CA Rishabh Rohra

Chapter 3
Rectification of Error

Question 1 – ICAI Material Error Rectified in Same Year

- -

The following errors were found in the book of Ram Prasad & Sons. Give the necessary
entries to correct them.
(1) ₹500 paid for furniture purchased has been charged to ordinary Purchases
-
-

Account. Purchase Cr.

Furniture Dr.

expense
(2) Repairs made were debited to Building Account for ₹50. Repair Dr. Building (r.

(3) An amount of ₹100 withdrawn by the proprietor for his personal use has been
debited to Trade Expenses Account. Drawing Dr. Trade Exp. Cr.

(4) ₹100 paid for rent debited to Landlord’s Account. RentAl Dr. Landlord salary
Al (r.
->
AIL DV.
Clerk All (V.

(5) Salary ₹125 paid to a clerk due to him has been debited to his personal account.
Shaw DV.

(6) ₹100 received from Shah & Co. has been wrongly entered as from Shaw & Co. Shah (r.

Dr.
Typewriter
(7) ₹700 paid in cash for a typewriter was charged to Office Expenses Account. office
Dr.

exp Cr.

Question 2 – ICAI Material Error Rectified in Same Year

Give journal entries to rectify the following:
(1) A purchase of goods from Ram amounting to ₹150 has been wrongly entered
sales All Dr. 150

through the Sales Book. purDr Ramis a reg 3

-> -

pur All Dr. 150

- -
Ram 300(r.

(2) A Credit sale of goods amounting ₹120 to Ramesh has been wrongly passed
through the Purchase Book.
Ramesh Dr. Sales (r.
par Dr. Ramashcr.
3 Ramesh Dr. 240
sales (r. 120 sale Return
120 - Cr
Pur
Return Dr. (3) On 31st December, 2022 goods of the value of ₹300 were returned by Hari Saran
Inward
Harisaran
(r.
and were taken into inventory on the same date but no entry was passed in the books.
Elena
(4) An amount of ₹200 due from Mahesh Chand, which had been written off as a Bad
Debt in a previous year, was unexpectedly recovered, and had been posted to the
Mahesh Chand Dr.
personal account of Mahesh Chand. PY BDTrea7 CY-BDR BDR AIC Cr.

(5) A Cheque for ₹100 received from Man Mohan was dishonoured and had been
Manmohan. GRE
man Mohan Dr.
posted to the debit of Sales Returns Account. Bank (r.

Question 3 – ICAI Material Error Rectified in Same Year but with Suspense A/c untallied
Correct the following errors found in the books of Mr. Dutt. The Trial Balance was out
-
byI₹493 excess credit. The difference thus has been posted to a Suspense Account.
(a) An amount of ₹100 was received from D. Das on 31st December, 2022 but has
been omitted to enter in the Cash Book. Cash/Bank Dr. D. Das (r. susp. Cr
Return Inward Dr.
(b) The total of Returns Inward Book for December has been casted short by₹100. Y
(c) The purchase of an office table costing ₹300 has been passed through the
Purchases Day Book. Kurng side
Al
Suspense
klw Amt
ny
25 | P a g e TOBa 493 total under cast
DV. Cr.4493 wwag -

bld over cast

suspense 493
 CA Rishabh Rohra
(d) ₹375 paid for Wages to workmen for making show-cases had been charged to
“Wages Account”. ASS27
RE: Furnitum Dr. Dr. to -

Wages (r.
(e) A purchase of ₹67 had been posted to the trade payables’ account as ₹60.
(f) A cheque for ₹200 received from P. C. Joshi had been dishonoured and was
passed to
the debit of “Allowances Account”.
(g) ₹1,000 paid for the purchase of a motor cycle for Mr. Dutt for his personal use
had been Drawing Dr.
Misc. expCr.
charged to “Miscellaneous Expenses Account”.
(h) Goods amounting to ₹100 had been returned by customer and were taken into
inventory, but no entry in respect thereof, was made into the books.
(i) A sale of ₹200 to Singh & Co. was wrongly credited to their account. Entry was
correctly made in sales book. CE: Singh Dr.
- Wrong RE Singh Dr. 400

