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Chapter 17 Rectification of Errors TS Grewal

About this chapter: It is possible that while maintaining financial books and passing entries there
can be errors done by accountants. These types of errors are classified under various categories
such as errors of commission, errors of omission, errors of principle etc. Students should understand
how to identify these types of errors and also the process to correct them. Such identification and
rectification of errors help to maintain accurate financial statements. You will learn how to pass
journal entries and use suspense accounts to make the corrections. All the concepts have been
very clearly explained in this chapter. You will be able to understand the basic concepts and also
gain more practice by doing the questions which have been given at the end of the chapter. Our
team of Accountancy teachers have solved all the problems and has provided step-by-step
answers below.

Question.1. What is meant by Rectification of Errors? State its objectives.

Answer .1

Rectification of Errors:- Errors may or may not affect the Trial Balance but it must be detected and
rectified. The process of detecting errors and the procedure to correct the accounting records is
called the rectification of errors.

Objectives of Rectification of errors:-

The following are the four objectives of Rectification of Errors:

1. Maintaining correct accounting records.

2. Redrafting the Trial Balance with the rectified ledger balances.
3. Preparation of correct Profit and Loss Account by using the rectified figures to find out
the correct profit/loss as the case may be.
4. Preparation of Balance Sheet with the rectified figures to depict the correct value of the
assets and liabilities of the business.

Question.2. What are the different classes of errors? What of them do not affect a Trial Balance?

Answer .2

The following are four classes of errors:

1. Errors of Omission

2. Errors of Commission

3. Errors of Principle

4. Compensating Errors of omission and compensating errors do not affect the agreement of a Trial
Balance.

Question.3. Give three examples of two-sided error and two examples of one-sided errors.

Answer .3
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The following are three examples of two sided errors:

1. Furniture purchased from Haribol entered in the Purchases Book.

2. 100 received from Ram has been credited in the account of Harekrishna.

3. Laptop sold to Radha entered in the Sales Book.

The following are two examples of one sided errors:

1. Purchases Book of March overcast by 300.

2. Depreciation on office car was not debited to Depreciation Account.

Question.4. Give two examples of Errors of Principle.

Answer .4

The following are two examples of Errors of Principle:

1. Repair expenses of office furniture debited to Office Furniture Account.

2. Furniture purchased for office use debited to Purchases Account.

Question.5. What is a Trail Balance? Name the error that are disclosed by a Trial Balance.

Answer .5

Meaning of Trial Balance:- After posting the transactions in the accounts and balancing them, a
statement is prepared to show separately the debit and credit balances. Such a statement is
knownas Trial Balance. The total of the debit side of Trial Balance must be equal t? that of its credit
side. This is based on the principle that in double entry system, for every debit there must be a
corresponding credit. The agreement of Trial Balance indicates arithmetic accuracy of the
accounting work. If the two sides do not agree, there is definitely some error or errors. It must be
remembered that equalizing the two sides of a Trial Balance is not the sole and conclusive proof of
the complete correctness of accounting work.

The errors disclosed by Trial Balance are:

1. One sided errors.

2. Casting and carry forward error.

Question.6. Is the agreement of a Trial Balance absolute proof of the accuracy of the books of
account? If not, what are the errors which remain even after agreement?

Answer .6

Meaning of Trial Balance:- No, the agreement of a Trial Balance is not the absolute proof of the
accuracy of the books of account. The errors which remain undetected even after agreement of the
Trial Balance are:

1. Errors of principle.
2. Compensating errors.
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3. Errors of complete omission.

Question.7. What do you mean by Suspense Account? When is it opened? (Old Question)

Answer .7 Suspense Account is the account to which the difference in the Trial Balance is placed
and it is opened when the Trial Balance doesn't match. The Suspense Account is placed in the debit
side if the total debit amount is less than the total credit amount and vice versa. The Suspense
Account is transferred to the asset side of the Balance sheet in case of a debit balance of a
Suspense Account, otherwise transferred to the liabilities side of the in case of a credit balance.
Suspense Account is used to rectify all one sided errors which affect the Trial Balance. Suspense
Account is the net effect of one sided errors. Errors are rectified by entering the amount to the debit
of the correct account and then credit is placed in the Suspense Account. If the error amount is
entered to the credit of the correct account and then debit is placed in the Suspense Account. If all
the one sided errors are rectified then there will be no balance in the Suspense Account and it is
closed. It is usually understood that the errors are rectified after transferring the difference in the
Trial Balance to the Suspense Account but before the preparation of the Final Accounts.

