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Jahanvi Khurana
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25 views

Accounts

Uploaded by

Jahanvi Khurana
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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1.

Give Journal entries to rectify the following errors:-


(a) Goods purchased from Ajay for Rs 2,600 were recorded in Sales Book by mistake.
(b) Goods for Rs 4,400 sold to Surendra was passed through Purchase Book.
(c) A customer returned goods worth Rs 1,000. It was recorded in ‘Purchase Return Book’.
(d) A credit sale of Rs 126 to Rajesh was entered in the books as Rs162.
(e) Sale of old chairs and Table for Rs 700 was treated as sale of goods.
(f) Rent of proprietor residence, Rs 800, debited to Rent A/c.
2. Rectify the following errors:-
(a) A sale of goods to Raja Ram for Rs2,500 was passed through the Purchases Book.
(b) Salary of Rs 800 paid to Hari Babu was wrongly debited to his personal account.
(c) Furniture purchased on credit from Mohan Singh for Rs 1,000 was entered in the Purchases book.
(d) Rs 5,000 spent on the extension of building was debited to Buildings Repairs Account.
(e) Goods returned by Mani Ram Rs 1,200 were entered in the returns Outwards Book.
3. Pass the Journal entries to rectifying the following errors:-
(a) Machinery purchased for Rs 5,000 has been debited to Purchases A/c.
(b) Rs 700 paid to Sh. Mohan Kapoor as legal charges were debited to his personal account.
(c) Rs 10,000 paid to Escorts company for Machinery purchased stand debited to Escorts company
account.
(d) Typewriter purchased for Rs 6,000 was wrongly passed through purchase book.
(e) Rs 20,000 paid for the purchase of a Motor Cycle for proprietor has been charged to ‘General
Expenses’ A/c
(f) Rs 15,000 paid for the purchase of ‘Gas Engine’ were debited to ‘Purchases’ A/c
(g) Cash paid to Ram Rs 400 was debited to the account of Shyam.
4. Rectify the following errors assuming that Suspense Account was opened. Ascertain the difference in
Trial Balance.
(a) Credit sales to Mohan Rs 7,000 were recorded in Purchase book. However, Mohan’s Account was
correctly debited.
(b) Credit Purchase from Rohan Rs 9,000 were recorded in Sales Book. However, Rohan’s Account
was correctly credited.
(c) Goods returned to Rakesh Rs 4,000 were recorded in Sales Return Book. However, Rakesh’s
Account was correctly debited.
(d) Goods returned from Mahesh Rs 1,000 were recorded through Purchase Return Book. However
Mahesh’s Account was correctly credited.
(e) Goods returned to Naresh Rs 2,000 were recorded through Purchases Book. However, Naresh’s
Account was correctly debited.
5. The Trial Balance prepared by a Book Keeper showed a Difference of Rs 1,006 which was placed in
a newly opened Suspense Account and carried forward to the next year, when the following errors were
discovered:-
(a) Goods purchased for Rs 99 had been posted to the credit of the Supplier as Rs 990.
(b) Rs 75 received as discount from a creditor was duly entered in his account but it was omitted to be
posted to discount account.
(c) Sale of Furniture for Rs 1,400 had been entered in the Sales Book.
(d) Rs 900 due from a customer were omitted to be taken to the Schedule of sundry debtors.
(e) Goods of the vale of Rs 3,000 returned by a customer were taken into the stock but no entry was
made in the books.
(f) Rs 355 entered in the Sales Return book had been posted to the debited of the customer who
returned the goods.
Give necessary Journal entries to rectify the above errors and prepare suspense account.
6. A book-keeper finds that the debit side of the trial balance is short of Rs308 and so for the time
being, he balances the side by putting the difference to suspense account. Subsequently, the following
errors were disclosed:
(a) An entry for goods for Rs 102 to Madhav was posted to his account as Rs 120.
(b) Rs 100 being the monthly total of discount allowed to customers were credited to discount account
in the ledger
(c) Rs 275 paid by Madhav were credited in Jadav’s account.
(d) Rs 26 appearing in the cash book as paid for the purchase of stationary for office use have not been
posted to ledger.
(e) The debit side of purchases account was under-cast by Rs 100.
You are required to make the necessary Journal entries and the suspense account.

7. There was an error in the Trial Balance of Mr.Steel on 31 st March, 2002 and the difference in Books
was carried to Suspense Account. On going through the Books you find that:
(a) Rs 5,400 received from Mr.A was posted to the debit of his account.
(b) Rs 1,000 being purchases return were posted to the debit of Purchases Account.
(c) Discount received Rs 2,000 was posted to the debit of Discount Account.
(d) Rs 2,740 paid for Repairs to Motor Car was debited to Motor Car Account as Rs 1,740.
(e) Rs 4,000 paid to B was debited to A’s Account.
Give Journal Entries to rectify the above errors and ascertain the amount transferred to Suspense
Account on 31 st March, 2002 by showing the Suspense Account, assuming that the Suspense
Account is balanced after the above corrections.
Q1. On 1st January, 2010, Arun purchased from Barun goods invoiced at Rs 10,000, On the same date,
Barun drew upon Arun a bill for the amount at 2 months and Arun accepted the same. On 4 th
Janaury,2010, Barun got the bill discounted with his bank @12% per annum. On the due date, Arun
told Barun that he was not in a position to pay the full amount and requested Barun to accept Rs 5,000
in cash and. Barun did not agree to this and bill was dishonoured. Noting charges were Rs100. Give
journal entries to record the above transactions in the books of Barun.

Q2. Anita purchased goods for Rs23,000 from Kavita on October 15, 2009 and accepted a bill of
exchange drawn upon her by Kavita payable after two months. On date of maturity the bill was duly
presented for payment. Anita dishonoured the bill. The payee noted with Rs 95 as nothing charges.
Record the necessary journal entries in the books of Kavita and Anita, when (a)The bill was
immediately discounted by Kavita with her Bank @9% p.a. (b) The bill was endorsed by Kavita in
favour of her creditor Shankar after one month.
Q3. Harpal sold goods to Sompal for Rs 12,000. Sompal accepted three bills of exchange, the first for
Rs5,000 at one month, the second for Rs 4,000 at two months and the third for Rs3,000 at three
months. Harpal endorsed the first bill to Rajpal. The first bill was dishonoured. Rajpal paid Rs30 as
noting charges. The second bill was also dishonoured, noting charges paid being Rs25. The third bill
was met on due date.
Pass Journal entries
FINAL ACCOUNTS
Q3. Net Profit of a firm for the year ended 31st March, 2020 is ` 21,000 before charging
commission. Manager of the firm is entitled to commission of 5% of the net profit.
Calculate the commission payable to Manager.
Case 1. If Manager is allowed commission on net profit before charging such
commission, and
Case 2. If Manager is allowed commission on net profit after charging
such commission.
Also, show the treatment in Final Accounts for the year ended 31st March, 2020.

Q4. Calculate Gross Profit on the basis of the following information: -


Purchases 6,80,000
Returns Outwards 30,000
Carriage Inwards 20,000
Carriage Outwards 15,000
Wages 50,000
¾ of the goods are sold for Rs6,00,000.
Q5. Calculate the gross profit and cost of the goods sold from the following information:
Net Sales Rs 9,00,000
Gross Profit is 20% on cost.
Q6. Ascertain the value of closing stock from the following:
Opening Stock 1,20,000
Purchases during the year 9,30,000
Sales during the year 15,60,000
Rate of Gross Profit 60% on cost.

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