sales (r. Singh (r. TOSUSP - 400

sense Question 4 – ICAI Material Error Rectified in Same Year but with Suspense A/c -
such Write out the Journal Entries to rectify the following errors, using a Suspense Account.
A SR
(1) Goods of the value of ₹100 returned by Mr. Sharma were entered in the Sales Day
creat Book and posted therefrom to the credit of his account; CE Return
Sharma
Inward Dr. Irong
sales
R
Cr.
sharmacr.
(r.
Dr ,00
Sales Dr. 100
V supp 200

(2) An amount of ₹150 entered in the Sales Returns Book, has been posted to the
CE: SR DV. arong RE suspense 300 Dr.

debit of Mr. Philip, who returned the goods;

-

Philip PhilipCr. PhilipDV. 300 (r.

(3) A sale of ₹200 made to Mr. Ghanshyam was correctly entered in the Sales Day
- Ghanshyam Dr. 200

Book but wrongly posted to the debit of Mr. Radheshyam as ₹20; and To Radheshyam
To
20
180
Dr. suspense
(4) The total of “Discount Allowed” column in the Cash Book for the month of
-

September, 2022 amounting to ₹250 was not posted. Dis Allowed Dr. 250 shep. (r.
-
250

senseQuestion 5 – ICAI Material Error Rectified in Same Year but with Suspense A/c
senst On going through the Trial balance of Ball Bearings Co. Ltd. you find that the debit is in
Hel -
excess by ₹150. This was credited to “Suspense Account”. On a close scrutiny of the
create Cr. 150 to match TB
v books, the following mistakes were noticed: +B Dr.4150:Susp.
(1) The totals of debit side of “Expenses Account” have been casted in excess by ₹50.
(2) The “Sales Account” has been totalled in short by ₹100.Sup.Dr.100SUpanscAcDr.SO
ToSaIIOU TO EXP AK 50
TP AIC Dr. (3) Supplier account has been overcasted by 225. creditor Dr. 3 225 -

susp cr. suspenses.

(4)
-
The sale return of ₹100 from a party has not been posted to that account though
CE SRAIC Dr.
the Party’s account has been credited. TO BLDIN Ala
-
Error

↑P A19 Dr. (5) A cheque of ₹500 issued to the Suppliers’ account (shown under Trade payables)
CE
pur. (r. trade Pay Dr. Calling purDr.
towards his dues has been wrongly debited to the purchases. To Bank

(6) A credit sale of ₹50 has been credited to the Sales and also to the Trade
receivables Account. CE: TR AIC Dr. Kong: TRCr. Rectification:
TRE 100 -
-

- -

Sales All (V.

TP creditor + BP
:

26 | P a g e
 CA Rishabh Rohra
You are required to
(i) Pass necessary journal entries for correcting the above; - effect
①profit5048 Noeffect
No

(ii) Show how they affect the Profits; and ② profit 10045profit4500

(iii) Prepare the “Suspense Account” as it would appear in the ledger.

Question 6 – ICAI Material Error Rectified in Same Year but with Suspense A/c
The trial balance of Mr. W & H failed to agree and the difference ₹20,570 was put into
suspense account pending the investigation which disclosed that:
(i) Purchase returns day book had been correctly entered and totalled at ₹6,160,
but had not been posted to the ledger. correst
along
DisAICCr. DiscAIcDr.
(ii) Discounts received ₹1,320 had been debited to discounts allowed.
RE,so You
(iii) The Sales account had been under added by ₹10,000. 1320 DiSC. Read. (V.

(iv) A credit sale of ₹1,470 had been debited to a customer account at ₹1,740. Suspense
- At Dr.
Is TO DeyFor 270

(v) A vehicle bought originally for ₹7,000 four years ago and depreciated to ₹1,200
had been sold for ₹1,500 in the beginning of the year but no entries, other than in the300
CE: Bank Dr. 1500 vehicle
-
1200
(r. PGLAK (r.

bank account had been passed through the books. RE: suspense-
vehicle (1.
1500 PLLAK
1200 300 Cr.

