Question No 38 Chapter No 17 - T.S. Grewal 11 Class

Question No 38 Chapter No 17

38. There was a difference of 720 in the Trial Balance which has been transferred to the credit side of the Suspense Account. Pass the rectifying entries and prepare a Suspense Account to rectify the following errors:
(i) An amount of 375 now posted on the debit side of the Commission Account instead of 275.
(ii) Credit amount of 260 posted to the debit of the Personal Account as 360. (iii) Goods sold to Surinder recorded in Purchases Book 30.
(iv) D’s bill for erection of godown at a cost of 1,200 has been charged to the Repairs Account

The solution of Question No 38 Chapter No 16:-

Date	Particulars		L.F.	Debit	Credit
i	Suspense A/c	Dr.		100
	To Commission A/c				100
	(Being Commission Rs 275 was debited as Rs 375, now rectified)
ii	Suspense A/c	Dr.		620
	To Personal Account				620
	(Being Credit amount Rs 260 was wrongly posted to the debit Rs 360 in Personal Account, now rectified)
iii	Surinder A/c	Dr.		600
	To Sales A/c				300
	To Purchases A/c				300
	(Being Gian’s Account was debited by Rs 215 Instead of Crediting Rs 512, now rectified)
iv	Building A/c	Dr.		1,200
	To Repair A/c				1,200
	(Being Cost of erection of Godown Rs 1,200 was debited to Repair Account, now rectified)

Dr.	Suspense Account						Cr.
Date	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
(i)	Commission		727		Balance b/d		720
(ii)	Personal Account		620
			720				720

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