Class 11 Accountancy Financial Accounting I Chapter 6

NCERT Solutions for Class 11 Accountancy Financial Accounting I Chapter 6: Trial Balance and Rectification of Errors

Class	Subject	Book	Chapter	Session	Questions covered
XI	Accountancy	Financial Accounting I (NCERT)	6 – Trial Balance and Rectification of Errors	2026-27	42 of 42

Chapter at a glance

Idea	Key point
Trial balance	Statement of ledger balances (or totals) on a date; debit total = credit total if posting is arithmetically correct
Methods	Balance method (most common), totals method, totals-cum-balances method
Errors of commission	Wrong amount, wrong side, wrong account of the same class, wrong casting / carry forward
Errors of omission	Complete (not recorded at all) or partial (one side not posted)
Errors of principle	Capital and revenue items confused, e.g. furniture debited to purchases
Compensating errors	Two or more errors cancelling each other’s effect
One-sided errors	Affect only one account → trial balance disagrees → rectified through Suspense A/c
Two-sided errors	Affect two accounts equally → trial balance agrees → rectified by a journal entry between the two accounts

Method used below: for each error compare the wrong posting with the correct posting. The rectifying entry reverses the wrong effect and records the correct one; if the debits and credits of the correction are unequal, the difference goes to the Suspense Account.

Test Your Understanding

Question TYU – I

Indicate against each amount whether it is a debit or a credit balance, and prepare a trial balance as at March 31, 2014 based on the following balances: Capital ₹ 1,00,000; Drawings ₹ 16,000; Machinery ₹ 20,000; Sales ₹ 2,00,000; Purchases ₹ 2,10,000; Sales return ₹ 20,000; Purchases return ₹ 30,000; Wages ₹ 40,000; Goodwill ₹ 60,000; Interest received ₹ 15,000; Discount allowed ₹ 6,000; Bank overdraft ₹ 22,000; Bank loan ₹ 90,000; Debtors: Nathu ₹ 55,000, Roopa ₹ 20,000; Creditors: Reena ₹ 35,000, Ganesh ₹ 25,000; Cash ₹ 54,000; Stock on April 01, 2013 ₹ 16,000

Answer

Trial Balance as at March 31, 2014

Account	Dr / Cr	Debit (₹)	Credit (₹)
Capital	Cr		1,00,000
Drawings	Dr	16,000
Machinery	Dr	20,000
Sales	Cr		2,00,000
Purchases	Dr	2,10,000
Sales return	Dr	20,000
Purchases return	Cr		30,000
Wages	Dr	40,000
Goodwill	Dr	60,000
Interest received	Cr		15,000
Discount allowed	Dr	6,000
Bank overdraft	Cr		22,000
Bank loan	Cr		90,000
Debtors: Nathu	Dr	55,000
Debtors: Roopa	Dr	20,000
Creditors: Reena	Cr		35,000
Creditors: Ganesh	Cr		25,000
Cash	Dr	54,000
Stock on April 01, 2013	Dr	16,000
Total		5,17,000	5,17,000

Assets, expenses, losses and drawings have debit balances; capital, liabilities, incomes and gains have credit balances.

Question TYU – II

Record the rectification entry for the following transactions (state the type of error, the wrong entry, the correct entry and the rectification entry):
1. Credit sales to Rajni ₹ 5,000 recorded in Purchases book.
2. Furniture purchased from M/s Rao Furnishings for ₹ 8,000 was entered into the purchases book.
3. Cash sales to Radhika ₹ 15,000 was shown as receipt of commission in the cash book.
4. Cash received from Karim ₹ 6,000 posted to Nadeem.

Answer

No.	Type of error	Wrong entry made	Correct entry	Rectification entry
1	Commission (wrong book)	Purchases Dr ₹ 5,000 To Rajni ₹ 5,000	Rajni Dr ₹ 5,000 To Sales ₹ 5,000	Rajni Dr ₹ 10,000 To Purchases ₹ 5,000, To Sales ₹ 5,000
2	Principle	Purchases Dr ₹ 8,000 To Rao Furnishings ₹ 8,000	Furniture Dr ₹ 8,000 To Rao Furnishings ₹ 8,000	Furniture Dr ₹ 8,000 To Purchases ₹ 8,000
3	Commission (wrong account)	Cash Dr ₹ 15,000 To Commission ₹ 15,000	Cash Dr ₹ 15,000 To Sales ₹ 15,000	Commission Dr ₹ 15,000 To Sales ₹ 15,000
4	Commission (wrong personal account)	Cash Dr ₹ 6,000 To Nadeem ₹ 6,000	Cash Dr ₹ 6,000 To Karim ₹ 6,000	Nadeem Dr ₹ 6,000 To Karim ₹ 6,000

All four are two-sided errors, so no Suspense Account is needed.

Question TYU – III

Show the effect through Journal entries (type of error, wrong effect, correct effect, rectification entry):
1. Credit sales to Mohan ₹ 10,000 were posted to his account as ₹ 12,000.
2. Cash paid to Neha ₹ 2,000 was not posted to her account.
3. Sales returns from Megha ₹ 1,600 were posted to her account as ₹ 1,000.
4. Depreciation written off on furniture ₹ 1,500 was not posted to depreciation account.

Answer

No.	Type of error	Wrong effect	Correct effect	Rectification entry
1	Commission (wrong amount, one side)	Mohan Dr ₹ 12,000; Sales Cr ₹ 10,000	Mohan Dr ₹ 10,000; Sales Cr ₹ 10,000	Suspense Dr ₹ 2,000 To Mohan ₹ 2,000
2	Partial omission	Neha not debited; Cash Cr ₹ 2,000	Neha Dr ₹ 2,000; Cash Cr ₹ 2,000	Neha Dr ₹ 2,000 To Suspense ₹ 2,000
3	Commission (wrong amount, one side)	Sales Returns Dr ₹ 1,600; Megha Cr ₹ 1,000	Sales Returns Dr ₹ 1,600; Megha Cr ₹ 1,600	Suspense Dr ₹ 600 To Megha ₹ 600
4	Partial omission	Depreciation not debited; Furniture Cr ₹ 1,500	Depreciation Dr ₹ 1,500; Furniture Cr ₹ 1,500	Depreciation Dr ₹ 1,500 To Suspense ₹ 1,500

Question TYU – IV

Tick the Correct Answer
(1) Agreement of trial balance is affected by: (a) One sided errors only. (b) Two sided errors only. (c) Both (a) and (b). (d) None of the above.
(2) Which of the following is not an error of principle: (a) Purchase of furniture debited to purchases account. (b) Repairs on the overhauling of second hand machinery purchased debited to repairs account. (c) Cash received from Manoj posted to Saroj. (d) Sale of old car credited to sales account.
(3) Which of the following is not an error of commission: (a) Overcasting of sales book. (b) Credit sales to Ramesh ₹ 5,000 credited to his account. (c) Wrong balancing of machinery account. (d) Cash sales not recorded in cash book.
(4) Which of following errors will be rectified through suspense account: (a) Sales return book undercast by ₹ 1,000. (b) Sales return by Madhu ₹ 1,000 not recorded. (c) Sales return by Madhu ₹ 1,000 recorded as ₹ 100. (d) Sales return by Madhu ₹ 1,000 recorded through purchases returns book
(5) If the trial balance agrees, it implies that: (a) There is no error in the books. (b) There may be two sided errors in the book. (c) There may be one sided error in the books. (d) There may be both two sided and one sided errors in the books.
(6) If suspense account does not balance off even after rectification of errors it implies that: (a) There are some one sided errors only in the books yet to be located. (b) There are no more errors yet to be located. (c) There are some two sided errors only yet to be located. (d) There may be both one sided errors and two sided errors yet to be located.
(7) If wages paid for installation of new machinery is debited to wages Account, it is: (a) An error of commission. (b) An error of principle. (c) A compensating error. (d) An error of omission.
(8) Trial balance is: (a) An account. (b) A statement. (c) A subsidiary book. (d) A principal book.
(9) A Trial balance is prepared: (a) After preparation financial statement. (b) After recording transactions in subsidiary books. (c) After posting to ledger is complete. (d) After posting to ledger is complete and accounts have been balanced.

