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Trial balance of Raj did not agree. He put the difference to suspense account and discovered the following errors. Rectify the erros.
1. Credit purchases from S & Co. for Rs. 6,000 were recorded in sales book. However, S & Co. was correctly credited. (i) Debit the sales account with Rs. 6,000, (ii) Debit the purchases account with Rs. 6,000, (iii) Credit the suspense account with Rs. 12,000
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
Credit purchases from S & Co. were wrongly recorded (credited) in sales book, the rectification entry would be to
Debit the sales account with Rs. 6,000 to rectify the wrong credit of Rs. 6,000 into the sales account.
Debit the purchases account with Rs. 6,000
Credit the suspense account with the total i.e. Rs. 6,000 + Rs. 6,000 = Rs. 12,000
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2. Credit purchases from M & Co. Rs. 6,000 were recorded in Sales Book as Rs. 2,000 and posted there from to the credit of M & Co. as Rs. 1,000. (i) Debit the sales account with Rs. 2,000, (ii) Debit the purchases account with Rs. 6,000, (iii) Credit the M & Co. account with Rs. 5,000, (iv) Credit the suspense account with Rs. 3,000
a. Only (i), (ii) and (iii)
b. Only (i), (ii) and (iv)
c. Only (i), (iii) and (iv)
d. All (i), (ii), (iii) and (iv)
Ans - d
Credit purchases from M & Co. were wrongly recorded (credited) into the sales book as Rs. 2,000 and wrongly credited to M & Co. as Rs. 1,000, the rectification entry would be to
Debit the sales account to rectify the wrongly credited amount of Rs. 2,000
Debit the purchases account with Rs. 6,000
Credit the M & Co. account with the remaining amount (Rs. 1,000 is already credited to their account) i.e. Rs. 6,000 – Rs. 1,000 = Rs. 5,000
Credit the suspense account with the difference i.e. Rs. 6,000 + Rs. 2,000 – Rs. 5,000 = Rs. 3,000
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3. Credit sales to Raman Rs. 4,000 posted to the credit of Raghvan as Rs. 1,000. (i) Debit Raghavan’s account with Rs. 1,000, (ii) Debit Rama’s account with Rs. 4,000, (iii) Credit the suspense account with Rs. 5,000
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
Credit sales to Raman were wrongly posted to the credit of Raghavan as Rs. 1,000, the rectification entry would be to
Debit Raghavan’s account with Rs. 1,000 to rectify the wrongly posted amount of Rs. 1,000
Debit Rama’s account with Rs. 4,000
Credit the suspense account with the difference i.e. Rs. 4,000 + Rs. 1,000 = Rs. 5,000
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4. Bill receivable for Rs. 1,600 from Noor was dishonoured and posted to debit of Allowances account. (i) Credit allowances account with Rs. 1,600, (ii) Credit Noor’s account with Rs. 1,600, (iii) Debit the suspense account with Rs. 3200
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - a
Bills receivable dishonoured from Noor was posted to the debit of allowances account, the rectification entry would be to
Credit allowances account to rectify the wrongly debited amount of Rs. 1,600
Credit Noor’s account with Rs. 1,600
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5. Cash paid to Mani Rs. 5,000 against our acceptance was debited to Manu. (i) Credit Manu’s account with Rs. 5,000, (ii) Debit Bills Payable account with Rs. 5,000, (iii) Credit the suspense account with Rs. 5,000
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - a
Cash paid to Mani was debited to Manu, the rectification entry would be to
Credit Manu’s account to rectify the wrongly debited amount of Rs. 5,000
Debit Bills Payable account with Rs. 5,000
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Rectify the following errors assuming that a suspense account was opened
1. Credit sales to Mohan Rs. 7,000 were posted to the credit of his account.
a. Debit Mohan’s account with Rs. 7,000
b. Credit Mohan’s account with Rs. 7,000
c. Debit Mohan’s account with Rs. 14,000
d. Credit Mohan’s account with Rs. 14,000
Ans - c
Credit sales to Mohan were credited to Mohan’s account (instead of debiting), the rectification entry would be to
Debit Mohan’s account to rectify the wrongly credited amount of Rs. 7,000
Debit Mohan’s account with the actual amount of Rs. 7,000
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2. Credit purchases from Rohan Rs. 9,000 were posted to the debit of his account as Rs. 6,000.
a. Credit Rohan’s account with Rs. 9,000
b. Credit Rohan’s account with Rs. 6,000
c. Credit Rohan’s account with Rs. 15,000
d. Debit Rohan’s account with Rs. 15,000
Ans - c
Credit purchases from Rohan were debited to Rohan’s account (instead of crediting), the rectification entry would be
Credit Rohan’s account to rectify the wrongly debited amount of Rs. 6,000
Credit Rohan’s account with the actual amount of Rs. 9,000
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3. Goods returned to Rakesh Rs. 4,000 were posted to the credit of his account.
a. Debit Rakesh’s account with Rs. 4,000
b. Credit Rakesh’s account with Rs. 4,000
c. Debit Rakesh’s account with Rs. 8,000
d. Credit Rakesh’s account with Rs. 8,000
Ans - c
Goods returned to Rakesh were credited to his account (instead of debiting), the rectification entry would be
Debit Rakesh’s account to rectify the errouneously credited amount of Rs. 4,000
Debit Rakesh’s account with the actual amount of Rs. 4,000
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4. Goods returned from Mahesh Rs. 1,000 were posted to the debit of his account as Rs. 2,000.
a. Debit Mahesh’s account with Rs. 1,000
b. Debit Mahesh’s account with Rs. 2,000
c. Debit Mahesh’s account with Rs. 3,000
d. Credit Mahesh’s account with Rs. 3,000
Ans - d
Goods return from Mahesh were debited from his account, the rectification entry would be
Credit Mahesh’s account to rectify the wrongly debited amount of Rs. 2,000
Credit Mahesh’s account with the actual amount of Rs. 1,000
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5. Cash sales Rs. 2,000 were posted to the debit of sales account as Rs. 5,000.
a. Debit the sales account with Rs. 2,000
b. Debit the sales account with Rs. 5,000
c. Debit the sales account with Rs. 7,000
d. Credit the sales account with Rs. 7,000
Ans - d
Cash sales were debited (instead of crediting), the rectification entry would be
Credit the sales account to rectify the wrongly debited amount of Rs. 5,000
Credit the sales account with the actual amount of Rs. 2,000
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