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11th | Rectification of Errors | Question No. 41 To 44 | Ts Grewal Solution 2022-2023

Question 41:


The Trial Balance of M/s. Gupta & Sons shows a difference of `52,200. To prepare the Final Account on 31st March, 2021, this difference is placed in a Suspense Account. Afterwards the following errors were disclosed. Pass the necessary entries to rectify them and show the Suspense Account.

(i) Purchases Book total had been undercasted by ` 20,000.

(ii) A cheque received from Vasudev for ` 7,800 had been debited in the Cash Book but not posted in Vasudev's Personal Account

(iii) Returns Outward Book had been overcasted by ` 10,000.

(iv) Goods returned by Yash Pal worth ` 15,000 have been entered in Returns Outward Book. However, Yash Pal's Account is correctly posted.   (Delhi, Modified)

Answer:


Journal

Date

Particulars

 

L.F.

Debit

 (`)

Credit

 (`)

(i)

Purchases A/c

Dr.

 

20,000

 

 

 To Suspense A/c

 

 

 

20,000

 

(Purchases Book total had been undercasted, Now rectified)

 

 

 

 

(ii)

Suspense A/c

Dr.

 

7,800

 

 

 To Vasudev

 

 

 

7,800

 

(Being A cheque received from Vasudev had been debited in the Cash Book but not posted in Vasudev's Personal Account, Now rectified)

 

 

 

 

(iii)

Return Outward A/c

Dr.

 

10,000

 

 

To Suspense A/c

 

 

 

10,000

 

(Being Returns Outward Book had been overcasted, Now rectified)

 

 

 

 

(iv)

Return Inwards A/c

Dr.

 

15,000

 

 

Return Outwards A/c

Dr.

 

15,000

 

 

To Suspense A/c

 

 

 

30,000

 

(Being Returns Outward Book had been overcasted, Now rectified)

 

 

 

 

 

 

 

 

 

 

Journal

Date

Particulars

L.F.

Debit

Rs

Credit

Rs

(i)

Suspense A/c

Dr.

 

100

 

 

To Commission A/c

 

 

100

 

(Commission Rs 275 was debited as Rs 375, now rectified)

 

 

 

 

 

 

 

 

(ii)

Suspense A/c

Dr.

 

620

 

 

To Personal Account

 

 

620

 

(Credit amount Rs 260 was wrongly posted to the debit Rs 360 in Personal Account, now rectified)

 

 

 

 

 

 

 

 

(iii)

Surinder

Dr.

 

600

 

 

To Sales A/c

 

 

300

 

To Purchases A/c

 

 

300

 

(Goods sold to Surinder was wrongly recorded in the Purchases Book, now rectified)

 

 

 

 

 

 

 

 

(iv)

Building A/c

Dr.

 

1,200

 

 

To Repair A/c

 

 

1,200

 

(Cost of erection of Godown Rs 1,200 was debited to Repair Account, now rectified)

 

 

 

 

 

 

 

 

Question 42:


There was an error in the Trial Balance of Ram Gopal on 31st March, 2018 and the difference in books was carried to the Suspense Account. On going through the books, you find that:
(i)
` 540 received from Mayank was posted to the debit side of his account.
(ii)
` 100 being purchases return was posted to the debit of the Purchases Account.
(iii) Discount of
` 300 received was posted to the debit of the Discount Account.
(iv)
` 374 paid for motor car repairs was debited to the Motor Car Account as ` 174.
(v)
` 400 paid to Naman was debited to the account of Manan.
Pass the Journal entries to rectify the above errors and state what amount was carried to the Suspense Account.

Answer:


Books of Ram Gopal

Journal

Date

Particulars

L.F.

Debit

 (`)

Credit

 (`)

2018

 

 

 

 

 

(i)

Suspense A/c

Dr.

 

1,080

 

 

To Mayank

 

 

1,080

 

(Cash received from Mayank was wrongly posted to the debit of his account, now rectified)

 

 

 

 

 

 

 

 

(ii)

Suspense A/c

Dr.

 

200

 

 

To Purchases A/c

 

 

100

 

To Purchases Return A/c

 

 

100

 

(Purchases Return Rs 100 was wrongly debited to Purchases Account , now rectified)

 

 

 

 

 

 

 

 

(iii)

Suspense A/c

Dr.

 

600

 

 

To Discount A/c

 

 

600

 

(Discount Received Rs 300 was wrongly posted to the debit of Discount Account, now rectified)

 

 

 

 

 

 

 

 

(iv)

Motor Car Repair A/c

Dr.

 

374

 

 

To Motor Car A/c

 

 

174

 

To Suspense A/c

 

 

200

 

(Paid Rs 374 for Motor Car Repair was wrongly debited to Motor Car Account as Rs 174, now rectified)

 

 

 

 

 

 

 

 

(v)

NamanA/c

Dr.

 

400

 

 

To Manan A/c

 

 

400

 

(Amount paid to Naman was wrongly debited to Manan, now rectified)

 

 

 

 

 

 

 

 

 

Suspense Account

Dr.

Cr.