Answer

Q	1	2	3	4	5	6	7	8	9
Answer	(a)*	(c)	(d)	(a)	(b)	(a)	(b)	(b)	(d)

*Only one-sided errors affect the agreement of the trial balance, so (a) is the logically correct choice; the textbook key prints (c).

Questions for Practice – Short Answers

Question SA – Q1

State the meaning of a trial balance?

Answer

A trial balance is a statement prepared at a particular date showing the debit and credit balances (or totals) of all ledger accounts, including cash and bank balances. If the total of debit balances equals the total of credit balances, it is taken as a check on the arithmetical accuracy of the posting and balancing. It is also the basis for preparing financial statements.

Question SA – Q2

Give two examples of errors of principle?

Answer

Purchase of furniture for office debited to Purchases Account (capital expenditure treated as revenue).
Wages paid for installation of a new machine debited to Wages Account instead of Machinery Account.

(Others: sale of old machinery credited to Sales Account; repairs on a newly bought second-hand machine debited to Repairs Account.)

Question SA – Q3

Give two examples of errors of commission?

Answer

Credit sale of ₹ 5,000 to Ramesh posted to his account as ₹ 500 (wrong amount).
Cash received from Kohli posted to the account of Kapur (wrong account of the same class).

(Others: posting to the wrong side, overcasting the sales book, wrong balancing of an account.)

Question SA – Q4

What are the methods of preparing trial balance?

Answer

Totals method — the totals of the debit and credit sides of each account are shown.
Balances method — only the balance (debit or credit) of each account is shown; most widely used.
Totals-cum-balances method — both totals and balances are shown in four columns.

Question SA – Q5

What are the steps taken by an accountant to locate the errors in the trial balance?

Answer

Re-total the trial balance columns.
Check that every ledger balance is included, in the correct column and with the correct amount.
Re-check the balancing of each ledger account.
Re-total the subsidiary books and check the posting of their totals.
If the difference is divisible by 2, look for an amount equal to half the difference posted on the wrong side; if divisible by 9, look for transposition of digits (e.g. 56 written as 65).
Check postings from the journal and subsidiary books to the ledger item by item.
If still not found, transfer the difference to a Suspense Account.

Question SA – Q6

What is a suspense account? Is it necessary that suspense account will balance off after rectification of the errors detected by the accountant? If not, then what happens to the balance still remaining in suspense account?

Answer

A suspense account is a temporary account opened to put the difference in the trial balance so that it can be made to agree and financial statements prepared, until the errors are located.

It is not necessary that it will balance off: only the errors located are rectified through it. If some one-sided errors are still undetected, a balance remains. This balance is carried forward to the next year and shown in the balance sheet — a debit balance on the assets side and a credit balance on the liabilities side — until the remaining errors are found and rectified.

Question SA – Q7

What kinds of errors would cause difference in the trial balance. Also list examples that would not be revealed by a trial balance?

Answer

Errors causing a difference (one-sided errors): wrong casting of subsidiary books or accounts; posting to the wrong side; posting a wrong amount to one account; omission to post one side; wrong balancing; omission of a balance from the trial balance; wrong carry forward.

Errors not revealed (two-sided): complete omission of a transaction; recording a wrong amount in the book of original entry; posting to the correct side of a wrong account (e.g. Kohli for Kapur); errors of principle; compensating errors.

Question SA – Q8

State the limitations of trial balance?

Answer

Agreement does not prove that the books are free from errors.
Errors of complete omission, principle, compensating errors and wrong-account postings are not revealed.
It shows only the arithmetical accuracy of posting.
It does not show the financial position or profit by itself.
Accounts with zero balance are not shown.

Questions for Practice – Long Answers

Question LA – Q1

Describe the purpose for the preparation of trial balance.

Answer

Checking arithmetical accuracy — equality of debit and credit totals shows that posting and balancing are arithmetically correct.
Locating errors — disagreement signals errors, which can then be traced.
Summary of ledger — it lists all account balances in one place, giving a summarised view of the ledger.
Basis for financial statements — the Trading and Profit & Loss Account and the Balance Sheet are prepared from it.
Help in adjustments — it is used as a working paper for year-end adjustments.

Question LA – Q2

Explain errors of principle and give two examples with measures to rectify them.

Answer

An error of principle arises when a transaction is recorded in violation of accounting principles, usually by treating capital expenditure as revenue expenditure or vice versa. The trial balance still agrees because the debit and credit are both recorded.

Examples and rectification

Office furniture bought for ₹ 10,000 debited to Purchases Account. Rectification: Furniture A/c Dr ₹ 10,000 To Purchases A/c ₹ 10,000.
Sale of old machinery for ₹ 3,000 credited to Sales Account. Rectification: Sales A/c Dr ₹ 3,000 To Machinery A/c ₹ 3,000.

Question LA – Q3

Explain the errors of commission and give two examples with measures to rectify them.

Answer

Errors of commission are clerical mistakes made while recording or posting — wrong amount, wrong side, wrong account of the same class, wrong casting or carry forward. Some affect the trial balance (one-sided), others do not.

Examples

Cash received from Kohli ₹ 2,000 posted to Kapur’s account (two-sided). Rectification: Kapur A/c Dr ₹ 2,000 To Kohli A/c ₹ 2,000.
Credit sales to Mohan ₹ 7,000 posted to his account as ₹ 9,000 (one-sided). Rectification: Suspense A/c Dr ₹ 2,000 To Mohan A/c ₹ 2,000.

Question LA – Q4

What are the different types of errors that are usually committed in recording business transaction.

Answer

Type	Meaning	Example	Effect on TB
Errors of commission	Wrong amount, side, account, casting, carry forward	Sales to Mohan posted as ₹ 700 for ₹ 7,000	Usually affected
Errors of omission	Complete omission or partial omission	Purchase not recorded at all / not posted to supplier	Complete: no; partial: yes
Errors of principle	Violation of accounting principles	Furniture debited to Purchases	Not affected
Compensating errors	Errors that cancel each other	Sales book overcast ₹ 100 and wages overcast ₹ 100	Not affected

Question LA – Q5

As an accountant of a company, you are disappointed to learn that the totals in your new trial balance are not equal. After going through a careful analysis, you have discovered only one error. Specifically, the balance of the Office Equipment account has a debit balance of ₹ 15,600 on the trial balance. However, you have figured out that a correctly recorded credit purchase of pendrive for ₹ 3,500 was posted from the journal to the ledger with a ₹ 3,500 debit to Office Equipment and another ₹ 3,500 debit to creditors accounts. Answer each of the following questions and present the amount of any misstatement: (a) Is the balance of the office equipment account overstated, understated, or correctly stated in the trial balance? (b) Is the balance of the creditors account overstated, understated, or correctly stated in the trial balance? (c) Is the debit column total of the trial balance overstated, understated, or correctly stated? (d) Is the credit column total of the trial balance overstated, understated, or correctly stated? (e) If the debit column total of the trial balance is ₹ 2,40,000 before correcting the error, what is the total of credit column.

