To Sales A/c

 

 

 

300

 

(Being the sales book undercast by Rs.300, now rectified)

 

 

 

 

 ii.  

Purchases A/c

Dr.

 

400

 

 

 To Suspense A/c

 

 

 

400

 

(Being the sales book overcast by Rs.400, now rectified)

 

 

 

 

 iii.  

Return inwards A/c

Dr.

 

200

 

 

 To Suspense A/c

 

 

 

200

 

(Being the return inward undercast by Rs.200, now rectified)

 

 

 

 

 iv.  

Suspense A/c

Dr.

 

100

 

 

 To Return outwards A/c

 

 

 

100

 

(Being the return outwards book undercast by Rs.100, now rectified)

 

 

 

 

 

Note:

It is assumed that the suspense account is opened to rectify the errors in the trial balance.

Question NUM 8

Rectify the following errors and ascertain the amount of difference in trial balance by preparing suspense account:

  1. Credit sales to Mohan Rs.7,000 were not posted. 
  2. Credit purchases from Rohan Rs.9,000 were not posted. 
  3. Goods returned to Rakesh Rs.4,000 were not posted. 
  4. Goods returned from Mahesh Rs.1,000 were not posted. 
  5. Cash paid to Ganesh Rs.3,000 was not posted. 
  6. Cash sales Rs.2,000 were not posted. 
Solution NUM 8

Rectification Journal Entries

Date

Particulars

 

L.F.

Dr.

Rs. 

Cr.

 Rs. 

 i.  

Mohan's A/c

Dr.

 

7,000

 

 

 To Suspense A/c

 

 

 

7,000

 

(Being the goods sold on credit to Mohan were not, now rectified )

 

 

 

 

 ii.  

Suspense A/c

Dr.

 

9,000

 

 

 To Rohan's A/c

 

 

 

9,000

 

(Being the goods purchased from Rohan were not posted in Rohan's account, now rectified )

 

 

 

 

 iii.  

Rakesh's A/c

Dr.

 

4,000

 

 

 To Suspense A/c

 

 

 

4,000

 

(Being the sales returned book overcast by Rs.300, now rectified)

 

 

 

 

 iv.  

Suspense A/c

Dr.

 

1,000

 

 

 To Mahesh's A/c

 

 

 

1,000

 

(Being the goods return from Mahesh were not omitted to be recorded in Mahesh's account, now rectified)

 

 

 

 

 v.  

Ganesh's A/c

Dr.

 

3,000

 

 

 To Suspense A/c

 

 

 

3,000

 

(Being the cash paid to Ganesh were not posted to Ganesh's account, now recorded)

 

 

 

 

 vi.  

Suspense A/c

Dr.

 

2,000

 

 

 To Sales A/c

 

 

 

2,000

 

(Being the cash receipts from sales, were not posted to Sales Account, now rectified )

 

 

 

 

 

 

 

Suspense Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs. 

Date

Particulars

J.F.

Amount

Rs. 

 

To Rohan A/c

 

9,000

 

By Mohan A/c

 

7,000

 

To Mahesh A/c

 

1,000

 

By Rakesh A/c

 

4,000

 

To Sales A/c

 

2,000

 

By Ganesh A/c

 

3,000

 

To Balance c/d

 

2,000

 

 

 

 

 

 

 

14,000

 

 

 

14,000

 

 

 

Question NUM 9

Rectify the following errors and ascertain the amount of difference in trial balance by preparing suspense account:

  1. Credit sales to Mohan Rs.7,000 were posted as Rs.9,000. 
  2. Credit purchases from Rohan Rs.9,000 were posted as Rs.6,000. 
  3. Goods returned to Rakesh Rs.4,000 were posted as Rs.5,000. 
  4. Goods returned from Mahesh Rs.1,000 were posted as Rs.3,000. 
  5. Cash sales Rs.2,000 were posted as Rs.200. 
Solution NUM 9

Rectification Journal Entries

Date

Particulars

 

L.F.

Dr.

Rs. 

Cr.

 Rs. 

 i.  

 Suspense A/c

Dr.

 

2,000

 

 

To Mohan's A/c

 

 

 

2,000

 

(Being credit sales to Mohan were not posted in Mohan's account, now rectified)

 

 

 

 

 ii.  

Suspense A/c

Dr.

