Question No 26 Chapter No 16
Recertification after the Preparation of Trail Balance but before Final Account
Single Account Errors
26. You are presented with a Trial Balance showing a difference of 500 (i.e., credit exceeds debit) which has been carried to Suspense Account and the following errors are revealed :
(a) 1,700 paid in cash for a Typewriter was charged to Office Expenses Account.
(b) A cash sale of 5,000 to Black, correctly entered in the Cash Book was posted to the credit of Black’s Account. instead of Sales Account.
(c) Goods amounting to 800, returned by Blue, were entered in the Sales Book and posted therefrom to the credit of Blue’s Account.
(d) Bills Receivable from Brown for 3,000, posted to the credit of Bills Payable Account and credited to Brown’s Account.
(e) Goods amounting to 10,000 sold to Red were correctly entered in the Sales Book but posted to Red’s Account for 18,000.
(f) Sales Return Book was overcast by 100. Journalese the necessary corrections and prepare the Suspense Account.
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The solution of Question No 26 Chapter No 16:-
|(a)||Office Equipment A/c||Dr.||1,700|
|To Office expenses A/c||1,700|
|(Being purchased of typewriter wrongly debited in office expenses account now corded.)|
|To Sale A/c||1,000|
|(Being cash sale wrongly credited to customer account instead of sale account )|
|Sales Return A/c||Dr.||800|
|To Suspense A/c||1,600|
|(Being sale return wrongly treated as sale account.)|
|(d)||Bill Payable A/c||Dr.||3,000|
|Bill Receivable A/c||Dr.||3,000|
|To Suspense A/c||6,000|
|(Being B/R wrongly credited in B//P account, now corrected.)|
|To Red A/c||8,000|
|(Being goods sold Rs 10,000 wrongly debited in customer’s account as Rs 18,000 now corded.)|
|To Sale retune A/c||100|
|(Being sales retune book being overcast corrected )|
|To Red A/c||8,000||By Balance b/d||500|
|To Sale Return A/c||100||By Sales A/c||800|
|By Sale retune A/c||800|
|By Bill Payable A/c||3,000|
|By Bill Receivable A/c||3,000|
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