Date

Particulars

 (`)

Date

Particulars

 (`)

(i)

Mayank

1,080

(iv)

Motor Car Repair

200

(ii)

Purchases

100

 

Balance c/d

1,680

 

Purchases Return

100

 

 

 

(iii)

Discount

600

 

 

 

 

 

1,880

 

 

1,880

 

 

 

 

 

 

Question 43:


Trial Balance of a bookkeeper shows an excess of debits over credits by ` 261. This difference is placed in a Suspense Account to facilitate books closure. Later on the following errors were discovered:
(i) A credit item of
` 349 has been debited to a Personal Account as ` 439.
(ii) A sum of
` 625 written off from fixtures as depreciation has not been posted to the Depreciation Account.
(iii)
` 9,000 paid for furniture bought have been charged to the Purchases Account.
(iv) A discount allowed to a customer has been credited to him as
` 145 in place of ` 154.
(v) A sale of
` 594 was posted as ` 495 in the Sales Account.
(vi) The total of Returns Inward Book has been added
` 10 short.
Pass the Journal entries to correct these errors and prepare the Suspense Account.

Answer:


Journal

Date

Particulars

L.F.

Debit

Rs

Credit

Rs

(i)

Suspense A/c

Dr.

 

788

 

 

To Personal A/c

 

 

788

 

(Credit item was wrongly debited to a Personal Account, now rectified)

 

 

 

 

 

 

 

 

(ii)

Depreciation A/c

Dr.

 

625

 

 

To Suspense A/c

 

 

625

 

(Depreciation on Fixtures was not posted to Depreciation Account, now rectified)

 

 

 

 

 

 

 

 

(iii)

Furniture A/c

Dr.

 

9,000

 

 

To Purchases A/c

 

 

9,000

 

(Purchase of Furniture was wrongly charged to Purchases Account, now rectified)

 

 

 

 

 

 

 

 

(iv)

Suspense A/c

Dr.

 

9

 

 

To Customer

 

 

9

 

(Discount allowed to Customer Rs 154 was Credited wrongly as Rs 145, now rectified)

 

 

 

 

 

 

 

 

(v)

Suspense A/c

Dr.

 

99

 

 

To Sales A/c

 

 

99

 

(Sale of Rs 594 was wrongly posted as Rs 495, now rectified)

 

 

 

 

 

 

 

 

(vi)

Return Inwards A/c

Dr.

 

10

 

 

To Suspense A/c

 

 

10

 

(Return Inwards Book was undercasted, now rectified)

 

 

 

 

 

 

 

 

 

Suspense Account

Dr.

Cr.

Date

Particulars

Rs

Date

Particulars

      Rs

(i)

Personal

788

 

Balance b/d

261

(iv)

Customer

9

(ii)

Depreciation

625

(v)

Sales

99

(vi)

Return Inwards

10

 

 

896

 

 

896

 

 

 

 

 

 

 

Question 44:


The accountant of a firm finds that the Trial Balance as on 31st March, 2022is out by an excess debit of ` 283. He placed the amount in the Suspense Account. In the first week of April, 2021, he discovered the following errors. Pass the Journal entries necessary to rectify these errors and show the Suspense Account as it would appear at the end of the week. Have you any comment to make?
(i) Cash paid to Amar Nath,
` 75, was posted to the credit of Amar Singh's Account as ` 57.
(ii) Discount allowed by Brijesh of
` 5 was not entered in the Cash Book but Brijesh stands debited correctly.
(iii) No entry was made for goods worth
` 40 taken away by proprietor for personal use.
(iv)
` 500 received from Jhaveri Bros. for interest on loan advanced to them were recorded in the Cash Book. But the entry was not posted in the Ledger.
(v) The total of Returns Outward Book was short by
` 100.

Answer:


Journal

Date

Particulars

L.F.

Debit

 (`)

Credit

 (`)

2022

 

 

 

 

 

(i)

Amar Nath

Dr.

 

75

 

 

Amar Singh

Dr.

 

57

 

 

To Suspense A/c

 

 

132

 

(Cash paid to Amar Nath Rs 75 was wrongly Credited to Amar Singh as Rs 57, now rectified)

 

 

 

 

 

 

 

 

(ii)

Suspense A/c

Dr.

 

5

 

 

To Discount Received A/c

 

 

5

 

(Discount Received by Brijesh was omitted to be recorded in Discount column but was recorded in

 

 

 

 

Brijesh’s Account, now rectified)

 

 

 

 

 

 

 

 

(iii)

Drawings A/c

Dr.

 

40

 

 

To Purchases A/c

 

 

40

 

(Goods Drawn by proprietor was not recorded, now recorded)

 

 

 

 

 

 

 

 

(iv)

Suspense A/c

Dr.

 

500

 

 

To Interest on Advance A/c

 

 

500

 

(Interest on Advances received from Jhaveri Bros was not posted into Ledger, now rectified)

 

 

 

 

 

 

 

 

(v)

Suspense A/c

Dr.

 

100

 

 

To Return Outwards A/c

 

 

100

 

(Return Outwards Book undercasted, now rectified)

 

 

 

 

 

 

 

 

 

Suspense Account

Dr.

Cr.

Date

Particulars

Amount (`)

Date

Particulars

Amount (`)

(ii)

Discount Received

5

 

Balanced b/d

283

(iv)

Interest on Advances

500

(i)

Amar Nath

75

(v)

Return Outwards

100

(i)

Amar Singh

57

 

 

 

 

Balance c/d

190

 

 

605

 

 

605

 

 

 

 

 

 

There is some error in the book of account after rectifying the traced error, Suspense Account is not closed

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