 

3,000

 

 

To Rohan's A/c

 

 

 

3,000

 

(Being purchases from Rohan Rs.9,000 wrongly posted as Rs.6,000, now rectified )

 

 

 

 

 iii.  

Suspense A/c

Dr.

 

1,000

 

 

To Rakesh's A/c

 

 

 

1,000

 

(Being goods returned to Rakesh Rs.4,000 wrongly posted as Rs.5,000, now rectified)

 

 

 

 

 iv.  

Mahesh's A/c

Dr.

 

2,000

 

 

To Suspense A/c

 

 

 

2,000

 

(Being goods returned from Mahesh Rs.1,000 wrongly posted as Rs.3,000 )

 

 

 

 

 v.  

Suspense A/c

Dr.

 

1,800

 

 

To Sales A/c

 

 

 

1,800

 

(Being cash sales of Rs.2,000 wrongly posted as Rs.200, now rectified)

 

 

 

 

 

 

Suspense Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs. 

Date

Particulars

J.F.

Amount

Rs. 

 

To Mohan A/c

 

2,000

 

By Mahesh A/c

 

2,000

 

To Rohan A/c

 

3,000

 

By Balance c/d

 

5,800

 

To Rakesh A/c

 

1,000

 

 

 

 

 

To Sales A/c

 

1,800

 

 

 

 

 

 

 

7,800

 

 

 

7,800

 

Chapter 6 - Trial Balance and Rectification of Errors Exercise 219

Question NUM 10

Rectify the following errors:

  1. Credit sales to Mohan Rs.7,000 were posted to Karan. 
  2. Credit purchases from Rohan Rs.9,000 were posted to Gobind 
  3. Goods returned to Rakesh Rs.4,000 were posted to Naresh. 
  4. Goods returned from Mahesh Rs.1,000 were posted to Manish. 
  5. Cash sales Rs.2,000 were posted to commission account. 
Solution NUM 10

 

Rectification Journal Entries

Date

Particulars

 

L.F.

Dr.

Rs. 

Cr.

 Rs. 

 i.  

Mohan's A/c

Dr.

 

7,000

 

 

 To Karan's A/c

 

 

 

7,000

 

(Being goods sold on credit to Mohan were posted to Karan account, now rectified )

 

 

 

 

 ii.  

Gobind's A/c

Dr.

 

9,000

 

 

 To Rohan A/c

 

 

 

9,000

 

(Being goods purchased from Rohan were posted to Gobind's account, now rectified)

 

 

 

 

 iii.  

Rakesh's A/c

Dr.

 

4,000

 

 

 To Naresh's A/c

 

 

 

4,000

 

(Being goods returned to Rakesh were posted to Naresh account, now rectified)

 

 

 

 

 iv.  

Manish's A/c

Dr.

 

1,000

 

 

 To Mahesh's A/c

 

 

 

1,000

 

(Being goods returned from Mahesh were posted to Manish's account, now rectified )

 

 

 

 

 v.  

Commission A/c

Dr.

 

2,000

 

 

 To Sales A/c

 

 

 

2,000

 

(Being cash sales were posted to commission account, now rectified)

 

 

 

 

 

Question NUM 11

Rectify the following errors assuming that a suspense account was opened.Ascertain the difference in trial balance. 

  1. Credit sales to Mohan Rs.7,000 were posted to the credit of his account. 
  2. Credit purchases from Rohan Rs.9,000 were posted to the debit of his account as Rs.6,000. 
  3. Goods returned to Rakesh Rs.4,000 were posted to the credit of his account. 
  4. Goods returned from Mahesh Rs.1,000 were posted to the debit of his account as Rs.2,000. 
  5. Cash sales Rs.2,000 were posted to the debit of sales account as Rs.5,000. 
Solution NUM 11

Rectification Journal Entries

Date

Particulars

 

L.F.

Dr.

Rs. 

Cr.

Rs. 

 i.  

Mohan A/c

Dr.

 

14,000

 

 

 

To Suspense A/c

 

 

 

14,000

 

(Being goods sold to Mohan wrongly credited to his account, now rectified)

 

 

 

 

 ii.  

Suspense A/c

Dr.

 

15,000

 

 

 

To Rohan A/c

 

 

 

15,000

 

(Being credit purchases from RohanRs.9,000 were posted to the debit of his account as Rs.6,000, now rectified )

 

 

 

 

 iii.  

Rakesh A/c

Dr.

