RANI SATI CLASSES (CA Chandan Agarwal)

Class 11 Accountancy
Chapter 17 : Rectification of Error

"To err is human." Accountant, as a human being is likely to commit mistakes

while recording the transactions in the books of original entry, posting them
to Ledger accounts or in preparing a trial balance itself. It is essential to locate
and rectify errors, otherwise profit and loss account will not disclose the true
profit or loss of the business and the balance sheet will not present a true and
fair view of the financial position of the business.

Errors should never be corrected by overwriting or erasing because it reduces

the authenticity of accounting records and gives the impression that
something is being concealed.

The procedure followed to rectify the errors committed and to set right
accounting records is called Rectification of Errors.

The objectives of rectifying errors are:

1. Preparing correct accounting records.
2. Ascertaining correct net profit or loss for the accounting period by
preparing Profit & Loss Account with the correct figures.
3. Exhibiting a true and fair view of financial position of the concern at a
particular date by preparing Balance Sheet with the correct accounting
data.

Rectification of errors depends upon the time of their detection

and type of the error. It may be discussed as follows:

1. Rectification of Errors before the preparation of Trial Balance;

2. Rectification of Errors after the peparation of Trial Balance but before
the preparation of Final Accounts; and
3. Rectification of Errors after the preparation of Final Accounts or in the
next accounting year.
Types of Error

1. Error of Principle : Error of Principle means recording a transaction in

contravention of accounting principles. Example - Recording freight on
purchase of fixed asset as a revenue expenditure.
2. Error of Omission : Error of Omission means a transaction being omitted
to be recorded completely or partially.
 Error of Complete Omission means a transaction is not recorded in
the books of account or if recorded has not been posted into
Ledger Accounts.
 Error of Partial Omission means a transaction being recorded
partially and if recorded completely has been posted into Ledger
Accounts partially.
3. Errors of Commission : Errors of Commission are those errors which
arise due to wrong recording, wrong posting, wrong carrying forward,
wrong casting, wrong balancing, etc.
4. Compensating Error : Compensating Error is the error the effect of which
is nullified by another error of equal amount.

From the rectification point of view, all errors can be classified into the
following two categories:
1. Errors which do not affect the Trial Balance or Two-sided Errors
2. Errors which affect the Trial Balance or One-sided Errors

What do you mean by Suspense Account?

When a Trial Balance does not tally, the difference is put to a newly opened
account named 'Suspense Account' and the Trial Balance is thus made to tally.
In case, the debit side of the Trial Balance exceeds the credit side, the
difference is put on the credit side of 'Suspense Account'. Likewise, if the
credit side of the Trial Balance exceeds the debit side, the difference is put on
the debit side of 'Suspense Account
ALWAYS REMEMBER FOR RECTIFICATION OF ERRORS
1. When error involves posting of an individual transaction recorded In
Cash Book : It affects the individual Account which was to be posted not
Cash/Bank Account.
2. When error involves posting of an individual transaction recorded in
other Subsidiary Books: It affects the Individual Personal Account only
and not that account in which total of that subsidiary book is posted.
Example: Goods sold to Mohan for 10,000 posted as 1,000. It means that
Mohan's Account has been debited with 1,000 and Sales Account was
not affected.
3. When error involves omission of posting of a transaction recorded in a
Journal Proper : Assume that the transaction has not been posted to any
of the accounts involved. Example: Furniture purchased on credit from
Mohan for 10,000 was not posted. Assume that the transaction has not
been posted to any of the accounts (Mohan's Account and Furniture
Account) involved.
4. When error Involves casting of Subsidiary Books: It affects only that
Account to which total of the particular Subsidiary Book is posted and
does not affect the Individual Personal Account. Example: Purchases
Book was overcasted by 10,000. It means that there is excess debit of
10,000
5. Unless otherwise stated, it is presumed that errors are rectified before
the preparation of the Financial Statements
6. If error relates to posting to a wrong account (without mentioning side
and amount of posting) then assume that posting has been done on
correct side with correct amount.
7. If error relates to posting with wrong amount (without mentioning side
of posting and account) then assume that posting has been done to a
correct account and on correct side.
8. If error relates to posting on wrong side (without mentioning amount
and account) then assume that posting has been done to a correct
account with correct amount.
PRACTICAL PROBLEMS

Q 1. How will be the following errors rectified?

i. Purchases Book is overcasted by Rs.10,000.
ii. Purchases Return Book is overcasted by Rs.10 ,000.
iii. Purchases Return Book’s balance is carried forward in excess by
Rs.2,000.
iv. Purchases Book’s balance is carried forward in excess by Rs.5,000.
Note: The above errors have been identified before the preparation of Trial
Balance.

