Chapter 6 Trial Balance and Rectification of Errors Solutions

Question - 31 : -
Rectify the following errors assuming that suspense account was opened.
Ascertain the difference in trial balance.
(a) Depreciation provided on machinery Rs 4,000 was not posted to Depreciation account.
(b) Bad debts written-off Rs 5,000 were not posted to Debtors account.
(c) Discount allowed to a debtor Rs 100 on receiving cash from him was not posted to discount allowed account.
(d) Goods withdrawn by proprietor for personal use Rs 800 were not posted to Drawings account.
(e) Bill receivable for Rs 2,000 received from a debtor was not posted to Bills receivable account.

Answer - 31 : -

Journal Recordings to rectify the errors
	Date	Particulars	L.F	Debit Amount ₹	Credit Amount ₹
i.		Depreciation A/c Dr.		4,000
		To Suspense A/c (Depreciation provided on machinery, Error rectification recording, was not posted to discount account)			4,000
ii.		Suspense A/c Dr.		5,000
		To Debtors A/c (Bad debts written-off, Error rectification recording, were not posted to debtors account)			5,000
iii.		Discount Allowed A/c Dr.		100
		To Suspense A/c (Discount allowed to a debtor after receiving cash, Error rectification recording, was not posted to discount allowed account)			100
iv.		Drawings A/c Dr.		800
		To Suspense A/c (Goods withdrawn by proprietor for personal use, Error rectification recording, was not posted to drawings account)			800
v.		Bills Receivable A/c Dr.		2,000
		To Suspense A/c (Bills receivable from a debtor, Error rectification recording, was not posted to Bills receivable account)			2,000

Suspense Account
Dr.				Cr.
Date	Particulars	J.F.	Amount ₹	Date	Particulars	J.F.	Amount ₹
	To Debtors A/c		5,000		By Depreciation A/c		4,000
	To Balance b/d		1,900		By Discount Allowed A/c		100
					By Drawings A/c		800
					By Bills Receivable A/c		2,000
	Total		6,900		Total		6,900

Hence, difference intrial balance is ₹1,900 excess credit.

Question - 32 : -
Trial balance of Anuj did not agree. It showed an excess credit of Rs 6,000.
He put the difference to suspense account. He discovered the following errors.
(a) Cash received from Ravish Rs 8,000 posted to his account as Rs 6,000.
(b) Returns inwards book overcast by Rs 1,000.
(c) Total of sales book Rs 10,000 was not posted to Sales account.
(d) Credit purchases from Nanak Rs 7,000 were recorded in sales Book. However, Nanak’s account was correctly credited.
(e) Machinery purchased for Rs 10,000 was posted to purchases account as Rs 5,000. Rectify the errors and prepare suspense account.

Answer - 32 : -

Journal Recordings to rectify the errors
	Date	Particulars	L.F	Debit Amount ₹	Credit Amount ₹
i.		Suspense A/c Dr.		2,000
		To Ravish A/c (Cash received from Ravish, Error rectification recording, was wrongly posted as ₹ 6,000 instead of ₹ 8,000)			2,000
ii.		Suspense A/c Dr.		1,000
		To Return Inward A/c (Returns inwards book was overcast by ₹ 1,000, Error rectification recording)			1,000
iii.		Suspense A/c Dr.		10,000
		To Sales A/c (Total of sales book, Error rectification recording, was not posted to sales account earlier)			10,000
iv.		Purchases A/c Dr.		7,000
		Sales A/c Dr.		7,000
		To Suspense A/c (Credit purchases from Nanak, Error rectification recording, was recorded in sales book)			14,000
v.		Purchases A/c Dr.		10,000
		To Purchases A/c			5,000
		To Suspense A/c (Machinery purchased for ₹ 10,000, Error rectification recording, was posted to purchases account as ₹ 5,000)			5,000

Suspense Account
Dr.				Cr.
Date	Particulars	J.F.	Amount ₹	Date	Particulars	J.F.	Amount ₹
	To Balance c/d		6,000		By Purchases A/c		7,000
	To Ravish A/c		2,000		By Sales A/c		7,000
	To Return Inwards A/c		1,000		By Machinery A/c		5,000
	To Sales A/c		10,000
	Total		19,000		Total		19,000

Hence, total ofsuspense account is ₹ 19,000

Question - 33 : -
Trial balance of Raju showed an excess debit of Rs 10,000. He put the difference to suspense account and discovered the following errors:
(a) Depreciation written-off the furniture Rs 6,000 was not posted to Furniture account.
(b) Credit sales to Rupam Rs 10,000 were recorded as Rs 7,000.
(c) Purchases book undercast by Rs 2,000.
(d) Cash sales to Rana Rs 5,000 were not posted.
(e) Old Machinery sold for Rs 7,000 was credited to sales account.
(f) Discount received Rs 800 from Kanan on playing cash to him was not posted. Rectify the errors and prepare suspense account.

