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Rectification of Error

This document contains instructions for rectifying various accounting errors by passing journal entries, with or without using a suspense account. It provides examples of different types of errors like incorrect totals in books, wrong postings between accounts, missing or incorrect entries. The errors range from simple errors like wrong totals or amounts to more complex errors involving multiple compensating errors or incorrect entries across different books. Rectification of errors involves identifying the nature of each error and passing the correcting journal entry to balance the books. A suspense account may be used to initially record the difference arising due to unrectified errors.

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HARDIK SINGHVI
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418 views2 pages

Rectification of Error

This document contains instructions for rectifying various accounting errors by passing journal entries, with or without using a suspense account. It provides examples of different types of errors like incorrect totals in books, wrong postings between accounts, missing or incorrect entries. The errors range from simple errors like wrong totals or amounts to more complex errors involving multiple compensating errors or incorrect entries across different books. Rectification of errors involves identifying the nature of each error and passing the correcting journal entry to balance the books. A suspense account may be used to initially record the difference arising due to unrectified errors.

Uploaded by

HARDIK SINGHVI
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Rectification of Errors

1. Rectify the following errors without opening suspense A/c:


(i) The total of purchase book carried forward ` 45 less on page 15 and `54 more on page 18.
(ii) Discount allowed by Shyam for ` 750 debited to discount A/c by ` 570.
(iii) A credit sale of ` 6,800 debited to personal A/c by ` 8,600.
(iv) The total of return inward book has been added ` 200 short

2. Rectify the following entries and prepare Suspense A/c:


(i) Paid commission `275 to Ram has been recorded in Cash Book correctly but
posted to credit of commission A/c as `375.
(ii) `750 paid for repair of building was debited to Building A/c as `570.
(iii) Bought goods from Karan `2,000 recorded in Purchases Book but omitted to be
posed to his account.
(iv) Bought goods from Hari `3,200 has been debited to Hari as `2,300.
(iv) Purchases Return was carried forward as `540 instead of `450.

3. Rajesh Kumar was unable to reconcile his Trial Balance as on 31st March 2018 and has
opened a suspense account from the difference. Later on the following errors were
discovered:-
(1) There were three compensating errors:-
(a) The total of Sales Return Book was overcast by ` 100.
(b) The total of one page of the Purchase Book was carried forward as `1,286 instead of
`1,826.
(c) Goods purchased from C for `400 was debited to his account as ` 40.
(2) `425 paid for wages to workmen for making office table were debited to wages account.
(3) Rent paid `1,500 were posted to the credit of Rent account as ` 150.
(4) Cash received from Ghanshyam ` 500 were correctly recorded in cash book but were
posted to his account as ` 50.
(5) `720 paid to Kamal has been debited to Kamlesh A/c as ` 520.
(6) The total of Purchase Return Book `2,500 was left
unposted.
Pass rectifying entries and prepare Suspense A/c.

4. Rectify the following errors assuming that a suspense account was opened. Ascertain the
difference in trial balance.

I. Credit sales to Mohan ` 7,000 were posted to the credit of his account.
II. Credit purchases from Rohan ` 9,000 were posted to the debit of his account as `6,000.
III. Goods returned to Rakesh ` 4,000 were posted to the credit of his account.
IV. Goods returned from Mahesh `1,000 were posted to the debit of his account as Rs.
2,000.
V. Cash sales ` 2,000 were posted to the debit of sales account as ` 5,000.

5. Pass rectify journal entries for following errors


(i) Material from Store of ` 2200 and wages ` 800(out of the total wages) had been used in
construction of factory building but no adjustments were made in the books.
(ii) A credit Sale of ` 1,200 to Ramesh has been wrongly passed through the Purchases Book
with ` 120 and from there Ramesh’s A/c was debited by ` 12.
(iii) A Bill which was received from Mohit regarding repair of machinery of ` 2,000 and a
new machine of ` 50,000 which was also purchased from mohit wrongly recorded in
purchase book by ` 35,000.

6. Pass rectify journal entries for following errors and prepare Suspense A/c:
i) Goods purchased from Rajpal for ` 350 recorded in sales book and credited to his
account as ` 530.
ii) A Cheque of ` 2,000 which was received from Narendra has been dishonoured and
debited to Discount A/c by ` 200.
iii) ` 780, paid for freight on machinery purchased was debited to Freight Account as ` 708.
iv) A sale of old machine costing ` 6,000 at ` 3,500 to Mohit was recorded in Sales book.

7. Pass the entries to rectify the following errors –


(i) A credit sale of goods of Rs. 120 to Ramesh has been wrongly passes through the
purchase book.
(ii) The total of sales return book of Rs. 1,000 has been passed to the debit of the
purchase return a/c
(iii) A discount of Rs. 750 allowed to a customer has been credited to him as Rs. 570.
(iv) Unexpired insurance Rs. 500 has not been taken into accounts while preparing
profit and loss account.
(v) Wages of Rs. 2,000 paid for the construction of office furniture was debited to
wages account by Rs. 200.
(vi) Cash received from Gokul Rs. 500 was debited to his account.

8. Give the journal entries to rectify the following errors-


(i) Sundry items of the plant sold for Rs. 260 had been entered in the sales book,
the total of which book had been posted to sales a/c.
(ii) Cash purchases from Ajay Rs. 180 were recorded in cash book as well as in
purchase book and posted from both.
(iii) Rs. 7,500 was outstanding on account of wages but not recorded.
(iv)Rs. 3,000 spent on current repairs of plant and machinery was capitalized
(v) Sales return book balance of Rs. 210 was not included in the accounts.
(vi) A sale of Rs. 430 to Ramdas was credited in his account as Rs. 340.

9. Pass Rectify Journal entries for following erros:


(i) Sold goods to Ramesh of Rs. 12,500 recorded in Purchase Book by Rs. 21,500 and
from there it was debited to Ramesh’s A/c by ` 51,200.
(ii) Sold furniture to Mohit at Rs. 12,000 (Book Value of Rs. 15,000) recorded in
Sales Book by Rs. 21,000 and from there posted to Mohit’s A/c by Rs, 2,100.
(iii) Goods of Rs. 3,500 returned by Rakesh recorded in Sales book and credited to
Rakesh’s A/c by Rs. 35,000.
(iv) A Bill Receivable of Rs. 13,000 which was discounted from Bank earlier now
dishonoured and noting charges of Rs. 500 were paid by bank debited to Bank
Charges A/c.
(v) Purchased a Machine of Rs. 15,000 from X and Paid installation charges of Rs.
1,000 to Y recorded in invoice book by Rs. 16,000 and from there credited to Z’s
A/c by Rs. 1,600.

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