D5-
(vi) An accrual of ₹560 for telephone charges had been completely omitted.
(vii) A bad debt of ₹1,560 had not been written off and provision for doubtful debts
should have been maintained at 10% of Trade receivables which are shown in the trial
balance at ₹23,390 with a credit provision for bad debts at ₹2,320.
(viii) Tools bought for ₹1,200 had been inadvertently debited to purchases.
(ix) The proprietor had withdrawn, for personal use, goods worth ₹1,960. No entries
had been made in the books.
You are required to give rectification entries without narration to correct the above
errors before preparing annual accounts.

Question 7 – PYQ May 2018 Error Rectified in Same Year but with Suspense A/c
Give journal entries (narrations not required) to rectify the following:
(i) Purchase of Furniture on credit from Nigam for ₹3,000 posted to Subham
account as ₹300.
(ii) A Sales Return of ₹5,000 to Jyothy was not entered in the financial accounts
though it was duly taken in the stock book. RE: -SRDr. 5y0thy (r.
(iii) Investments were sold for ₹75,000 at a profit of ₹15,000 and passed through
Sales account.
ME:
BanYesir. 758v0 Bank Dr. 75000 Investment(r. 60000 P2LCr. 15000
-

CE:
-

-
~

(iv) An amount of ₹10,000 withdrawn by the proprietor (Darshan) for his personal
use has been debited to Trade Expenses account.

~RE: Saks Dr. 75000

Investment (r. 60000

P2L AC or15000

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 - E1560=
AddBD-Bad Debt

New Proy -> Proy for BDD > 910%-

>23,390-270 23,120
23,390
=

TB + Debtor ->

E TB - Prov for - 2,320-

BDD
prov
or

Formulae
Debtor 23,120
BD Al, Dr. 1,560 ⑧
BD Entry ->
M BD
-) Ad dn BD (1,560) =

To Debtor Alc1560 Addh BD

1,560
Et 21,560
⑰Old Prov (2,320 I C-) NEW Prox 2,156
P2LDr.
ProVAC DV. 164 E -

=
1568 + NCW ProX

M TO PGLATC 164
-
-
12 p.
Net1396 Exam
CA Rishabh Rohra
Question 8 – PYQ May 2019 Error Rectified in Same Year but with Suspense A/c
Give journal entries (with narrations) to rectify the following errors located in the
books of a Trader after preparing the Trial Balance:
(i) An amount of ₹4,500 received on account of Interest was credited to Commission
account. -

(ii) A sale of ₹2,760 was posted from Sales Book to the Debit of M/s Sobhag Traders
MIs Sobhay Trader Dr. 90
at ₹2,670 - suspense Ane 90
(iii) ₹35,000 paid for purchase of Air conditioner for the personal use of proprietor
debited to Machinery A/c.
(iv) Goods returned by customer for ₹5,000. The same have been taken into stock but
no entry passed in the books of accounts.

Question 9 – PYQ Dec 2021 Error Rectified in Same Year but with Suspense A/c
Pass the Journal entries to rectify the following errors detected during preparation of
the Trial Balance:
(i) Wages paid for construction of office building debited to wages account ₹20,000.
(ii) A credit sale of goods ₹1,200 to Ramesh has been wrongly passed through the
Purchase Book.
(iii) An amount of ₹2,000 due from Mahesh Chand which had been written off as a
bad debit in the previous year was unexpectedly recovered and has been posted to the
personal account of Mahesh Chand.
(iv) Goods (Cost being ₹5,000 and Sales price being ₹6,000) distributed as free
-
AdYt ExP
Dr. 5000
samples amount prospective customers were not recorded anywhere. Purchase (r.
5000

(v) Goods worth ₹1,500 returned by Green have not been recorded anywhere.

