Chapter 6: Trial Balance and Rectification of Errors

Q31Multiple choice

Rectify the following errors assuming that suspense account was opened. Ascertain the difference in trial balance.

(e) Bill receivable for Rs 2,000 received from a debtor was not posted to Bills receivable account.

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Journal Entries for Rectification of Errors
Date	Particular	L.F	Debit Amount	Credit Amount
	Depreciation A/c Dr. To suspense A/c (Depreciation on machinery was provided, but the error rectification recording was not posted to the discount account)		4000	4000
	Suspense A/c Dr. To Debtors A/c (Bad debts were written off, but the error rectification recording was not posted to the debtor's account).		5000	5000
	Discount allowed A/c Dr. To Suspense A/c (being a debtor's discount allowed after receiving cash, Error rectification recording, was not posted to the discount allowed account).		100	100
	Drawings A/c Dr. To suspense A/c (Because the goods were withdrawn by the proprietor for personal use, the error rectification recording was not posted to the drawings account).		800	800
	Bills Receivable A/c Dr. To suspense A/c (Error rectification recording was not posted to the Bills receivable account because it was Bills receivable from a debtor).		2000	2000

Suspense A/c
Date	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
	To Debtors A/c		5000		By Depreciation A/c		4000
	To Balance c/d		1900		By Discount allowed A/c		100
					By Drawing A/c		800
					By Bills Receivable A/c		2000


	Total		6900		Total		6900

Q32Multiple choice

Trial balance of Anuj did not agree. It showed an excess credit of Rs 6,000. He put the difference to suspense account. He discovered the following errors Rs

(e) Machinery purchased for Rs 10,000 was posted to purchases account as Rs 5,000. Rectify the errors and prepare suspense account.

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Journal Entries for Rectification of Errors
Date	Particular	L.F	Debit Amount	Credit Amount
	Suspense A/c Dr. To Ravish A/c (Because cash was received from Ravish, the error rectification recording was incorrectly recorded as Rs. 6,000 instead of Rs. 8,000)		2000	2000
	Suspense A/c Dr. To Return Inward A/c (The Returns inwards book was overcast by Rs. 1,000, and Error rectification recording was made).		1000	1000
	Suspense A/c Dr. To Sales A/c (Being the total of the sales book, the error rectification recording was not previously posted to the sales account).		10000	10000
	Purchase A/c Dr. Sales A/c Dr. To Suspense A/c (Error rectification recording was made in the sales book due to credit purchases from Nanak).		7000 7000	14000
	Purchase A/c Dr. To Purchases A/c To Suspense A/c (Error rectification recording was posted to the purchases account as Rs. 5,000, despite the fact that the machinery was purchased for Rs. 10,000).		10000	5000 5000

Suspense A/c
Date	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
	To Sales A/c		10000		By Purchase A/c		7000
	To Ravish A/c		2000		By Sales A/c		7000
	To Return Inwards A/c		1000		By Machinery A/c		5000
	To Balance c/d		6000


	Total		19000		Total		19000

Q33Written answer

Trial balance of Raju showed an excess debit of Rs 10,000. He put the difference to suspense account and discovered the following errors:

(a) Depreciation written-off the furniture Rs 6,000 was not posted to Furniture account. (b) Credit sales to Rupam Rs 10,000 were recorded as Rs 7,000.

(c) Purchases book undercast by Rs 2,000.

(d) Cash sales to Rana Rs 5,000 were not posted.

(e) Old Machinery sold for Rs 7,000 was credited to sales account.

(f) Discount received Rs 800 from Kanan on playing cash to him was not posted. Rectify the errors and prepare suspense account.

