Class 11-commerce NCERT Solutions Accountancy Part I Chapter 6: Trial Balance and Rectification of Errors

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Trial Balance and Rectification of Errors Exercise 216

Solution SA 1

Trial balance is a statement prepared to check the arithmetical accuracy of transactions recorded in the journal, posted into the ledger and balanced in the ledger accounts. The balance of ledger accounts shows the difference between the total of the debit items and credit items in an account. Personal, real and nominal accounts are considered for preparing the trial balance. Generally, it is prepared at the end of an accounting year. However, it may be prepared at the end of any chosen period, which may be monthly, quarterly, half yearly or annually depending upon when it is required. It helps in the preparation of the financial statements.

Solution SA 2

Generally accepted accounting principles are to be followed to record the accounting entries. When accounting entries are recorded in contravention of accounting principles, it is known as an error of principle.

Wages paid for installation of new machinery debited to wages account:

Wages paid for installation of new machinery is a capital expenditure and accordingly machinery account should have been debited. But, here it is treated as revenue expenditure and is debited to wages account. Thus, it violates the accounting principle.
Amount spent on repair of building debited to machinery account: Expense on repair is revenue expenditure and not a capital expenditure. The amount should have been debited to repairs account and to the machinery account which is a capital account. Thus, it violates the accounting principle.

Solution SA 3

Errors of commission are committed because of wrong recording, wrong posting, wrong balancing and wrong casting of subsidiary books. Such errors affect the accuracy of the trial balance.

Cash received from a creditor worth Rs.5,000 is recorded in the cash book as Rs.500.

The transaction is recorded in the cashbook as Rs.500 instead of Rs.5,000. This is an error because of the wrong recording of amount in the cash book.
Amount received from Arun Rs.2,000, is wrongly posted in Tarun's account.

In this transaction, Tarun's A/c is credited instead of Arun's A/c. This is referred to as an error of wrong posting of transactions.

Solution SA 4

A trial balance can be prepared in the following three ways :

Totals Method: In this method, the total of the debit and the credit side of the ledger is determined and presented separately in the trial balance. The total of both the sides should match as the accounts are based on double entry system.
Balances Method: In this method, the balances of all ledger accounts are presented in their respective debit and credit columns of the trial balance. The total of both the sides should match as the accounts are based on double entry system and this method of preparing a trial balance is widely used because it helps in the preparation of financial statements.
Totals-cum-balances Method: This method is a blend of the totals and balances method. This method has four columns. The first two columns are to write the totals of the debits and credits of the various accounts and the other two columns are to write the debit or the credit balances of these accounts. This method is time consuming, and hence are not used widely.

Solution SA 5

Steps to identify the errors:

Recast the totals of the debit and credit columns of the trial balance.
Compare each account head and its amount appearing in the trial balance with that of the ledger to detect any difference in amount or omission of any account.
Compare the trial balance of the current year with that of the previous year to check the additions or deletions to any accounts and to verify if there is any unexplained difference in amounts.
Re-check the correctness of balances of individual accounts in their respective ledgers.
Re-check the accuracy of the postings in individual accounts from the transactions entered in the books of original entry.
If the difference between the debit and credit columns is of `1, `10, `100 or `1000, the casting of the subsidiary books should be re-checked.
If the difference between the debit and credit columns is divisible by 2, then there is a possibility that an amount equal to half the difference may have been posted to the wrong side of another ledger account.
The above point may also indicate a complete omission of a posting.
If the difference is divisible by 9, the mistake could be because of transposition of figures.
Still, if it is not possible to locate the errors, the difference in the trial balance for that moment is transferred to the suspense account. All the one-sided errors detected are rectified through this account.

Solution SA 6

In certain cases, when the debit column and the credit column of a trial balance do not agree, then the difference of the trial balance is transferred to a temporary account which is called a suspense account. This account is created to avoid any delay in creation of the financial statements. If the debit column falls short of the credit column, then the suspense account is debited and if the credit column falls short of the debit column then the suspense account is credited.

When all the errors are detected and rectified, then the suspense account automatically gets balanced. However, when errors still exist and are not rectified, the suspense account will not balance off and the balance amount of the suspense account will have to be transferred to the balance sheet. The debit balance of the suspense account is shown on the assets side and the credit balance is shown on the liabilities side of the balance sheet.

Solution SA 7

One-sided errors are the errors which when committed affect the agreement of the trial balance. These errors affect only one account and any one side i.e. debit or the credit side of the account. Errors of partial omission, recording transactions with wrong amount, casting, posting of incorrect amount are examples of one-sided errors.

Two-sided errors do not affect the agreement of the trial balance. Here, are a few examples which would not be revealed in a trial balance:

Purchases from Mr. Shah, completely omitted to be recorded in the purchase book
Purchases made from Vijesh, recorded in Ritesh's account who is another creditor
Stationary purchased for office use recorded in the purchase book

Solution SA 8

The limitations of a trial balance are as follows:

A tallied trial balance does not indicate that all the transactions are recorded and posted correctly in the books.
If the effect of an error is cancelled by the effect of another error, it cannot be ascertained by the trial balance. Such types of error are termed as compensatory errors.
In cases where, wrong amount is posted on the wrong side of a correct account or correct amount is posted on the correct side of a wrong account, the trial balance fails to reflect such errors.
Errors of principle such as capital expenditure mistakenly regarded as revenue expenditure may not be exposed in the form of mismatch between the two columns of the trail balance.
When a transaction is recorded wrongly in the books of original entry, it leads to errors of recording which are not revealed in the trail balance.