 

8,000

 

 

 

To Suspense A/c

 

 

 

8,000

 

(Being goods returned to Rakesh wrongly credited to his account, now rectified)

 

 

 

 

 iv.  

Suspense A/c

Dr.

 

3,000

 

 

 

To Mahesh A/c

 

 

 

3,000

 

(Being goods returned from Mahesh Rs.1,000 wrongly debited to his account as Rs.2,000, now rectified)

 

 

 

 

 v.  

Suspense A/c

Dr.

 

7,000

 

 

 

To Sales A/c

 

 

 

7,000

 

(Being cash sales Rs.2,000 were posted to the debit of sales account as Rs.5,000, now rectified)

 

 

 

 

 

Suspense Account

Dr.

 

 

 

 

 

 

Cr. 

Date

Particulars

J.F.

Amount

Rs. 

Date

Particulars

J.F.

Amount

Rs. 

 

To Rohan A/c

 

15,000

 

By Mohan A/c

 

14,000

 

To Mahesh A/c

 

3,000

 

By Rakesh A/c

 

8,000

 

To Sales A/c

 

7,000

 

By Balance c/d

 

3,000

 

 

 

25,000

 

 

 

25,000

 

 

 

 

 

 

Question NUM 12

Rectify the following errors assuming that a suspense account was opened. Ascertain the difference in trial balance.

  1. Credit sales to Mohan Rs.7,000 were posted to Karan as Rs.5,000. 
  2. Credit purchases from Rohan Rs.9,000 were posted to the debit of Gobind as Rs.10,000. 
  3. Goods returned to Rakesh Rs.4,000 were posted to the credit of Naresh as Rs.3,000. 
  4. Goods returned from Mahesh Rs.1,000 were posted to the debit of Manish as Rs.2,000. 
  5. Cash sales Rs.2,000 were posted to commission account as Rs.200. 
Solution NUM 12

Rectification Journal Entries

Date

Particulars

 

L.F.

Dr.

Rs. 

Cr.

Rs. 

 i.  

Mohan's A/c

Dr.

 

7,000

 

 

--------To Karan's A/c

 

 

 

5,000

 

--------To Suspense A/c

 

 

 

2,000

 

(Being goods sold to Mohan Rs.7,000 wrongly posted to Karan's accountRs.5,000, now rectified)

 

 

 

 

 ii.  

Suspense A/c

Dr.

 

19,000

 

 

--------To Rohan's A/c

 

 

 

9,000

 

--------To Gobind's A/c

 

 

 

10,000

 

(Being goods purchased from RohanRs.9,000 posted wrongly to the debit of Gobind's account as Rs.10,000, now rectified)

 

 

 

 

 iii.  

Rakesh's A/c

Dr.

 

4,000

 

 

Naresh's A/c

Dr.

 

3,000

 

 

--------To Suspense A/c

 

 

 

7,000

 

(Being goods returned to RakeshRs.4,000 posted wrongly to the credit of Rs.3,000, now rectified)

 

 

 

 

 iv.  

Suspense A/c

Dr.

 

3,000

 

 

--------To Mahesh's A/c

 

 

 

1,000

 

--------To Manish's A/c

 

 

 

2,000

 

(Being goods returned from Mahesh Rs.1,000 posted wrongly to the debit of Manish's account as Rs.2,000, now rectified)

 

 

 

 

 v.  

Commission A/c

Dr.

 

200

 

 

Suspense A/c

Dr.

 

1,800

 

 

--------To Sales A/c

 

 

 

2,000

 

(Being cash sales Rs.2,000 posted wrongly to the Commission Account as Rs.200, now rectified)

 

 

 

 

 

Suspense Account

Dr.

 

 

 

 

 

 

Cr. 

Date

Particulars

J.F.

Amount

Rs. 

Date

Particulars

J.F.

Amount

Rs. 

 

To Rohan A/c

 

9,000

 

By Mohan A/c

 

2,000

 

To Gobind A/c

 

10,000

 

By Rakesh A/c

 

4,000

 

To Mahesh A/c

 

1,000

 

By Naresh A/c

 

3,000

 

To Manish A/c

 

2,000

 

By Balance c/d

 

14,800

 

To Sales A/c

 

1,800

 

 

 

 

 

 

 

23,800

 

 

 

23,800

 

 

 

 

 

 

 

Question NUM 13

Rectify the following errors assuming that suspense account was opened. Ascertain the difference in trial balance.