Practical Problems :-->

Question 1: How will you rectify the following errors?

1.) Purchases Book is overcast by Rs. 20,000.

2.) Purchases Return Book is overcast by Rs. 5,000.
3.) Purchases Return Book’s balance is carried forward in excess by Rs. 500.
4.) Purchases Book’s balance is carried forward in excess by Rs. 1,000.

Note:- The above error have been identified before the preparation of Trial Balance.

Answer 1:

Below Are the Rectification Entries:-

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(ii) If Error Is At The Posting Stage Than Assume That Recording That Recording In The Original Books
Han Been Done Correctly.

Question 2: How will be the following errors rectified?

1.) Sales Book is short casted by Rs. 10,000.

2.) Sales Return Book is short casted by Rs. 1,000.
3.) Balance of Sales Book is carried forward short by Rs. 1,000.
4.) Balance of Sales Return Book is carried forward short by Rs. 100.

Answer 2:

Below Are the Rectification Entries:-

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(ii) A Suspense Account Is an Account To Which The Difference In The Trail Balance Is Placed
Temporarily.

Question 3: How will you rectify the following errors?

1.) Sales Book is overcast by Rs. 8,000.

2.) Sales Return Book is short casted by Rs. 500.
3.) Balance of Sales Book is carried forward in excess by Rs. 1,000.
4.) Balance of Sales Return Book is carried forward in excess by Rs. 100.

Answer 3:

Below Are the Rectification Entries:-

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Two Sided Errors: Errors of Recording

Question 4: Pass the necessary Journal entries to rectify the following error.

(i) Credit sale of Rs. 570 to Mohan was recorded as Rs. 750.

(ii) Credit sale of Rs. 850 to Sohan was recorded as sale to Mohan.

(iii) Credit sale of Rs. 850 to Meenu was recorded as sale to Meena as Rs. 580.

(iv) Credit sale of Rs. 850 to Ram was recorded in the Purchases Book.

(v) Credit sale of old machinery to Sohan for Rs. 1,700 was entered in the Sales Book as Rs. 7,100.

(vi) Bill Received for Rs. 5,000 accepted by Mahiner recorded as acceptance given to Mahinder for
Rs. 6,000.

Answer 4:

Below Are the Rectification Entries:-

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Question 5: Pass the necessary Journal entries to rectify the following error.

(i) Credit sale of Rs. 7,500 to Krishan was posted to Krishan’s Account.

(ii) Cash sale of Rs. 7,500 to Meenu was posted to the credit of Meena.

(iii) Amount of Rs. 1,500 withdrawn from bank by the proprietor for his personal use was debited to
purchases account.
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(iv) Credit sale of old furniture to Mohan for Rs. 1,700 was posted as Rs. 7,100.

(v) Credit sale of old furniture to Babu Ram for Rs. 3,000 was credited to sales Account.

(vi) Cheque of Rs. 1,280 received from Farid was dishonoured and has been posted to the debit of
sales return Account.

Answer 5:

Question 6: Rectify the following error:

(i) Sales to Ram Rs. 143 posted to his account as Rs. 134.

(ii) Sales to Ram Rs. 143 debited to his account as Rs. 134.
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(i) Sales to Ram Rs. 143 credited to his account as Rs. 134.

Answer 6:

Question 7: Pass the necessary Journal entries to rectify the following errors:

(i) Rs. 15,000 paid as wages for the construction of office building debited to Salaries Account.

(ii) Rs. 20,000 spent on the purchases of material for the construction of building debited to
Purchases Account.

(iii) Rs. 50,000 spent on the extension of building was debited to Building Repair Account.

(iv) Rs. 25,000 spent on whitewash of a new building was charged to Building Repair Account.

(v) Rs. 1,000 paid as installation charges for newly purchased second hand machinery posted to
Cartage Account.

(vi) Rs.10,000 paid as repairing charges on the reconditioning of a newly purchased second hand
machinery debited to General Expenses Account.

(vii) Rs. 5,000 paid as repairing charges of an existing machine in use charged to Machinery
Account.

(viii) Rs. 10,000 paid by cheque for a printer was charged to the office expenses account.

Answer 7:
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Errors of Complete Omission

Question 8: Give rectifying journal entries for the following errors:

(i) Goods returned by Mohan of Rs. 1500 not recorded in books.

(ii) Goods distributed as free sample for Rs. 5,000 not recorded.

(iii) Depreciation of machinery of Rs. 10,000 not charged.

(iv) Goods costing Rs. 780, selling price Rs. 1,000 given as charity not recorded.

