Page 229 - ISCDEBK-XI

Rectification of Errors 21.17
On analysis you have found the following errors:
`
1. Sales Return considered as Purchases 2,693
2. Purchases Return considered as Sales 4,923
3. Ramu who is a creditor considered as Debtor 22,500
4. Sales register’s total actually was 10,52,000
5. Receipts side of the Bank Book for the month of March undercast by 80,000
6. Salary advance wrongly considered as outstanding expenses 12,000
7. Discount received not considered in Trial Balance 984
8. Sundry Debtors undercast by 10,000
You are required to pass Journal entries to rectify the above errors and prepare a rectified Trial
Balance. Also show the Suspense Account.

Solution: In the Books of Raj
RECTIFYING JOURNAL ENTRIES
Date Particulars L.F. Dr. (`) Cr. (`)
2022
March 31 Sales Return A/c ...Dr. 2,693
To Purchases A/c 2,693
(Being sales return considered as purchases, now rectified)

March 31 Sales A/c ...Dr. 4,923
To Purchases Return A/c 4,923
(Being purchases return considered as sales, now rectified)
March 31 Suspense A/c ...Dr. 45,000
To Sundry Creditors A/c 22,500
To Sundry Debtors A/c 22,500
(Being creditor considered as debtor, now rectified)

March 31 Suspense A/c ...Dr. 27,000
To Sales A/c 27,000
(Being sales undercast, now adjusted)

March 31 Bank A/c ...Dr. 80,000
To Suspense A/c 80,000
(Being Bank Book undercast, now rectified)
March 31 Advance Salary A/c ...Dr. 12,000
Outstanding Expenses A/c ...Dr. 12,000
To Suspense A/c 24,000
(Being salary advance considered as outstanding expenses, now rectified)

March 31 Suspense A/c ...Dr. 984
To Discount Received A/c 984
(Being discount received not considered, now adjusted)
March 31 Sundry Debtors A/c ...Dr. 10,000
To Suspense A/c 10,000
(Being debtors undercast, now adjusted)