Question

(i) What are the different causes that make a Trial Balance incorrect?
(ii) Pass the rectifying Journal entries:

(a) A credit sale of goods for ₹ 2,500 to Krishna has been wrongly passed through the Purchases Book.
(b) ₹ 5,000 paid for freight on machinery purchased was debited to the Freight Account as ₹ 500.
(c) The Returns Inward Book has been wrongly overcasted by ₹ 100.
(d) An amount of ₹ 500 due from Ramesh which had been written off as bad debt in previous year was recovered and had been posted to the Personal Account of Ramesh.
(e) A sum of ₹ 460 owed by Hari had not been included in the list of debtors.

Answer 1

(i) The following are the causes that make a Trial Balance incorrect.

1) Incomplete posting of Journal Entry

2) Posting in the wrong side of Account.

3) Wrong totalling of Subsidiary Books

4) Wrong balance of Account

5) Omission of total of Subsidiary book into Account

6) Wrong totalling of the Trial Balance

(ii)

Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
(a)	Krishna	Dr.		5,000
	To Sales A/c				2,500
	To Purchases A/c				2,500
	(Credit Sale of goods to Krishna was posted wrongly to Purchases Book, now rectified)
(b)	Machinery A/c	Dr.		5,000
	To Freight				500
	To Suspense A/c				4,500
	(Freight Rs 5,000 paid on machinery was wrongly recorded in Freight Account as Rs 500)
(c)	Suspense A/c	Dr.		100
	To Return Inwards A/c				100
	(Return Inwards Book was overcast, now rectified)
(d)	Ramesh	Dr.		500
	To Bad Debt Recovered A/c				500
	(Received Rs 500 which previously written off as Bad debt wrongly credited to Ramesh Account, now rectified)
(v)	Sundry Debtors A/c	Dr.		460
	To Hari				460
	(Hari which was not in the List of Sundry Debtors, now recorded)