Answer

A pendrive is a small consumable item, but the journal entry was correctly recorded as Office Equipment Dr ₹ 3,500 To Creditors ₹ 3,500. The posting error is that Creditors was debited instead of credited.

Part	Answer
(a) Office equipment	Correctly stated — the debit of ₹ 3,500 is right, so ₹ 15,600 is correct
(b) Creditors	Understated by ₹ 7,000 — instead of a ₹ 3,500 credit there is a ₹ 3,500 debit
(c) Debit total	Correctly stated in terms of debit balances (the creditors’ balance is still a credit balance, now ₹ 7,000 smaller)
(d) Credit total	Understated by ₹ 7,000
(e) Credit total	₹ 2,40,000 – ₹ 7,000 = ₹ 2,33,000

Rectification: Suspense A/c Dr ₹ 7,000 To Creditors A/c ₹ 7,000.

Correct (b) Understated by ₹ 7,000 (c) Correct (d) Understated by ₹ 7,000 (e) ₹ 2,33,000

Questions for Practice – Numerical Questions

Question Num – Q1

Rectify the following errors: (i) Credit sales to Mohan ₹ 7,000 were not recorded. (ii) Credit purchases from Rohan ₹ 9,000 were not recorded. (iii) Goods returned to Rakesh ₹ 4,000 were not recorded. (iv) Goods returned from Mahesh ₹ 1,000 were not recorded.

Answer

Rectifying entries

Date	Particulars	Dr. (₹)	Cr. (₹)
(i)	Mohan A/c …Dr.	7,000
	To Sales A/c		7,000
	(Credit sales omitted, now recorded)
(ii)	Purchases A/c …Dr.	9,000
	To Rohan A/c		9,000
	(Credit purchases omitted, now recorded)
(iii)	Rakesh A/c …Dr.	4,000
	To Purchases Returns A/c		4,000
	(Return outwards omitted, now recorded)
(iv)	Sales Returns A/c …Dr.	1,000
	To Mahesh A/c		1,000
	(Return inwards omitted, now recorded)
	Total	21,000	21,000

Question Num – Q2

Rectify the following errors: (i) Credit sales to Mohan ₹ 7,000 were recorded as ₹ 700. (ii) Credit purchases from Rohan ₹ 9,000 were recorded as ₹ 900. (iii) Goods returned to Rakesh ₹ 4,000 were recorded as ₹ 400. (iv) Goods returned from Mahesh ₹ 1,000 were recorded as ₹ 100.

Answer

Rectifying entries

Date	Particulars	Dr. (₹)	Cr. (₹)
(i)	Mohan A/c …Dr.	6,300
	To Sales A/c		6,300
	(Short recording of credit sales corrected)
(ii)	Purchases A/c …Dr.	8,100
	To Rohan A/c		8,100
	(Short recording of credit purchases corrected)
(iii)	Rakesh A/c …Dr.	3,600
	To Purchases Returns A/c		3,600
	(Short recording of returns corrected)
(iv)	Sales Returns A/c …Dr.	900
	To Mahesh A/c		900
	(Short recording of returns corrected)
	Total	18,900	18,900

Question Num – Q3

Rectify the following errors: (i) Credit sales to Mohan ₹ 7,000 were recorded as ₹ 7,200. (ii) Credit purchases from Rohan ₹ 9,000 were recorded as ₹ 9,900. (iii) Goods returned to Rakesh ₹ 4,000 were recorded as ₹ 4,040. (iv) Goods returned from Mahesh ₹ 1,000 were recorded as ₹ 1,600.

Answer

Rectifying entries

Date	Particulars	Dr. (₹)	Cr. (₹)
(i)	Sales A/c …Dr.	200
	To Mohan A/c		200
	(Excess recording of sales corrected)
(ii)	Rohan A/c …Dr.	900
	To Purchases A/c		900
	(Excess recording of purchases corrected)
(iii)	Purchases Returns A/c …Dr.	40
	To Rakesh A/c		40
	(Excess recording of returns corrected)
(iv)	Mahesh A/c …Dr.	600
	To Sales Returns A/c		600
	(Excess recording of returns corrected)
	Total	1,740	1,740

Question Num – Q4

Rectify the following errors: (a) Salary paid ₹ 5,000 was debited to employee’s personal account. (b) Rent Paid ₹ 4,000 was posted to landlord’s personal account. (c) Goods withdrawn by proprietor for personal use ₹ 1,000 were debited to sundry expenses account. (d) Cash received from Kohli ₹ 2,000 was posted to Kapur’s account. (e) Cash paid to Babu ₹ 1,500 was posted to Sabu’s account.

Answer

Rectifying entries

Date	Particulars	Dr. (₹)	Cr. (₹)
(a)	Salary A/c …Dr.	5,000
	To Employee A/c		5,000
	(Salary wrongly debited to employee’s account)
(b)	Rent A/c …Dr.	4,000
	To Landlord A/c		4,000
	(Rent wrongly debited to landlord’s account)
(c)	Drawings A/c …Dr.	1,000
	To Sundry Expenses A/c		1,000
	(Goods for personal use wrongly debited to sundry expenses)
(d)	Kapur A/c …Dr.	2,000
	To Kohli A/c		2,000
	(Cash from Kohli wrongly credited to Kapur)
(e)	Babu A/c …Dr.	1,500
	To Sabu A/c		1,500
	(Cash paid to Babu wrongly debited to Sabu)
	Total	13,500	13,500

Question Num – Q5

Rectify the following errors: (a) Credit Sales to Mohan ₹ 7,000 were recorded in purchases book. (b) Credit Purchases from Rohan ₹ 9,000 were recorded in sales book. (c) Goods returned to Rakesh ₹ 4,000 were recorded in the sales return book. (d) Goods returned from Mahesh ₹ 1,000 were recorded in purchases return book. (e) Goods returned from Nahesh ₹ 2,000 were recorded in purchases book.

Answer

In (b) the amount is read as ₹ 9,000 (printed “₹ 9,00”).

Rectifying entries

Date	Particulars	Dr. (₹)	Cr. (₹)
(a)	Mohan A/c …Dr.	14,000
	To Sales A/c		7,000
	To Purchases A/c		7,000
	(Credit sales wrongly recorded in purchases book)
(b)	Purchases A/c …Dr.	9,000
	Sales A/c …Dr.	9,000
	To Rohan A/c		18,000
	(Credit purchases wrongly recorded in sales book)
(c)	Rakesh A/c …Dr.	8,000
	To Purchases Returns A/c		4,000
	To Sales Returns A/c		4,000
	(Return outwards wrongly recorded in sales return book)
(d)	Sales Returns A/c …Dr.	1,000
	Purchases Returns A/c …Dr.	1,000
	To Mahesh A/c		2,000
	(Return inwards wrongly recorded in purchases return book)
(e)	Sales Returns A/c …Dr.	2,000
	To Purchases A/c		2,000
	(Return inwards wrongly recorded in purchases book)
	Total	44,000	44,000

Question Num – Q6

Rectify the following errors: (a) Sales book overcast by ₹ 700. (b) Purchases book overcast by ₹ 500. (c) Sales return book overcast by ₹ 300. (d) Purchase return book overcast by ₹ 200.

