Page 193 - DCOM101_FINANCIAL_ACCOUNTING_I

Unit 14: Rectification of Errors

(ii) A credit sale of ` 137 to Mr. Chandra has been posted to the debit of Mr. Kuchhal’s Notes
account from the Sales Day book.
(iii) A payment of ` 196 for white washing the office has been charged to Buildings

accounts.
2. Rectify the following Errors:
(i) Sales to Vinod ` 163 posted to his account as ` 136.
(ii) Sales to Vinod ` 153 debited to his account as ` 135.
(iii) Sales to Vinod ` 143 credited to his account as ` 134.

3. Rectify the following Errors:

(i) Wages paid for the construction of office debited to wages account ` 1,500.
(ii) Cartage paid for the newly purchased furniture ` 10 posted to cartage account.
(iii) Furniture purchased on credit from Ram for ` 300 posted as ` 30.
(iv) Sales to X ` 400 posted to Y’s account.
(v) Wages paid ` 2,550 were recorded in the cash book as ` 2,505.

(vi) Purchases from Y ` 1,002 were omitted from the books.
4. There was difference in the trial balance of Sri Arihant which was put to a newly opened
suspense account. Subsequently the following mistakes were discovered. Pass journal
entries to rectify them and ascertain the difference in the trial balance.
(i) Materials Costing ` 1700 in the erection of the machinery and the wages for it
amounting to ` 1,400 were included in the purchases account and the wage account
respectively.
(ii) Goods sold under credit terms ` 16,900 to music were recorded properly in the sales
book but were debited to his account as ` 19600 and carriage outward and freight
paid ` 700 chargeable from him were posted to sales expenses account.
(iii) Sales return by Yogeshwar ` 2300 were correctly recorded in the sales return book
from where they were debited to Yogeshwar’s account by ` 32.
(iv) Old furniture originally purchased for ` 1800 written down to ` 1100 was sold for
` 1700 and was credited to furniture account.
(v) Machinery purchased on credit ` 17000 was recorded in purchases book and transport
charges for the machine ` 1200 were debited to trade expenses account.
5. A businessman has prepared trial balance of his business firm that has agreed? He is

satisfied that now there are no accounting errors. Do you agree with him? If not list the
errors that do not affect the agreement of the trial balance.
6. When is a suspense Account opened? How are errors rectified through Suspense A/c?

7. Rectify the following errors:
Goods purchased on credit for `8200 not recorded in the Purchases Book.

Purchase Returns Book is overcast by `1000.
Salary of `3200 paid to Gopal the accountant was debited to his personal account
Sales to Shakila of `2400 was posted to her account
Cash received from Suresh `2000 was not entered in the books.

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