Answer 8:
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Compensating Errors

Question 9: Rectify the following errors:

(i) Goods purchased from Kunal for Rs. 8,000 and from Kapil of Rs. 9,000 recorded correctly in the
purchases book. However, Rs. 9,000 was posted to Kunal and Rs. 8,000 to Kapil.

(ii) Anil’s Account was Excess Debited By Rs. 500 While Suraj’s account was Short Debited By Rs.
500.

(iii) Parkar’s Account Was Short Credited By Rs. 700 While Manisha’s Account Was Excess
Credited By Rs. 700.

(iv) Goods Sold To Roopak For Rs. 1,000 And To Sagar For Rs. 1,800 Recorded Correctly In The Sales
Book. However, Rs. 1,800 Was Posted To Roopak And Rs. 1,000 To Sagar.

Answer 9:
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Question 10: Following errors affecting the accounts of the year 2020–21 were detected in the
books of Das & Co., Meerut:

1.) Sale of Old Furniture For Rs 5,000 Was Treated As Sales Of Goods.
2.) Rent of Proprietor’s Residence Rs 6,000 Was Debited to Rent Account.
3.) Cash Received From Rajesh Rs 2,150 Was Credited To Brajesh.
Pass The Rectifying Journal Entries. State The Nature Of Each Of These Mistakes.

Answer 10:

Below Are the Rectification Entries:-

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Question 11: Rectify the following errors assuming that there is no Suspense Account:

1.) Salary of Rs. 5,000 paid to Rahul was not posted to Salaries Account.
2.) Sales to Amrish of Rs. 1,430 posted to his account as Rs. 1,340.
3.) Sales to Vijay of Rs. 2,470 posted to his account as Rs. 2,740.
4.) Purchases from Pal of Rs. 1,430 posted to his account as Rs. 1,340.

Answer 11:

1.) Salary of Rs. 5,000 paid to Rahul was not posted to Salary A/c, Now Posted.
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Working Note:-

(1) Forget to post amount in salaries account now posted.

(2) Short amount was posted in sales account now posted.

(3) Sale account was over casted by 270 now debits the sales a/c with excess amount. Purchases
account was short debited not now debit the rest of amount.

Question 12: Rectify the following errors:

1.) Purchases Book has been undercast by Rs 1,000.

2.) Credit sale to Anu Prakash Rs 7,000 was recorded in Purchases Book.
3.) Credit sale to Rahul Rs 7,000 was recorded as Rs 700.

Answer 12:

Below Are the Rectification Entries:-

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Question 13: Which of the following errors will affect the Trial Balance?

1.) The total of the Sales Book has not been posted to the Sales Account.
2.) Rs 1,000 paid as installation a charge of a new machine has been debited to Repairs Account.
3.) Goods costing Rs 4,000 taken by the proprietor for personal use have debited to Debtors’
Account.
4.) Rs 1,000 paid for repairs to building have been debited to Building Account.

Answer 13:
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Question 14: Rectify the following errors assuming that there is no Suspense Account:

1.) The Returns Inward Book has been overcast by Rs. 200.
2.) Purchases Book carried forward Rs. 75 less.
3.) Sales Book carried forward Rs. 41 less on Page 10 and Rs. 43 more on Page 12.
4.) Goods sold to Gautam were posted as Rs. 215 instead of Rs. 251.

Answer 14:

Below Are the Ledger Posting:-

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Point of Knowledge:-

As per questions demand we are unable to use suspense account so we are use statement instead
of suspense account.

Question 15: Following errors are discovered in the books of Sh. Ram Lal. Make the necessary
entries to rectify them:

1.) Purchases Journal was under casted by Rs. 2,150.

2.) Rs. 500 received from K. Krishna was debited to his account.
3.) An amount of Rs. 3,000 withdrawn by the proprietor of the firm for his personal use was posted
to the Travelling Expense Account.
4.) An amount of Rs. 175 for a credit sale to R. Gopalan correctly entered in the Sales Book, has
been debited to his account as Rs. 157.

Answer 15:

Below Are the Rectification Entries:-

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(ii) Errors That Do Not Affect The Trail Balance Are Not Rectified With The Help Of A Suspense
Account.

Question 16: Pass Journal entries to rectify the following errors which were located after
preparing the Trial Balance:

(i) The Sale Book was over-casted by Rs. 500.

(ii) Credit purchases from Aradhya Rs. 6,000 were posted to the debit of her account of Rs. 9,000.

(iii) Goods returned from Ayan Rs. 8,000 were recorded in the Purchases Return Book.