Q 2. How will be the following errors rectified?

i. Sales Book is short casted by Rs.20,000.
ii. Sales Return Book is short casted by Rs.2,000.
iii. Balance of Sales Book is carried forward short by Rs.2,000.
iv. Balance of Sales Return Book is carried forward short by Rs.500.

Q 3. How will you rectify the following errors?

i. Sales Book is overcasted by Rs.15,000.
ii. Sales Return Book is short casted by Rs.3,500.
iii. Balance of Sales Book is carried forward in excess by Rs.2,000.
iv. Balance of Sales Return Book is carried forward in excess by Rs.500.

Two Sided Errors: Errors of Recording

Q 4. Pass the necessary Journal entries to rectify the following errors:

i. Credit sale of Rs.5,700 to Mohan was recorded as Rs.7,500.
ii. Credit sale of Rs.8,500 to Sohan was recorded as sale to Mohan.
iii. Credit sale of Rs.8,500 to Meenu was recorded as sale to Meena as
Rs.5,800.
iv. Credit sale of Rs.8,500 to Ram was recorded in the Purchases Book.
v. Credit sale of old machinery to Sohan for Rs.1,700 was entered in the
Sales Book as Rs.7,100.
Errors of Posting

Q 5. Pass the necessary Journal entries to rectify the following errors:

i. Credit sale of Rs.2,500 to Kishan was posted to Krishan’s Account.
ii. Cash sale of Rs.5,000 to Meenu was posted to the credit of Meena.
iii. Amount of Rs.3,500 withdrawn from bank by the proprietor for his
personal use was debited to Purchases Account.
iv. Credit sale of old furniture to Mohan for Rs.1,700 was posted as
Rs.7,100.
v. Credit sale of old furniture to Babu Ram for Rs.3,000 was credited to
Sales Account.
vi. Cheque of Rs.1,280 received from Farid was dishonoured and has been
posted to the debit of Sales Return Account.

Q 6. Rectify the following errors:

i. Sales to Gurman of Rs.143 posted to his account as Rs.134.
ii. Sales to Gurman of Rs.143 debited to his account as Rs.134.
iii. Sales to Gurman of Rs.143 credited to his account as Rs.134.

Errors of Principle

Q 7. Pass the necessary Journal entries to rectify the following errors:

i. Rs.25,000 paid as wages for the construction of office building debited
to Salaries Account.
ii. Rs.20,000 spent on the purchases of material for the construction of
building debited to Purchases Account.
iii. Rs.40,000 spent on the extension of building was debited to Building
Repairs Account.
iv. Rs.25,000 spent on whitewash of a new building was charged to Building
Repairs Account.
v. Rs.4,000 paid as installation charges for newly purchased second hand
machinery posted to Cartage Account.
vi. Rs.10,000 paid as repairing charges on the reconditioning of a newly
purchased second hand machinery debited to General Expenses
Account.
vii. Rs.6,000 paid as repairing charges of an existing machine in use charged
to Machinery Account.
viii. Rs.10,000 paid by cheque for a printer was charged to the Office
Expenses Account.
Errors of Complete Omission

Q 8. Give rectifying Journal entries for the following errors:

i. Goods returned by Mohan of Rs.2,500 not recorded in books.
ii. Goods distributed as free samples for Rs.8,000 not recorded.
iii. Depreciation of machinery of Rs.10,000 not charged.
iv. Goods costing Rs.7,800, selling price Rs.10,000 given as charity not
recorded.

