This document contains 4 accounting test questions with multiple parts each that involve rectifying errors in journal entries. The errors include incorrect posting of transactions between various accounts like purchases, sales, cash, inventory, expenses, and supplier/customer accounts. Rectification requires determining the correct accounting entries and using a suspense account to balance discrepancies found in trial balances until all errors are fixed.
This document contains 4 accounting test questions with multiple parts each that involve rectifying errors in journal entries. The errors include incorrect posting of transactions between various accounts like purchases, sales, cash, inventory, expenses, and supplier/customer accounts. Rectification requires determining the correct accounting entries and using a suspense account to balance discrepancies found in trial balances until all errors are fixed.
This document contains 4 accounting test questions with multiple parts each that involve rectifying errors in journal entries. The errors include incorrect posting of transactions between various accounts like purchases, sales, cash, inventory, expenses, and supplier/customer accounts. Rectification requires determining the correct accounting entries and using a suspense account to balance discrepancies found in trial balances until all errors are fixed.
This document contains 4 accounting test questions with multiple parts each that involve rectifying errors in journal entries. The errors include incorrect posting of transactions between various accounts like purchases, sales, cash, inventory, expenses, and supplier/customer accounts. Rectification requires determining the correct accounting entries and using a suspense account to balance discrepancies found in trial balances until all errors are fixed.
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CBSE XI
ACCOUNT TEST SERIES COMPLIED BY SUDHIR SINHA
Assignment 3 Rectification of errors Time : 2 hrs mm 50 Q.1-Pass Journal entries to rectify the following errors using a Suspense Account wherever necessary. (Narration is not required). (a) An item of office furniture bought for Rs. 500 on credit was passed thought the Purchase Book. (b) Rs. 2,500 paid for purchase of a typewriter was posted to Purchases Account form the Cash Book. (c) Rs. 1,600 received from sale of old machinery was treated as cash sale of goods. (d) Rs. 870 paid for repairs to buildings was posted to Building Account. An item of Rs. 1,640 being the amount of goods sold of Madan was wrongly posted as Rs. 1,460 from the Sales Book. (f) An item of goods sold to Haran for Rs. 1,800 on credit duly entered in the Sales Book was posted to the credit of his account. (g) An item of goods purchased from Paran for Rs. 960 on credit correctly entered in the Purchase Book was posted to the debit of his account. (h) The total of Purchase Returns Book was undercuts by Rs. 200. (i) An item of goods worth Rs. 280 returned to Tarun was passed through Sales Returns Book. (j) An invoice for Rs. 750 received from Barun was entered in the books as Rs. 57. (k) An invoice for Rs. 800 sent to Arun was entered in the Purchase Book. (l) Cash received from Suren Rs. 300 was credited to Suresh. (m) Salary Rs. 1,300 paid to Dhiman, the managter, fond debited to his personal account. (n) Rs. 400 paid for insurance premium on the proprietor’s life was charged to Office Expenses Account. (o) The total of discount column on the debit side of the Cash Book Rs. 560 was posted as Rs. 650. (p) A discount of Rs. 20 allowed to Tapan was not posted to his account. (q) Wages Rs. 500 paid for erection of a new machine found debited to Wages Account. (r) A cheque for Rs. 260 drawn for petty cash and handed to petty cashier was debited to General Expenses Account. (s) A bill for Rs. 600 accepted by Kabir was duly entered in the Bills Receivable Book but was omitted to be posted to his account. (t) Payment of commission Rs. 300 was posted twice from the Cash Book.
Q2- The accountant of a concern transferred the difference in Trial Balance to a newly opened suspense account. Subsequently, the following mistakes were discovered: (a) Materials costing Rs. 1,500 in the creation of machinery and wages paid for it Rs. 800 were included in the purchases account and wages account respectively. (b) Goods sold on credit to Indra Sen Rs. 3,800. Carriage outward and freight paid Rs. 550 chargeable to him were posted to sales expenses account. (c) Sales returns by Subal Sahay Rs. 1,200 were correctly recorded in the Sales Returns Journal from where they were debited to Subal Sahay account as Rs. 2,100. (d) Old furniture originally costing Rs. 3,800 written down to Rs. 760 was sold for cash Rs. 950 and was credited to sales account. CBSE XI ACCOUNT TEST SERIES COMPLIED BY SUDHIR SINHA (e) Machinery purchased on credit Rs. 8,700 was recorded in the Purchases Journal and transport charges for the machine Rs. 1,300 were debited to trade expenses account. Pass Journal entries to rectify these errors and ascertain the difference in the Trial Balance.
Q.3-Pass the rectification entries and show the suspense account in the books of a partnership firm, from the following particulars: (a) The total of sales returns day book was over-cast by Rs. 1,000. (b) Purchase of equipment, from Raj Mohan & Co. worth Rs. 2,000, in cash, was centered thought the purchase day book and accordantly, credited to the supplier’s account. (c) Discount Rs. 500 allowed by P. Sahoo, a creditor, has not been entered in the books of account. (d) Rs. 360 paid for carriage on sale of goods was credited to carriage inward account when posted from the cash 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 debor, whose dues were already written off as bad debt, was posted to the credit side of Suraj Singh account. (g) Goods worth Rs. 1,500 bought by the partner Mr. Besra for his personal use without any payment being made as yet, was wrongly entered in the purchase day book.
Q.4-The Trial Balance of Kailash Bros. as on 30 th September, 2000 shows a difference of
Rs. 8,200, the debit side being in excess of the credit side. This difference was placed in a suspense account and the books were closed. Subsequently, the following errors were detected: (a) Purchase returns book for the month of August was over-cast by Rs. 1,000. (b) An advance of Rs. 780 given to one of the suppliers Mr. Rehman of 7 th June, 2000 was entered correctly in the cash book but was posted to the wrong side of his account. (c) Rs. 240 being the discount allowed by one of the suppliers Mr. Ahmed on 16 th May, 2000 was omitted to be posted to his account. (d) A cheque for Rs. 260 deposited in the bank on 17 July, 2000 was wrongly entered in the cash book as Rs. 2,260 though the correct amount was posted to the account of the customer. (e) Repairs to plant and machinery amounting to Rs. 1,700 was debited to plant and machinery account on 10th September, 2000. (f) Closing stock as on 30th September, 1999 was Rs. 89,600 but the same was wrongly brought forward as Rs. 98,600 in the books on 1st October, 1999. Pass rectification entries for the above and draw the Suspense Account.