(iv) Wages paid Rs. 3980 were recorded in the Cash Book as Rs. 3890.

Answer 16:
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Question 17: Pass the Journal entries rectifying the following errors:

1.) Purchases for Rs. 10,000 was omitted to be recorded.

2.) Purchases of office furniture of Rs. 10,000 were recorded in Purchases Book.
3.) Office Rent of Rs. 15,000 was debited to the Personal Account of the landlord.
4.) Old machine was sold for Rs. 5,000 was credited to Sales Account.

Answer 17:

Below Are the Rectification Entries:-

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Question 18: Rectify the following errors:

1.) Total of one page of the Sales Book was carried forward to the next page as Rs 2,785 instead of
Rs 2,587.
2.) A cheque of Rs 400 received from Mohan was dishonored and had been posted to the debit
side of the ‘Allowance Account’.
3.) Return of goods worth Rs 5,000 by a customer was entered in the Purchases Return Book.
4.) Sum of Rs 200 owed by ‘X’ has been included in the list of Sundry Creditors.
5.) Sale of old furniture worth Rs 430 was credited to the Sales Account as Rs 340.

Answer 18:

Below Are the Rectification Entries:-

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Question 19: Rectify the following errors:

1.) Purchases Book is overcast by Rs. 500.

2.) Salary paid to an employee, Mr. Ajay, is debited to his Personal account Rs. 3,000.
3.) Goods sold to Shashi on credit Rs. 300 have been wrongly passed through the Purchases Book.
4.) Total of returns inward has been added Rs. 9 short.
5.) Purchase of chair from Happy Traders for Rs. 35 has been entered in the Purchases Books as
Rs. 53.

Answer 19:

Below Are the Rectification Entries:-

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Question 20: Rectify the following errors by passing Journal entries:

1.) Old furniture sold for Rs 500 has been credited to Sales Account.
2.) Machinery purchased on credit from Raman for Rs 2,000 recorded through Purchases Book as
Rs 16,000.
3.) Cash received from Rajat Rs 5,000 was posted to the debit of Bhagat as Rs 6,000.
4.) Depreciation provided on machinery Rs 3,000 was posted to Machinery Account as Rs 300.

Answer 20:

Below Are the Rectification Entries:-

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Question 21: Give the rectifying entries of the following:

1.) Sales of Rs 20,000 to Manoj were recorded as Rs 2,000 in the Sales Book.
2.) An amount of Rs 25,000 spent for the extension of machinery has been debited to the Wages
Account.
3.) Discount received from Ram & Co. Rs 350, has not been entered in the discount column of the
Cash Book.
4.) Goods of Rs 3,000 sold to Mahesh were recorded in the Purchases Book.

Answer 21:

Below Are the Rectification Entries:-

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Here some amountswere taking on assuming basis*

(ii) Wages paid for the construction of office should be debited to Machinery account because it is a
capital expenditure.

Question 21: Correct the following errors in Hari’s Books: (Old Question)

1.) Credit sale of Rs 132 to R. Krishan correctly entered in Sales Journal but posted to his account as
Rs 312.
2.) The total of the credit side of Ramesh’s Account was overcast by Rs 2,000.
3.) Total of the Purchases Journal of Rs 5,250 has been posted to Purchases Account as Rs 5,205.
4.) Printer purchased from R. Ltd. for Rs 4,000 on credit was entered in the Purchases Book.
5.) An item of Rs 2,000 entered in the Sales Return Book was posted to the debit of Pandey who
had returned the goods.

Answer 21:

Below Are the Rectification Entries:-

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Question 22: Mukesh found that the Trial Balance did not agree. He found the following errors:

1.) In the Sales Book for the month of January, total of Page No. 3 was carried forward to Page No. 4
as Rs 1,000 instead of Rs 1,200 and total of Page No. 7 was carried forward to Page No. 8 as Rs 5,600
instead of Rs 5,000.
2.) Goods returned to Anshuka Rs 10,000 were recorded in the Sales Book.
3.) Bill Receivable for Rs 800 from Riya was dishonoured and posted to the debit of Allowances
Account.

Answer 22:

Below Are the Rectification Entries:-

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Question 23: Pass the rectifying entries for the following:-

1.) Sales of goods Rs 6,000 to Madan were recorded as Rs 600 in the Sales Book.
2.) Credit purchase of goods from Mohan amounting to Rs 2,000 has been wrongly passed
through the Sales Book.
3.) Return of goods worth Rs 500 by a customer was entered in ‘Purchases Return Book’.
4.) Cheque of Rs 400 received from Ranjan was dishonoured and debited to the Discount
Account.
5.) Bill for Rs 820 received from Ramesh for repair of machinery was entered in the Purchases
Book as Rs 720.

