Question No 32 Chapter No 17 - T.S. Grewal 11 Class

Question No 32 Chapter No 17

32. The accountant of a firm finds that the Trial Balance as on 31st December, 2017 is out by as excess debit of 283. He placed the amount in the Suspense Account. In the first week of January, 2018, he discovered the following errors. Pass the Journal entries necessary to rectify these errors and show the Suspense Account as it would appear at the end of the week. Have you any comment to make?
(i) Cash paid to Amar Nath, 75, was posted to the credit of Amar Singh’s Account as 57.
(ii) Discount allowed by Brijesh of 5 was not entered in the Cash Book but Brijesh stands debited correctly.
(iii) No entry was made of goods worth 40 taken away by the proprietor for personal use.
(iv) 500 received from Jhaveri Bros. for interest on a loan advanced to them were recorded in the Cash Book. But the entry was not posted in the Ledger. (v) The total of Returns Outward Book was short by 100

The solution of Question No 32 Chapter No 16:-

Date	Particulars		L.F.	Debit	Credit
i	Amar Nath	Dr.		75
	Amar Singh	Dr.		57
	To Suspense A/c				132
	(Being Cash paid to Amar Nath Rs 75 was wrongly Credited to Amar Singh as Rs 57, now rectified)
ii	Suspense A/c	Dr.		5
	To Discount Received A/c				5
	(Being Discount Received by Brijesh was omitted to be recorded in a Discount column but was recorded in Brijesh’s Account, now rectified)
iii	Drawings A/c	Dr.		40
	To Purchases A/c				40
	(Being Goods Drawn by proprietor was not recorded, now recorded)
iv	Suspense A/c	Dr.		500
	To Interest on Advance A/c				500
	(Being Interest on Advances received from Jhaveri Bros was not posted into Ledger, now rectified)
v	Suspense A/c	Dr		100
	To Return Outwards A/c				100
	(Being Return Outwards Book undermasted, now rectified)

Dr.	Suspense Account						Cr.
Date	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
(iii)	Discount Received		5		Balance b/d		283
(iv)	Interest on Advances		500	(ii)	Amar Nath		75
(v)	Return Outwards		100		Amar Singh		10
					Balance c/d		190
			605				605

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 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