Trial Balance and Rectification of Errors Exercise 217

Solution NUM 1

Rectification Journal Entries

Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
i.	Mohan's A/c	Dr.		7,000
	To Sales A/c				7,000
	(Being credit sales to Mohan not recorded, now recorded)
ii.	Purchases A/c	Dr.		9,000
	To Rohan's A/c				9,000
	(Being credit purchases from Rohan not recorded, now recorded)
iii.	Rakesh's A/c	Dr.		4,000
	To Purchases return A/c				4,000
	(Being goods returned to Rakesh not recorded, now recorded)
iv.	Sales return A/c	Dr.		1,000
	To Mahesh's A/c				1,000
	(Being goods returned from Mahesh not recorded, now recorded )

Solution NUM 2

Rectification Journal Entries

Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
i.	Mohan's A/c	Dr.		6,300
	To Sales A/c				6,300
	(Being credit sales to Mohan Rs.7,000 wrongly recorded as Rs.700, now rectified)
ii.	Purchases A/c	Dr.		8,100
	To Rohan's A/c				8,100
	(Being credit purchases from Rohan Rs.9,000 wrongly recorded as Rs.900, now rectified )
iii.	Rakesh's A/c	Dr.		3,600
	To Purchases return A/c				3,600
	(Being goods returned to Rakesh Rs.4,000 wrongly recorded as Rs.400, now rectified)
iv.	Sales Return A/c	Dr.		900
	To Mahesh's A/c				900
	(Being goods returned from Mahesh Rs.1,000 wrongly recorded as Rs.100, now rectified )

Solution NUM 3

Rectification Journal Entries

Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
i.	Sales A/c	Dr.		200
	To Mohan's A/c				200
	(Being sales to Mohan Rs.7,000 were recorded as Rs.7,200, now rectified)
ii.	Rohan's A/c	Dr.		900
	To Purchases A/c				900
	(Being goods purchased from Rohan Rs.9,000 were recorded as Rs.9,900, now rectified )
iii.	Purchases return A/c	Dr.		40
	To Rakesh's A/c				40
	(Being goods returned to Rakesh Rs.4,000 were recorded as Rs.4,040, now rectified)
iv.	Mahesh's A/c	Dr.		600
	To Sales return A/c				600
	(Being goods returned from Mahesh Rs.1,000 were recorded as Rs.1,600, now rectified )

Solution LA 1

The important purposes for which the trial balance was prepared are explained with the help of the following points:

Ascertain the arithmetical accuracy of ledger accounts - The trial balance helps to ascertain whether all the debits and credits are properly recorded in the ledger. When the debit and the credit balances are equal, it is said that the posting and the balancing of the accounts is arithmetically correct. However, the tallying of the trial balance cannot be considered as a conclusive proof of accuracy of the books.

Helps in locating errors - When a trial balance does not tally, it helps in detecting or locating the errors. The error may have occurred at any one of the stages of an accounting process; namely,

• Totaling of the subsidiary books

• Posting of journal entries in the ledger

• Calculating account balances

• Carrying account balances to the trial balance

• Totaling the trial balance columns

Helps in the preparation of the financial statements - Trial balance is a statement which lists the debit and credit balances of all ledger accounts and helps in the preparation of the financial statements. Hence, it is considered as a connecting link between the accounting records and the preparation of financial statements.

Solution LA 2

Generally accepted accounting principles are to be followed to record the accounting entries. When accounting entries are recorded violating or ignoring these principles, the error, thus, committed is known as error of principle. These errors do not affect the agreement of the trial balance.

i. Wages paid for construction of building are debited to wages account.

Wrong entry:

Wages A/c		Dr.
	To Cash A/c
(Being wages paid for construction of building)

Wages paid for the construction of building is to be treated as a capital expenditure and has to be debited to the building account instead of the wages account. Thus, the correct entry is

Building A/c		Dr.
	To Cash A/c
(Being wages paid for construction of building)

Hence, to rectify the error Building A/c needs to be debited and Wages A/c needs to be credited as it was wrongly debited. The rectifying entry is:

Building A/c		Dr.
	To Wages A/c
(Being wages paid for construction of building wrongly debited to wages account, now rectified)

ii. Furniture purchased for Rs.10,000 wrongly debited to purchases account.

Wrong entry made:

Purchase A/c		Dr.
	To Cash A/c
(Being furniture purchased wrongly debited to purchases account)

Furniture is an asset and the purchase of the same should be debited to furniture account instead of purchases account. Thus, the correct entry is:

Furniture A/c		Dr.
	To Cash A/c
(Being old machinery sold for cash)

To rectify this error, Furniture A/c needs to be debited and Purchase A/c needs to be credited as it is wrongly debited. Thus, the rectifying entry is:

Furniture A/c		Dr.
	To Purchase A/c
(Being furniture purchased for wrongly debited to purchases account, now rectified)

Solution LA 3

The errors which are committed because of wrong posting of transactions, wrong balancing of accounts, wrong casting of subsidiary books, wrong totaling or wrong recording of amount in the books are all error of commission. These errors affect the agreement of the trial balance.

i. Purchases done from Rohan worth Rs.10,000 recorded as Rs.1,000.