Answer

Casting errors affect only the nominal account receiving the total, so the Suspense Account is used.

Rectifying entries

Date	Particulars	Dr. (₹)	Cr. (₹)
(a)	Sales A/c …Dr.	700
	To Suspense A/c		700
	(Sales book overcast)
(b)	Suspense A/c …Dr.	500
	To Purchases A/c		500
	(Purchases book overcast)
(c)	Suspense A/c …Dr.	300
	To Sales Returns A/c		300
	(Sales return book overcast)
(d)	Purchases Returns A/c …Dr.	200
	To Suspense A/c		200
	(Purchases return book overcast)
	Total	1,700	1,700

Question Num – Q7

Rectify the following errors: (a) Sales book undercast by ₹ 300. (b) Purchases book undercast by ₹ 400. (c) Return Inwards book undercast by ₹ 200. (d) Return outwards book undercast by ₹ 100.

Answer

Rectifying entries

Date	Particulars	Dr. (₹)	Cr. (₹)
(a)	Suspense A/c …Dr.	300
	To Sales A/c		300
	(Sales book undercast)
(b)	Purchases A/c …Dr.	400
	To Suspense A/c		400
	(Purchases book undercast)
(c)	Sales Returns A/c …Dr.	200
	To Suspense A/c		200
	(Return inwards book undercast)
(d)	Suspense A/c …Dr.	100
	To Purchases Returns A/c		100
	(Return outwards book undercast)
	Total	1,000	1,000

Question Num – Q8

Rectify the following errors and ascertain the amount of difference in trial balance by preparing suspense account: (a) Credit sales to Mohan ₹ 7,000 were not posted. (b) Credit purchases from Rohan ₹ 9,000 were not posted. (c) Goods returned to Rakesh ₹ 4,000 were not posted. (d) Goods returned from Mahesh ₹ 1,000 were not posted. (e) Cash paid to Ganesh ₹ 3,000 was not posted. (f) Cash sales ₹ 2,000 were not posted.

Answer

The book totals are taken as posted correctly; only the personal account (or Sales account for cash sales) was not posted.

Rectifying entries

Date	Particulars	Dr. (₹)	Cr. (₹)
(a)	Mohan A/c …Dr.	7,000
	To Suspense A/c		7,000
	(Not posted to Mohan’s account)
(b)	Suspense A/c …Dr.	9,000
	To Rohan A/c		9,000
	(Not posted to Rohan’s account)
(c)	Rakesh A/c …Dr.	4,000
	To Suspense A/c		4,000
	(Not posted to Rakesh’s account)
(d)	Suspense A/c …Dr.	1,000
	To Mahesh A/c		1,000
	(Not posted to Mahesh’s account)
(e)	Ganesh A/c …Dr.	3,000
	To Suspense A/c		3,000
	(Not posted to Ganesh’s account)
(f)	Suspense A/c …Dr.	2,000
	To Sales A/c		2,000
	(Cash sales not posted to Sales account)
	Total	26,000	26,000

Suspense Account

Particulars	₹	Particulars	₹
To Difference in Trial Balance	2,000	(a) By Mohan	7,000
(b) To Rohan	9,000	(c) By Rakesh	4,000
(d) To Mahesh	1,000	(e) By Ganesh	3,000
(f) To Sales	2,000
	14,000		14,000

Debit balance of ₹ 2,000 in the Suspense Account: the trial balance showed an excess credit of ₹ 2,000.

Question Num – Q9

Rectify the following errors and ascertain the amount of difference in trial balance by preparing suspense account: (a) Credit sales to Mohan ₹ 7,000 were posted as ₹ 9,000. (b) Credit purchases from Rohan ₹ 9,000 were posted as ₹ 6,000. (c) Goods returned to Rakesh ₹ 4,000 were posted as ₹ 5,000. (d) Goods returned from Mahesh ₹ 1,000 were posted as ₹ 3,000. (e) Cash sales ₹ 2,000 were posted as ₹ 200.

Answer

Rectifying entries

Date	Particulars	Dr. (₹)	Cr. (₹)
(a)	Suspense A/c …Dr.	2,000
	To Mohan A/c		2,000
	(Excess debit to Mohan)
(b)	Suspense A/c …Dr.	3,000
	To Rohan A/c		3,000
	(Short credit to Rohan)
(c)	Suspense A/c …Dr.	1,000
	To Rakesh A/c		1,000
	(Excess debit to Rakesh)
(d)	Mahesh A/c …Dr.	2,000
	To Suspense A/c		2,000
	(Excess credit to Mahesh)
(e)	Suspense A/c …Dr.	1,800
	To Sales A/c		1,800
	(Short credit to Sales)
	Total	9,800	9,800

Suspense Account

Particulars	₹	Particulars	₹
(a) To Mohan	2,000	By Difference in Trial Balance	5,800
(b) To Rohan	3,000	(d) By Mahesh	2,000
(c) To Rakesh	1,000
(e) To Sales	1,800
	7,800		7,800

Credit balance of ₹ 5,800 in the Suspense Account: the trial balance showed an excess debit of ₹ 5,800.

Question Num – Q10

Rectify the following errors: (a) Credit sales to Mohan ₹ 7,000 were posted to Karan. (b) Credit purchases from Rohan ₹ 9,000 were posted to Gobind. (c) Goods returned to Rakesh ₹ 4,000 were posted to Naresh. (d) Goods returned from Mahesh ₹ 1,000 were posted to Manish. (e) Cash sales ₹ 2,000 were posted to commission account.

Answer

Rectifying entries

Date	Particulars	Dr. (₹)	Cr. (₹)
(a)	Mohan A/c …Dr.	7,000
	To Karan A/c		7,000
	(Posted to Karan instead of Mohan)
(b)	Gobind A/c …Dr.	9,000
	To Rohan A/c		9,000
	(Posted to Gobind instead of Rohan)
(c)	Rakesh A/c …Dr.	4,000
	To Naresh A/c		4,000
	(Posted to Naresh instead of Rakesh)
(d)	Manish A/c …Dr.	1,000
	To Mahesh A/c		1,000
	(Posted to Manish instead of Mahesh)
(e)	Commission A/c …Dr.	2,000
	To Sales A/c		2,000
	(Cash sales credited to commission)
	Total	23,000	23,000

Question Num – Q11

Rectify the following errors assuming that a suspense account was opened. Ascertain the difference in trial balance. (a) Credit sales to Mohan ₹ 7,000 were posted to the credit of his account. (b) Credit purchases from Rohan ₹ 9,000 were posted to the debit of his account as ₹ 6,000. (c) Goods returned to Rakesh ₹ 4,000 were posted to the credit of his account. (d) Goods returned from Mahesh ₹ 1,000 were posted to the debit of his account as ₹ 2,000. (e) Cash sales ₹ 2,000 were posted to the debit of sales account as ₹ 5,000.