Compensating Errors

Q 9. Rectify the following errors:

i. Anil’s Account was excess debited by Rs.500 while Suraj’s Account was
short debited by Rs.500.
ii. Goods purchased from Kunal for Rs.8,000 and from Kapil of Rs.9,000
recorded correctly in the Purchases Book. However, Rs.9,000 was posted
to Kunal and Rs.8,000 to Kapil.
iii. Parkar’s Account was short credited by Rs.700 while Manisha’s Account
was excess credited by Rs.700.
iv. Goods sold to Roopak for 1,000 and to Sagar for Rs.1,800 recorded
correctly in the Sales Book. However, Rs.1,800 was posted to Roopak
and Rs.1,000 to Sagar.
Miscellaneous Transactions
Q 10. Following errors affecting the accounts for the year 2022-23 were
detected in the books of Das & Co., Meerut:
i. Sale of old furniture for Rs.8,000 was treated as sales of goods.
ii. Rent of proprietor’s residence Rs.6,000 was debited to Rent Account.
iii. Cash received from Rajesh Rs.7,150 was credited to Brajesh.
Pass the rectifying Journal entries. State the nature of each of these mistakes.

Q 11. Rectify the following errors assuming that there is no Suspense Account:
i. Salary of Rs.10,000 paid to Rahul was not posted to Salaries Account.
ii. Sales to Amrish of Rs.1,430 posted to his account as Rs.1,340.
iii. Sales to Vijay of Rs.2,470 posted to his account as Rs.2,740.
iv. Purchases from Pal of Rs.1,430 posted to his account as Rs.1,340.
Q 12. Rectify the following errors:
i. Purchases Book has been undercast by Rs.1,000.
ii. Credit sale to Anu Prakash Rs.7,000 was recorded in Purchases Book.
iii. Credit sale to Rahul Rs.7,000 was recorded as Rs.700.

Q 13. Which of the following errors will affect the Trial Balance?
i. The total of the Sales Book has not been posted to the Sales Account.
ii. Rs.1,000 paid as installation charges of a new machine has been debited
to Repairs Account.
iii. Goods costing Rs.4,000 taken by the proprietor for personal use have
been debited to Debtor’s Account.
iv. Rs.1,000 paid for repairs to building have been debited to Building
Account.

Q 14. Rectify the following errors assuming that there is no Suspense Account:
i. The Returns Inward Book has been overcasted by Rs.200.
ii. Purchases Book carried forward Rs.75 less.
iii. Sales Book carried forward Rs.41 less on Page 10 and Rs.43 more on
Page 12.
iv. Goods sold to Gurman were posted as Rs.215 instead of Rs.251.

Q 15. Pass Journal entries to rectify the following errors which were located
after preparing the Trial Balance:
i. The Sales Book was overcast by Rs.500.
ii. Credit purchases from Aradhya Rs.6,000 were posted to the debit of her
account of Rs.9,000.
iii. Goods returned from Ayan Rs.8,000 were recorded in Purchases Return
Book.
iv. Wages paid Rs.3,980 were recorded in the Cash Book as Rs.3,890.

Q 16. Following errors are discovered in the books of Ram Lal. Make the
necessary entries to rectify them:
i. Purchases Journal was undercasted by Rs.6,150.
ii. Rs.500 received from Krishna was debited to his account.
iii. An amount of Rs.3,000 withdrawn by the proprietor of the firm for his
personal use was posted to the Travelling Expenses Account.
iv. An amount of Rs.175 for a credit sale to R. Gopalan correctly entered in
the Sales Book, has been debited to his account as Rs.157.
Q 17. Rectify the following errors by passing Journal entries:
i. Old furniture sold for 500 has been credited to Sales Account.
ii. Machinery purchased on credit from Raman for Rs.2,000 recorded
through Purchases Book as Rs.16,000.
iii. Cash received from Rajat Rs.5,000 was posted to the debit of Bhagat as
Rs.6,000.
iv. Depreciation provided on machinery Rs.3,000 was posted to Machinery
Account as Rs.300.

Q 18. Give the rectifying entries of the following:

i. Sales of Rs.20,000 to Sunil was recorded as Rs.2,000 in the Sales Book.
ii. An amount of Rs.35,000 spent for the extension of machinery has been
debited to the Wages Account.
iii. Discount received from Ram & Co. Rs.350, has not been entered in the
discount column of the Cash Book.
iv. Goods of Rs.3,000 sold to Mahesh were recorded in the Purchases Book.