Answer - 33 : -

Journal Recordings to rectify the errors
	Date	Particulars	L.F	Debit Amount ₹	Credit Amount ₹
i.		Suspense A/c Dr.		6,000
		To Furniture A/c (Depreciation written-off the furniture, Error rectification recording, was not posted furniture account)			6,000
ii.		Rupam’s A/c Dr.		3,000
		To Sales A/c (Credit Sales to Rupam, Error rectification recording, was wrongly recorded as ₹ 7,000 instead of ₹ 10,000)			3,000
iii.		Purchases A/c Dr.		2,000
		To Suspense A/c (Purchases book undercasting rectification, Error rectification recording)			2,000
iv.		Cash A/c Dr.		5,000
		To Sales A/c (Cash sales, Error rectification recording, were not posted earlier)			5,000
v.		Sales A/c Dr.		7,000
		To Machinery A/c (Old machinery sold out, Error rectification recording, was wrongly credited to sales account instead of machinery account earlier)			5,000
vi.		Kanan’s A/c Dr.		800
		To Discount Received A/c (Discount received from Kanan, Error rectification recording, was not posted earlier)			800

Suspense Account
Dr.				Cr.
Date	Particulars	J.F.	Amount ₹	Date	Particulars	J.F.	Amount ₹
	To Furniture A/c		6,000		By Balance b/d		10,000
	To Balance b/d		6,000		By Purchases A/c		2,000
	Total		12,000		Total		12,000

Hence, the creditbalance is ₹ 6000

Question - 34 : -
Trial balance of Madan did not agree and he put the difference to suspense account. He discovered the following errors:
(a) Sales return book overcast by Rs 800.
(b) Purchases return to Sahu Rs 2,000 were not posted.
(c) Goods purchased on credit from Narula Rs 4,000 though taken into stock, but no entry was passed in the books.
(d) Installation charges on new machinery purchased Rs 500 were debited to sundry expenses account as Rs 50.
(e) Rent paid for residential accommodation of madam (the proprietor) Rs 1,400 was debited to rent account as Rs 1,000.
Rectify the errors and prepare suspense account to ascertain the difference in trial balance.

Answer - 34 : -

Journal Recordings to rectify the errors
	Date	Particulars	L.F	Debit Amount ₹	Credit Amount ₹
i.		Suspense A/c Dr.		800
		To Sales Return A/c (Sales return, Error rectification recording, Sales return book was overcast by ₹ 800)			800
ii.		Sahu’s A/c Dr.		2,000
		To Purchases Return A/c (Purchases return to Sahu, Error rectification recording, was not recorded earlier)			2,000
iii.		Purchases A/c Dr.		4,000
		To Narula’s A/c (Goods purchased on credit from Narula, Error rectification recording, was not recorded earlier)			4,000
iv.		Machinery A/c Dr.		500
		To Sundry Expenses A/c			50
		To Suspense A/c (Installation charges on new machinery purchased, Error rectification recording, Earlier Sundry expenses account was debited with ₹ 50 instead of crediting the machinery account with ₹ 500)			450
v.		Drawings A/c Dr.		1,400
		To Rent A/c			1,000
		To Suspense A/c (Drawings by the proprietor for paying the personal rent, Error rectification recording, Earlier Rent account was debited with ₹ 1,000 instead of debiting the drawings account with ₹ 1,400)			400

Suspense Account
Dr.				Cr.
Date	Particulars	J.F.	Amount ₹	Date	Particulars	J.F.	Amount ₹
	To Sales Return A/c		800		By Machinery A/c		450
	To Balance c/d		50		By Drawings A/c		400
	Total		850		Total		850

The credit balance is₹50 as per the question.