Question 10 – PYQ Dec 2022 Error Rectified in Same Year but with Suspense A/c
Before preparation of the Trial Balance, the following errors were found in the books
of Hare Rama & Sons. Give the necessary entries to correct them.
(i) Minor Repairs made to the building amounting to ₹1,850 were debited to the
Building Account.
(ii) An amount of ₹3,000 due from Shayam Lal, which had been written off as bad
debts in the previous year, recovered in the current year, and had been posted to the
personal Account of Shayam Lal.
(iii) Furniture purchased for office use amounting to ₹20,000 has been entered in the
purchase day book.
(iv) Goods purchased from Ram Singh amounting to ₹8,000 have remained
unrecorded so far.
(v) College fees of proprietor's son, ₹15,000 debited to the Audit fees Account.
(vi) Receipt of ₹4,500 from Meet Kumar credited to the Pinki Rani.
28 | P a g e
 CA Rishabh Rohra
(vii) Goods amounting to ₹6,200 had been returned by a customer and were taken
into inventory, but no entry was made in the books.
(viii) ₹1500 paid for wages to workmen for making office furniture had been charged
to wages account.
(ix) Salary paid to a clerk ₹12,000 has been debited to his personal account.
(x) A purchase of goods from Raghav amounting to ₹20,000 has been wrongly
entered through the sales book

Question 11 – PYQ June 2024 Error Rectified in Same Year but with Suspense A/c
The Trial Balance of Mr. Sarvesh Kumar as on 31st March, 2024 did not tally and the
difference was posted to Suspense Account. On a scrutiny of the books, the following
errors were detected:
(i) The total of Sales Returns Book for January 2024 has been casted short by
₹1,000.
Freight paid for installation of a Machine ₹6,500 was posted to the Freight Account as
CE: Machine Dr 6500 KIE: Flight All Dr. 5600
-

RE: Machine Dr. 6500

₹5,600.
-
-

- To Bank 6508 To Bank Al 5600

Freight(r. 5600 SuSPa88
(iii) Goods of the value of ₹2,500 returned by a customer were entered in the Sales
CE.- SRDr. 2500 IE:DebtorCr. 2500 SRDr. 2500

day Book and posted therefrom to the credit of his account. Debtorcr. 2500 sales (r. 2500 Sales Dr. 2500

susp. 5000

(iv) ₹18,000 paid for purchase of old Motorcycle for personal Mr. Sarvesh Kumar was
CV.

debited to conveyance account.

SMYP Dr, 10000
(v) A purchase of ₹6,700 had been posted to creditor's account as ₹6,000. Avinash (r. 10000
(vi) Receipt of cash ₹5,000 from Mr. Avinash was posted to the debit of his account.
(vii) A cheque for ₹2,500 received from Mr. Alok had been dishonored and was posted
to the debit of Mr. Ashok.
(viii) Sale of ₹8,500 to Mr. Deepak was recorded in the sales book correctly but while
pr. 17000

DeepaesPr. KINng Deepaner.

CE: -
RE: Deepak
-

posting in ledger credited to his account. smp to

17000

(ix) The total of "Discount Allowed" column in the cash book for the month of
December 2023 amounting to ₹3,800 was not posted.
(x) Sale of old office table for ₹2,200 treated as sale of goods.
You are required to pass necessary journal entries with narrations to rectify the above
error

29 | P a g e
 CA Rishabh Rohra
Question 12 –ICAI Material Error Rectified in Next Year
Mr. Roy was unable to agree the Trial Balance last year and wrote off the difference to
the Profit and Loss Account of that year. Next Year, he appointed a Chartered
Accountant who examined the old books and found the following mistakes:
(1) Purchase of a scooter was debited to conveyance account ₹3,000.
-
(2) Purchase account was over-cast by ₹10,000.
-
(3) A credit purchase of goods from Mr. P for ₹2,000 was entered as a sale.
-

(4) Receipt of cash from Mr. A was posted to the account of Mr. B ₹1,000.
-
(5) Receipt of cash from Mr. C was posted to the debit of his account, ₹500.
-
(6) ₹500 due by Mr. Q was omitted to be taken to the trial balance.
-

(7) Sale of goods to Mr. R for ₹2,000 was omitted to be recorded.

