Page 132 - debkxi

Rectification of Errors 17.7

Unsolved Questions

1. Pass the rectifying Journal entries for the following errors:
(i) Sales Return Book is undercast by ` 2,000.
(ii) Goods worth ` 2,400 purchased on credit from Vikram were entered in the Sales Book.
However, Vikram’s Account had been correctly credited.
(iii) An old machine sold for ` 4,200 was entered in the Sales Book.
(iv) Repair of building for ` 2,900 was debited to the Building Account.
(v) ` 2,050 paid to Rohit, a creditor is posted to the debit of Mohit, another creditor as
` 5,020. (Delhi 2004)
2. Pass rectifying entries for the following:
(i) Sales of goods ` 6,000 to Mohan was recorded as ` 600 in the Sales Book.
(ii) Credit purchase of goods from David amounting to ` 1,500 has been wrongly passed
through the Sales Book.
(iii) ` 200 salary paid to cashier B. Naidu, stands wrongly debited to his Personal Account.
(iv) Cheque of ` 800 received from Rajesh was dishonoured and debited to Discount Account.
(v) Bill for ` 800 received from Mukesh for repairs of Machinery was entered in the Purchases
Book as ` 700. (KVS 2004)
3. There was a difference of ` 8,595 in a Trial Balance. It has been transferred to debit side
of Suspense Account. Later on following errors were discovered. Pass the rectifying entries
and prepare the Suspense Account.
(i) ` 283 discount received from a creditor had been duly entered in his account but not
posted to Discount Account.
(ii) Goods bought from a merchant for ` 770 had been posted to the credit of his account
as ` 7,700.
(iii) ` 6,000 owing by a customer had been omitted from the schedule of sundry debtors.
(iv) An item of ` 2,026 entered in the Sales Return Book had been posted to the debit of
the customer who returned the goods. (MSE Chandigarh 2011, Modified)
[Ans.: Total of Suspense Account—` 12,930.]
4. You are presented with a Trial Balance showing a difference which has been carried to the
Suspense Account and the following errors are subsequently discovered:
(i) Goods amounting to ` 660 sold to White were correctly entered in the Sales Book but
posted to White’s Account as ` 760. The total sales for the month was also overcast
by ` 100.
(ii) A cash sale of ` 150 to Brown correctly entered in the Cash Book was posted to the
credit of Brown’s Personal Account.
(iii) Goods worth ` 130 returned by Green entered in the Sales Book were posted therefrom
to the credit of Green’s Personal Account.
(iv) Goods invoiced at ` 1,240 and debited on 20th December to Jacob were returned on the
23rd and taken into stock on 31st December, no entries being made in the books.
(v) Sales Return Book was overcast by ` 1,000 and the total of a folio in the same book
` 17,300 was carried forward as ` 17,030.
Make the necessary correction entries and show the Suspense Account.