Answer

Rectifying entries

Date	Particulars	Dr. (₹)	Cr. (₹)
(a)	Mohan A/c …Dr.	14,000
	To Suspense A/c		14,000
	(Posted to wrong side)
(b)	Suspense A/c …Dr.	15,000
	To Rohan A/c		15,000
	(Posted to wrong side with wrong amount)
(c)	Rakesh A/c …Dr.	8,000
	To Suspense A/c		8,000
	(Posted to wrong side)
(d)	Suspense A/c …Dr.	3,000
	To Mahesh A/c		3,000
	(Posted to wrong side with wrong amount)
(e)	Suspense A/c …Dr.	7,000
	To Sales A/c		7,000
	(Posted to wrong side with wrong amount)
	Total	47,000	47,000

Suspense Account

Particulars	₹	Particulars	₹
(b) To Rohan	15,000	By Difference in Trial Balance	3,000
(d) To Mahesh	3,000	(a) By Mohan	14,000
(e) To Sales	7,000	(c) By Rakesh	8,000
	25,000		25,000

Credit balance of ₹ 3,000 in the Suspense Account: the trial balance showed an excess debit of ₹ 3,000.

Question Num – Q12

Rectify the following errors assuming that a suspense account was opened. Ascertain the difference in trial balance. (a) Credit sales to Mohan ₹ 7,000 were posted to Karan as ₹ 5,000. (b) Credit purchases from Rohan ₹ 9,000 were posted to the debit of Gobind as ₹ 10,000. (c) Goods returned to Rakesh ₹ 4,000 were posted to the credit of Naresh as ₹ 3,000. (d) Goods returned from Mahesh ₹ 1,000 were posted to the debit of Manish as ₹ 2,000. (e) Cash sales ₹ 2,000 were posted to commission account as ₹ 200.

Answer

Rectifying entries

Date	Particulars	Dr. (₹)	Cr. (₹)
(a)	Mohan A/c …Dr.	7,000
	To Karan A/c		5,000
	To Suspense A/c		2,000
	(Wrong account and amount)
(b)	Suspense A/c …Dr.	19,000
	To Rohan A/c		9,000
	To Gobind A/c		10,000
	(Wrong account, side and amount)
(c)	Rakesh A/c …Dr.	4,000
	Naresh A/c …Dr.	3,000
	To Suspense A/c		7,000
	(Wrong account, side and amount)
(d)	Suspense A/c …Dr.	3,000
	To Mahesh A/c		1,000
	To Manish A/c		2,000
	(Wrong account, side and amount)
(e)	Commission A/c …Dr.	200
	Suspense A/c …Dr.	1,800
	To Sales A/c		2,000
	(Wrong account and amount)
	Total	38,000	38,000

Suspense Account

Particulars	₹	Particulars	₹
(b) To Rohan / Gobind	19,000	By Difference in Trial Balance	14,800
(d) To Mahesh / Manish	3,000	(a) By Mohan	2,000
(e) To Sales	1,800	(c) By Rakesh / Naresh	7,000
	23,800		23,800

Credit balance of ₹ 14,800 in the Suspense Account: the trial balance showed an excess debit of ₹ 14,800.

Question Num – Q13

Rectify the following errors assuming that suspense account was opened. Ascertain the difference in trial balance. (a) Credit sales to Mohan ₹ 7,000 were recorded in Purchase Book. However, Mohan’s account was correctly debited. (b) Credit purchases from Rohan ₹ 9,000 were recorded in sales book. However, Rohan’s account was correctly credited. (c) Goods returned to Rakesh ₹ 4,000 were recorded in sales return book. However, Rakesh’s account was correctly debited. (d) Goods returned from Mahesh ₹ 1,000 were recorded through purchases return book. However, Mahesh’s account was correctly credited. (e) Goods returned to Naresh ₹ 2,000 were recorded through purchases book. However, Naresh’s account was correctly debited.

Answer

Rectifying entries

Date	Particulars	Dr. (₹)	Cr. (₹)
(a)	Suspense A/c …Dr.	14,000
	To Sales A/c		7,000
	To Purchases A/c		7,000
	(Credit sales recorded in purchases book)
(b)	Purchases A/c …Dr.	9,000
	Sales A/c …Dr.	9,000
	To Suspense A/c		18,000
	(Credit purchases recorded in sales book)
(c)	Suspense A/c …Dr.	8,000
	To Purchases Returns A/c		4,000
	To Sales Returns A/c		4,000
	(Return outwards recorded in sales return book)
(d)	Sales Returns A/c …Dr.	1,000
	Purchases Returns A/c …Dr.	1,000
	To Suspense A/c		2,000
	(Return inwards recorded in purchases return book)
(e)	Suspense A/c …Dr.	4,000
	To Purchases Returns A/c		2,000
	To Purchases A/c		2,000
	(Return outwards recorded in purchases book)
	Total	46,000	46,000

Suspense Account

Particulars	₹	Particulars	₹
(a) To Sales / Purchases	14,000	By Difference in Trial Balance	6,000
(c) To Purchases Returns / Sales Returns	8,000	(b) By Purchases / Sales	18,000
(e) To Purchases Returns / Purchases	4,000	(d) By Sales Returns / Purchases Returns	2,000
	26,000		26,000

Credit balance of ₹ 6,000 in the Suspense Account: the trial balance showed an excess debit of ₹ 6,000.

Question Num – Q14

Rectify the following errors: (a) Furniture purchased for ₹ 10,000 wrongly debited to purchases account. (b) Machinery purchased on credit from Raman for ₹ 20,000 was recorded through purchases book. (c) Repairs on machinery ₹ 1,400 debited to machinery account. (d) Repairs on overhauling of secondhand machinery purchased ₹ 2,000 was debited to Repairs account. (e) Sale of old machinery at book value of ₹ 3,000 was credited to sales account.

Answer

Rectifying entries

Date	Particulars	Dr. (₹)	Cr. (₹)
(a)	Furniture A/c …Dr.	10,000
	To Purchases A/c		10,000
	(Furniture wrongly debited to purchases)
(b)	Machinery A/c …Dr.	20,000
	To Purchases A/c		20,000
	(Machinery wrongly recorded through purchases book)
(c)	Repairs A/c …Dr.	1,400
	To Machinery A/c		1,400
	(Revenue repairs wrongly capitalised)
(d)	Machinery A/c …Dr.	2,000
	To Repairs A/c		2,000
	(Overhauling of newly bought machinery is capital expenditure)
(e)	Sales A/c …Dr.	3,000
	To Machinery A/c		3,000
	(Sale of old machinery wrongly credited to sales)
	Total	36,400	36,400

Question Num – Q15

Rectify the following errors assuming that suspense account was opened. Ascertain the difference in trial balance. (a) Furniture purchased for ₹ 10,000 wrongly debited to purchase account as ₹ 4,000. (b) Machinery purchased on credit from Raman for ₹ 20,000 recorded through Purchases Book as ₹ 6,000. (c) Repairs on machinery ₹ 1,400 debited to Machinery account as ₹ 2,400. (d) Repairs on overhauling of second hand machinery purchased ₹ 2,000 was debited to Repairs account as ₹ 200. (e) Sale of old machinery at book value ₹ 3,000 was credited to sales account as ₹ 5,000.