(8) Amount of ₹2,395 of purchase was wrongly posted as ₹2,593.
- Mr. Roy used 10% depreciation on vehicles. Suggest the necessary rectification entries.

Question 13 – ICAI Material Error Rectified in Next Year

Mr. A closed his books of account on September 30, 2021 in spite of a difference in the
trial balance. The difference was ₹830 the credits being short; it was carried forward
in a Suspense Account. In 2022 following errors were located:
(i) A sale of ₹2,300 to Mr. Lala was posted to the credit of M₹Mala.
(ii) The total of the Returns Inward Book for July, 2021 ₹1,240 was not posted in the
ledger.
(iii) Freight paid on a machine ₹5,600 was posted to the Freight Account as ₹6,500.
10% Depreciation is charge on this machines. Dr. 8640

(iv) While carrying forward the total in the Purchases Account to the next page, -
₹65,590 was written instead of ₹56,950. Dr.65590 galtisch Dr. 56950
(v) A sale of machine on credit to Mr. Mehta for ₹9,000 on 30th sept. 2021 was not
entered in the books at all. The book value of the machine was ₹6,750.
Pass journal entries to rectify the erro₹Have you any comments to make?.

Question 14 – ICAI Material Error Rectified in Next Year

A merchant’s trial balance as on June 30, 2022 did not agree. The difference was put to
a Suspense Account. During the next trading period, the following errors were
discovered:
(i) The total of the Purchases Book of one page, ₹4,539 was carried forward to the
next page as ₹4,593.
(ii) A sale of ₹573 was entered in the Sales Book as ₹753 and posted to the credit of
PCLAdj.Dr. 180 scyp (r180
the customer. to sale 573 galtisen sale (5753
(iii) A return to a creditor, ₹510 was entered in the Returns Inward Book; however,
the creditor’s account was correctly posted.
30 | P a g e
 Exam

&2 motor vehicle Dr. 2700 motor vehicle Dr. 2700

2700

I Depneyance
pr. 300 300 >
TOP2LAdj
depu
·

3000
4) Motoryehick br.
To motor vehicle 306 3000
to 3000
conveyance -

Ac

(2) Suspense All Dr. 10,000

50 PLLAdj. 10,000
Exam
R
E
P2L Adj. Al Dr. 4000
sa! si"2888 3
CE:- -

(3) IaIE: -

Dr. 2000 To Trade Payable 4000

Dr. 2000 Purchase
Mr.PAIc
-

To Mr. P AIC 4000 <Mr.4)

2000
2000 to Mr. PAC
To saks Ats -

Dr, 1000
(4) Mr. B AIC

To Mr. A Als 1000

(5) Supp, Ac Dr, 1000

To Mr. (As 1000

500
(6) Trade Receivable (Mr. a) Alc br.

Als 500
to shop.

Dr. 2000
(7) Trade Receivable (Mr. R) Ae
2000
TO PLLAdj. Als

(8) Suspense A Dr. 198

To PLL AdjAlC 198

since diff try

3 capital
was

e22Adj
Dr E re -> trfto bet

PGLAK
to lastyear

JEV

At
If diff ofto suspense
As June 2024 RTP
PGL Adj. -> Bal per
modul
S Bal
3 Balla - P22Adj -Bal ->
capital
trfto
I sup
+
Ac + Bal-Balld
sup.
CA Rishabh Rohra
(iv) Cash received from C. Dass, ₹620 was posted to the debit of G. Dass.
(v) Goods worth ₹840 were despatched to a customer before the close of the year
but no invoice was made out.
(vi) Goods worth ₹1,000 were sent on sale or return basis to a customer and entered
in the Sales Book. At the close of the year, the customer still had the option to return
92%
↑

0
the goods. The sale price was 25% above cost. 1990 ~

You are required to give journal entries to rectify the errors in a way so as to show the
Exam 100 n
current year’s profit or loss correctly. P2L Adj Dr.
200
COST 800

