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Question -

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(b) Goods withdrawn for personal use by the proprietor Rs 2,000 were not recorded in the books.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 -

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(Goods withdrawn for personal use by the proprietor, Error rectification recording, was not recorded earlier)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.

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