Question No 29 Chapter No 16
Credit Balance in Suspense Account
29. How would you rectify the following errors discovered after preparation of trial balance?
(a) An amount of 30 representing cash discount allowed by J.J. Singh on payment of his account stands debited to his account in the ledger, but is not shown in the discount column against payment entry in the cash book.
(b) An item 400 for purchase of office furniture has been passed through purchase book.
(c) An amount of 210.30 for a credit sale to Ramesh although correctly entered in the sales book has been wrongly posted as 230.10.
(d) A credit purchase of goods amounting to 250 from , Iqbal Singh has been omitted to be passed through the invoice book, but the payment made subsequently stand debited to his account.
(e) A credit purchase of goods for 19.20 from Manoj Kumar correctly entered in the invoice book has been wrongly posted as 13.80 to the credit of Manoj Kumar.
The Content covered in this article:
The solution of Question No 29 Chapter No 16:-
|To Discount Received A/c||30|
|(Being discount received being unposted now posted.)|
|To Purchase A/c||400|
|(Being purchases of furniture wrongly passed through purchase book, corrected.)|
|To R’s A/c||1,980|
|(Being excess debited being corrected.)|
|To Santosh A/c||250|
|(Being B/R being treated as B/P now corrected.)|
|To Manoj A/c||540|
|(Being amount less credited to Manoj account now corrected.)|
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Also, Check out the solved question of all Chapters: –
Usha Publication – Elements of Book-Keeping PSEB (Class 11) – Solution
Chapter No. 3 – Origin of Transactions
Chapter No. 6 – Accounting for Goods and Services Tax(GST)