Page 242 - ISCDEBK-XI

21.30 Double Entry Book Keeping—ISC XI
6. Pass rectifying entries for the following transactions:
(i) A sum of ` 1,500 owed by R. Gupta, a customer, had been omitted from the list of Sundry Debtors.
(ii) The balance in the account of Mr. Rahim ` 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 ` 100 short.
(iv) A cheque for ` 200 drawn for the Petty Cash Account has been posted in the account of Asif.
(v) A cheque of ` 150 received from Sharad has been dishonoured and debited in the Discount Account.
(vi) Ramesh’s Account was credited with ` 840 twice instead of once.
7. A bookkeeper of a trading concern, having failed to agree the Trial Balance, opened a Suspense Account
and entered the difference in the Trial Balance. The following errors were subsequently discovered:
(i) Sales Book was overcast by ` 200.
(ii) Purchased furniture for ` 300 was passed through the invoice book and from there the Furniture House
Account was credited with ` 30.
(iii) Sold goods to Ram for ` 55 was credited as ` 550.
(iv) Purchases Book was overcast by ` 80.
(v) Purchases Return Book was carried forward as ` 122 instead of ` 112.
(vi) Sold goods worth ` 20 entered in the Sales Book as ` 200.
You are required to find out the difference in the Trial Balance and create the Suspense Account.
Pass necessary rectification Journal entries.
8. Following errors were found in the books of Gupta Traders on 31st March, 2022:
(i) Machinery repair expenses worth ` 1,200 were included in the cost of Machinery.
(ii) An amount of ` 200 withdrawn by the proprietor for his personal use was debited to the Travelling
Expenses Account.
(iii) A cheque of ` 3,000 received from Ramesh was credited to Mahesh’s Account.
(iv) Cheque worth ` 500 received from Shiv Govind was dishonoured and was debited to the Allowances
Account.
(v) Goods returned by a customer worth ` 600 was included in the stock but no entry was made in the books.
(vi) ` 7,000 was spent on the extension of the building but was debited to the Repairs Account.
Pass necessary Journal entries for rectification of errors in the books of Gupta Traders.

GUIDE TO ANSWERS

2. Total of Suspense Account—` 1,000;
For transferring the balance of Profit & Loss Adjustment A/c:
Dr. Profit & Loss Adjustment A/c and Cr. Capital A/c—` 5,000.
3. Profit of current year will reduce by ` 2,005 and will be debited to Capital Account.
4. Current year’s profit will be decreased by ` 1,395 and will be debited to Capital Account.