As per textbook theanswer is ₹2050, therefore the entry (b) is added to suspense account and theresulting amount is ₹2050.

Question - 35 : -
Trial balance of Kohli did not agree and showed an excess debit of Rs 16,300. He put the difference to a suspense account and discovered the following errors:
(a) Cash received from Rajat Rs 5,000 was posted to the debit of Kamal as Rs 6,000.
(b) Salaries paid to an employee Rs 2,000 were debited to his personal account as Rs 1,200.
(c) Goods withdrawn by proprietor for personal use Rs 1,000 were credited to sales account as Rs 1,600.
(d) Depreciation provided on machinery Rs 3,000 was posted to Machinery account as Rs 300.
(e) Sale of old car for Rs 10,000 was credited to sales account as Rs 6,000. Rectify the errors and prepare suspense account.

Answer - 35 : -

Journal Recordings to rectify the errors
	Date	Particulars	L.F	Debit Amount ₹	Credit Amount ₹
i.		Suspense A/c Dr.		11,000
		To Rajat’s A/c			5,000
		To Kamal’s A/c (Cash received from Rajat, Error rectification recording, was debited to Kamal’s account instead of crediting to Rajat’s account.)			6,000
ii.		Salaries A/c Dr.		2,000
		To Employee A/c			1,200
		To Suspense A/c (Salaries paid to employees, Error rectification recording, was wrongly debited to employee’s account with ₹ 1,200 instead of debiting ₹ 2,000 to salaries account)			800
iii.		Sales A/c Dr.		1,600
		Drawings A/c			1,000
		To Suspense A/c (Goods withdrawn by the proprietor, Error rectification recording, was wrongly credited to Sales account with ₹ 1,600 instead of crediting the drawings account with ₹ 1,000)			600
iv.		Suspense A/c Dr.		2,700
		To Machinery A/c (Depreciation provided on machinery, Error rectification recording, was posted as ₹ 300 instead of ₹ 3,000)			2,700
v.		Sales A/c Dr.		6,000
		Suspense A/c Dr.		4,000
		To Car A/c (Goods withdrawn by the proprietor, Error rectification recording, was wrongly credited to Sales account with ₹ 1,600 instead of debiting the drawings account with ₹ 1,000)			10,000

Suspense Account
Dr.				Cr.
Date	Particulars	J.F.	Amount ₹	Date	Particulars	J.F.	Amount ₹
	To Rajat’s A/c		5,000		By Balance b/d		16,300
	To Kamal’s A/c		6,000		By Salaries A/c		800
	To Machinery A/c		2,700		By Sales A/c		600
	To Car A/c		4,000
	Total		17,700		Total		17,700

Therefore, total ofthe suspense account is ₹17,700.

Question - 36 : -
Give journal entries to rectify the following errors assuming that suspense account had been opened.
(a) Goods distributed as free sample Rs 5,000 were not recorded in the books.
(b) Goods withdrawn for personal use by the proprietor Rs 2,000 were not recorded in the books.
(c) Bill receivable received from a debtor Rs 6,000 was not posted to his account.
(d) Total of Returns inwards book Rs 1,200 was posted to Returns outwards account.
(e) Discount allowed to Reema Rs 700 on receiving cash from her was recorded in the books as Rs 70.

Answer - 36 : -

Journal Recordings to rectify the errors
	Date	Particulars	L.F	Debit Amount ₹	Credit Amount ₹
i.		Marketing A/c Dr.		5,000
		To Purchases A/c (Goods distributed as free sample, Error rectification recording, was not recorded earlier)			5,000
ii.		Drawings A/c Dr.		2,000
		To Purchases A/c (Goods withdrawn for personal use by the proprietor, Error rectification recording, was not recorded earlier)			2,000
iii.		Suspense A/c Dr.		6,000
		To Debtors A/c (Bills receivable received from the debtor, Error rectification recording, was not posted to the debtors account)			6,000
iv.		Returns Inward A/c Dr.		1,200
		Returns Outward A/c Dr.		1,200
		To Suspense A/c (Total of returns inwards book, Error rectification recording, was posted to returns outwards account)			2,400
v.		Discount allowed A/c Dr.		630
		To Reema’s A/c (Discount allowed on receiving cash, Error rectification recording, was wrongly recorded earlier as ₹ 70 instead of ₹ 700)			630

Suspense Account
Dr.				Cr.
Date	Particulars	J.F.	Amount ₹	Date	Particulars	J.F.	Amount ₹
	To Debtors A/c		6,000		By Returns Inward A/c		1,200
					By Returns Outward A/c		1,200
					By Balance c/d		3,600
	Total		6,000		Total		6,000

Hence, the differencein trial balance is ₹3,600 excess debit.

