Question

You are presented with a Trial Balance showing a difference which has been carried to the Suspense Account and the following errors are revealed:
(i) ₹ 1,700 paid in cash for an office equipment was charged to Office Expenses Account.
(ii) A cash sale of ₹ 5,000 to Black, correctly entered in the Cash Book, was posted to the credit of Black’s Account in the Ledger.
(iii) Goods amounting to ₹ 800, returned by Blue, were entered in the Sales Book and posted therefrom to the credit of Blue’s Account.
(iv) Furniture purchased for ₹ 8,100 was posted to Furniture Account as ₹ 810.
(v) Goods amounting to ₹ 10,000 sold to Red were correctly entered in Sales Book but posted to Red’s Account for ₹ 18,000.
(vi) Sales Return Book was overcast by ₹ 100.
You are required to pass the necessary rectification entries in respect of the above.

Answer 1

Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
(i)	Typewriter A/c	Dr.		1,700
	To Office Expenses A/c				1,700
	(Purchase of Typewriter was wrongly charged to Office Expense Account, now rectified)
(ii)	Black	Dr.		5,000
	To Sales A/c				5,000
	(Cash Sale to Black was entered in the Cash Book but was wrongly posted to the credit of Black’s Account, now
	rectified)
(iii)	Sales Return A/c	Dr.		800
	Sales A/c	Dr.		800
	To Suspense A/c				1,600
	(Goods returned by Blue was wrongly entered in the Sales Book but correctly posted in Blue’s Account, now rectified)
(iv)	Furniture A/c	Dr.		7,290
	To Suspense A/c				7,290
	(Furniture purchased posted as 810 instead of 8,100, now rectified)
(v)	Suspense A/c	Dr.		8,000
	To Red				8,000
	(Goods sold to Red Rs 10,000 was entered in Sales book but posted in Red A/c Rs 18,000, now rectified)
(vi)	Suspense A/c	Dr.		100
	To Sales Return A/c				100
	(Sales Return book was over cast)