Here, the transaction is recorded for Rs.1,000 instead of Rs.10,000. This is an error of wrong recording of amount. Purchases A/c requires a further debit of Rs.9,000 and Rohan's A/c requires a further credit of Rs.9,000.The rectifying entry is:

Purchases A/c		Dr.	9,000
	To Rohan's A/c			9,000
(Being goods purchased from Rohan of Rs.10,000 wrongly recorded as Rs.1,000, now rectified)

ii. Sales book totaled as Rs.5,000 instead of Rs.50,000.

Here, the total sales of the book are short by Rs.45,000. This error can be rectified at any of the following two stages:

a. If the error is located before preparing trial balance, then Rs.45,000 should be recorded in the credit side of Sales Account.

b. If an error is located after preparing Trial Balance, then assuming that a suspense account is opened the following entry needs to be recorded.

Suspense A/c		Dr.	45,000
	To Sales A/c	45,000
(Being sales book wrongly totaled as Rs.5,000 instead of Rs.50,000)

Solution LA 4

According to the nature of errors committed, errors are classified into the following four categories:

Errors of Commission: The errors that are committed because of wrong posting of transactions, wrong balancing of accounts, wrong casting of subsidiary books, wrong totaling or wrong recording of amount in the books are all error of commission. These errors affect the agreement of the trial balance.

Errors of Omission: These errors are of two types and are committed when a transactions is partially or completely omitted to be recorded in the books.

a. Error of complete omission - When a transaction is completely omitted to be recorded in the books of accounts or to be posted in the respective ledgers, it is an error of complete omission. Such errors do not affect the agreement of the trial balance.

b. Error of partial omission - When a transaction is partially omitted while recording in the books or amounts or partially omitted from posting in the ledger, it is an error of partial omission. Such errors affect the agreement of the trial balance.

Errors of Principle: Accounting transactions are to be recorded following certain principles. If any of the principle of accounting entries are violated or ignored and the error occurring due to such violation is called error of principle.

Compensating errors: When two or more errors are committed in such a way that the net effect of these errors on the debits and credits of accounts is nil, such errors are called compensating errors.

Solution LA 5

Pen-drive is wrongly debited to office equipment account, instead of stationery account and supplier account is debited instead of crediting. Because of these mistakes, the following errors are committed:

a. The balance of office equipment is overstated by Rs.3,500

b. The balance of creditors account is understated by Rs.7,000

c. The total of the debit column of the trial balance is correctly stated.

d. The total of the credit column of the trial balance is understated by Rs.7,000.

e. If the total of the debit column of the trial balance is Rs.2,40,000 before rectifying error, the total of the credit column of the trial balance is Rs.2,33,000 (i.e., Rs.2,40,000 - Rs.7,000).

Trial Balance and Rectification of Errors Exercise 218

Solution NUM 4

Rectification Journal Entries

Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
i.	Salaries A/c	Dr.		5,000
	To Employee's A/c				5,000
	(Being salaries paid Rs.5,000 wrongly debited to employee's personal account, now rectified )
ii.	Rent A/c	Dr.		4,000
	To Land Landlord's A/c				4,000
	(Being rent paid Rs.4,000 was wrongly posted to landlord's account, now rectified )
iii.	Drawings A/c	Dr.		1,000
	To Sundry Expenses A/c				1,000
	(Being goods drawn by proprietor for personal use wrongly debited to sundry expenses, now rectified)
iv.	Kapur's A/c	Dr.		2,000
	To Kohli's A/c				2,000
	(Being cash received from Kohli was posted to Kapur's account, now rectified )
v.	Babu's A/c			1,500
	To Sabu's A/c				1,500
	(Being cash paid to Babu was posted wrongly to Sabu's account, now rectified )

Solution NUM 5

Rectification Journal Entries

Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
i.	Mohan A/c	Dr.		14,000
	To Sales A/c				7,000
	To Purchases A/c				7,000
	(Being credit sales to Mohan recorded in purchase Book, now rectified)
ii.	Sales A/c	Dr.		900
	Purchases A/c	Dr.		900
	To Rohan A/c				1,800
	(Being credit purchases from Rohan recorded in sales book, now rectified )
iii.	Rakesh A/c	Dr.		8,000
	To Purchases Return A/c				4,000
	To Sales Return A/c				4,000
	(Being goods returned to Rakesh were recorded in sales return book, now rectified
iv.	Sales Return A/c	Dr.		1,000
	Purchases Return A/c	Dr.		1,000
	To Mahesh A/c				2,000
	(Being goods returned from Mahesh were recorded in purchases return book, now rectified)
v.	Sale Return A/c	Dr.		2,000
	To Purchases A/c				2,000
	(Being goods returned from Mahesh were recorded in purchases book, now rectified )

Solution NUM 6

Rectification Journal Entries

Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
i.	Sales A/c	Dr.		700
	To Suspense A/c				700
	(Being sales book overcast by Rs.700, now rectified )
ii.	Suspense A/c	Dr.		500
	To Purchases A/c				500
	(Being purchases book overcast by Rs.500, now rectified )
iii.	Suspense A/c	Dr.		300
	To Sales return A/c				300
	(Being sales returned book overcast by Rs.300, now rectified)
iv.	Purchase return A/c	Dr.		200
	To Suspense A/c				200
	(Being purchases return book overcast by Rs.200, now rectified)

Note:

It is assumed that the suspense account is opened to rectify the errors in the trial balance.