Answer 23:

Below Are the Rectification Entries:-

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Question 24: Give rectifying Journal entries for the following errors:

1.) Sales of goods to Madan Rs. 6,000 were entered in the Sales Book as Rs 600.
2.) Credit purchase of Rs 1,500 from Ajay has been wrongly passed through the Sales Book.
3.) Repairs to building Rs 300 were debited to Building Account.
4.) Rs 2,050 paid to Rohit is posted to the debit of Mohit’s Account as Rs 5,020.
5.) Purchases Return Book is overcast by Rs 400.
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Answer 24:

Below Are the Rectification Entries:-

(ii) Wages paid for the construction of office should be debited to building account because it is a
capital expenditure.

Question 25: Give rectifying entries for the following:

1.) Rs 5,400 received from Mr. A was posted to the debit of his account.
2.) The total of Sales Return Book overcast by Rs 800.
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3.) Rs 2,740 paid for repairs to motor car were debited to Motor Car Account as Rs 1,740.
4.) Returned goods to Shyam Rs 1,500 were passed through Returns Inward Book.

Answer 25:

Below Are the Rectification Entries:-

Question 26: Pass Journal entries rectifying the following errors:

1.) A cheque for Rs 10,000 was received from Ranjan on which Rs 200 Cash Discount was allowed.
The cheque was not honoured on due date and the amount of discount was credited to Discount
Received Account.
2.) Rs 2,000 paid as wages for machinery installation was debited to Wages Account.
3.) Rs 5,000 received from Rakesh were credited to his Personal Account. The amount had been
written off as bad debt earlier.
4.) Repair bill of machinery was recorded as Rs 100 against the bill amount of Rs 1,000.

Answer 26:
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Below Are the Rectification Entries:-

Question 27: Rectifying the following errors:-

1.) Sales Book has been totalled Rs. 1,000 short.

2.) Goods worth Rs. 1,500 returned by Green & Co. have not been recorded anywhere.
3.) Goods purchased worth Rs. 2,500 have been posted to the debit of the supplier, Gupta & Co.
4.) Furniture purchased from Gulab & Co. worth Rs 10,000 has been entered in Purchases Book.
5.) Cash received from A Rs. 2,500 has not been posted in his account.

Answer 27:

Below Are the Rectification Entries:-

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Question 28: Pass Journal entries to rectify the errors in the following cases:

1.) A purchase of goods from David amounting to Rs 150 has been wrongly passed through the
Sales Book.
2.) A credit sale of goods of Rs 120 to Peter has been wrongly passed through the Purchases Book.
3.) Rs 200, salary paid to Cashier, B. Naidu, stands wrongly debited to his Personal Account.
4.) A credit sales of Rs 4,230 to Krishan entered as purchase from Kishan Rs 4,320.
5.) Ramesh's Account was credited with Rs 840 twice instead of once.

Answer 28:
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Below Are the Rectification Entries:-

Question 29: 1.) What are the different causes that make a Trial Balance incorrect?
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2.) Pass the rectifying Journal entries:

(a) A credit sale of goods for Rs 2,500 to Krishna has been wrongly passed through the Purchases
Book.
(b) Rs 5,000 paid for freight on machinery purchased was debited to the Freight Account as Rs
500.
(c) The Returns Inward Book has been wrongly overcast by Rs 100.
(d) An amount of Rs 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 Rs 460 owed by Hari had not been included in the list of debtors.

Answer 29:

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

• Wrong totaling of the Trial Balance

• Wrong balance of Accounts
• Wrong totaling of Subsidiary Books
• Journal Entries are not completed.
• Entries in the wrong side of Account.
• Omission of total of Subsidiary book into Account

2.) Below Are the Rectification Entries:-

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Question 30: Rectify the following errors:

1.) Wages paid for the construction of office debited to the Wages Account, Rs 5,000
2.) Machinery purchased for Rs 35,000 was passed through the Purchases Book.
3.) Old furniture sold for Rs 1,000, passed through the Sales Book.
4.) Rs 2,000 paid to Mehta Bros. against acceptance were debited to Malhotra Bros. Account.
5.) Sales of Rs 204 to Ram debited to his account as Rs 402 and purchases of Rs 1,012 from Shyam
credited to his account as Rs 1,210.

