Question No 49 Chapter No 17 - T.S. Grewal 11 Class

Question No 49 Chapter No 17

49. The bookkeeper of a firm found that his Trial Balance was out (excess credit) by 742. He placed the amount in a Suspense Account and subsequently found the following errors:
(i) A discount of 178 was allowed to Ramesh but in his account only 100 is recorded.
(ii) The total of the Purchases Book was 1,000 short.
(iii) A sale of 375 to Kohli was entered in the Sales Book as 735.
(iv) From the Purchases Book, Bose’s Account was debited with 175.
(v) Cash 250 received from Maitra against debt previously written off was credited to his account.
(vi) Purchase of office furniture worth 750 on credit from Delhi Furnitures was entered in the Purchases Book.
(vii) While carrying forward the total of the Sales Book from one page to another the amount of 11,358 was written as 11,538.
(viii) The proprietor took goods of the value of 150 for his domestic consumption. No record of it has been made in the books.
(ix) Repairs bill of 410 for the proprietor’s personal car, has been paid by the firm and debited to the Repairs Account.
(x) A sale to Kassim of 700 has been entered in the Purchases Book. Rectify the errors by means of suitable Journal entries and show the Suspense Account.

The solution of Question No 48 Chapter No 16:-

Date	Particulars		L.F.	Debit	Credit
i	Suspense A/c	Dr.		78
	To Ramesh				78
	(Being Discount allowed Rs 178 to Ramesh was wrongly entered as Rs 100 in his account, now rectified)
ii	Purchases A/c	Dr.		1,000
	To Suspense A/c				1,000
	(Being Purchases Book was undercast, now rectified)
iii	Sales A/c	Dr.		360
	To Kohli A/c				360
	(Being Sale of Goods Rs 375 was wrongly entered as Rs 735 in Sales Book, now rectified)
iv	Suspense A/c	Dr.		350
	To Bose A/c				350
	(Being Purchases from Bose Rs 175 was debited to his account, now rectified)
v	Maitra A/c	Dr.		250
	To Bad Debt Recovered A/c				250
	(Being Cash Received from Maitra which had been previously written off as bad debt, was Credited to account, now rectified)
vi	Furniture A/c	Dr.		750
	To Purchases A/c				750
	(Being Purchases of Office furniture was wrongly entered in the Purchases Book, now rectified)
vii	Sales A/c	Dr.		180
	To Suspense A/c				180
	(Being Total of Sales Book carry forward by excess amount, now rectified)
viii	Drawings A/c	Dr.		150
	To Purchases A/c				150
	(Being Goods drawn by proprietor was not recorded, now rectified)
ix	Drawings A/c	Dr.		410
	To Repair A/c				410
	(Being Repair of proprietor’s personal Car was wrongly debited to Repairs Account, now rectified)
x	Kassim A/c	Dr.		1,400
	To Suspense A/c				700
	To Purchases A/c				700
	(Being Sale to Kassim was wrongly entered in the Purchases Book, now rectified)

Dr.	Suspense Account						Cr.
Date	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
	Balance b/d		742	(ii)	Purchases		1,000
(i)	Ramesh A/c		742	(vii)	Sales		180
(iv)	Bose		350
	Balance c/d		10
			1,180				1,180

Error Rectification in accounting – Explanation with examples

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- 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