Answer

In (b) the whole entry (both Purchases and Raman) was made at ₹ 6,000, so no suspense is involved there.

Rectifying entries

Date	Particulars	Dr. (₹)	Cr. (₹)
(a)	Furniture A/c …Dr.	10,000
	To Purchases A/c		4,000
	To Suspense A/c		6,000
	(Furniture debited to purchases with wrong amount)
(b)	Machinery A/c …Dr.	20,000
	To Raman A/c		14,000
	To Purchases A/c		6,000
	(Machinery recorded through purchases book with wrong amount)
(c)	Repairs A/c …Dr.	1,400
	Suspense A/c …Dr.	1,000
	To Machinery A/c		2,400
	(Repairs debited to machinery with wrong amount)
(d)	Machinery A/c …Dr.	2,000
	To Repairs A/c		200
	To Suspense A/c		1,800
	(Overhauling debited to repairs with wrong amount)
(e)	Sales A/c …Dr.	5,000
	To Machinery A/c		3,000
	To Suspense A/c		2,000
	(Sale of machinery credited to sales with wrong amount)
	Total	39,400	39,400

Suspense Account

Particulars	₹	Particulars	₹
To Difference in Trial Balance	8,800	(a) By Furniture	6,000
(c) To Machinery	1,000	(d) By Machinery	1,800
		(e) By Sales	2,000
	9,800		9,800

Debit balance of ₹ 8,800 in the Suspense Account: the trial balance showed an excess credit of ₹ 8,800.

Question Num – Q16

Rectify the following errors: (a) Depreciation provided on machinery ₹ 4,000 was not posted. (b) Bad debts written off ₹ 5,000 were not posted. (c) Discount allowed to a debtor ₹ 100 on receiving cash from him was not posted. (d) Discount allowed to a debtor ₹ 100 on receiving cash from him was not posted to discount account. (e) Bill receivable for ₹ 2,000 received from a debtor was not posted.

Answer

(a), (b), (c) and (e) were not posted to either account; (d) is a one-sided omission and needs the Suspense Account.

Rectifying entries

Date	Particulars	Dr. (₹)	Cr. (₹)
(a)	Depreciation A/c …Dr.	4,000
	To Machinery A/c		4,000
	(Depreciation entry not posted)
(b)	Bad Debts A/c …Dr.	5,000
	To Debtors A/c		5,000
	(Bad debts entry not posted)
(c)	Discount Allowed A/c …Dr.	100
	To Debtor A/c		100
	(Discount allowed not posted)
(d)	Discount Allowed A/c …Dr.	100
	To Suspense A/c		100
	(Discount not posted to discount allowed account)
(e)	Bills Receivable A/c …Dr.	2,000
	To Debtor A/c		2,000
	(Bill receivable entry not posted)
	Total	11,200	11,200

Question Num – Q17

Rectify the following errors: (a) Depreciation provided on machinery ₹ 4,000 was posted as ₹ 400. (b) Bad debts written off ₹ 5,000 were posted as ₹ 6,000. (c) Discount allowed to a debtor ₹ 100 on receiving cash from him was posted as ₹ 60. (d) Goods withdrawn by proprietor for personal use ₹ 800 were posted as ₹ 300. (e) Bill receivable for ₹ 2,000 received from a debtor was posted as ₹ 3,000.

Answer

Each wrong amount was posted to both accounts, so the trial balance is not affected.

Rectifying entries

Date	Particulars	Dr. (₹)	Cr. (₹)
(a)	Depreciation A/c …Dr.	3,600
	To Machinery A/c		3,600
	(Short posting corrected)
(b)	Debtors A/c …Dr.	1,000
	To Bad Debts A/c		1,000
	(Excess posting corrected)
(c)	Discount Allowed A/c …Dr.	40
	To Debtor A/c		40
	(Short posting corrected)
(d)	Drawings A/c …Dr.	500
	To Purchases A/c		500
	(Short posting corrected)
(e)	Debtor A/c …Dr.	1,000
	To Bills Receivable A/c		1,000
	(Excess posting corrected)
	Total	6,140	6,140

Question Num – Q18

Rectify the following errors assuming that suspense account was opened. Ascertain the difference in trial balance. (a) Depreciation provided on machinery ₹ 4,000 was not posted to Depreciation account. (b) Bad debts written-off ₹ 5,000 were not posted to Debtors account. (c) Discount allowed to a debtor ₹ 100 on receiving cash from him was not posted to discount allowed account. (d) Goods withdrawn by proprietor for personal use ₹ 800 were not posted to Drawings account. (e) Bill receivable for ₹ 2,000 received from a debtor was not posted to Bills receivable account.

Answer

Rectifying entries

Date	Particulars	Dr. (₹)	Cr. (₹)
(a)	Depreciation A/c …Dr.	4,000
	To Suspense A/c		4,000
	(Not posted to depreciation account)
(b)	Suspense A/c …Dr.	5,000
	To Debtors A/c		5,000
	(Not posted to debtors account)
(c)	Discount Allowed A/c …Dr.	100
	To Suspense A/c		100
	(Not posted to discount allowed account)
(d)	Drawings A/c …Dr.	800
	To Suspense A/c		800
	(Not posted to drawings account)
(e)	Bills Receivable A/c …Dr.	2,000
	To Suspense A/c		2,000
	(Not posted to bills receivable account)
	Total	11,900	11,900

Suspense Account

Particulars	₹	Particulars	₹
To Difference in Trial Balance	1,900	(a) By Depreciation	4,000
(b) To Debtors	5,000	(c) By Discount Allowed	100
		(d) By Drawings	800
		(e) By Bills Receivable	2,000
	6,900		6,900

Debit balance of ₹ 1,900 in the Suspense Account: the trial balance showed an excess credit of ₹ 1,900.

Question Num – Q19

Trial balance of Anuj did not agree. It showed an excess credit of ₹ 6,000. He put the difference to suspense account. He discovered the following errors (a) Cash received from Ravish ₹ 8,000 posted to his account as ₹ 6,000. (b) Returns inwards book overcast by ₹ 1,000. (c) Total of sales book ₹ 10,000 was not posted to Sales account. (d) Credit purchases from Nanak ₹ 7,000 were recorded in sales Book. However, Nanak’s account was correctly credited. (e) Machinery purchased for ₹ 10,000 was posted to purchases account as ₹ 5,000. Rectify the errors and prepare suspense account.

Answer

Rectifying entries

Date	Particulars	Dr. (₹)	Cr. (₹)
(a)	Suspense A/c …Dr.	2,000
	To Ravish A/c		2,000
	(Short credit to Ravish)
(b)	Suspense A/c …Dr.	1,000
	To Sales Returns A/c		1,000
	(Returns inwards book overcast)
(c)	Suspense A/c …Dr.	10,000
	To Sales A/c		10,000
	(Sales book total not posted)
(d)	Purchases A/c …Dr.	7,000
	Sales A/c …Dr.	7,000
	To Suspense A/c		14,000
	(Credit purchases recorded in sales book)
(e)	Machinery A/c …Dr.	10,000
	To Purchases A/c		5,000
	To Suspense A/c		5,000
	(Machinery posted to purchases with wrong amount)
	Total	37,000	37,000

Suspense Account

Particulars	₹	Particulars	₹
To Difference in Trial Balance	6,000	(d) By Purchases / Sales	14,000
(a) To Ravish	2,000	(e) By Machinery	5,000
(b) To Sales Returns	1,000
(c) To Sales	10,000
	19,000		19,000

The suspense account closes, with totals of ₹ 19,000 on each side.