Q 19. Pass the Journal entries rectifying the following errors:

i. Purchases of Rs.20,000 was omitted to be recorded.
ii. Purchases of office furniture of Rs.10,000 was recorded in Purchases
Book.
iii. Office Rent of Rs.15,000 was debited to the Personal Account of the
landlord.
iv. Old machine sold for Rs.7000 was credited to Sales Account.
v. Bill for Rs.800 received from Mukesh for repair of machinery was
entered in the Purchases Book as Rs.700.
vi. A purchase of goods from Nathan amounting to Rs.5,000 had been
entered through the Sales Book.

Q 20. Rectify the following errors:

i. Total of one page of the Sales Book was carried forward to the next page
as Rs.2,785 instead of Rs.2,587.
ii. A cheque of Rs.400 received from Mohan was dishonoured and had
been posted to the debit side of the Allowance Account.
iii. Return of goods worth Rs.5,000 by a customer was entered in the
Purchases Return Book.
iv. Sum of Rs.200 owed by ‘X’ has been included in the list of Sundry
Creditors.
v. Sale of old furniture worth Rs.430 was credited to the Sales Account as
Rs.340.
Q 21. Rectify the following errors:
i. Purchases Book is overcast by Rs.500.
ii. Salary paid to an employee, Ajay, is debited to his Personal Account
Rs.3,000.
iii. Goods sold to Shashi on credit Rs.300 have been wrongly passed
through the Purchases Book.
iv. Total of Returns Inward Book has been added Rs.9 short.
v. Purchase of chair from Happy Traders for Rs.35 has been entered in the
Purchases Book as Rs.53.

Q 22. Mukesh found that the Trial Balance did not agree. He found the
following errors:
i. In the Sales Book for the month of January, total of Page No. 3 was
carried forward to Page No. 4 as Rs.1,000 instead of Rs.1,200 and total
of Page No. 7 was carried forward to Page No. 8 as Rs.5,600 instead of
Rs.5,000.
ii. Goods returned to Anushka Rs.10,000 were recorded in the Sales Book.
iii. Cheque of Rs.8,000 received from Riya was dishonoured and posted to
the debit of Expenses Account.
Pass rectifying entries for the above transactions.
Q 23. Pass the rectifying entries for the following:
i. Sales of goods Rs.6,000 to Madan were recorded as Rs.600 in the Sales
Book.
ii. Credit purchase of goods from Mohan amounting to Rs.2,000 has been
wrongly passed through the Sales Book.
iii. Return of goods worth Rs.500 by a customer was entered in ‘Purchases
Return Book’.
iv. Cheque of Rs.400 received from Ranjan was dishonoured and debited to
the Discount Account.
v. Bill for Rs.820 received from Ramesh for repair of machinery was
entered in the Purchases Book as Rs.720.

Q 24. Give rectifying Journal entries for the following errors:

i. Sales of goods to Madan Rs.6,000 were entered in the Sales Book as
Rs.600.
ii. Credit purchase of Rs.1,500 from Ajay has been wrongly passed through
the Sales Book.
iii. Repairs to building Rs.300 were debited to Building Account.
iv. Rs.2,050 paid to Rohit is posted to the debit of Mohit’s Account as
Rs.5,020.
v. Purchases Return Book is overcasted by Rs.400.
Q 25. Give rectifying entries for the following:
i. Rs.5,400 received from A was posted to the debit of his account.
ii. The total of Sales Return Book overcasted by Rs.800.
iii. Rs.2,740 paid for repairs to motor car was debited to Motor Car Account
as Rs.1,740.
iv. Returned goods to Shyam Rs.1,500 were passed through Returns Inward
Book.

Q 26. Pass Journal entries rectifying the following errors:

i. A cheque for Rs.20,000 was received from Ranjan on which Rs.200 Cash
Discount was allowed. The cheque was not honoured on due date and
the amount of discount was credited to Discount Received Account.
ii. Rs.5,000 paid as wages for machinery installation was debited to Wages
Account.
iii. Rs.10,000 received from Rakesh were credited to his Personal Account.
The amount had been written off as bad debts earlier.
iv. Repair bill of machinery was recorded as Rs.500 against the bill amount
of Rs.5,000.

Q 27. Rectify the following errors:

i. Sales Book has been totalled Rs.1,000 short.
ii. Goods worth Rs.1,500 returned by Green & Co. have not been recorded
anywhere.
iii. Goods purchased worth Rs.2,500 have been posted to the debit of the
supplier, Gupta & Co.
iv. Furniture purchased from Gulab & Co. worth Rs.10,000 has been
entered in Purchases Book.
v. Cash received from A Rs.2,500 has not been posted in his account.