  1. Credit sales to Mohan Rs.7,000 were recorded in Purchase Book. However, Mohan's account was correctly debited. 
  2. Credit purchases from Rohan Rs.9,000 were recorded in sales book. However, Rohan's account was correctly credited. 
  3. Goods returned to Rakesh Rs.4,000 were recorded in sales return book. However, Rakesh's account was correctly debited. 
  4. Goods returned from Mahesh Rs.1,000 were recorded through purchases return book. However, Mahesh's account was correctly credited. 
  5. Goods returned to Naresh Rs.2,000 were recorded through purchases book. However, Naresh's account was correctly debited. 
Solution NUM 13

Rectification Journal Entries

Date

Particulars

 

L.F.

Dr.

Rs. 

Cr.

Rs. 

 i.  

 Suspense A/c

Dr.

 

14,000

 

 

--------To Sales A/c

 

 

 

7,000

 

--------To Purchases A/c

 

 

 

7,000

 

(Being the goods sold to Mohan wrongly recorded in purchases book; however, Mohan's account was correctly debited, now rectified)

 

 

 

 

 ii.  

Purchases A/c

Dr.

 

9,000

 

 

Sales A/c

 

 

9,000

 

 

--------To Suspense A/c

 

 

 

18,000

 

(Being the purchased goods from Rohan wrongly recorded in sales book; however, Rohan's account was correctly credited, now rectified)

 

 

 

 

 iii.  

Suspense A/c

Dr.

 

8,000

 

 

--------To Purchases Return A/c

 

 

 

4,000

 

--------To Sales Return A/c

 

 

 

4,000

 

(Being goods returned to Rakesh Rs.4,000 wrongly entered in Sales Return Book; however, Rakesh's account was correctly  debited, now rectified)

 

 

 

 

 iv.  

Sales Return A/c

Dr.

 

1,000

 

 

Purchases Return A/c

 

 

1,000

 

 

--------To Suspense A/c

 

 

 

2,000

 

(Being goods returned from Mahesh wrongly entered in purchases return book; however, Mahesh's account was correctly credited, now rectified)

 

 

 

 

 

 

 

 

 

 

 v.  

Suspense A/c

Dr.

 

4,000

 

 

--------To Purchases Return A/c

 

 

 

2,000

 

--------To Purchases A/c

 

 

 

2,000

 

(Being goods returned to Naresh wrongly entered in purchases book; however, correctly debited to Naresh's Account, now rectified)

 

 

 

 

 

 

Suspense Account

Dr.

 

 

 

 

 

 

Cr. 

Date

Particulars

J.F.

Amount

Rs. 

Date

Particulars

J.F.

Amount

Rs. 

 

To Sales A/c

 

7,000

 

By Purchases A/c

 

9,000

 

To Purchases A/c

 

7,000

 

By Sales A/c

 

9,000

 

To Purchases Return A/c

 

4,000

 

By Sales Return A/c

 

1,000

 

To Sales Return A/c

 

4,000

 

By Purchases Return A/c

 

1,000

 

To Purchases Return A/c

 

2,000

 

By Balance c/d

 

6,000

 

To Purchases A/c

 

2,000

 

 

 

 

 

 

 

26,000

 

 

 

26,000

 

Chapter 6 - Trial Balance and Rectification of Errors Exercise 220

Question NUM 14

Rectify the following errors:

  1. Furniture purchased for Rs.10,000 wrongly debited to purchases account.
  2. Machinery purchased on credit from Raman for Rs.20,000 was recorded through purchases book.
  3. Repairs on machinery Rs.1,400 debited to machinery account.
  4. Repairs on overhauling of second hand machinery purchased Rs.2,000 was debited to repairs account.
  5. Sale of old machinery at book value of Rs.3,000 was credited to sales account.
Solution NUM 14

 

Rectification Journal Entries

Date

Particulars

 

L.F.

Dr.

Rs. 

Cr.

Rs. 

 i.  

Furniture A/c

Dr.

 

10,000

 

 

--------To Purchases A/c

 

 

 

10,000

 

(Being furniture purchased wrongly debited to purchases account, now rectified)

 

 

 

 

 

 

 

 

 

 

 ii.  

Machinery A/c

Dr.

