Question No 36 Chapter No 17 - T.S. Grewal 11 Class

Question No 36 Chapter No 17

36. The Trial Balance of M/s. Gupta & Sons shows a difference of 52,200. To prepare the Final Account on 31 st March, 2009, this difference is placed in a Suspense Account. Afterwards the following errors were disclosed. Pass the necessary entries to rectify them and show the Suspense Account.
(i) Purchases Book total had been undercasted by 20,000.
(ii) A cheque received from Vasudev for 7,800 had been debited in the Cash Book but not posted in Vasudev’s Personal Account.
(iii) Returns Outward Book had been overcasted by 10,000.
(iv) Goods returned by Yash Pal worth 15,000 have been entered in Returns Outward Book. However, Yash Pal’s Account is correctly posted.

The solution of Question No 36 Chapter No 16:-

Date	Particulars		L.F.	Debit	Credit
i	Purchases A/c	Dr.		20,000
	To Suspense A/c				20,000
	(Being Purchases was undercast, now rectified)
ii	Suspense A/c	Dr.		7,800
	To Vasudev				7,800
	(Being Cheque received from Vasudev was not recorded in his account, now recorded)
iii	Return Outwards A/c	Dr.		10,000
	To Suspense A/c				10,000
	(Being Return Outwards Book was overcast, now rectified)
iv	Return Inward A/c	Dr.		15,000
	Return Outwards A/c	Dr.		15,000
	To Suspense A/c				30,000
	(Being Cheque Drawn for Petty Cash was wrongly debited to Asif’s Account, now rectified)

Dr.	Suspense Account						Cr.
Date	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
	Difference in Trial Balance		52,200	(i)	Suspense		1,000
(ii)	Vasu Dev		7,800	(iii)	Return Outwards		10,000
				(iv)	Return Outwards		15,000
					Return Inwards		15,000
			60,000				60,000

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