Rectification

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Q1. Correct the following errors unearthed before preparation of the Trial Balance.

a) A welding machine purchased for Rs.56,000 from the Oxygen Co. Ltd, has been entered in the purchase
Day Book.
b) The total of the Returns outwards Book is Rs. 100 short.
c) A sale of Rs. 175 to M/s Gupta & Mukherjee has been entered in the sales Book as Rs. 157.
d) A purchase of Rs. 215 from M/s Guha & Roy had been posted to the debit of their account.
e) Discount allowed to D. Majhali, Rs. 15 had not been entered in the Cash Book, but the full amount
(including discount) has been credited to D. Majhali’s account.
f) License fee for proprietor’s gun, Rs. 30 had been debited to General Expenses Account.
g) A sale of Rs. 200 for old furniture has been passes through the sales book.

Q2. The accountant of X prepared the Trial Balance for the year ended 31 st March, 2006. But there was a
difference and the accountant put the difference in Suspense Account. Rectify the following errors found and
prepare the Suspense Account.

1. The total of the Returns Outward book, Rs. 420 has not been posted in the ledger.
2. Purchase of Rs. 350 from Y has been entered in the sales book. However Y’s a/c has been correctly
entered.
3. A sale of Rs. 390 to Z has been credited to his account as Rs. 290.
4. Old furniture sold for Rs.5, 400 had been entered as Rs. 4,500 in sales account.
5. Goods taken by proprietor, Rs. 500 have not been entered in the books at all.

Q3. Ganesh drew a Trial Balance of his operations for the year ended 31.03.2006. There was a difference in the
Trial Balance which he closed with a Suspense Account. On a scrutiny by the Auditors, the following errors were
found:

i. Purchased day book for the month of April, was under cast by Rs. 1000
ii. Sales day book of October, was overcast by Rs. 10,000
iii. A furniture purchased for Rs. 8,100 was entered in the Furniture Account as Rs.810
iv. A bill for Rs. 10,000 drawn by Ganesh was not entered in the Bills Receivable Book.
v. A machinery purchased for Rs.10,000 was entered in the purchased day book.

Pass necessary Journal Entries to rectify the same and ascertain the difference in the Trial Balance that was shown
under the Suspense Account in respect of the above items.

Q4. A book-keeper finds the difference in the Trial Balance amounting to Rs. 1,000 and puts it in the Suspense
Account. Later on he detects the following errors.

1. Purchased goods from Ravi Rs. 15,000 but entered into Sales Book.
2. Received one bill for Rs. 25,000 from Arun but recorded in Bills Payable Book.
3. An item of Rs. 3,500 relating to prepaid rent account was omitted to be brought forward.
4. An item of Rs. 2,000 in respect of purchased returns, had been wrongly entered in the purchased book,
party a/c was correctly posted.
5. Rs. 25,000 paid to Hari against our acceptance were debited to Harish Account.
6. Bills received from Janki for repairs done to Machine Rs. 2,500 and Machine supplied for Rs. 45,000 were
entered in the Purchase Book as Rs. 46,000. Janki a/c was credited with Rs.47,500.

Give rectifying journal entries with full narration and prepare Suspense Account.

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Q5. Give Journal Entries to rectify the following errors:

i. Rs. 120 paid as rent has been debited to landlord account.

ii. Rs. 300 paid to a clerk, Tushar Rakshit, as salary has been debited to his personal account.
iii. Rs. 1,600 received from sale of old machinery has been treated as cash sale of goods.
iv. Goods valued at Rs. 1,200 which were sold to Nitu have been wrongly debited to Nitin Bros.
v. Rs. 500 spent on repairs of building has been entered on the debit side of building account.
vi. Furniture purchased for Rs. 2,500 has been entered on the debit side of purchased account.
vii. Rs. 1,700 received from Ananda Sankar has been entered on the credit side of Sankar Agarwal.