· goodsDingWith customer Dr.it

800
good lying
TOTR
Dr. 800
1000
1000
Question 15 – PYQ Nov 2018 Error Rectified in Next Year
The following mistakes were located in the books of a concern after its books were
closed and a Suspense Account was opened in order to get the Trial Balance agreed:
(i) Sales Day Book was overcast by ₹1,000.
(ii) A sale of ₹5,000 to X was wrongly debited to the Account of Y.
(iii) General expenses ₹180 was posted in the General Ledger as ₹810.
(iv) A Bill Receivable for ₹1,550 was passed through Bills Payable Book. The Bill was
given by P.
Dr. CEBR DV.
TO Mr.PL
>Mr. P
TOBP
1550
1550
Cr.
RE:-
BRP50gr55a
(v) Legal Expenses ₹1,190 paid to M₹Neetu was debited to her personal account.
(vi) Cash received from Ram was debited to Shyam ₹1,500.
(vii) While carrying forward the total of one page of the Purchases Book to the next,
the amount of ₹1,235 was written as ₹1,325.
Find out the nature and amount of the Suspense Account and Pass entries (including
narration) for the rectification of the above errors in the subsequent year’s books

Question 16 – PYQ Nov 2020 Error Rectified in Next Year

M/s. Applied Laboratories were unable to agree the Trial Balance as on 31st March,
2020 and have raised a suspense account for the difference. Next year the following
errors were discovered:
(i) Repairs made during the year were wrongly debited to the building A/c -
₹12,500.
(ii) The addition of the 'Freight' column in the purchase journal was short by ₹1,500.
(iii) Goods to the value of ₹1,050 returned by a customer, Rani & Co., had been posted
to the debit of Rani & Co. and also to sales returns.
(iv) Sundry items of furniture sold for ₹30,000 had been entered in the sales book,
the total of which had been posted to sales account.
(v) A bill of exchange (received from Raja & Co.) for ₹20,000 had been returned by
the bank as. dishonoured and had been credited to the bank and debited to bills
Dr.
receivable account. CE: RajaAt Zoe K: BRoankou RE: Raja 2
- -
-
Dr
Bank Dr. 204

You are required to pass journal entries to rectify the above mistakes. P BR 40k

31 | P a g e
CA Rishabh Rohra
Question 17 – PYQ Jan 2021 Error Rectified in Next Year
Mr. Joshi's trial balance as on 31st March, 2020 did not agree. The difference was put
to a Suspense Account. During the next trading period, the following errors were
discovered:
(i) The total of the Purchases Book of one page, ₹5,615 was carried forward to the
next page as ₹6,551.
(ii) A sale of ₹281 was entered in the Sales Book as ₹821 and posted to the credit of
pur. Return

areenter
the customer. -

Fittings
(iii) A return to creditor, ₹295 was entered in the Returns Inward Book; however, the
creditor's account was correctly posted. car san
TOPGLAd5.590
(iv) Cash received from Senu, ₹895 was posted to debit of Sethu.
(v) Goods worth ₹1,400 were dispatched to a customer before the close of the year
but no invoice was made out.
(vi) Goods worth ₹1,600 were sent on sale or return basis to a customer and entered
in the Sales Book at the close of the year, the customer still had the option to return the
goods. The gross profit margin was 20% on Sale.
(vii) ₹600 due from Mr. Q was omitted to be taken ·to the trial balance.
(viii) Sale of goods to Mr. R for ₹3,000 was omitted to be recorded.
You are required to give journal entries to rectify the errors in a way so as to show the
current year's profit or loss correctly.

