Page 171 - ISCDEBK-XI

20.4 Double Entry Book Keeping—ISC XI

RECTIFYING JOURNAL ENTRIES
Date Particulars L.F. Dr. (`) Cr. (`)

(i) Sundry Debtors A/c ...Dr. 70,000
To Bank A/c 70,000
(Being the cheque dishonoured)
(ii) Bank A/c ...Dr. 16,000
To Sundry Debtors A/c 16,000
(Being the amount deposited into bank directly by debtor)

(iii) Suspense A/c ...Dr. 4,000
To Purchases Return A/c 2,000
To Sales Return A/c 2,000
(Being the purchase return wrongly recorded as sales return, now rectified)
(iv) Suspense A/c ...Dr. 6,000
To Purchases A/c 6,000
(Being the overcasting in Purchases Book rectified)
(v) Suspense A/c ...Dr. 2,000
To Sales A/c 2,000
(Being the undercasting of Sales Book rectified)

Illustration 2.
From the books of M/s. Shyam Traders, following Trial Balance is prepared on 31st March, 2022:

Debit Balances ` Credit Balances `
Purchases (Adjusted) 1,93,500 Sales 3,00,000
Wages 23,250 Bank Overdraft 24,500
Carriage on Purchases 18,000 Interest on Investment 700
Prepaid Insurance on 1st April, 2021 625 Provision for Doubtful Debts 2,500
Bad Debts 600 Cash Discount 4,500
Rent and Insurance 7,750 Capital 71,175
Salary 13,500 Creditors 18,750
Debtors 37,500 Outstanding Wages on 31st March, 2022 900
Stock on 31st March, 2022 20,500
Investment 10,000
Cash 14,500
Accrued Interest on 31st March, 2022 800
Furniture 10,500
Plant and Machinery 50,000
Income Tax 22,000
4,23,025 4,23,025

Prepare (1) Trading and Profit & Loss Account for the year ended 31st March, 2022 and
(2) Balance Sheet as on that date, taking into consideration the adjustment given below:

(i) On 1st October, 2021 plant for ` 10,000 was purchased on credit but no entry was passed.