Question
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) ` 5,000 paid for freight on
machinery purchased was debited to the Freight Account as ` 500.
(c) The Returns Inward Book has been wrongly overcasted
by ` 100.
(d) An amount of ` 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 ` 460 owed by Hari had not
been included in the list of debtors.
Answer:
(i) The following are the causes that make a Trial Balance incorrect.
1) Incomplete posting of Journal Entry
2) Posting in the wrong side of Account.
3) Wrong totalling of Subsidiary Books
4) Wrong balance of Account
5) Omission of total of Subsidiary book into Account
6) Wrong totalling of the Trial Balance
(ii)
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit Rs |
Credit Rs |
|
|
(a) |
Krishna |
Dr. |
|
5,000 |
|
|
|
To Sales A/c |
|
|
2,500 |
|
|
|
To Purchases A/c |
|
|
2,500 |
|
|
|
(Credit Sale of goods to Krishna was posted wrongly to Purchases Book, now rectified) |
|
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(b) |
Machinery A/c |
Dr. |
|
5,000 |
|
|
|
To Freight |
|
|
500 |
|
|
|
To Suspense A/c |
|
|
4,500 |
|
|
|
(Freight Rs 5,000 paid on machinery was wrongly recorded in Freight Account as Rs 500) |
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(c) |
Suspense A/c |
Dr. |
|
100 |
|
|
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To Return Inwards A/c |
|
|
100 |
|
|
|
(Return Inwards Book was overcast, now rectified) |
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(d) |
Ramesh |
Dr. |
|
500 |
|
|
|
To Bad Debt Recovered A/c |
|
|
500 |
|
|
|
(Received Rs 500 which previously written off as Bad debt wrongly credited to Ramesh Account, now rectified) |
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(v) |
Sundry Debtors A/c |
Dr. |
|
460 |
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To Hari |
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|
460 |
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|
(Hari which was not in the List of Sundry Debtors, now recorded) |
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Question
30:
Rectify the following errors:
(i) Wages paid for the construction of office debited
to the Wages Account, ` 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.
(iv) ` 2,000 paid to Mehta Bros. against acceptance were debited to
Malhotra Bros. Account.
(v) Sales of ` 204 to Ram debited to his account as ` 402
and purchases of ` 1,012 from Shyam credited to his account
as ` 1,210.
Answer:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit Rs |
Credit Rs |
|
|
(i) |
Building A/c |
Dr. |
|
5,000 |
|
|
|
To Wages A/c |
|
|
5,000 |
|
|
|
(Wages paid for construction of office was debited wrongly to Wages Account, now rectified) |
|
|
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|
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|
(ii) |
Machinery A/c |
Dr. |
|
35,000 |
|
|
|
To Purchases A/c |
|
|
35,000 |
|
|
|
(Purchase of Machinery was recorded wrongly in Invoice Book, now rectified) |
|
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(iii) |
Sales A/c |
Dr. |
|
1,000 |
|
|
|
To Furniture A/c |
|
|
1,000 |
|
|
|
(Sale of Old Furniture was passed wrongly to Sales Book, now rectified) |
|
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(iv) |
Bills Payable A/c |
Dr. |
|
2,000 |
|
|
|
To Malhotra Bros. |
|
|
2,000 |
|
|
|
(Amount paid against acceptance to Mehta Bros was wrongly debited to Malhotra Bros, now rectified) |
|
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(v) |
Shyam |
Dr. |
|
198 |
|
|
|
To Ram |
|
|
198 |
|
|
|
(Sales to Ram Rs 204 was debited to his account as Rs 402 and Purchase from Shyam Rs |
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1,012 was Credited to his account as Rs 1,210, now rectified) |
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Question
31:
Rectify the following errors:
(i) Sale of old furniture worth ` 3,000 treated as sales of goods.
(ii) Sales Book added ` 5,000 short.
(iii) Rent of proprietor’s residence, ` 6,500 debited to Rent
Account.
(iv) Goods worth `
11,970 returned by Manav posted to his debit as ` 11,790.
Answer:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit Rs |
Credit Rs |
|
|
(i) |
Sales A/c |
Dr. |
|
3,000 |
|
|
|
To Furniture A/c |
|
|
3,000 |
|
|
|
(Sale of old Furniture was wrongly treated as Sales of Goods, now rectified) |
|
|
|
|
|
|
|
|
|
|
|
|
(ii) |
Suspense A/c |
Dr. |
|
5,000 |
|
|
|
To Sales A/c |
|
|
5,000 |
|
|
|
(Sales Book was undercast, now rectified) |
|
|
|
|
|
|
|
|
|
|
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|
(iii) |
Drawings A/c |
Dr. |
|
6,500 |
|
|
|
To Rent A/c |
|
|
6,500 |
|
|
|
(Rent of proprietor’s residence was wrongly debited to Rent Account, now rectified) |
|
|
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(iv) |
Suspense A/c |
Dr. |
|
23,760 |
|
|
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To Manav |
|
|
23,760 |
|
|
|
(Goods returned by Manav Rs 11,970 was wrongly posted to the debit of his account as Rs 11,790, now rectified) |
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Question
32:
There was a difference in the Trial Balance of M/s. Jain
& Sons, prepared for the year ended 31st March, 2009. The accountant put
the difference in Suspense Account.
The following errors were found:
(i) Purchases Return Book total ` 400 has not been posted to Ledger Account.
(ii) ` 5,100 spent on legal expense for the newly acquired Building was
debited to the Building Account as ` 1,500.
(iii) A sale of ` 6,540 to Rajat has been credited to his
account.
Rectify the errors and show the Suspense Account with Nil closing balance.
Answer:
|
Books of M/s Jain & Sons Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit Rs |
Credit Rs |
|
|
(i) |
Suspense A/c |
Dr. |
|
400 |
|
|
|
To Purchases Return A/c |
|
|
400 |
|
|
|
(Purchases Return Book total was not posted to Purchase Return Account, now rectified) |
|
|
|
|
|
|
|
|
|
|
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|
(ii) |
Building A/c |
Dr. |
|
3,600 |
|
|
|
To Suspense A/c |
|
|
3,600 |
|
|
|
(Legal expenses Rs 5,100 on acquiring a Building was recorded as Rs 1,500 in Building Account, now rectified) |
|
|
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(iii) |
Rajat |
Dr. |
|
13,080 |
|
|
|
To Suspense A/c |
|
|
13,080 |
|
|
|
(Sale of Rajat Rs 6,540 was posted wrongly to Credit of his account, now rectified) |
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Suspense Account |
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|
Dr. |
Cr. |
||||
|
Date |
Particulars |
Rs |
Date |
Particulars |
Rs |
|
(i) |
Purchases Return |
400 |
(ii) |
Building |
3,600 |
|
|
Difference in the Trial Balance |
16,280 |
(iii) |
Rajat |
13,080 |
|
|
|
16,680 |
|
|
16,680 |
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Class 11th
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