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Journal
Date	Particular	L.F	Amount	Amount
	Suspense A/c Dr. To Furniture A/c (Depreciation was written off the furniture, and an error rectification recording was made, but the furniture account was not posted)		6000	6000
	Rupam’s A/c Dr. To Sales A/c (Error rectification recording for Credit Sales to Rupam was incorrectly recorded as Rs. 7,000 instead of Rs. 10,000).		3000	3000
	Purchases A/c Dr. To suspense A/c (Rectification of Purchases book undercasing, recording of Error rectification).		2000	2000
	Cash A/c Dr. To sales A/c (Because they were cash sales, the error rectification recording was not posted earlier).		5000	5000
	Sales A/c Dr. To Machinery A/c (Because the old machinery was sold, the error rectification recording was previously credited to the sales account rather than the machinery account).		7000	7000
	Karan’s A/c Dr. To Discount Receivable (Because of the discount received from Karan, the error rectification recording was not posted sooner).		800	800

Suspense A/c
Date	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
	To Furniture A/c		6000		By balance b/d		10000
	To Balance c/d		6000		By Purchase A/c		2000

	Total		12000		Total		12000

Q34Multiple choice

Trial balance of Madan did not agree and he put the difference to suspense account. He discovered the following errors:

(e) Rent paid for residential accommodation of madam (the proprietor) Rs 1,400 was debited to Rent account as Rs 1,000. Rectify the errors and prepare suspense account to ascertain the difference in trial balance.

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Journal Entries for Rectification of Errors
Date	Particular	L.F	Debit Amount	Credit Amount
	Suspense A/c Dr. To Sales Return A/c (The sales return book was overcast by Rs. 800 because it was a Sales return, Error rectification recording, and Sales return book)		800	800
	Sahu’s A/c Dr. To Purchases return A/c (Purchases returned to Sahu, Error correction recording, had not previously been recorded).		2000	2000
	Purchases A/c Dr. To Narula’s A/c (The error rectification recording was not completed earlier because the goods were purchased on credit from Narula).		4000	4000
	Machinery A/c Dr. To sundry expenses A/c To Suspense A/c (Due to installation charges on new machinery purchased and error rectification recording, the Sundry expenses account was previously debited with Rs. 50 instead of crediting the machinery account with Rs. 500).		500	50 450
	Drawings A/c Dr. To Rent A/c To Suspense A/c (Being Drawings by the proprietor for payment of personal rent, Error rectification recording, Previously, the Rent account was debited with Rs. 1,000 instead of debiting the Drawings account with Rs. 1,400).		1400	1000 400

Suspense A/c
Date	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
	To sales return A/c		800		By Machinery A/c		450
	To Balance c/d		50		By Drawing A/c		400

	Total		850		Total		850

Q35Multiple choice

Trial balance of Kohli did not agree and showed an excess debit of Rs 16,300. He put the difference to a suspense account and discovered the following errors:

(e) Sale of old car for Rs 10,000 was credited to sales account as Rs 6,000. Rectify the errors and prepare suspense account.

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Journal Entries for Rectification of Errors
Date	Particular	L.F	Debit Amount	Credit Amount
	Suspense A/c Dr. To Rajat’s A/c To Kamal’s A/c (Because cash was received from Rajat, the error rectification recording was debited to Kamal's account rather than crediting Rajat's account)		11000	5000 6000
	Salaries A/c Dr. To Employee A/c To suspense A/c (Salaries paid to employees, Error rectification recording, was incorrectly debited to employee's account with Rs. 1,200 instead of debiting salaries account with Rs.2,000).		2000	1200 800
	Sales A/c Dr. To Drawings A/c To Suspense A/c (Being Goods withdrawn by the proprietor, Error rectification recording, Rs. 1,600 was incorrectly credited to the Sales account instead of crediting the Drawings account with Rs. 1,000).		1600	1000 600
	Suspense A/c Dr. To Machinery A/c (Because depreciation was provided on machinery, error rectification recording was recorded as Rs.300 rather than Rs.3,000).		2700	2700
	Sales A/c Dr. Suspense A/c Dr. To Car A/c (Being Goods withdrawn by the proprietor, Error rectification recording, Rs. 1,600 was incorrectly credited to the Sales account instead of debiting the Drawings account with Rs. 1,000).		6000 4000	10000

Suspense A/c
Date	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
	To Rajat’s A/c		5000		By Balance b/d		16300
	To Kamal’s A/c		6000		By Sales A/c		600
	To machinery A/c		2700		By Salaries A/c		800
	To Car A/c		4000
	Total		17700		Total		17700

Q36Multiple choice

Give journal entries to rectify the following errors assuming that suspense account had been opened.