Question - 37 : -
Trial balance of Khatau did not agree. He put the difference to suspense account and discovered the following errors:
(a) Credit sales to Manas Rs 16,000 were recorded in the purchases book as Rs 10,000 and posted to the debit of Manas as Rs 1,000.
(b) Furniture purchased from Noor Rs 6,000 was recorded through purchases book as Rs 5,000 and posted to the debit of Noor Rs 2,000.
(c) Goods returned to Rai Rs 3,000 recorded through the Sales book as Rs 1,000.
(d) Old machinery sold for Rs 2,000 to Maneesh recorded through sales book as Rs 1,800 and posted to the credit of Manish as Rs 1,200.
(e) Total of Returns inwards book Rs 2,800 posted to Purchase account.

Rectify the above errors and prepare suspense account to ascertain the difference in trial balance.

Answer - 37 : -

Journal Recordings to rectify the errors
	Date	Particulars	L.F	Debit Amount ₹	Credit Amount ₹
i.		Manas’s A/c Dr.		15,000
		Suspense A/c Dr.		11,000
		To Purchases A/c			10,000
		To Sales A/c (Credit sales for ₹ 16,000, Error rectification recording, was wrongly recorded as ₹ 10,000 in the purchases book and posted to the debit of Manas as ₹ 1,000)			16,000
ii.		Furniture A/c Dr.		6,000
		Suspense A/c Dr.		7,000
		To Noor’s A/c			8,000
		To Purchases A/c (Furniture purchased from Noor for ₹ 6,000, Error rectification recording, was recorded through purchases book as ₹ 5,000 and posted to the debit of Noor as ₹ 2,000)			5,000
iii.		Sales A/c Dr.		1,000
		Rai’s A/c Dr.		2,000
		To Returns Outward A/c (Goods returned, Error Rectification Entry, was wrongly recorded through the sales book as ₹ 1,000 instead of ₹ 3,000)			3,000
iv.		Manish’s A/c Dr.		1,200
		Sales A/c Dr.		1,800
		Maneesh’s A/c Dr.		2,000
		To Machinery A/c			2,000
		To Suspense A/c (Old machinery sold to Maneesh for ₹ 2,000, Error Rectification Entry, was wrongly recorded through sales book as ₹ 1,800 and posted to Manish’s account as ₹ 1,200)			3,000
v.		Return Inward A/c Dr.		2,800
		To Purchases A/c (Total of returns inwards book, Error Rectification Entry, was wrongly posted to purchases account)			2,800

Suspense Account
Dr.				Cr.
Date	Particulars	J.F.	Amount ₹	Date	Particulars	J.F.	Amount ₹
	To Sales A/c		11,000		By Manish’s A/c		3,000
	To Noor’s A/c		7,000		By Balance c/d		15,000
	Total		18,000		Total		18,000

Hence, the trialbalance is Rs 15,000 excess debit

Question - 38 : -
Trial balance of John did not agree. He put the difference to suspense account and discovered the following errors:
(a) In the sales book for the month of January total of page 2 was carried forward to page 3 as Rs 1,000 instead of Rs 1,200 and total of page 6 was carried forward to page 7 as Rs 5,600 instead of Rs 5,000.
(b) Wages paid for installation of machinery Rs 500 was posted to wages account as Rs 50.
(c) Machinery purchased from R & Co. for Rs 10,000 on credit was entered in Purchase Book as Rs 6,000 and posted there from to R & Co. as Rs 1,000.
(d) Credit sales to Mohan Rs 5,000 were recorded in Purchases Book.
(e) Goods returned to Ram Rs 1,000 were recorded in Sales Book.
(f) Credit purchases from S & Co. for Rs 6,000 were recorded in sales book. However, S & Co. was correctly credited.
(g) Credit purchases from M & Co. Rs 6,000 were recorded in Sales Book as Rs 2,000 and posted there from to the credit of M & Co. as Rs 1,000.
(h) Credit sales to Raman Rs 4,000 posted to the credit of Raghvan as Rs 1,000.
(i) Bill receivable for Rs 1,600 from Noor was dishonoured and posted to debit of Allowances account.
(j) Cash paid to Mani Rs 5,000 against our acceptance was debited to Manu.
(k) Old furniture sold for Rs 3,000 was posted to Sales account as Rs 1,000.
(l) Depreciation provided on furniture Rs 800 was not posted.
(m) Material Rs 10,000 and wages Rs 3,000 were used for construction of building. No adjustment was made in the books.
Rectify the errors and prepare suspense to ascertain the difference in trial balance.