Solution NUM 7

Rectification Journal Entries

Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
i.	Suspense A/c	Dr.		300
	To Sales A/c				300
	(Being the sales book undercast by Rs.300, now rectified)
ii.	Purchases A/c	Dr.		400
	To Suspense A/c				400
	(Being the sales book overcast by Rs.400, now rectified)
iii.	Return inwards A/c	Dr.		200
	To Suspense A/c				200
	(Being the return inward undercast by Rs.200, now rectified)
iv.	Suspense A/c	Dr.		100
	To Return outwards A/c				100
	(Being the return outwards book undercast by Rs.100, now rectified)

Note:

It is assumed that the suspense account is opened to rectify the errors in the trial balance.

Solution NUM 8

Rectification Journal Entries

Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
i.	Mohan's A/c	Dr.		7,000
	To Suspense A/c				7,000
	(Being the goods sold on credit to Mohan were not, now rectified )
ii.	Suspense A/c	Dr.		9,000
	To Rohan's A/c				9,000
	(Being the goods purchased from Rohan were not posted in Rohan's account, now rectified )
iii.	Rakesh's A/c	Dr.		4,000
	To Suspense A/c				4,000
	(Being the sales returned book overcast by Rs.300, now rectified)
iv.	Suspense A/c	Dr.		1,000
	To Mahesh's A/c				1,000
	(Being the goods return from Mahesh were not omitted to be recorded in Mahesh's account, now rectified)
v.	Ganesh's A/c	Dr.		3,000
	To Suspense A/c				3,000
	(Being the cash paid to Ganesh were not posted to Ganesh's account, now recorded)
vi.	Suspense A/c	Dr.		2,000
	To Sales A/c				2,000
	(Being the cash receipts from sales, were not posted to Sales Account, now rectified )

Suspense Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs.	Date	Particulars	J.F.	Amount Rs.
	To Rohan A/c		9,000		By Mohan A/c		7,000
	To Mahesh A/c		1,000		By Rakesh A/c		4,000
	To Sales A/c		2,000		By Ganesh A/c		3,000
	To Balance c/d		2,000
			14,000				14,000

Solution NUM 9

Rectification Journal Entries

Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
i.	Suspense A/c	Dr.		2,000
	To Mohan's A/c				2,000
	(Being credit sales to Mohan were not posted in Mohan's account, now rectified)
ii.	Suspense A/c	Dr.		3,000
	To Rohan's A/c				3,000
	(Being purchases from Rohan Rs.9,000 wrongly posted as Rs.6,000, now rectified )
iii.	Suspense A/c	Dr.		1,000
	To Rakesh's A/c				1,000
	(Being goods returned to Rakesh Rs.4,000 wrongly posted as Rs.5,000, now rectified)
iv.	Mahesh's A/c	Dr.		2,000
	To Suspense A/c				2,000
	(Being goods returned from Mahesh Rs.1,000 wrongly posted as Rs.3,000 )
v.	Suspense A/c	Dr.		1,800
	To Sales A/c				1,800
	(Being cash sales of Rs.2,000 wrongly posted as Rs.200, now rectified)

Suspense Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs.	Date	Particulars	J.F.	Amount Rs.
	To Mohan A/c		2,000		By Mahesh A/c		2,000
	To Rohan A/c		3,000		By Balance c/d		5,800
	To Rakesh A/c		1,000
	To Sales A/c		1,800
			7,800				7,800

Trial Balance and Rectification of Errors Exercise 219

Solution NUM 10

Rectification Journal Entries

Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
i.	Mohan's A/c	Dr.		7,000
	To Karan's A/c				7,000
	(Being goods sold on credit to Mohan were posted to Karan account, now rectified )
ii.	Gobind's A/c	Dr.		9,000
	To Rohan A/c				9,000
	(Being goods purchased from Rohan were posted to Gobind's account, now rectified)
iii.	Rakesh's A/c	Dr.		4,000
	To Naresh's A/c				4,000
	(Being goods returned to Rakesh were posted to Naresh account, now rectified)
iv.	Manish's A/c	Dr.		1,000
	To Mahesh's A/c				1,000
	(Being goods returned from Mahesh were posted to Manish's account, now rectified )
v.	Commission A/c	Dr.		2,000
	To Sales A/c				2,000
	(Being cash sales were posted to commission account, now rectified)