Q6. The following errors were detected in the books of Hill Billy & Sons before preparing the Final Accounts for
the year ending 30th June, 2011:

a) A builder’s bill for Rs. 3,400 for the erection of a small shed was debited to repairs account.
b) A cheque for Rs. 450 received from Prasad Singh & Co. was dishonored and debited to discount account.
c) Goods to the value of Rs. 370 returned by Banerjee & Co. were included in stock, but no entry was made
in the books.
d) Repairs to Plant amounting to Rs. 680 had been charged to plant and machinery account.
e) Wages paid to the firm’s own workmen for making certain additions to machinery amounting to Rs. 830
were posted to wages account.
f) A sum of Rs. 200 drawn by the proprietor was debited to travelling expenses account.

Give the Journal entries necessary to correct these errors, and show the effect of these on the gross profit, the
net profit and the Balance Sheet total.

Which of these errors, if any, will cause disagreement of the Trial Balance? Give reasons for your answer.

Q7. Correct by Journal entries the following errors:

a) Rs. 1,200 paid in cash for a typewriter was charged to office Expenses Account.
b) Wages of Rs. 4,500 paid for erection of plant and machinery were debited to General Expenses Account.
c) A purchase of Rs. 650 from P.Suri was omitted to entered into books but the goods were included in
closing stock.
d) A credit purchased of office stationery had been included in the Purchased Books as ordinary purchase.
The amount involved was Rs. 280.
e) An electric bill for Rs. 156 was debited to Electric Charges Account though the bill was personal of the
proprietor for his residence.

Q8. Show Journal Entries to rectify the following errors:

a) An amount of Rs.300 withdrawn by the proprietor for his personal use has been debited to the Trade
Expenses Account.
b) A Purchase of goods from B.Sinha amounting to Rs. 450 has been wrongly entered through the Sales
Books.
c) A sale of Rs. 300 to P. Gupta has been wrongly passed through the Purchase Book.
d) Rs.400 paid on account of salary to the cashier J. Roy, stands debited to his personal account.
e) Interest Rs. 150 on bank overdraft has been omitted from the books.

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Q9.

a) Received Rs. 1,650 from Krishna was entered in the debit of Janak.
b) Goods worth Rs. 500 returned by Ashish was entered in the Purchases Day Book as Rs. 450.
c) A credit purchase of Rs. 5,000 from Raju was entered in the Sales Day Book.
d) A credit sale of Rs. 175 was entered in the Customer’s A/c correctly but the same was wrongly entered in
the Purchases Day Book.
e) Paid Rs. 243 to Poonam, wrongly entered in the credit of Rita as Rs. 234.

Pass the necessary Journal entries to rectify the above errors.

Q10. A book-keeper, while preparing the Trial Balance of Mithila Cycle Stores, Dharbhanga, finds that the credit
side of the Trial Balance was in excess by Rs. 590. He puts the difference to Suspense Account. Subsequently, he
discovers the following errors:

a) Goods purchased from Madhubani Central Stores for Rs. 1,350 was wrongly passed through the Sales
Book.
b) A sale of Rs. 205 to Saharsa Stationers has been posted to the credit of their account as Rs. 502.
c) Patna Stationers were allowed discount of Rs. 32, but his account was credited with Rs. 23.
d) Total of Purchase Book has been carried forward as Rs. 988 instead of Rs. 898.
e) Purchase of Office Stationery Rs. 35 has been debited to Purchases A/c as Rs. 53.

Pass the necessary rectifying Journal Entries and prepare the Suspense Account.

Q11. The account of Bihar Emporium Corporation could not agree with the Trial Balance of this concern as at 31 st
December, 2014. The credit excess of Rs. 14,400 was placed to a Suspense Account. By 31st January, 2015
following errors have been noticed:

a) There was a totaling error in the credit side of the Bank column of Cash Book. The total disclosed was Rs.
38,000 as against the correct total of Rs. 36,000.
b) On posting in the Sales Account from the Sales Day Book of Rs. 13,000 had been entered as Rs. 23,000.
c) Rs. 1,300 being repairs to Building had been wrongly credited to Building Account.
d) Rs. 200 being miscellaneous income received was omitted to be posted in the ledger.