Answer 30:

Below Are the Rectification Entries:-

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Question 31: Pass the rectification entries for the following transactions: (Old Question)

1.) An amount of Rs 2,000 received from Mohan on 1st April, 2017 had been entered in the Cash Book
as having been received on 31st March, 2019.
2.) The balance in the account of Mr. Rahim Rs 1,000 had been written off as bad but no other
account has been debited.
3.) An addition in the Returns Inward Book had been cast Rs 100 short.
4.) A cheque for Rs 200 drawn for the Petty Cash Account has been posted in the account of Asif.
5.) A discounted bill of exchange for Rs 20,000 returned by the firm's bank had been credited to
the Bank Account and debited to Bills Receivable Account. A cheque was received later from the
customer for Rs 20,000 and duly paid.
6.) Ramesh's Account was credited with Rs 840 twice instead of once.

Answer 31:

Below Are the Rectification Entries:-

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Question 32: Rectify the following errors:

1.) Sale of old furniture worth Rs 3,000 treated as sales of goods.

2.) Sales Book added Rs 5,000 short.
3.) Rent of proprietor’s residence, Rs 6,500 debited to Rent Account.
4.) Goods worth Rs 11,970 returned by Manav posted to his debit as Rs 11,790.

Answer 32:

Below Are the Rectification Entries:-

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Question 33: There was a difference in the Trial Balance of M/s. Jain & Sons, prepared for the year
ended 31st March, 2009. The accountant put the difference in Suspense Account. The following
errors were found:

1.) Purchases Return Book total Rs 400 has not been posted to Ledger Account.
2.) Rs 5,100 spent on legal expense for the newly acquired Building was debited to the Building
Account as Rs 1,500.
3.) A sale of Rs 6,540 to Rajat has been credited to his account.
Rectify the errors and show the Suspense Account with Nil closing balance.

Answer 33:

Below Are the Rectification Entries:-

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Question 34: Give the Journal entries to rectify the following errors:

1.) Purchases Book was overcast by Rs 1,000.

2.) Installation charges on new machinery purchased Rs 500 were debited to Sundry Expenses
Account as Rs 50.
3.) Radhey Shyam returned goods worth Rs 500 which was entered in the Purchases Return Book.
4.) Goods taken by the proprietor for Rs 5,000 have not been entered in the books at all.

Answer 34:

Below Are the Rectification Entries:-

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Question 35: Rectify the following errors:

1.) The total of one page of Sales Book was carried forward as Rs 371 instead of Rs 317.
2.) Rs 540 received from Yatin was posted to the debit of his Account.
3.) Purchases Returns Book was overcast by Rs 300.
4.) An item of Rs 1,062 entered in Sales Return Book had been posted to the debit of customer who
returned the goods.
5.) Rs 1,500 paid for furniture purchased had been charged to ordinary Purchase Account.

Answer 35:

Below Are the Rectification Entries:-

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Question 36: Rectify the following errors by passing Journal entries:

1.) Old furniture sold for Rs 500 has been credited to Sales Account.
2.) Machinery purchased on credit from Raman for Rs 2,000 recorded through Purchases Book as
Rs 16,000.
3.) Cash received from Rajat Rs 5,000 was posted to the debit of Bhagat as Rs 6,000.
4.) Depreciation provided on machinery Rs 3,000 was posted to Machinery Account as Rs 300.

Answer 36:

Below Are the Rectification Entries:-

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Question 37: Rectify the following errors by passing Journal entries:

1.) A sum of Rs 470 received from Ganga was posted to her debit as Rs 740.
2.) A debit balance of Rs 550 in the personal account of Mr. John was undercast.
3.) Bills Receivable from Brown for Rs 3,000 posted to the credit of Bills Payable Account and
credited to Brown’s Account.
4.) Goods returned by Mridul Rs 225 have been entered in the Returns Outward Book.

Answer 37:

Below Are the Rectification Entries:-

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Question 38: While trying to close his books for the year ended 31st March, 2014, Mahesh found that
the Trial Balance did not agree. He traced the following errors: (Old Question)

1.) In the Sales Book for the month of January total of Page No. 2 was carried forward to Page No. 3
as Rs 1,000 instead of Rs 1,200 and total of Page No. 6 was carried forward to Page No. 7 as Rs 5,600
instead of Rs 5,000.
2.) Goods returned to Ram Rs 1,000 were recorded in the Sales Book.
3.) Bills Receivable for Rs 1,600 from Noor was dishonoured and posted to debit of Allowances
Account.
Rectify the above errors.