Solution NUM 11

Rectification Journal Entries

Date	Particulars			L.F.	Dr. Rs.	Cr. Rs.
i.	Mohan A/c		Dr.		14,000
		To Suspense A/c				14,000
	(Being goods sold to Mohan wrongly credited to his account, now rectified)
ii.	Suspense A/c		Dr.		15,000
		To Rohan A/c				15,000
	(Being credit purchases from RohanRs.9,000 were posted to the debit of his account as Rs.6,000, now rectified )
iii.	Rakesh A/c		Dr.		8,000
		To Suspense A/c				8,000
	(Being goods returned to Rakesh wrongly credited to his account, now rectified)
iv.	Suspense A/c		Dr.		3,000
		To Mahesh A/c				3,000
	(Being goods returned from Mahesh Rs.1,000 wrongly debited to his account as Rs.2,000, now rectified)
v.	Suspense A/c		Dr.		7,000
		To Sales A/c				7,000
	(Being cash sales Rs.2,000 were posted to the debit of sales account as Rs.5,000, now rectified)

Suspense Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs.	Date	Particulars	J.F.	Amount Rs.
	To Rohan A/c		15,000		By Mohan A/c		14,000
	To Mahesh A/c		3,000		By Rakesh A/c		8,000
	To Sales A/c		7,000		By Balance c/d		3,000
			25,000				25,000

Solution NUM 12

Rectification Journal Entries

Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
i.	Mohan's A/c	Dr.		7,000
	--------To Karan's A/c				5,000
	--------To Suspense A/c				2,000
	(Being goods sold to Mohan Rs.7,000 wrongly posted to Karan's accountRs.5,000, now rectified)
ii.	Suspense A/c	Dr.		19,000
	--------To Rohan's A/c				9,000
	--------To Gobind's A/c				10,000
	(Being goods purchased from RohanRs.9,000 posted wrongly to the debit of Gobind's account as Rs.10,000, now rectified)
iii.	Rakesh's A/c	Dr.		4,000
	Naresh's A/c	Dr.		3,000
	--------To Suspense A/c				7,000
	(Being goods returned to RakeshRs.4,000 posted wrongly to the credit of Rs.3,000, now rectified)
iv.	Suspense A/c	Dr.		3,000
	--------To Mahesh's A/c				1,000
	--------To Manish's A/c				2,000
	(Being goods returned from Mahesh Rs.1,000 posted wrongly to the debit of Manish's account as Rs.2,000, now rectified)
v.	Commission A/c	Dr.		200
	Suspense A/c	Dr.		1,800
	--------To Sales A/c				2,000
	(Being cash sales Rs.2,000 posted wrongly to the Commission Account as Rs.200, now rectified)

Suspense Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs.	Date	Particulars	J.F.	Amount Rs.
	To Rohan A/c		9,000		By Mohan A/c		2,000
	To Gobind A/c		10,000		By Rakesh A/c		4,000
	To Mahesh A/c		1,000		By Naresh A/c		3,000
	To Manish A/c		2,000		By Balance c/d		14,800
	To Sales A/c		1,800
			23,800				23,800

Solution NUM 13

Rectification Journal Entries

Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
i.	Suspense A/c	Dr.		14,000
	--------To Sales A/c				7,000
	--------To Purchases A/c				7,000
	(Being the goods sold to Mohan wrongly recorded in purchases book; however, Mohan's account was correctly debited, now rectified)
ii.	Purchases A/c	Dr.		9,000
	Sales A/c			9,000
	--------To Suspense A/c				18,000
	(Being the purchased goods from Rohan wrongly recorded in sales book; however, Rohan's account was correctly credited, now rectified)
iii.	Suspense A/c	Dr.		8,000
	--------To Purchases Return A/c				4,000
	--------To Sales Return A/c				4,000
	(Being goods returned to Rakesh Rs.4,000 wrongly entered in Sales Return Book; however, Rakesh's account was correctly debited, now rectified)
iv.	Sales Return A/c	Dr.		1,000
	Purchases Return A/c			1,000
	--------To Suspense A/c				2,000
	(Being goods returned from Mahesh wrongly entered in purchases return book; however, Mahesh's account was correctly credited, now rectified)

v.	Suspense A/c	Dr.		4,000
	--------To Purchases Return A/c				2,000
	--------To Purchases A/c				2,000
	(Being goods returned to Naresh wrongly entered in purchases book; however, correctly debited to Naresh's Account, now rectified)

Suspense Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs.	Date	Particulars	J.F.	Amount Rs.
	To Sales A/c		7,000		By Purchases A/c		9,000
	To Purchases A/c		7,000		By Sales A/c		9,000
	To Purchases Return A/c		4,000		By Sales Return A/c		1,000
	To Sales Return A/c		4,000		By Purchases Return A/c		1,000
	To Purchases Return A/c		2,000		By Balance c/d		6,000
	To Purchases A/c		2,000
			26,000				26,000

Trial Balance and Rectification of Errors Exercise 220

Solution NUM 14

Rectification Journal Entries

Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
i.	Furniture A/c	Dr.		10,000
	--------To Purchases A/c				10,000
	(Being furniture purchased wrongly debited to purchases account, now rectified)

ii.	Machinery A/c	Dr.		20,000
	--------To Purchases A/c				20,000
	(Being machinery purchased from Raman wrongly entered in the purchases book, now rectified)

iii.	Repairs on Machinery A/c	Dr.		1,400
	--------To Machinery A/c				1,400
	(Being repair on machinery wrongly debited to machinery account, now rectified)

iv.	Machinery A/c	Dr.		2,000
	--------To Repairs A/c				2,000
	(Being overhauling of second hand machine wrongly debited in repairs account, now rectified)

v.	Sales A/c	Dr.		3,000
	--------To Machinery A/c				3,000
	(Being machinery sold wrongly credited to sales account, now rectified)