 

20,000

 

 

--------To Purchases A/c

 

 

 

20,000

 

(Being machinery purchased from Raman wrongly entered in the purchases book, now rectified)

 

 

 

 

 

 

 

 

 

 

 iii.  

Repairs on Machinery A/c

Dr.

 

1,400

 

 

--------To Machinery A/c

 

 

 

1,400

 

(Being repair on machinery wrongly debited to machinery account, now rectified)

 

 

 

 

 

 

 

 

 

 

 iv.  

Machinery A/c

Dr.

 

2,000

 

 

--------To Repairs A/c

 

 

 

2,000

 

(Being overhauling of second hand machine wrongly debited in repairs account, now rectified)

 

 

 

 

 

 

 

 

 

 

 v.  

Sales A/c

Dr.

 

3,000

 

 

--------To Machinery A/c

 

 

 

3,000

 

(Being machinery sold wrongly credited to sales account, now rectified)

 

 

 

 

 

 

 

 

 

 

 

Question NUM 15

Rectify the following errors assuming that suspense account was opened. Ascertain the difference in trial balance.

  1. Furniture purchased for Rs.10,000 wrongly debited to purchase account as Rs.4,000.
  2. Machinery purchased on credit from Raman for Rs.20,000 recorded through Purchases Book as Rs.6,000.
  3. Repairs on machinery Rs.1,400 debited to Machinery account as Rs.2,400.
  4. Repairs on overhauling of second hand machinery purchased Rs.2,000 was debited to  Repairs account as Rs.200.
  5. Sale of old machinery at book value Rs.3,000 was credited to sales account as Rs.5,000. 
Solution NUM 15

Rectification Journal Entries

Date

Particulars

 

L.F.

Dr.

Rs. 

Cr.

Rs. 

 i.  

 Furniture A/c

Dr.

 

10,000

 

 

--------To Purchases A/c

 

 

 

4,000

 

--------To Suspense A/c

 

 

 

6,000

 

(Being furniture purchased Rs.10,000 wrongly entered in purchases account as Rs.4,000, now rectified)

 

 

 

 

 ii.  

Machinery A/c

Dr.

 

20,000

 

 

--------To Purchases A/c

 

 

 

6,000

 

--------To Raman's A/c

 

 

 

14,000

 

(Being machinery purchased Rs.20,000 from Raman wrongly entered in purchases book as Rs.6,000, now rectified)

 

 

 

 

 iii.  

Repairs A/c

Dr.

 

1,400

 

 

Suspense A/c

Dr.

 

1,000

 

 

--------To Machinery A/c

 

 

 

2,400

 

(Being repair of machinery Rs.1,400 wrongly debited to Machinery Account as Rs.2,400)

 

 

 

 

 iv.  

Machinery A/c

Dr.

 

2,000

 

 

--------To Repairs A/c

 

 

 

200

 

--------To Suspense A/c

 

 

 

1,800

 

(Being overhauling of second hand machine Rs.2,000 wrongly debited to Repairs Account as Rs.200,now rectified)

 

 

 

 

 v.  

Sales A/c

Dr.

 

5,000

 

 

--------To Machinery A/c

 

 

 

3,000

 

--------To Suspense A/c

 

 

 

2,000

 

(Being old machinery sold for Rs.3,000 wrongly credited to Sales Account as Rs.5,000, now rectified)

 

 

 

 

 

 

 Suspense Account 

Dr.

 

 

 

 

 

 

Cr. 

Date

Particulars

J.F.

Amount

Rs. 

Date

Particulars

J.F.

Amount

Rs. 

 

To Machinery A/c

 

1,000

 

By Furniture A/c

 

6,000

 

To Balance c/d

 

8,800

 

By Machinery A/c

 

1,800

 

 

 

 

 

By Sales A/c

 

2,000

 

 

 

9,800

 

 

 

9,800

 

 

 

 

 

Question NUM 16

Rectify the following errors :

  1. Depreciation provided on machinery Rs.4,000 was not posted. 
  2. Bad debts written off  Rs.5,000 were not posted. 
  3. Discount allowed to a debtor Rs.100 on receiving cash from him was not posted. 
  4. Discount allowed to a debtor Rs.100 on receiving cash from him was not posted to discount account. 
  5. Bill receivable for Rs.2,000 received from a debtor was not posted. 
Solution NUM 16

Rectification Journal Entries

Date

Particulars