Answer 38:
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Below Are the Rectification Entries:-

Points of Remember in Rectification:-

1. Short debit is corrected by additional debit.

2. Short credit is corrected by additional credit.

3. Excess debit is corrected by crediting the different amount.

4. Excess credit is corrected by debiting the different amount.

Question 39: Pass the rectification entries for the following transactions:

(i) Repairs to plant amounting to Rs. 2,000 had been charged to Plant and Machinery Account.

(ii) Wages paid to the firm’s workmen for making certain additions to machinery amounting to
Rs. 1,340 were debited to wages account.

(iii) A cheque for Rs. 7,500 received from Sandesh was credited to the account of Ramesh.

(iv) Goods to the value of Rs. 7,000 returned by Prateek were included in closing stock, but no
entry was made in the books.

(v) Goods costing Rs. 5,000 were purchased for various members of the staff and the cost was
included in ‘Purchases’. A similar amount was deducted from the salaries of the staff members
concerned and the net payments to them debited to salaries account.

(vi) Credit purchases of old machinery from Sohan for Rs. 1,70,000 was entered in the Purchases
Book as purchase from Mohan for Rs. 7,10,000 Rs. 30,000 paid as repairing charges on the
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reconditioning of a newly purchased second hand machinery were debited to General Expenses
Account.

(vii) Debit and Credit totals of discount columns in the Cash Book which come to Rs. 400 and Rs.
370 respectively have not been posted to Discount Accounts.

Answer 39:

Preparation of Suspense Account

Question 40: A Trial Balance disclosed a difference of Rs 417 placed on the credit side of the
Suspense Account. Later on the following errors were located:
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1.) Goods worth Rs 200 purchased from Sohan had been posted to his account as Rs 250.
2.) A purchase of furniture for Rs 500 was recorded in the Purchases Book.
3.) Instead of crediting Gian’s Account with Rs 512, it was debited with Rs 215.
4.) Goods worth Rs 130 returned by Gian were entered in the Sales Book and posted therefrom to
the credit of Gian’s Personal Account.
Pass the rectifying entries and prepare a Suspense Account.

Answer 40:

Below Are the Rectification Entries:-

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Question 41: There was a difference of Rs 720 in the Trial Balance which has been transferred to
the credit side of the Suspense Account. Pass the rectifying entries and prepare a Suspense
Account to rectify the following errors:

1.) An amount of Rs 375 now posted on the debit side of the Commission Account instead of Rs 275.
2.) Credit amount of Rs 260 posted to the debit of the Personal Account as Rs 360.
3.) Goods sold to Surinder recorded in Purchases Book Rs 300.
4.) D’s bill for erection of godown at a cost of Rs 1,200 has been charged to the Repairs Account.

Answer 41:

Below Are the Rectification Entries:-

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Question 42: The Trial Balance of M/s. Gupta & Sons shows a difference of Rs 52,200. To prepare
the Final Account on 31st March, 2009, this difference is placed in a Suspense Account. Afterwards
the following errors were disclosed. Pass the necessary entries to rectify them and show the
Suspense Account.

1.) Purchases Book total had been under casted by Rs 20,000.

2.) A cheque received from Vasudev for Rs 7,800 had been debited in the Cash Book but not
posted in Vasudev’s Personal Account.
3.) Returns Outward Book had been overcasted by Rs 10,000.
4.) Goods returned by Yash Pal worth Rs 15,000 have been entered in Returns Outward Book.
However, Yash Pal’s Account is correctly posted.

Answer 42:

Below Are the Rectification Entries:-

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Question 43: There was an error in the Trial Balance of Ram Gopal on 31st March, 2018 and the
difference in books was carried to the Suspense Account. On going through the books, you find
that:

1.) Rs 540 received from M. Mehta was posted to the debit side of his account.
2.) Rs 100 being purchases return was posted to the debit of the Purchases Account.
3.) Discount of Rs 300 received was posted to the debit of the Discount Account.
4.) Rs 374 paid for motor car repairs was debited to the Motor Car Account as Rs174.
5.) Rs 400 paid to C. Das was debited to the account of G. Dass.
Pass the Journal entries to rectify the above errors and state what amount was carried to the
Suspense Account.

