Question No 42 Chapter No 17 - T.S. Grewal 11 Class

Question No 42 Chapter No 17

42. There was a difference in the Trial Balance of M/s. Jain & Sons, prepared for the year ended 31st March, 2009. The accountant put the difference in Suspense Account. The following errors were found: |
(i) Purchases Return Book total 400 has not been posted to Ledger Account. (ii) 5,100 spent on legal expense for the newly acquired Building was debited to the Building Account as 1,500.
(iii) A sale of 6,540 to Rajat has been credited to his account. Rectify the errors and show the Suspense Account with Nil closing balance.

The solution of Question No 42 Chapter No 16:-

Date	Particulars		L.F.	Debit	Credit
i	Suspense A/c	Dr.		400
	To Purchases Return A/c				400
	(Being Purchases Return Book total was not posted to Purchase Return Account, now rectified)
ii	Building A/c	Dr.		3,600
	To Suspense A/c				3,600
	(Being Legal expenses Rs 5,100 on acquiring a Building was recorded as Rs 1,500 in Building Account, now rectified)
iii	Rajat A/c	Dr.		13,080
	To Suspense A/c				13,080
	(Being Sale of Rajat Rs 6,540 was posted wrongly to Credit of his account, now rectified)

Dr.	Suspense Account						Cr.
Date	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
(i)	Purchases Return		1,000	(ii)	Building		3,600
				(iii)	Rajat		13,080
	Difference in the Trial Balance		15,880
			16,280				16,280

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