Solution NUM 15

Rectification Journal Entries

Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
i.	Furniture A/c	Dr.		10,000
	--------To Purchases A/c				4,000
	--------To Suspense A/c				6,000
	(Being furniture purchased Rs.10,000 wrongly entered in purchases account as Rs.4,000, now rectified)
ii.	Machinery A/c	Dr.		20,000
	--------To Purchases A/c				6,000
	--------To Raman's A/c				14,000
	(Being machinery purchased Rs.20,000 from Raman wrongly entered in purchases book as Rs.6,000, now rectified)
iii.	Repairs A/c	Dr.		1,400
	Suspense A/c	Dr.		1,000
	--------To Machinery A/c				2,400
	(Being repair of machinery Rs.1,400 wrongly debited to Machinery Account as Rs.2,400)
iv.	Machinery A/c	Dr.		2,000
	--------To Repairs A/c				200
	--------To Suspense A/c				1,800
	(Being overhauling of second hand machine Rs.2,000 wrongly debited to Repairs Account as Rs.200,now rectified)
v.	Sales A/c	Dr.		5,000
	--------To Machinery A/c				3,000
	--------To Suspense A/c				2,000
	(Being old machinery sold for Rs.3,000 wrongly credited to Sales Account as Rs.5,000, now rectified)

Suspense Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs.	Date	Particulars	J.F.	Amount Rs.
	To Machinery A/c		1,000		By Furniture A/c		6,000
	To Balance c/d		8,800		By Machinery A/c		1,800
					By Sales A/c		2,000
			9,800				9,800

Solution NUM 16

Rectification Journal Entries

Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
i.	Depreciation A/c	Dr.		4,000
	--------To Machinery A/c				4,000
	(Being depreciation on machinery was not posted, now rectified)

ii.	Bad debts A/c	Dr.		5,000
	--------To Debtors A/c				5,000
	(Being bad debts written off not posted, now rectified)

iii.	Discount Allowed A/c	Dr.		100
	--------To Debtors A/c				100
	(Being discount allowed to debtors was not posted, now rectified)

iv.	Discount Allowed A/c	Dr.		100
	--------To Suspense A/c				100
	(Being discount allowed to debtors was not posted in discount account, now rectified)
v.	Bills Receivable A/c	Dr.		2,000
	--------To Debtor A/c				2,000
	(Being bill receivable for Rs.2,000 received from a debtor was not posted, now rectified)

Solution NUM 17

Rectification Journal Entries

Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
i.	Depreciation A/c	Dr.		3,600
	--------To Machinery A/c				3,600
	(Being depreciation provided on machinery Rs.4,000 wrongly posted as Rs.400, now rectified)

ii.	Debtors A/c	Dr.		1,000
	--------To Bad Debts A/c				1,000
	(Being bad debt written off Rs.5,000 wrongly posted as Rs.6,000, now rectified)

iii.	Discount Allowed A/c	Dr.		40
	--------To Debtors A/c				40
	(Being Discount allowed to debtors Rs.100 wrongly posted as Rs.60,now rectified)

iv.	Drawings A/c	Dr.		500
	--------To Purchases A/c				500
	(Being drawings of goods Rs.800 wrongly posted as Rs.300,now rectified)
v.	Debtor A/c	Dr.		1,000
	--------To Bills Receivable A/c				1,000
	(Being bills receivable Rs.2,000 received from debtors wrongly posted as Rs.3,000)

Solution NUM 18

Rectification Journal Entries
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
i.	Depreciation A/c	Dr.		4,000
	--------To Suspense A/c				4,000
	(Being depreciation on machinery was not posted to depreciation account, now rectified)
ii.	Suspense A/c	Dr.		5,000
	--------To Debtors A/c				5,000
	(Being bad debts written off were not posted to debtors account, now rectified)

iii.	Discount Allowed A/c	Dr.		100
	--------To Suspense A/c				100
	(Being discount allowed to customers was not posted to discount allowed account, now rectified)

iv.	Drawings A/c	Dr.		800
	--------To Suspense A/c				800
	(Being goods withdrawn by proprietors was not posted to drawings Account, now rectified)
v.	Bills Receivable A/c	Dr.		2,000
	--------To Suspense A/c				2,000
	(Being bill receivable received from debtors not posted to bills receivable account, now rectified)

Suspense Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs.	Date	Particulars	J.F.	Amount Rs.
	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
			6,900				6,900