Question 18 – PYQ July 2021 Error Rectified in Next Year

Mr. Ratan was unable to agree the Trial Balance last year and wrote off the difference
to the Profit and Loss Account of that year. Next year, he appointed a Chartered
Accountant who examined the old books and found the following mistakes:
(i) Purchase of a scooter was debited to conveyance account ₹30,000. Mr. Ratan
charges 10% depreciation on scooter.
(ii) Purchase account was over cast by ₹1,00,000.
(iii) A credit purchase of goods from Mr. X for ₹20,000 was entered as sale.
(iv) Receipt of cash from Mr. Anand was posted to the account of Mr. Bhaskar
₹10,000.
(v) Receipt of cash from Mr. Chandu was posted to the debit of his account, ₹5,000.
(vi) ₹5,000 due by Mr. Ramesh was omitted to be taken to the Trial Balance.
(vii) Sale of goods to Mr. Ram for ₹20,000 was omitted to be recorded.
(viii) Amount of ₹23,950 of purchase was wrongly posted as ₹25,930.
Suggest the necessary rectification entries.

32 | P a g e
 CA Rishabh Rohra
- Question 19 – ICAI Material Rectification without Suspense A/cc
-
How would you rectify the following errors in the book of Rama & Co.?
1. The total to the Purchases Book has been undercast by ₹100.
2. The Returns Inward Book has been undercast by ₹50.
3. A sum of ₹250 written off as depreciation on Machinery has not been debited to
Depreciation Account.
4. A payment of ₹75 for salaries (to Mohan) has been posted twice to Salaries
Account.
5. The total of Bills Receivable Book ₹1,500 has been posted to the credit of Bills
Receivable Account.
6. An amount of ₹151 for a credit sale to Hari, although correctly entered in the
Sales Book, has been posted as ₹115.
7. Discount allowed to Satish ₹25 has not been entered in the Discount Column of
the Cash Book. the amount has been posted correctly to the credit of his personal
account.

I Question 20 – ICAI Material Rectification without Suspense A/c

Correct the following errors
(i) without opening a Suspense Account and (ii) opening a Suspense Account:
(a) The Sales Book has been totalled ₹100 short.
(b) Goods worth ₹150 returned by Green & Co. have not been recorded anywhere.
(c) Goods purchased ₹250 have been posted to the debit of the supplier Gupta & Co.
(d) Furniture purchased from Gulab & Bros, ₹1,000 has been entered in Purchases
Day Book.
(e) Discount received from Red & Black ₹15 has not been entered in the Discount
Column of the Cash Book.
(f) Discount allowed to G. Mohan & Co. ₹18 has not been entered in the Discount
Column of the Cash Book. The account of G. Mohan & Co. has, however, been correctly
posted.

Question 21 – ICAI Material Rectification without Suspense A/c

The following errors, affecting the account for the year 2022 were detected in the
books of Jain Brothers, Delhi:
1) Sale of old Furniture ₹150 treated as sale of goods.
2) Receipt of ₹500 from Ram Mohan credited to Shyam Sunder.
3) Goods worth ₹100 brought from Mohan Narain have remained unrecorded so
far.
4) A return of ₹120 from Mukesh posted to his debit.
5) A return of ₹90 to Shyam Sunder posted as ₹9 in his account.
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CA Rishabh Rohra
6) Rent of proprietor’s residence, ₹600 debited to rent A/c.
7) A payment of ₹215 to Mohammad Sadiq posted to his credit as ₹125.
8) Sales Book casted short by ₹900 .
9) The total of Bills Receivable Book ₹1,500 left unposted.
You are required to pass the necessary rectifying entries and show how the trial
balance would be affected by the erro₹

Question 22 – PYQ Nov 2019 Rectification without Suspense A/c

Correct the following errors
(i) without opening a Suspense Account and (ii) with opening a Suspense Account:
(1) The sales book has been totalled ₹2,100 short.
(2) Goods worth ₹1,800 returned by Gaurav & Co. have not been recorded anywhere.
(3) Goods purchased ₹2,250 have been posted to the debit of the supplier Sen
Brothe₹
(4) Furniture purchased from Mary Associates, ₹15,000 has been entered in the
purchase Daybook.
(5) Discount received from Black and White ₹1,200 has not been entered in the
books.
(6) Discount allowed to Radhe Mohan & Co. ₹180 has not been entered in the
Discount Column of the Cashbook. The account of Radhe Mohan & Co. has, however,
been correctly posted.

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