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11th | Rectification of Errors | Question No. 37 To 40 | Ts Grewal Solution 2022-2023

Question 37:


Pass the rectification entries for the following transactions:

(i) An amount of ` 2,000 received from Mohan on 1st April, 2021 had been entered in the Cash Book as having been received on 31st March, 2021.

(ii) The balance in the account of Rahim ` 1,000 had been written off as bad but no other account has been debited.

(iii) An addition in the Returns Inward Book had been cast ` 100 short.

(iv)  A cheque for ` 200 drawn for the Petty Cash Account has been posted in the account of Asif.

(v) A discounted Bill of Exchange for ` 20,000 returned by the firm's bank had been credited to the Bank Account and debited to Bills Receivable Account. A cheque was received later from the customer for ` 20,000 and duly paid.

(vi) Ramesh's Account was credited with ` 840 twice instead of once.

 

Journal

Date

Particulars

 

L.F.

Debit

 (`)

Credit

 (`)

(i)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(ii)

Bad debts A/c

Dr.

 

1,000

 

 

 To Suspense A/c

 

 

 

1,000

 

(Being Bad debts was not debited, Now rectified)

 

 

 

 

(iii)

Suspense A/c

Dr.

 

100

 

 

 To Sales return A/c

 

 

 

100

 

(An addition in the Returns Inward Book had been casted short, Now rectified)

 

 

 

 

(iv)

Petty Cash A/c

Dr.

 

200

 

 

 To Asif

 

 

 

200

 

(Being a cheque drawn for the Petty Cash Account has been posted in the account of Asif, now rectified)

 

 

 

 

(v)

Customer's A/c

Dr.

 

20,000

 

 

To Bills Receivable A/c

 

 

 

20,000

 

(Being A discounted Bill of Exchange returned by the firm's bank had been credited to the Bank Account and debited to Bills Receivable Account. A cheque was received later from the customer and duly paid, Now rectified)

 

 

 

 

(vi)

Ramesh

Dr.

 

840

 

 

 To Suspense A/c

 

 

 

840

 

(Being Ramesh's Account was credited twice instead of once, Now rectified)

 

 

 

 

 

 

 

 

 

 

Question 38:


Pass the rectification entries for the following transactions:
(i) Repairs to plant amounting to
` 2,000 had been charged to Plant and Machinery Account.
(ii) Wages paid to the firm's workmen for making certain additions to machinery amounting to
` 1,340 were debited to Wages Account.
(iii) A cheque for
` 7,500 received from Sandesh was credited to the account of Ramesh.
(iv) Goods to the value of
` 7,000 returned by Prateek were included in closing stock, but no entry was made in the books.
(v) Goods costing
` 5,000 were purchased for various members of the staff and the cost was included in 'Purchases'. A similar amount was deducted from the salaries of the staff members concerned and the net payments to them debited to Salaries Account.
(vi) Credit purchase of old machinery from Sohan for
` 1,70,000 was entered in the Purchase Book as purchase from Mohan for ` 7,10,000. ` 30,000 paid as repairing charges on the reconditioning of a newly purchased second hand machinery were debited to General Expenses Account.
(vii) Debit and Credit totals of discount columns in the Cash Book which come to
` 400 and ` 370 respectively have not been posted to Discount Accounts.

Answer:


Journal

Date

Particulars

L.F.

Debit

 (`)

Credit

 (`)

(i)

Repairs A/c

Dr.

 

2,000

 

 

To Plant and Machinery A/c

 

 

2,000

 

(Repairs wrongly capitalised, now rectified)

 

 

 

 

 

 

 

 

(ii)

Machinery A/c

Dr.

 

1,340

 

 

To Wages A/c

 

 

1,340

 

(Wages paid to Workmen for certain addition to Machinery wrongly debited to Wages Account, now rectified)

 

 

 

 

 

 

 

 

(iii)

Ramesh

Dr.

 

7,500

 

 

To Sandesh

 

 

7,500

 

(Cheque of Rs 7,500 received from Sandesh was wrongly Credited to Ramesh's Account, now rectified)

 

 

 

 

 

 

 

 

(iv)

Sales Return A/c

Dr.