Trial Balance and Rectification of Errors Exercise 221

Solution NUM 19

Rectification Journal Entries
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
i.	Suspense A/c	Dr.		2,000
	--------To Ravish's A/c				2,000
	(Being cash received from Ravish Rs.8,000 wrongly posted to his account as Rs.6,000, now rectified)

ii.	Suspense A/c	Dr.		1,000
	--------To Return Inward A/c				1,000
	(Being return Inwards Book overcast by Rs.1,000, now rectified)

iii.	Suspense A/c	Dr.		10,000
	--------To Sales A/c				10,000
	(Being total of Sales Book was not posted to Sales Account, now rectified)

iv.	Purchases A/c	Dr.		7,000
	Sales A/c	Dr.		7,000
	--------To Suspense A/c				14,000
	(Being goods purchased from Nanak wrongly posted to sales book; however, Nanak's account was correctly credited, now rectified)
v.	Machinery A/c	Dr.		10,000
	--------To Purchases A/c				5,000
	--------To Suspense A/c				5,000
	(Being machinery purchased Rs.10,000 wrongly posted to purchases account Rs.5,000, now rectified)

Suspense Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs.	Date	Particulars	J.F.	Amount Rs.
	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
			19,000				19,000

Solution NUM 20

Rectification Journal Entries
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
i.	Suspense A/c	Dr.		6,000
	--------To Furniture A/c				6,000
	(Being depreciation on furniture was not posted to Furniture Account, now rectified)
ii.	Rupam's A/c	Dr.		3,000
	--------To Sales A/c				3,000
	(Being goods sold to Rupam `10,000 wrongly recorded as Rs.7,000, now rectified)

iii.	Purchases A/c	Dr.		2,000
	-------To Suspense A/c				2,000
	(Being purchases book undercast by Rs.2,000, now rectified)

iv.	Cash A/c	Dr.		5,000
	-------To Sales A/c				5,000
	(Being sales for cash to Rana not posted, now rectified)
v.	Sales A/c	Dr.		7,000
	-------To Machinery A/c				7,000
	(Being sale of old machinery wrongly recorded in sales account, now rectified)
vi.	Kanan's A/c	Dr.		800
	-------To Discount Received A/c				800
	(Being discount received from Kanan was not posted, now rectified)

Suspense Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs.	Date	Particulars	J.F.	Amount Rs.
	To Furniture A/c		6,000		By Balance b/d		10,000
	To Balance b/d		6,000		By Purchases A/c		2,000
	To Return Inwards A/c		1,000
	To Sales A/c		10,000
			12,000				12,000

Solution NUM 21

Rectification Journal Entries
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
i.	Suspense A/c	Dr.		800
	-------To Sales return A/c				800
	(Being sales Return Book overcast by Rs.800, now rectified)
ii.	Sahu A/c	Dr.		2,000
	-------To Purchases Return A/c				2,000
	(Being goods returned to Sahu, were not posted, now rectified)

iii.	Purchases A/c	Dr.		4,000
	------To Narula's A/c				4,000
	(Being goods purchased from Narula was not posted, now rectified)

iv.	Machinery A/c	Dr.		500
	------To Sundry Expenses A/c				50
	------To Suspense A/c				450
	(Being installation charges on machinery Rs.500 wrongly debited to sundry Expenses Account as Rs.50, now rectified)
v.	Drawings A/c	Dr.		1,400
	------To Rent A/c				1,000
	------To Suspense A/c				400
	(Being rent paid for residential accommodation of proprietor asRs.1,400, was posted to rent account as Rs.1,000, now rectified)

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

Trial Balance and Rectification of Errors Exercise 222

Solution NUM 22

Rectification Journal Entries
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
i.	Suspense A/c	Dr.		11,000
	------To Rajat's A/c				5,000
	To Kamal's A/c				6,000
	(Being cash received from Rajat Rs.5,000 wrongly posted in the debit of Rajat's Account as Rs.6,000, now rectified
ii.	Salaries A/c	Dr.		2,000
	------To Employee A/c				1,200
	------To Suspense A/c				800
	(Being salaries paid to employee wronglypostedto employee's account as Rs.1,200, now rectified)
iii.	Sales A/c	Dr.		1,600
	------To Suspense A/c				600
	------To Purchases A/c				1,000
	(Being goods drawn by proprietor for personal use Rs.1,000 wrongly credited to sales Account as Rs.1,600, now rectified)
iv.	Suspense A/c	Dr.		2,700
	------To Machinery A/c				2,700
	(Being depreciation on machinery Rs.3,000 wrongly credited to machinery account as Rs.300, now rectified)

v.	Sales A/c	Dr.		6,000
	Suspense A/c	Dr.		4,000
	------To Car A/c				10,000
	(Being sale of old car for Rs.10,000 wrongly posted to sales Account as Rs.6,000, now rectified)

Suspense Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs.	Date	Particulars	J.F.	Amount Rs.
	To Rajat A/c		5,000		By Balance b/d		16,300
	To Kamal 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
			17,700				17,700

Solution NUM 23

Rectification Journal Entries
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
i.	Advertisement A/c	Dr.		5,000
	------To Purchases A/c				5,000
	(Being goods distributed as free sample Rs.5,000 were not recorded, now rectified)
ii.	Drawings A/c	Dr.		2,000
	------To Purchases A/c				2,000
	(Being goods withdrawn by proprietor for personal use were not recorded, now rectified)

iii.	Suspense A/c	Dr.		6,000
	------To Debtors A/c				6,000
	(Being bills receivable received from debtors was not posted to his account, now rectified)

iv.	Return Inward A/c	Dr.		1,200
	Return Outward A/c	Dr.		1,200
	------To Suspense A/c				2,400
	(Being total of return inwards book Rs.1,200 wrongly posted to returns outwards account, now rectified)
v.	Discount allowed A/c	Dr.		630
	------To Reema's A/c				630
	(Being discount allowed toReema Rs.700wrongly recorded as Rs.70, nowrectified)