Q 28. Pass Journal entries to rectify the errors in the following cases:
i. A purchase of goods from David amounting to Rs.150 has been wrongly
passed through the Sales Book.
ii. A credit sale of goods of Rs.120 to Peter has been wrongly passed
through the Purchases Book.
iii. Rs.200, salary paid to Cashier, Bimal, stands wrongly debited to his
Personal Account.
iv. A credit sale of Rs.4,230 to Krishan entered as purchase from Kishan
4,320.
v. Ramesh s Account was credited with 840 twice instead of once.
Q 29. (i) What are the different causes that make a Trial Balance incorrect?
(ii) Pass the rectifying Journal entries:
a) A credit sale of goods for Rs.2,500 to Krishna has been wrongly
passed through the Purchases Book.
b) Rs.5,000 paid for freight on machinery purchased was debited
to the Freight Account as Rs.500.
c) The Returns Inward Book has been wrongly overcasted by
Rs.100.
d) An amount of Rs.500 due from Ramesh which had been written
off as bad debt in previous year was recovered and had been
posted to the Personal Account of Ramesh.
e) A sum of Rs.460 owed by Hari had not been included in the list
of debtors.

Q 30. Rectify the following errors:

a) Wages paid for the construction of office debited to the Wages Account,
Rs.5,000.
b) Machinery purchased for Rs.35,000 was passed through the Purchases
Book.
c) Old furniture sold for Rs.1,000, passed through the Sales Book.
d) Rs.2,000 paid to Mehta Bros. against acceptance were debited to
Malhotra Bros. Account.
e) Sales of Rs.204 to Ram debited to his account as 402 and purchases of
Rs.1,012 from Shyam credited to his account as Rs.1,210.

Q 31. Rectify the following errors:

i. Sale of old furniture worth Rs.3,000 treated as sales of goods.
ii. Sales Book added Rs.5,000 short.
iii. Rent of proprietor’s residence, Rs.6,500 debited to Rent Account.
iv. Goods worth Rs.11,970 returned by Manav posted to his debit as
Rs.11,790.

Q 32. Give the Journal entries to rectify the following errors:

i. Purchases Book was overcast by Rs.1,000.
ii. Installation charges on new machinery purchased Rs.500 were debited
to Sundry Expenses Account as Rs.50.
iii. Radhey Shyam returned goods worth Rs.500 which was entered in the
Purchases Return Book.
iv. Goods taken by the proprietor for Rs.5,000 have not been entered in the
books at all.
Q 33. Rectify the following errors:
i. The total of one page of Sales Book was carried forward as 371 instead
of 317.
ii. Rs.540 received from Yatin was posted to the debit of his Account.
iii. Purchases Returns Book was overcast by Rs.300.
iv. An item of 1,062 entered in Sales Return Book had been posted to the
debit of customer who returned the goods.
v. Rs.1,500 paid for furniture purchased had been charged to ordinary
Purchase Account.

Q 34. Rectify the following errors by passing Journal entries:

i. A sum of Rs.470 received from Ganga was posted to her debit as Rs.740.
ii. A debit balance of Rs.550 in the personal account of Mr. John was
undercast.
iii. Cheque from Brown for Rs.3,000 posted to the credit of Expenses
Payable Account and credited to Brown’s Account.
iv. Goods returned by Mridul Rs.225 have been entered in the Returns
Outward Book.

Q 35. While trying to close his books for the year ended 31st March, 2014,
Mahesh found that the Trial Balance did not agree. He traced the
following errors:
i. In the Sales Book for the month of January total of Page No. 2 was
carried forward to Page No. 3 as Rs.1,000 instead of Rs.1,200 and total
of Page No. 6 was carried forward to Page No. 7 as Rs.5,600 instead of
Rs.5,000.
ii. Goods returned to Ram Rs.1,000 were recorded in the Sales Book.
iii. Cheque for Rs.1,600 from Noor was dishonoured and posted to credit of
Furniture Account.
Rectify the above errors.