(e) Discount allowed to Reema Rs 700 on receiving cash from her was recorded in the books as Rs 70.

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Journal Entries for Rectification of Errors
Date	Particular	L.F	Debit Amount	Credit Amount
	Marketing A/c Dr. To Purchase A/c (Error rectification recording was not previously recorded because the goods were distributed as a free sample)		5000	5000
	Drawings A/c Dr. To Purchases A/c (Error rectification recording was not previously recorded because the goods were withdrawn for personal use by the proprietor).		2000	2000
	Suspense A/c Dr. To Debtors A/c (Due to the fact that the debtor received bills receivable, the error rectification recording was not posted to the debtor's account).		6000	6000
	Returns Inwards A/c Dr. Returns Outward A/c Dr. To Suspense A/c (The total of the returns inwards book, as well as the error rectification recording, was posted to the returns outwards account).		1200 1200	2400
	Discount Allowed A/c Dr. To Reema A/c Being allowed a discount when receiving cash, the error rectification recording was previously incorrectly recorded as Rs.70 instead of Rs.700.		630	630

Suspense A/c
Date	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
	To Debtors A/c		6000		By Return Inward A/c		1200
					By Return Outward A/c		1200
					By Balance b/d		3600

	Total		6000		Total		6000

Q37Multiple choice

Trial balance of Khatau did not agree. He put the difference to suspense account and discovered the following errors:

(e) Total of Returns inwards book Rs 2,800 posted to Purchase account. Rectify the above errors and prepare suspense account to ascertain the difference in trial balance.

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Journal Entries for Rectification of Errors
Date	Particular	L.F	Debit Amount	Credit Amount
	Mana’s A/c Dr. Suspense A/c Dr. To Purchase A/c To Sales A/c (Being credit sales for Rs.16,000, Error rectification recording, was incorrectly recorded in the purchases book as Rs. 10,000 and posted to Mana's debit as Rs. 1,000)		15000 11000	10000 16000
	Furniture A/c Dr. Suspense A/c Dr. To Noor’s A/c To purchases A/c (Error rectification recording for furniture purchased from Noor for Rs. 6,000 was recorded through purchases book as Rs. 5,000 and posted to Noor's debit as Rs. 2,000).		6000 7000	8000 5000
	Sales A/c Dr. Rai’s A/c Dr. To return outward A/c (Being Goods Returned, Error Rectification Entry, was incorrectly recorded as Rs. 1,000 instead of Rs.3,000 in the sales book).		1000 2000	3000
	Manish’s A/c Dr. Sales A/c Dr. Maneesh’s A/c Dr. To Machinery A/c To Suspense A/c (Error Rectification Entry, being old machinery sold to Maneesh for Rs.2,000, was incorrectly recorded through the sales book as Rs. 1,800 and posted to Manish's account as Rs.1,200).		1200 1800 2000	2000 3000
	Return Inward A/c Dr. To Purchases A/c Dr. (Error Rectification Entry, being the total of returns inwards book, was incorrectly posted to the purchases account).		2800	2800

Suspense A/c
Date	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
	To Sales A/c		11000		By Manish’s A/c		3000
	To Noor’s A/c		7000		By Balance A/c		15000


	Total		18000		Total		18000

Q38Multiple choice

Trial balance of John did not agree. He put the difference to suspense account and discovered the following errors:

(e) Goods returned to Ram Rs 1,000 were recorded in Sales Book.

(f) Credit purchases from S & Co. for Rs 6,000 were recorded in sales book. However, S & Co. was correctly credited.

