Page 222 - ISCDEBK-XI

21.10 Double Entry Book Keeping—ISC XI
Solution: In the Books of B.K. Banerjee
RECTIFYING JOURNAL ENTRIES
Date Particulars L.F. Dr. (`) Cr. (`)
(i) Raj ...Dr. 1,000
To Sundry Creditors A/c 1,000
(Being cheque dishonoured wrongly debited to Sundry Creditors Account,
now rectified)
(ii) Sales A/c ...Dr. 5,000
To Furniture A/c 5,000
(Being old furniture sold was wrongly entered in the Sales Day Book,
now rectified)
(iii) Suspense A/c (` 310 + ` 130) ...Dr. 440
To V.K. Gupta 440
(Being purchases from V.K. Gupta for ` 310 was wrongly debited
to his account by ` 130, now rectified)
(iv) Ajeet ...Dr. 1,200
To Suspense A/c 1,200
(Being goods sold to Ajeet on credit had been omitted to be entered
in his account, now recorded)
Dr. SUSPENSE ACCOUNT Cr.
Particulars ` Particulars `
To Difference in Trial Balance 760 By Ajeet 1,200
(Balancing Figure)
To V.K. Gupta 440
1,200 1,200
Illustration 8.
The difference in Trial Balance is kept in Suspense Account. Before preparing the final accounts,
the following errors were detected:
(a) Purchase for ` 540 was written in Sales Day Book, but was posted to the correct side of
Party’s Account.
(b) Salary Account total ` 12,600 on page 32 was carried over to the next page as ` 1,260 on
the wrong side.
(c) Interest on overdraft ` 650 was not posted to the Ledger from the Cash Book.
(d) ` 600 collected from a party in respect of the old dues from his which had been written
off as bad two years ago, was credited to the Party’s Account.
Show rectification entries and Suspense Account, state to what exent the Profit & Loss Account
would have been affected if the above errors had not been detected and corrected.
(ICWA (Inter)—Adapted)
Solution: RECTIFYING JOURNAL ENTRIES
Date Particulars L.F. Dr. (`) Cr. (`)
(a) Purchases A/c ...Dr. 540
Sales A/c ...Dr. 540
To Suspense A/c 1,080
(Being Purchases wrongly posted through Sales Day Book, now rectified)