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Question

Trial balance of Radhika did not agree. Radhika put the difference to suspense account. subsequently she located the following errors.

1) Furniture purchased for Rs 6,000 was posted to purchases account as Rs 600.
2) Repairs to Machinerry Rs 500 were debited to Machinery account.
3) Wages paid for installation of Machinery Rs 750 was posted to wages account.
4) Purchased material Rs 8,000 and wages Rs 2,000 were used for construction of building not recorded in the books.
5) Total of sales returns book Rs 2,000 was not posted to the ledger.
6) Old Furniture sold to Dinesh at its book value of Rs 2,500 was recorded through sales book.

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Solution

Journal

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

1

Furniture A/c

Dr.

6,000

To Purchase A/c

600

To Suspense A/c

5,400

(Furniture purchased posted to purchases account, now rectified)

2

Repairs A/c

Dr.

500

To Machinery A/c

500

(Repairs debited to Machinery Account, now rectified)

3

Machinery A/c

Dr.

750

To Wages A/c

750

(Wages paid for installation of machinery debited to Wages Account, now rectified)

4

Building A/c

Dr.

10,000

To Cash A/c

10,000

(Material purchased and wages paid for construction of building were not recorded, now recorded)

5

Sales Returns A/c

Dr.

2,000

To Suspense A/c

2,000

(Sales returns Account was not recorded, now rectified)

6

Sales A/c

Dr.

2,500

To Furniture A/c

2,500

(Furniture sold recorded through Sales Book, now rectified)


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Q.

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.

Q.

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. 1200 and total of page 6 was carried forward to page 7 as Rs. 5,600 instead of Rs. 5,000.

(b) Wages paid for the installation of machinery Rs. 500 was posted to wages account as Rs. 50.

(c) Machinery purchased from R and Co for Rs. 10,000 on credit was entered in purchase book as Rs. 6,000 and posted there from to R and Co as Rs. 1,000.

(d) Credit sates to Mohan Rs. 5,000 were recorded in purchase book.

(e) Goods returned to Ram Rs. 1,000 were recorded in the sales book.

(f) Credit purchase from S and Co for Rs. 6,000 were recorded in the sales book. However, S and Co were correctly credited.

(g) Credit purchase from M and Co Rs. 6,000 were recorded in sales book as Rs. 2,000 and posted therefrom to the credit of M and 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 the 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 the construction of a building. No adjustment was made in the books.

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

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