(g) Credit purchases from M & Co. Rs 6,000 were recorded in Sales Book as Rs 2,000 and posted there from to the credit of M & Co. as Rs 1,000.

(h) Credit sales to Raman Rs 4,000 posted to the credit of Raghvan as Rs 1,000.

(i) Bill receivable for Rs 1,600 from Noor was dishonoured and posted to debit of Allowances account.

(j) Cash paid to Mani Rs 5,000 against our acceptance was debited to Manu.

(k) Old furniture sold for Rs 3,000 was posted to Sales account as Rs 1,000.

(l) Depreciation provided on furniture Rs 800 was not posted.

(m) Material Rs 10,000 and wages Rs 3,000 were used for construction of building. No adjustment was made in the books. Rectify the errors and prepare suspense to ascertain the difference in trial balance.

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Journal Entries for Rectification of Errors
Date	Particular	L.F	Debit Amount	Credit Amount
	Sales A/c Dr. To suspense A/c (Because the Sales account was overcasted, the Error rectification recording was incorrectly carried forward in two pages).		400	400
	Machinery A/c Dr. To wages A/c To suspense A/c (Wages paid for machinery installation, Error rectification recording, were incorrectly posted to the wages account).		500	50 450
	Machinery A/c Dr. Suspense A/c Dr. To Purchases A/c To R & Co. A/c (Because the machinery was purchased on credit from R & Co., the error rectification recording was incorrectly entered in the purchases book as Rs. 6,00 and posted into R & Co. as Rs. 1,000).		10000 5000	6000 9000
	Mohan’s A/c Dr. To Sales A/c To purchases A/c (Error rectification recording for credit sales to Mohan was incorrectly recorded in the purchases book).		10000	5000 5000
	Sales A/c Dr. To Purchases return A/c (Being Goods Returned to Ram, Error Correction Recording, was incorrectly recorded in the sales book).		1000	1000
	Purchases A/c Dr. Sales A/c Dr. To suspense return A/c (Credit purchases from S & Co., Error rectification recording, were incorrectly recorded in the sales book)		6000 6000	12000
	Purchases A/c Dr. Sales A/c Dr. To M & Co. A/c To Suspense A/c (Credit purchases from M & Co., Error rectification recording, were incorrectly credited in the sales book as Rs. 2,000 and also incorrectly credited to the M & Co. account as Rs. 1,000)		6000 2000	5000 3000
	Raman’s A/c Dr. Raghavan’s A/c Dr. To Suspense Return A/c (Credit Sales to Raman for Rs.4,000 was incorrectly credited to Raghavan's account with Rs. 1,000)		4000 1000	5000
	Noor’s A/c Dr. To Allowance A/c (Noor's bills for Rs. 1,600 were dishonoured, and an error rectification recording was incorrectly posted to the debit of allowance account).		1600	1600
	Bills Payable A/c Dr. To Manu’s A/c (The error rectification recording was incorrectly debited to Manu's account because cash was paid to Mani in exchange for our acceptance)		5000	5000
	Sales A/c Dr. Suspense A/c Dr. To Furniture A/c (Because the old furniture was sold for Rs.3,000, the error rectification recording was incorrectly posted to the sales account as Rs. 1,000)		1000 2000	3000
	Depreciation A/c Dr. To Furniture A/c (Being provided with depreciation on furniture, Error rectification recording, was not posted earlier)		800	800
	Building A/c Dr. To Purchases A/c To Wages A/c (Being Material and wages used in the building's construction, Error rectification recording, was not posted earlier)		13000	10000 3000

Suspense A/c
Date	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
	To Purchase		5000		By Sales A/c		400
	To Furniture A/c		2000		By Machinery A/c		450
	To Balance A/c		13850		By Purchase b/d		6000
					By Sales A/c		6000
					By purchase A/c		3000
					By Raman’s A/c		4000
					By Raghavan’s A/c		1000

	Total		20850		Total		20850

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