Q 36. Pass the rectification entries for the following transactions:

i. An amount of Rs.2,000 received from Mohan on 1st April, 2023 had
been entered in the Cash Book as having been received on 31st March,
2023.
ii. The balance in the account of Rahim Rs.1,000 had been written off as
bad but no other account has been debited.
iii. An addition in the Returns Inward Book had been cast Rs.100 short.
iv. A cheque for Rs.200 drawn for the Petty Cash Account has been posted
in the account of Asif.
v. Ramesh’s Account was credited with Rs.840 twice instead of once.
Q 37. Pass the rectification entries for the following transactions:
i. Repairs to plant amounting to Rs.2,000 had been charged to Plant and
Machinery Account.
ii. An entry of Rs.1,450 representing the selling price of goods returned to
Mohan had been made in Return Outwards Book and posted. The
amount should have been Rs.1,300, the invoice value of the goods in
question.
iii. A cheque for Rs.8,500 received from Sandesh was credited to the
account of Ramesh.
iv. Goods to the value of Rs.7,000 returned by Prateek were included in
closing stock, but no entry was made in the books.
v. Goods costing Rs.5,000 were purchased for various members of the staff
and the cost was included in ‘Purchases’. A similar amount was deducted
from the salaries of the staff members concerned and the net payments
to them debited to Salaries Account.
vi. Credit purchase of old machinery from Sohan for Rs.1,70,000 was
entered in the Purchase Book as purchase from Mohan for Rs.7,10,000.
Rs.30,000 paid as repairing charges on the reconditioning of a newly
purchased second-hand machinery were debited to General Expenses
Account.
vii. Debit and Credit totals of discount columns in the Cash Book which
come to Rs.400 and Rs.370 respectively have not been posted to
Discount Accounts.

Preparation of Suspense Account

Q 38. There was a difference in the Trial Balance of M/s. Jain & Sons, prepared
for the year ended 31st March, 2024. The accountant put the difference
in Suspense Account.
The following errors were found:
i. Purchases Return Book total Rs.400 has not been posted to Ledger
Account.
ii. Rs.5,100 spent on legal expense for the newly acquired Building was
debited to the Building Account as Rs.1,500.
iii. A sale of Rs.6,540 to Rajat has been credited to his account.
Rectify the errors and show the Suspense Account with Nil closing balance.
Q 39. A Trial Balance disclosed a difference of Rs.417 placed on the credit side
of the Suspense Account. Later on the following errors were located:
i. Goods worth Rs.200 purchased from Sohan had been posted to his
account as Rs.250.
ii. A purchase of furniture for Rs.500 was recorded in the Purchases Book.
iii. Instead of crediting Gian’s Account with Rs.512, it was debited with
Rs.215.
iv. Goods worth Rs.130 returned by Gian were entered in the Sales Book
and posted therefrom to the credit of Gian’s Personal Account.
Pass the rectifying entries and prepare a Suspense Account.
[Total of Suspense Account - Rs.727 ]

Q 40. There was a difference of Rs.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 Rs.375 now posted on the debit side of the Commission
Account instead of Rs.275.
ii. Credit amount of Rs.260 posted to the debit of the Personal Account as
Rs.360.
iii. Goods sold to Surinder recorded in Purchases Book Rs.300.
iv. D’s bill for erection of godown at a cost of Rs.1,200 has been charged to
the Repairs Account.
[Total of Suspense Account - Rs.720 ]

Q 41. The Trial Balance of M/s. Gupta & Sons shows a difference of Rs.52,200.
To prepare the Final Account on 31st March, 2024, this difference is
placed in a Suspense Account. Afterwards the following errors were
disclosed. Pass the necessary entries to rectify them and show the
Suspense Account.
i. Purchases Book total had been undercasted by Rs.20,000.
ii. A cheque received from Vasudev for Rs.7,800 had been debited in the
Cash Book but not posted in Vasudev’s Personal Account.
iii. Returns Outward Book had been overcasted by Rs.10,000.
iv. Goods returned by Yash Pal worth Rs.15,000 have been entered in
Returns Outward Book. However, Yash Pal’s Account is correctly posted.
Q 42. Rajesh drew a Trial Balance for the year ended 31st March, 2024, There
was a difference which he closed through Suspense Account. On a scrutiny,
through following errors were found:
i. Purchase Book for the month of April 2023 was undercasted by Rs.1,000.
ii. Sales Book of October 2023 was overcasted by Rs.10,000.
iii. A furniture purchased for Rs.8,100 was entered in the Furniture Account
as Rs.810.
iv. Goods taken by the proprietor Rs.2,000 for gift of his daughter were not
recorded.
v. Machinery purchased for Rs.10,000 was entered in the Purchases Book.
Pass necessary Journal entries to rectify the same and ascertain the difference
in the Trial Balance that was shown under Suspense Account in respect of the
above items.
[Difference in Trial Balance - Rs.18,290]

