Question No 19 Chapter No 16 - USHA Publication 11 Class

Question No 19 Chapter No 16

Table of Contents

Recertification after the Preparation of Trail Balance but before Final Account

Single Account Errors

19.How would you rectify the following errors which are discovered at post trail balance stage

Sale of goods Rs 2,900 posted to the debit of sale account Rs 9,020
Commission Rs 150 paid was posted twice, first to discount account and then to a commission account
Machinery costing Rs 8,000 was sold for Rs 6,500. Machinery was credited with the sale proceeds only
An acceptance for Rs 5,000 given to Chaman was dishonoured and noting charges Rs 100 were paid by drawer. However, on dishonour amount of bill was only recorded in drawer’s account
Opening balance of building Rs 25,000 was not brought forward
Loan given to X Rs 6,000 out of personal bank account was debited to capital account

Journal
Date	Particulars		L.F.	Debit	Credit

(a)	Suspense A/c	Dr.		11,920
	To Sale A/c				11,920
	(Being sale of Rs 2,900 wrongly posted to debit of sale account as Rs 9,020 now corrected.)

(b)	Suspense A/c	Dr.		150
	To Discount A/c				150
	(Being commission paid wrongly posted to discount account now corrected.)

(c)	Loss on sale of machinery A/c	Dr.		1,500
	To Machinery A/c				1,500
	(Being sale not posted to Harmit account.)

(d)	Noting Charges A/c	Dr.		100
	To Suspense A/c				100
	(Being opening balance of building account not brought forward, now recorded.)

(e)	Building A/c	Dr.		25,000
	To Suspense A/c				25,000
	(Being opening balance of building account not brought forward now recorded.)

(f)	Suspense A/c	Dr.		6,000
	To Capital A/c				6,000
	(Being personal loan recorded in firm’s book now corrected )