Question No 40 Chapter No 17 – T.S. Grewal 11 Class

Question No 40 Chapter No 17

Question No 40 Chapter No 17

40.The Trial Balance of S. Sen did not agree and the difference in books was carried to a Suspense Account. Pass the entries required to rectify the following errors which accounted for the difference. Also, prepare the Suspense Account:
(i) A Sales Invoice for 1,000 for goods sold on credit to B. Basu was entered in the Purchases Book but in the Ledger, the amount was correctly debited to the account of B. Basu.
(ii) Goods bought on credit from Ram Lal for 1,500 were wrongly debited to his account as 5,100
(iii) An amount of 275 was posted as 325 to the debit side of the Commission Account.
(iv) The Sales Book for the month of April was undercasted by 100. (v) 460 paid for building repairs was debited to the Building Account as 640.

The solution of Question No 40 Chapter No 16:-

Date   Particulars
L.F. Debit Credit
i Suspense A/c Dr.   2,000  
  To Sales A/c       1,000
  To Purchases A/c       1,000
  (Being Goods sold to B. Basu was entered in Purchases book and debited to his account, now rectified)        
ii Suspense A/c Dr.   6,600  
  To Ram Lal       6,600
  (Being Bought goods from Ram Lal Rs 1,500 was wrongly debited to his account as Rs 5,100, now rectified)        
iii Suspense A/c Dr.   50  
  To Commission A/c       50
  (Being Commission Rs 275 was wrongly debited a Rs 325, now rectified)        
iv Suspense A/c Dr.   100  
  To Sales A/c       100
  (Being Sale Book was undercast, now rectified)        
v Building Repair A/c Dr.   460  
  Suspense A/c Dr.   180  
  To Building A/c       640
  (Being Building Repair Rs 460 was debited to Building Account as 640, now rectified)        

 

Dr. Suspense Account Cr.
Date Particulars
J.F. Amount Date Particulars
J.F. Amount
(i) Sales   1,000        
  Purchases   1,000        
(ii) Ram La   6,600        
(iii) Commission   50        
(iv) Sales   100        
(v) Building   180        
          Balance b/d   8,930
      8,930       8,930

 

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

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T.S. Grewals Double Entry Book Keeping - Question No 40 Chapter No 17 - T.S. Grewal 11 Class

T.S. Grewal’s Double Entry Book Keeping

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