 

7,000

 

 

To Prateek

 

 

7,000

 

(Goods returned by Prateek had not recorded in the book, now rectified)

 

 

 

 

 

 

 

 

(v)

Salaries A/c

Dr.

 

5,000

 

 

To Purchases A/c

 

 

5,000

 

(Goods purchased for Staff was wrongly debited to Purchases Account, now rectified)

 

 

 

 

 

 

 

 

(vi)

Mohan
Machinery A/c

Dr.
Dr.

 

7,10,000
2,00,000

 

 

To Sohan
To Purchases A/c
To General Expenses A/c

 

 

1,70,000
7,10,000
30,000

 

(Credit purchase of an old machinery from Sohan and repairs charges were wrongly recoreded as purchase from Mohan and General Expenses, now rectified)

 

 

 

 

 

 

 

 

(vii)(a)

Discount Allowed A/c

Dr.

 

400

 

 

To Suspense A/c

 

 

400

 

(Discount allowed omitted to be recorded, now recorded)

 

 

 

 

 

 

 

 

(vii)(b)

Suspense A/c

Dr.

 

370

 

 

   To Discount Received A/c

 

 

370

 

(Discount received omitted to be recorded, now recorded)

 

 

 

 

 

 

 

 

 

 

Question 39:


A Trial Balance disclosed a difference of ` 417 placed on the credit side of the Suspense Account. Later on the following errors were located:
(i) Goods worth
` 200 purchased from Sohan had been posted to his account as ` 250.
(ii) A purchase of furniture for
` 500 was recorded in the Purchases Book.
(iii) Instead of crediting Gian’s Account with
` 512, it was debited with ` 215.
(iv) Goods worth
` 130 returned by Gian were entered in the Sales Book and posted therefrom to the credit of Gian’s Personal Account.
Pass the rectifying entries and prepare a Suspense Account.

Answer:


Journal

Date

Particulars

L.F.

Debit

Rs

Credit

Rs

(i)

Sohan

Dr.

 

50

 

 

To Suspense A/c

 

 

50

 

(Goods Purchased from Sohan Rs 200 was posted to his account as Rs 250, now rectified)

 

 

 

 

 

 

 

 

(ii)

Furniture A/c

Dr.

 

500

 

 

To Purchases A/c

 

 

500

 

(Purchase of Furniture was entered in Purchases Book, now rectified)

 

 

 

 

 

 

 

 

(iii)

Suspense A/c

Dr.

 

727

 

 

To Gian

 

 

727

 

(Gian’s Account was debited by Rs 215 Instead of Crediting Rs 512, now rectified)

 

 

 

 

 

 

 

 

(iv)

Sales Return A/c

Dr.

 

130

 

 

Sales A/c

Dr.

 

130

 

 

To Suspense

 

 

260

 

(Sale returned by Gian was wrongly entered in the Sales Book, now rectified)

 

 

 

 

 

 

 

 

 

Suspense Account

Dr.

Cr.

Date

Particulars

Rs

Date

Particulars

Rs

 

 

 

 

Balance b/d

417

(iii)

Gain

727

(i)

Sohan

50

 

 

 

(iv)

Sales Return

130

 

 

 

 

Sales

130

 

 

727

 

 

727

 

 

 

 

 

 

 Question 40:


There was a difference of ` 720 in the Trial Balance which has been transferred to the credit side of the Suspense Account. Pass the rectifying entries and prepare a Suspense Account to rectify the following errors:
(i) An amount of
` 375 now posted on the debit side of the Commission Account instead of ` 275.
(ii) Credit amount of
` 260 posted to the debit of the Personal Account as ` 360.
(iii) Goods sold to Surinder recorded in Purchases Book
` 300.
(iv) D’s bill for erection of godown at a cost of
` 1,200 has been charged to the Repairs Account.

Answer:


 

Suspense Account

 

Dr.

 

Cr.

Date

Particulars

`

Date

Particulars

`

(i)

To Commission

100

 

By Balance b/d

720

(ii)

To Personal Account

620

 

 

 

 

 

720

 

 

720

 

 

 

 

 

 

 

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