Show the rectifying entries that would have been passed in respect of the above and the Suspense Account.

Q12. The following errors have been discovered after the difference in books was put to a newly opened
Suspense A/c. the Trail Balance had Rs. 256 excess credit.

(i) A sum of Rs. 162 written off fixture as depreciation has not been posted to Depreciation A/c.
(ii) Rs. 1,000 paid for a machinery purchased had been charged to ordinary Purchases A/c.
(iii) A discount of Rs. 51 allowed to a customer has been credited to customer’s A/c Rs. 15.
(iv) An item of sale for Rs. 680 posted as Rs. 860 in the Sales A/c.
(v) Total of the Discount column of the credit side of the Cash Book for Rs. 25 was posted to the debit of
Discount Allowed A/c.

Rectifying the above errors and show the Suspense A/c. Also show the effect of each correction of the profit or
loss.

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Q13. Rectify the following errors:

i. Paid wages for the construction of office debited to Wages Account Rs. 20,000.
ii. Paid cartage for the newly purchased furniture Rs, 500, posted to Cartage Account.
iii. Paid Rs. 5,000 for the installation of machinery debited to Wages Account.
iv. Purchased machinery for Rs. 50,000 was passed through the Purchases Book.
v. Sold old furniture for Rs. 5,000 was passed through the Sales Book.
vi. Paid Rs. 2,000 for newly purchased table fan posted to purchases Account.

Q14. Pass the necessary Journal Entries to rectify the following errors:

i. Credit sale of Rs. 5,000 to Ram omitted to be recorded in the books.

ii. Goods (Cost Rs. 2,000, Sale Price Rs. 2,400) taken by the proprietor were not recorded anywhere.
iii. Goods sold to Hari on credit amounting to Rs. 350 were omitted from the accounts although cash
received subsequently from him stands posted to his credit.
iv. Credit sale of old furniture to Mahesh for Rs. 500 omitted to be posted.
v. On 31st March, 2015 goods of the value of Rs. 3,000 were returned by Hari and were taken into stock on
the same date but entry was not passed in the books.

Q. You are presented with a balance showing a difference, which has been carried to Suspense
Account and the following errors are revealed: -

(a) Rs. 350 paid in Cash for a typewriter was charged to Office Expenses A/c.
(b) Goods amounting to Rs. 660 sold to W, were correctly entered in the Sales Book but posted
to W’s Account as Rs. 760. The total sales for the month were overcast by Rs. 1,000.
(c) Goods worth Rs. 130 returned by G, were entered in the Sales Book and posted therefrom to
the credit of G’s personal account.
(d) Goods sold for Rs.1,240 and debited on 20th March to C, were returned by him on 23rd and
taken into stock on 31st March, no entries being made in the books for return.
(e) Sales return books was overcast by Rs. 100.
(f) Bills Receivable received from H, Rs. 1,600 posted to the credit of Bills Payable account and
credited to him.
Journalise the necessary correction and raise Suspense Account, assuming that there are no
other errors.

Q. The books of Deven Verma could not be tallied. The accountant transferred the difference of Rs.
1,270 in the suspense account on the debit side. The following mistake were found later on. Rectify
these errors by passing Journal entries and prepare Suspense Account: -

1. The purchase of Rs. 400 from Saran was entered into sales Books but Saran’s personal
account was rightly credited.
2. The sale of Rs. 430 to Ramdas was credited in his account as Rs. 340.
3. The sales of old furniture of Rs. 540 was credited to sales account as Rs. 450.
4. Goods worth Rs. 100 were taken by the proprietor which was not recorded.
5. The Sales of Rs. 296 to Kishan was entered in sales books as Rs. 269.
6. Sales return book total of Rs. 210 was not included in the accounts.

Q. Pass the rectification entries and show suspense account in the books of a partnership firm, from
the following particular:

(a) The total of sales return day book was over-cast by Rs. 1,000.