Question Num – Q20

Trial balance of Raju showed an excess debit of ₹ 10,000. He put the difference to suspense account and discovered the following errors: (a) Depreciation written-off the furniture ₹ 6,000 was not posted to Furniture account. (b) Credit sales to Rupam ₹ 10,000 were recorded as ₹ 7,000. (c) Purchases book undercast by ₹ 2,000. (d) Cash sales to Rana ₹ 5,000 were not posted. (e) Old Machinery sold for ₹ 7,000 was credited to sales account. (f) Discount received ₹ 800 from Kanan on paying cash to him was not posted. Rectify the errors and prepare suspense account.

Answer

Rectifying entries

Date	Particulars	Dr. (₹)	Cr. (₹)
(a)	Suspense A/c …Dr.	6,000
	To Furniture A/c		6,000
	(Not posted to furniture account)
(b)	Rupam A/c …Dr.	3,000
	To Sales A/c		3,000
	(Credit sales recorded short)
(c)	Purchases A/c …Dr.	2,000
	To Suspense A/c		2,000
	(Purchases book undercast)
(d)	Suspense A/c …Dr.	5,000
	To Sales A/c		5,000
	(Cash sales not posted to sales account)
(e)	Sales A/c …Dr.	7,000
	To Machinery A/c		7,000
	(Sale of machinery credited to sales)
(f)	Kanan A/c …Dr.	800
	To Discount Received A/c		800
	(Discount received not posted)
	Total	23,800	23,800

Suspense Account

Particulars	₹	Particulars	₹
(a) To Furniture	6,000	By Difference in Trial Balance	10,000
(d) To Sales	5,000	(c) By Purchases	2,000
To Balance c/d	1,000
	12,000		12,000

A credit balance of ₹ 1,000 remains in the Suspense Account and is carried forward (errors still to be located).

Question Num – Q21

Trial balance of Madan did not agree and he put the difference to suspense account. He discovered the following errors: (a) Sales return book overcast by ₹ 800. (b) Purchases return to Sahu ₹ 2,000 were not posted. (c) Goods purchased on credit from Narula ₹ 4,000 though taken into stock, but no entry was passed in the books. (d) Installation charges on new machinery purchased ₹ 500 were debited to sundry expenses account as ₹ 50. (e) Rent paid for residential accommodation of Madan (the proprietor) ₹ 1,400 was debited to Rent account as ₹ 1,000. Rectify the errors and prepare suspense account to ascertain the difference in trial balance.

Answer

Rectifying entries

Date	Particulars	Dr. (₹)	Cr. (₹)
(a)	Suspense A/c …Dr.	800
	To Sales Returns A/c		800
	(Sales return book overcast)
(b)	Sahu A/c …Dr.	2,000
	To Suspense A/c		2,000
	(Returns not posted to Sahu’s account)
(c)	Purchases A/c …Dr.	4,000
	To Narula A/c		4,000
	(Credit purchase omitted)
(d)	Machinery A/c …Dr.	500
	To Sundry Expenses A/c		50
	To Suspense A/c		450
	(Installation charges debited to sundry expenses with wrong amount)
(e)	Drawings A/c …Dr.	1,400
	To Rent A/c		1,000
	To Suspense A/c		400
	(Proprietor’s house rent debited to rent with wrong amount)
	Total	8,700	8,700

Suspense Account

Particulars	₹	Particulars	₹
To Difference in Trial Balance	2,050	(b) By Sahu	2,000
(a) To Sales Returns	800	(d) By Machinery	450
		(e) By Drawings	400
	2,850		2,850

Debit balance of ₹ 2,050 in the Suspense Account: the trial balance showed an excess credit of ₹ 2,050.

Question Num – Q22

Trial balance of Kohli did not agree and showed an excess debit of ₹ 16,300. He put the difference to a suspense account and discovered the following errors: (a) Cash received from Rajat ₹ 5,000 was posted to the debit of Kamal as ₹ 6,000. (b) Salaries paid to an employee ₹ 2,000 were debited to his personal account as ₹ 1,200. (c) Goods withdrawn by proprietor for personal use ₹ 1,000 were credited to sales account as ₹ 1,600. (d) Depreciation provided on machinery ₹ 3,000 was posted to Machinery account as ₹ 300. (e) Sale of old car for ₹ 10,000 was credited to sales account as ₹ 6,000. Rectify the errors and prepare suspense account.

Answer

Rectifying entries

Date	Particulars	Dr. (₹)	Cr. (₹)
(a)	Suspense A/c …Dr.	11,000
	To Rajat A/c		5,000
	To Kamal A/c		6,000
	(Wrong account, side and amount)
(b)	Salaries A/c …Dr.	2,000
	To Employee A/c		1,200
	To Suspense A/c		800
	(Salary debited to employee with wrong amount)
(c)	Sales A/c …Dr.	1,600
	To Purchases A/c		1,000
	To Suspense A/c		600
	(Goods withdrawn credited to sales with wrong amount)
(d)	Suspense A/c …Dr.	2,700
	To Machinery A/c		2,700
	(Short credit to machinery)
(e)	Sales A/c …Dr.	6,000
	Suspense A/c …Dr.	4,000
	To Old Car A/c		10,000
	(Sale of car credited to sales with wrong amount)
	Total	27,300	27,300

Suspense Account

Particulars	₹	Particulars	₹
(a) To Rajat / Kamal	11,000	By Difference in Trial Balance	16,300
(d) To Machinery	2,700	(b) By Salaries	800
(e) To Old Car	4,000	(c) By Sales	600
	17,700		17,700

The suspense account closes, with totals of ₹ 17,700 on each side.

Question Num – Q23

Give journal entries to rectify the following errors assuming that suspense account had been opened. (a) Goods distributed as free sample ₹ 5,000 were not recorded in the books. (b) Goods withdrawn for personal use by the proprietor ₹ 2,000 were not recorded in the books. (c) Bill receivable received from a debtor ₹ 6,000 was not posted to his account. (d) Total of Returns inwards book ₹ 1,200 was posted to Returns outwards account. (e) Discount allowed to Reema ₹ 700 on receiving cash from her was recorded in the books as ₹ 70.

Answer

In (d) the total was posted to the credit of the Returns Outwards Account (as it would be for that book), so both accounts need correction through suspense.

Rectifying entries

Date	Particulars	Dr. (₹)	Cr. (₹)
(a)	Advertisement (Free Samples) A/c …Dr.	5,000
	To Purchases A/c		5,000
	(Free samples not recorded)
(b)	Drawings A/c …Dr.	2,000
	To Purchases A/c		2,000
	(Goods withdrawn not recorded)
(c)	Suspense A/c …Dr.	6,000
	To Debtor A/c		6,000
	(Not posted to debtor’s account)
(d)	Sales Returns A/c …Dr.	1,200
	Purchases Returns A/c …Dr.	1,200
	To Suspense A/c		2,400
	(Return inwards total credited to return outwards)
(e)	Discount Allowed A/c …Dr.	630
	To Reema A/c		630
	(Discount recorded short)
	Total	16,030	16,030

Suspense Account

Particulars	₹	Particulars	₹
(c) To Debtor	6,000	By Difference in Trial Balance	3,600
		(d) By Sales Returns / Purchases Returns	2,400
	6,000		6,000

Credit balance of ₹ 3,600 in the Suspense Account: the trial balance showed an excess debit of ₹ 3,600.