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

Solution NUM 24

Rectification Journal Entries
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
i.	Suspense A/c	Dr.		11,000
	Manas's A/c	Dr.		15,000
	------To Purchases A/c				10,000
	------To Sales A/c				16,000
	(Being goods sold to Manas Rs.16,000 wrongly recorded in purchases book as Rs.10,000 and debited toManas's accountas Rs.1,000, now rectified)
ii.	Furniture A/c	Dr.		6,000
	Suspense A/c	Dr.		7,000
	------To Noor's A/c				8,000
	------To Purchases A/c				5,000
	(Beingfurniture 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, now rectified )
iii.	Sales A/c	Dr.		1,000
	Rai's A/c	Dr.		2,000
	------To Returns Outward A/c				3,000
	(Being goods returned to Rai Rs.3,000 wrongly recorded in the Sales Book as Rs.1,000, now rectified)
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				3,000
	(Being old machinery sold to Maneesh Rs.2,000 wrongly recorded in the sales book as Rs.1,800 and wrongly credited to Manish's account as Rs.1,200, now rectified)
v.	Return Inward A/c	Dr.		2,800
	------To Purchases A/c				2,800
	(Being total of return inward book posted to purchases account, now rectified)

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

Solution NUM 25

Journal Entry
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
i.	Sales A/c	Dr.		400
	------To Suspense A/c				400
	(Being net balance of sales book overcastbyRs.400, now rectified)

ii.	Machinery A/c	Dr.		500
	------To Wages A/c				50
	------To Suspense A/c				450
	(Being wages paid for installation of machinery wrongly posted as Rs.50 to wages account, now rectified)
iii.	Machinery A/c	Dr.		10,000
	Suspense A/c	Dr.		5,000
	------To Purchases A/c				6,000
	------To R and Co. A/c				9,000
	(Being machinery purchased from R and Co. Rs.10,000 wrongly posted to purchases book as Rs.6,000 and posted to R and Co. account Rs.1,000, now rectified)
iv.	Mohan A/c	Dr.		10,000
	------To Sales A/c				5,000
	------To Purchases A/c				5,000
	(Being credit sales to Mohan Rs.5,000 were recorded in purchases book, now rectified)
v.	Sales A/c	Dr.		1,000
	------To Purchases Return A/c				1,000
	(Being goods returned to Ram wrongly recorded in the Sales Book, now rectified)
vi.	Purchases A/c	Dr.		6,000
	Sales A/c	Dr.		6,000
	------To Suspense A/c				12,000
	(Being credit purchases from S and Co. for Rs.6,000 were recorded in sales book and S and Co. was correctly credited, now rectified)
vii.	Purchases A/c	Dr.		6,000
	Sales A/c	Dr.		2,000
	------To M and Co.				5,000
	------To Suspense A/c				3,000
	(Being credit purchases from M andCo. Rs.6,000 were recorded in sales book as Rs.2,000 and posted there from to the credit of M and Co. as Rs.1,000, now rectified)
viii.	Raman A/c	Dr.		4,000
	Raghvan A/c	Dr.		1,000
	------To Suspense A/c				5,000
	(Being credit sales to Raman wrongly posted to Raghvan by Rs.1,000, now rectified)
ix.	Noor A/c	Dr.		1,600
	------To Allowance A/c				1,600
	(Being B/R dishonoured, which was received from Noor wrongly debited to Allowance, now rectified)
x.	Bills Payable A/c	Dr.		5,000
	------To Manu				5,000
	(Being bills payable to Mani wrongly debited to Manu, now rectified)
xi.	Sales A/c	Dr.		1,000
	Suspense A/c	Dr.		2,000
	------To Furniture A/c				3,000
	(Being old furniture sold for Rs.3,000 was posted to Sales account as Rs.1,000, now rectified)
xii.	Depreciation A/c	Dr.		800
	------To Furniture A/c				800
	(Being depreciation on furniture was not posted, now rectified)
xiii.	Building A/c	Dr.		13,000
	------To Purchases A/c				10,000
	------To Wages A/c				3,000
	(Being material of Rs.10,000 and Wages of Rs.3,000 were not recorded , now rectified)

Suspense Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs.	Date	Particulars	J.F.	Amount Rs.
	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 A/c		4,000
					By Raghvan A/c		1,000
			20,850				20,850

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Class 11-commerce NCERT Solutions Accountancy Part I Chapter 6: Trial Balance and Rectification of Errors

Trial Balance and Rectification of Errors Exercise 216

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Trial Balance and Rectification of Errors Exercise 217

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Trial Balance and Rectification of Errors Exercise 218

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Trial Balance and Rectification of Errors Exercise 219

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Trial Balance and Rectification of Errors Exercise 220

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Trial Balance and Rectification of Errors Exercise 221

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Trial Balance and Rectification of Errors Exercise 222

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