Answer - 38 : -

Journal Recordings to rectify the errors
	Date	Particulars	L.F	Debit Amount ₹	Credit Amount ₹
a.		Sales A/c Dr.		400
		To Suspense A/c (Sales account overcasted, Error rectification recording, was wrongly carried forward in two pages)			400
b.		Machinery A/c Dr.		500
		To Wages A/c			50
		To Suspense A/c (Wages paid for installation of machinery, Error rectification recording, was wrongly posted to the wages account)			450
c.		Machinery A/c Dr.		10,000
		Suspense A/c Dr.		5,000
		To Purchases A/c			6,000
		To R & Co. A/c (Machinery purchased from R & Co. on credit, Error rectification recording, was wrongly entered in purchases book as ₹ 6,00 and posted into R & Co. as ₹ 1,000)			9,000
d.		Mohan’s A/c Dr.		10,000
		To Sales A/c			5,000
		To Purchases A/c (Credit sales to Mohan, Error rectification recording, was wrongly recorded in the purchases book)			5,000
e.		Sales A/c Dr.		1,000
		To Purchases Return A/c (Goods returned to Ram, Error rectification recording, was wrongly recorded in the sales book)			1,000
f.		Purchases A/c Dr.		6,000
		Sales A/c Dr.		6,000
		To Suspense Return A/c (Credit purchases from S & Co., Error rectification recording, was wrongly credited in the sales book)			12,000
g.		Purchases A/c Dr.		6,000
		Sales A/c Dr.		2,000
		To M & Co. A/c			5,000
		To Suspense A/c (Credit purchases from M & Co., Error rectification recording, was wrongly credited in the sales book as ₹ 2,000 and also wrongly credited to the M & Co. account as ₹ 1,000)			3,000
h.		Raman’s A/c Dr.		4,000
		Raghavan’s A/c Dr.		1,000
		To Suspense Return A/c (Credit Sales to Raman for ₹ 4,000, Error rectification recording, was wrongly credited to Raghavan’s account with ₹ 1,000)			5,000
i.		Noor’s A/c Dr.		1,600
		To Allowance A/c (Bills receivable for ₹ 1,600 from Noor is dishonoured, Error rectification recording, was wrongly posted to the debit of allowance account)			1,600
j.		Bills Payable A/c Dr.		5,000
		To Manu’s A/c (Cash paid to Mani against our acceptance, Error rectification recording, was wrongly debited to Manu’s account)			5,000
k.		Sales A/c Dr.		1,000
		Suspense A/c Dr.		2,000
		To Furniture A/c (Old furniture sold for ₹ 3,000, Error rectification recording, was wrongly posted to sales account as ₹ 1,000)			3,000
l.		Depreciation A/c Dr.		800
		To Furniture A/c (Depreciation provided on furniture, Error rectification recording, was not posted earlier)			800
m.		Building A/c Dr.		13,000
		To Purchases A/c			10,000
		To Wages A/c (Material and wages used for the construction of the building, Error rectification recording, was not posted earlier)			3,000

Suspense Account
Dr.				Cr.
Date	Particulars	J.F.	Amount ₹	Date	Particulars	J.F.	Amount ₹
	To Purchases A/c		5,000		By Sales A/c		400
	To Furniture A/c		2,000		By Machinery A/c		450
	To Balance c/d		13,850		By Purchases A/c		6,000
					By Sales A/c		6,000
					By Purchases A/c		3,000
					By Raman’s A/c		4,000
					By Raghavan’s A/c		1,000
	Total		20,850		Total		20,850

Hence, the differencein trial balance is ₹13, 850 excess credit.

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