Question Num – Q24

Trial balance of Khatau did not agree. He put the difference to suspense account and discovered the following errors: (a) Credit sales to Manas ₹ 16,000 were recorded in the purchases book as ₹ 10,000 and posted to the debit of Manas as ₹ 1,000. (b) Furniture purchased from Noor ₹ 6,000 was recorded through purchases book as ₹ 5,000 and posted to the debit of Noor ₹ 2,000. (c) Goods returned to Rai ₹ 3,000 recorded through the Sales book as ₹ 1,000. (d) Old machinery sold for ₹ 2,000 to Maneesh recorded through sales book as ₹ 1,800 and posted to the credit of Manish as ₹ 1,200. (e) Total of Returns inwards book ₹ 2,800 posted to Purchase account. Rectify the above errors and prepare suspense account to ascertain the difference in trial balance.

Answer

Rectifying entries

Date	Particulars	Dr. (₹)	Cr. (₹)
(a)	Manas A/c …Dr.	15,000
	Suspense A/c …Dr.	11,000
	To Sales A/c		16,000
	To Purchases A/c		10,000
	(Credit sales recorded in purchases book and posted wrongly)
(b)	Furniture A/c …Dr.	6,000
	Suspense A/c …Dr.	7,000
	To Noor A/c		8,000
	To Purchases A/c		5,000
	(Furniture recorded through purchases book and posted wrongly)
(c)	Rai A/c …Dr.	2,000
	Sales A/c …Dr.	1,000
	To Purchases Returns A/c		3,000
	(Return outwards recorded through sales book)
(d)	Maneesh A/c …Dr.	2,000
	Sales A/c …Dr.	1,800
	Manish A/c …Dr.	1,200
	To Machinery A/c		2,000
	To Suspense A/c		3,000
	(Sale of machinery recorded through sales book and posted wrongly)
(e)	Sales Returns A/c …Dr.	2,800
	To Purchases A/c		2,800
	(Return inwards total posted to purchases)
	Total	49,800	49,800

Suspense Account

Particulars	₹	Particulars	₹
(a) To Sales / Purchases	11,000	By Difference in Trial Balance	15,000
(b) To Noor / Purchases	7,000	(d) By Maneesh / Sales / Manish	3,000
	18,000		18,000

Credit balance of ₹ 15,000 in the Suspense Account: the trial balance showed an excess debit of ₹ 15,000.

Question Num – Q25

Trial balance of John did not agree. He put the difference to suspense account and discovered the following errors: (a) In the sales book for the month of January total of page 2 was carried forward to page 3 as ₹ 1,000 instead of ₹ 1,200 and total of page 6 was carried forward to page 7 as ₹ 5,600 instead of ₹ 5,000. (b) Wages paid for installation of machinery ₹ 500 was posted to wages account as ₹ 50. (c) Machinery purchased from R & Co. for ₹ 10,000 on credit was entered in Purchase Book as ₹ 6,000 and posted there from to R & Co. as ₹ 1,000. (d) Credit sales to Mohan ₹ 5,000 were recorded in Purchases Book. (e) Goods returned to Ram ₹ 1,000 were recorded in Sales Book. (f) Credit purchases from S & Co. for ₹ 6,000 were recorded in sales book. However, S & Co. was correctly credited. (g) Credit purchases from M & Co. ₹ 6,000 were recorded in Sales Book as ₹ 2,000 and posted there from to the credit of M & Co. as ₹ 1,000. (h) Credit sales to Raman ₹ 4,000 posted to the credit of Raghvan as ₹ 1,000. (i) Bill receivable for ₹ 1,600 from Noor was dishonoured and posted to debit of Allowances account. (j) Cash paid to Mani ₹ 5,000 against our acceptance was debited to Manu. (k) Old furniture sold for ₹ 3,000 was posted to Sales account as ₹ 1,000. (l) Depreciation provided on furniture ₹ 800 was not posted. (m) Material ₹ 10,000 and wages ₹ 3,000 were used for construction of building. No adjustment was made in the books.

Answer

Rectifying entries

Date	Particulars	Dr. (₹)	Cr. (₹)
(a)	Sales A/c …Dr.	400
	To Suspense A/c		400
	(Net overcasting of sales book by carry-forward errors (– 200 + 600))
(b)	Machinery A/c …Dr.	500
	To Wages A/c		50
	To Suspense A/c		450
	(Installation wages posted to wages with wrong amount)
(c)	Machinery A/c …Dr.	10,000
	Suspense A/c …Dr.	5,000
	To R & Co. A/c		9,000
	To Purchases A/c		6,000
	(Machinery recorded in purchases book and posted wrongly)
(d)	Mohan A/c …Dr.	10,000
	To Sales A/c		5,000
	To Purchases A/c		5,000
	(Credit sales recorded in purchases book)
(e)	Sales A/c …Dr.	1,000
	To Purchases Returns A/c		1,000
	(Return outwards recorded in sales book)
(f)	Purchases A/c …Dr.	6,000
	Sales A/c …Dr.	6,000
	To Suspense A/c		12,000
	(Credit purchases recorded in sales book)
(g)	Purchases A/c …Dr.	6,000
	Sales A/c …Dr.	2,000
	To M & Co. A/c		5,000
	To Suspense A/c		3,000
	(Credit purchases recorded in sales book and posted short)
(h)	Raman A/c …Dr.	4,000
	Raghvan A/c …Dr.	1,000
	To Suspense A/c		5,000
	(Credit sales posted to wrong account, side and amount)
(i)	Noor A/c …Dr.	1,600
	To Allowances A/c		1,600
	(Dishonoured bill debited to allowances)
(j)	Bills Payable A/c …Dr.	5,000
	To Manu A/c		5,000
	(Payment of our acceptance debited to Manu)
(k)	Sales A/c …Dr.	1,000
	Suspense A/c …Dr.	2,000
	To Furniture A/c		3,000
	(Sale of furniture credited to sales with wrong amount)
(l)	Depreciation A/c …Dr.	800
	To Furniture A/c		800
	(Depreciation not posted)
(m)	Building A/c …Dr.	13,000
	To Purchases A/c		10,000
	To Wages A/c		3,000
	(Materials and wages used for building capitalised)
	Total	75,300	75,300

Suspense Account

Particulars	₹	Particulars	₹
To Difference in Trial Balance	13,850	(a) By Sales	400
(c) To R & Co. / Purchases	5,000	(b) By Machinery	450
(k) To Furniture	2,000	(f) By Purchases / Sales	12,000
		(g) By Purchases / Sales	3,000
		(h) By Raman / Raghvan	5,000
	20,850		20,850

Debit balance of ₹ 13,850 in the Suspense Account: the trial balance showed an excess credit of ₹ 13,850.

Topic checklist

Trial balance: meaning, methods, preparation
Classification of errors: commission, omission, principle, compensating
One-sided vs two-sided errors
Rectification without and with a suspense account
Preparing the Suspense Account and interpreting its balance

Total questions answered: 42 of 42

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