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(b) Purchase of equipment from Raj Mohan & Co., worth Rs. 2,000, in cash, was entered
through the purchase day book and according, credit to the supplier’s account.
(c) Discount Rs. 500 allowed by P. Sahoo, a creditor, has not be entered in the books of
account.
(d) Rs. 350 paid for carriage on sale of goods was credited to carriage inward account when
posted from the case book.
(e) Bill receivable worth Rs. 1,800 received from a debtor was entered in the bills payable
book though correctly entered in the debtor’s account.
(f) A sum of Rs. 2,500 collected from Suraj Singh, a debtor, whose dues were already written
off as bad debt, was posted to the credit side of Suraj Singh account.

Q. Pass rectification journal entries

1. The purchase of ₹400 from Saran was entered into sales book but Saran’s personal account
was rightly credited.
2. The sale of ₹430 to Ramdas was credited in his account as ₹340.
3. The sales of old furniture of ₹540 was credited to sales account as ₹450.
4. Goods worth ₹100 were taken by the proprietor who was not recorded.
5. The Sales of ₹296 to Kishan was entered in sales book as ₹269.
6. Sales return book total of ₹210 was not included in the accounts.
7. Credit sales to Mohan ₹7,000 were posted to Karan as ₹5,000.
8. Credit purchases from Rohan ₹9,000 were posted to the debit of Gobind as ₹10,000.
9. Goods returned to Rakesh ₹4,000 were posted to the credit of Naresh as ₹3,000.
10. Goods returned to Mahesh ₹1,000 were posted to the debit of Manish as ₹2,000.
11. Cash sales ₹2,000 were posted to commission account as ₹200.
12. A credit purchase of ₹2,800 was passed through the Sales Day Book.
13. Goods of the value of ₹2,000 returned by Mr. Gupta were entered in the Sales Day Book and
posted therefrom to the credit of his account.
14. ₹2,600 stolen by an ex-employee stood debited to Suspense A/c.
15. ₹3,000 received from a customer as an advance against order was credited to Sales A/c.
16. A sum of ₹800 written off as depreciation on Machinery, were not posted to Depreciation
A/c.
17. Purchase of a Scooter was debited to conveyance account ₹16,000, Firm Charges 10%
depreciation on vehicles.
18. Payment of ₹500 to Mohan and ₹600 to Sohan was made but Mohan was debited with ₹600
and Sohan with ₹500.
19. Sales to X ₹500 were posted to Y’s Account.

Question

1. ₹350 paid in Cash for a typewriter was charged to Office Expenses A/c.
2. Goods amounting to ₹660 sold to W, were correctly entered in the Sales Book but posted to W’s
Account as ₹760. The total sales for the month were overcast by ₹1,000.
3. Goods worth ₹130 returned by G, were entered in the Sales Book and posted therefrom to the credit
of G’s personal account.
4. Goods sold for ₹1240 and debited on 20th March to C, were returned by him on 23 rd and taken into
stock on 31st March, no entries being made in the books for return.
5. Sales return book was overcast by ₹100.

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6. Bills Receivable received from H, ₹1600 posted to the credit of Bills Payable account and credited to
him.
7. A Sale of ₹900 to Vipul Agencies ₹ 600 credited to Gupteel Agencies as ₹60.
8. ₹900 received from kumari Anisha debited to Anisha Kumari as ₹500.
9. The total of purchase Book was overcasted by ₹100.
10. Goods sold to X ₹ 200 credited to as amount as ₹20.
11. ₹5000 received from Mr. Mohan debited to Mahan’s A/c.
12. Purchase of equipment from Raj Mohan & Co., ₹2,000, in cash, was entered through the purchase day
book and accordingly, credited to the supplier’s account.
13. Discount ₹500 allowed by P. Sahoo, a creditor, has not been entered in the books of account.
14. ₹350 paid for carriage on sale of goods was credited to carriage inward account when posted from
the cash book.
15. Bill receivable worth ₹1800 received from a debtor was entered in the bills payable book through
correctly entered in the debtor’s account.