Question No 31 Chapter No 17 - T.S. Grewal 11 Class

Question No 31 Chapter No 17

31. 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.

The solution of Question No 31 Chapter No 16:-

Date	Particulars		L.F.	Debit	Credit
i	Suspense A/c	Dr.		788
	To Personal A/c				788
	(Being Credit item was wrongly debited to a Personal Account, now rectified)
ii	Depreciation A/c	Dr.		625
	To Suspense A/c				625
	(Being Purchases Return Rs 100 was wrongly debited to Purchases Account, now rectified)
iii	Furniture A/c	Dr.		9,000
	To Purchases A/c				9,000
	(Being Purchase of Furniture was wrongly charged to Purchases Account, now rectified)
iv	Suspense A/c	Dr.		9
	To Customer				9
	(Being 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
	(Being Sale of Rs 594 was wrongly posted as Rs 495, now rectified)
vi	Return Inwards A/c	Dr.		10
	To Suspense A/c				10
	(Being Return Inwards Book was undercast, now rectified)

Dr.	Suspense Account						Cr.
Date	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
(i)	Personal		788		Balance b/d		261
(iv)	Customer		9	(ii)	Depreciation		625
(v)	Sales		99	(vi)	Return Inwards		10
			896				896

Error Rectification in accounting – Explanation with examples

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

- Chapter No. 1 – Introduction to Accounting
- Chapter No. 2 – Basic Accounting Terms
- Chapter No. 3 – Theory Base of Accounting, Accounting Standards and International Financial Reporting Standards(IFRS)
- Chapter No. 4 – Bases of Accounting
- Chapter No. 5 – Accounting Equation
- Chapter No. 6 – Accounting Procedures – Rules of Debit and Credit
- Goods and Services Tax(GST)
- Chapter No. 7 – Origin of Transactions – Source Documents and Preparation of Vouchers
- Chapter No. 8 – Journal
- Chapter No. 9 – Ledger
- Chapter No. 10 – Special Purpose Books I – Cash Book
- Chapter No. 11 – Special Purpose Books II – Other Books
- Chapter No. 12 – Bank Reconciliation Statement
- Chapter No. 13 – Trial Balance
- Chapter No. 14 – Depreciation
- Chapter No. 15 – Provisions and Reserves
- Chapter No. 16 – Accounting for Bills of Exchange
- Chapter No. 17 – Rectification of Errors
- Chapter No. 18 – Financial Statements of Sole Proprietorship
- Chapter No. 19 – Adjustments in preparation of Financial Statements
- Chapter No. 20 – Accounts from incomplete Records – Single Entry System
- Chapter No. 21 – Computers in Accounting
- Chapter No. 22 – Accounting Software – Tally
- Chapter No. 5 – Accounting Equation
- Chapter No. 6 – Accounting Procedures – Rules of Debit and Credit
- Goods and Services Tax(GST)
- Chapter No. 8 – Journal
- Chapter No. 9 – Ledger
- Chapter No. 10 – Special Purpose Books I – Cash Book