Question No 21 Chapter No 16

Question No 21 Chapter No 16

Recertification after the Preparation of Trail Balance but before Final Account

Single Account Errors

21. The trial balance of Royal Enterprises did not agree on 31-3-2018. the different was put into the suspense account. Subsequently, the following errors were discovered you are required to rectify the errors

  1. Interest received Rs 670 was wrongly credited to commission account Ts 607
  2. A sum of Rs 880 paid to M.S. Gill as credited to P.S. Gill Rs 808
  3. A sale of Rs 6,000 paid to Partap Singh was recorded in the purchases book with Rs 16,000however, Partap Singh was correctly debited
  4. Goods of Rs 1,400 distributed as free samples debited to drawings account Rs 1,040
  5. Plant purchases for Rs 3,800 and installation expenses incurred Rs 200 were debited to purchased account Rs 3,800
  6. Discount allowed by Gautam RS 250 entered twice in cash book once in the discount column RS 150 and second time in cash column Rs 250


The solution of Question No 21 Chapter No 16:-

Date  Particulars
(a)Commission A/cDr. 607 
 Suspense A/cDr. 63 
 To Interest A/c   670
 (Being interest received Rs 670 wrongly credited to commission as Rs 607 now corded.)    
(b)M.S Gill A/cDr. 880 
 P.S. Gill A/cDr. 808 
 To Suspense A/c   1,688
 (Being amount paid to M.S Gill wrongly credited to P.S gill now corded.)    
(c)Suspense A/cDr. 22,000 
 To Sale A/c   6,000
 To Purchases A/c   16,000
 (Being sale of Rs 6,000 wrongly traded as the purchase of Rs 16,000now corrected )    
(d)Advertisement A/cDr. 1,400 
 To Drawings A/c   1,040
 To Suspense A/c   360
 (Being free samples, wrongly debited to drawings account now corrected )    
(e)Plant A/cDr. 4,000 
 To Purchases A/c   3,800
 To Suspense A/c   200
 (Being plant purchased recorded in purchases A/c now corrected )    
(f)Gautam A/cDr. 650 
 To Discount allowed A/c   150
 To Discount received A/c   250
 To Cash A/c   250
 (Being discount received wrongly recorded in discount and cash now corrected )    

Error Rectification in accounting – Explanation with examples

Thanks, Please Like and share with your friends  

Comment if you have any question.

Also, Check out the solved question of all Chapters: –

Chapter No. 1 – Introduction

Chapter No. 2 – Theory Base of Accounting 

Chapter No. 3 – Vouchers and transactions

Chapter No. 4 – Journal

Chapter No. 5 – Ledger

Chapter No. 6 – Cash Book

Chapter No. 7 – Other Subsidiary Books

Chapter No. 8 – Journal Proper

Chapter No. 9 – Trial Balance 

Chapter No. 10 – Bank Reconciliation Statement

Chapter No. 11 – Depreciation

Chapter No. 12 – Provisions and Reserves 

Chapter No. 13 – Bills of Exchange

Chapter No. 14 – Rectification of Errors 

Chapter No. 15 – Financial Statements – (Without Adjustments)

Chapter No. 16 – Financial Statements – (With Adjustments)

Leave a Reply

About us

About us, we are here to improve your knowledge in all financial & Business related topics and to get better carrier opportunities. The author has about 10-year Experience in tuition Business. It is very difficult to teach a large number of students with a personal touch or in a classroom. 

Animation's Resource websites

All Icons and images used on my website were downloaded from the following website please go and download free:-