Q 43. There was an error in the Trial Balance of Ram Gopal on 31st March,
2024 and the difference in books was carried to the Suspense Account.
On going through the books, you find that:
i. Rs.540 received from Mayank was posted to the debit side of his
account.
ii. Rs.100 being purchases return was posted to the debit of the Purchases
Account.
iii. Discount of Rs.300 received was posted to the debit of the Discount
Allowed Account.
iv. Rs.374 paid for motor car repairs was debited to the Motor Car Account
as Rs.174.
v. Rs.400 paid to Naman was debited to the account of Manan.
Pass the Journal entries to rectify the above errors and state what amount
was carried to the Suspense Account.
[Suspense Account opened with a Credit of Rs.1,680.]
Q 44. Trial Balance of a bookkeeper shows an excess of debits over credits by
Rs.261. This difference is placed in a Suspense Account to facilitate
books closure. Later on the following errors were discovered:
i. A credit item of Rs.349 has been debited to a Personal Account as 439.
ii. A sum of Rs.625 written off from fixtures as depreciation has not been
posted to the Depreciation Account.
iii. Rs.9,000 paid for furniture bought have been charged to the Purchases
Account.
iv. A discount allowed to a customer has been credited to him as Rs.145 in
place of Rs.154.
v. A sale of Rs.594 was posted as Rs.495 in the Sales Account.
vi. The total of Returns Inward Book has been added Rs.10 short.
Pass the Journal entries to correct these errors and prepare the Suspense
Account.
[Total of Suspense Account - Rs.896.]
Q 45. Rectify the following errors found in the books of Bheem. Trial Balance
had Rs 930 excess credit. The difference has been posted to a Suspense
Account:
i. The total of Returns Inward Book has been cast Rs.1,000 short.
ii. The purchase of an office table costing Rs.3,000 has been passed
through the Purchases Book.
iii. Cartage paid for the newly purchased machinery Rs.3,750, posted to
Cartage Account.
iv. A purchase of Rs.670 had been posted to the Creditors’ Account as
Rs.600.
v. A cheque for Rs.2,000 received from Nakul had been dishonoured and
was passed to the debit of the Allowances Account.
vi. An amount of Rs.15,720 due from Prasad written off as bad in a previous
year, was recovered and credited to the Personal Account of Prasad.
After rectification reflect the transactions in the Suspense Account.

Q 46. The Trial Balance of Shri Ramdass 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 Rs.1,000 for goods sold on credit to Mr. Robert was
entered in the Purchases Book but in the Ledger, the amount was
correctly debited to the account of Mr. Robert.
ii. Goods purchased on credit from Babu Ram for Rs.1,500 were wrongly
debited to his account as Rs.5,100.
iii. An amount of Rs.275 was posted as Rs.325 to the debit side of the
Commission Account.
iv. Sales Book for the month of April was undercasted by 100.
v. Rs.460 paid for building repairs was debited to the Building Account as
Rs.640.
[Suspense Account opened with a Credit of Rs.8,930.]
Q 47. An accountant of a firm found that his Trial Balance was out (excess
credit) by Rs.742. He placed the amount in a Suspense Account and
subsequently found the following errors:
i. A discount of Rs.178 was allowed to Bharat but in his account only
Rs.100 is recorded.
ii. The total of the Purchases Book was 1,000 short.
iii. A sale of Rs.375 to Kohli was entered in the Sales Book as Rs.735.
iv. From the Purchases Book, Bose’s Account was debited with Rs.175.
v. Cash Rs.250 received from Maitra against debt previously written off
was credited to his account.
vi. Purchase of office furniture worth Rs.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 Rs.11,358 was written as Rs.11,538.
viii. The proprietor took goods of the value of Rs.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 of Rs.700 to Shriram has been entered in the Purchases Book.
Rectify the errors by means of suitable Journal entries and show the Suspense
Account.