Answer 43:

Below Are the Rectification Entries:-

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Question 44: Trial Balance of a bookkeeper shows an excess of debits over credits by Rs 261. This
difference is placed in a Suspense Account to facilitate books closure. Later on the following
errors were discovered:

1.) A credit item of Rs 349 has been debited to a Personal Account as Rs 439.
2.) A sum of Rs 625 written off from fixtures as depreciation has not been posted to the
Depreciation Account.
3.) Rs 9,000 paid for furniture bought have been charged to the Purchases Account.
4.) A discount allowed to a customer has been credited to him as Rs 145 in place of Rs 154.
5.) A sale of Rs 594 was posted as Rs 495 in the Sales Account.
6.) The total of Returns Inward Book has been added Rs 10 short.
Pass the Journal entries to correct these errors and prepare the Suspense Account.

Answer 44:

Below Are the Rectification Entries:-

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Question 45: The accountant of a firm finds that the Trial Balance as on 31st December, 2017 is out
by as excess debit of Rs 283. He placed the amount in the Suspense Account. In the first week of
January, 2018, he discovered the following errors. Pass the Journal entries necessary to rectify
these errors and show the Suspense Account as it would appear at the end of the week. Have you
any comment to make?

1.) Cash paid to Amar Nath, Rs 75, was posted to the credit of Amar Singh's Account as Rs 57.
2.) Discount allowed by Brijesh of Rs 5 was not entered in the Cash Book but Brijesh stands
debited correctly.
3.) No entry was made of goods worth Rs 40 taken away by proprietor for personal use.
4.) Rs 500 received from Jhaveri Bros. for interest on loan advanced to them was recorded in the
Cash Book. But the entry was not posted in the Ledger.
5.) The total of Returns Outward Book was short by Rs 100.

Answer 45:

Below Are the Rectification Entries:-

Point Of Knowledge:-
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(I) There are some errors in the book of account after rectification the traced error, Suspense
Account is not closed.

Question 46: Rectify the following errors found in the books of Bheem. Trial Balance had Rs 930
excess credit. The difference has been posted to a Suspense Account:

1.) The total of Returns Inward Book has been cast Rs 1,000 short.
2.) The purchase of an office table costing Rs 3,000 has been passed through Purchases Book.
3.) Rs 3,750 paid for wages to workmen for making showcases had been charged to the Wages
Account.
4.) A purchases of Rs 670 had been posted to the Creditors' Account as Rs 600.
5.) A cheque for Rs 2,000 received from Mr. P.C. Joshi had been dishonored and was passed to the
debit of the Allowances Account.
6.) An amount of Rs 15,720 due from Prasad written off as had in a previous year, was recovered
and credited to the Personal Account of Prasad.
After rectification reflect the transactions in the Suspense Account.

Answer 46:

Below Are the Rectification Entries:-

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Question 47: The Trial Balance of S. Sen did not agree and the difference in books as carried to a
Suspense Account. Pass the entries required to rectify the following errors which accounted for
the difference. Also, prepare the Suspense Account:

1.) A Sales Invoice for Rs 1,000 for goods sold on credit to B. Basu was entered in the Purchases
Book but in the Ledge, the amount was correctly debited to the account of B. Basu.
2.) Goods bought on credit from Ram Lal for Rs 1,500 were wrongly debited to his account as Rs
5,100
3.) An amount of Rs 275 was posted as Rs 325 to the debit side of the Commission Account.
4.) The Sales Book for the month of April was undercast by Rs 100.
5.) Rs 460 paid for building repairs was debited to the Building Account as Rs 640.

Answer 47:

Below Are the Rectification Entries:-

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Question 48: The bookkeeper of a firm found that his Trial Balance was out (excess credit) by Rs.
742. He placed the amount in a Suspense Account and subsequently found the following errors.

(i) A discount of Rs. 178 was allowed to Ramesh but in his account only Rs. 100 is recorded.

(ii) The total of the Purchases Book was Rs. 1,000 short.

(iii) A sale of Rs. 375 to Kohli was entered in the Sales Book as Rs. 738.

(iv) From the Purchases Book, Bose’s Account was debited with Rs.175.

(v) Cash Rs. 250 received from Maitra against debt previously written off was credited to his
account.

(vi) Purchase of office furniture worth Rs. 750 on credit from Delhi Furniture’s was entered in the
Purchases Book.

(vii) While carrying forward the total of the Sales Book from one page to another the amount of Rs.
11,358 was written as Rs. 11,538.

(viii) The proprietor took goods of the value of Rs. 150 for his domestic consumption. No record of it
has been made in the books.
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(ix) Repairs bill of Rs. 410 for the proprietor’s personal car, has been paid by the firm and debited
to the Repairs Account.

(x) A sale to Kassim of Rs. 700 has been entered in the Purchases Book.

Rectify the errors by means of suitable Journal entries and show the Suspense Account.

Answer 48:
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