atono rE r O r s

17.13

tion3 (R
Dectification of Errors of Recording).
necessarVJo
ournal entrie to rectify the following errors:

) A credi
le of 1, 700 to Ram was recorded as 7,100.
lo of 1,700 to Mohan was recorded as sales to Krishan.
A credits a
of 1,700 to Asha was recorded as sale to Anshul as 7,100.
sale of
s a

credit

A
1,700 to Mohan was recorded in the Purchases Boo.
sale of 1,
i tA credit
il
sale
f ol
ofold machinery to Sohan for R 1,700 was entered in the Sales Book
) A credit. it
f o r 7,100.

for
Cashsale
af1,700 to Gaurav was recorded as 7,100
R e c e i v
ble of * 8,100 received from Ravinder was recorded in Bills
a b l

q i )B i I

Payable B o o k .

ehase of 8,100 from Bharat was recorded as 1,800.

Cash pu
RECTIFYING JOURNAL ENTRIES
solution:

P a r t i c u l a r s
LF Dr.() Cr.()
Sales A/c Dr 5,400
To Ram
5,400
credit sale of 700 recorded as 7,100, now rectified)
Being the

Mohan
..Dr. 1,700
To Krishan 1,700
Reing the credit sale of R 1,700 to Mohan recorded as sales to Krishan,

nowrectified

Sales Ac ...Dr 5,400

Asha ...Dr. 1,700
To Anshul 7,100
(Being the credit sale of R 1,700 to Asha was recorded as sale to
Anshul as 7,100. now rectified)

Mohan ...Dr. 3,400

To Purchases A/c 1,700
To Sales A/c 1,700
(Beingthe credit sale of 1,700 to Mohan was recorded in the
Purchases Book, now rectified)
Sales Alc ..Dr. 7,100
To Sohan 5,400
To Machinery Alc ,700
5eing the credit sale of machinery to Sohan for 1,700 entered
inthe Sales Book as 7,100, now rectified)
Sales Alc ..Dr. 5,400
To Cash ANc
5,400
oeing the cash sales of 71,700 recorded as 7,100, now rectified)
Bils Receivable Alc ..Dr. 8,1100
Blls Payable Alc
..Dr. 8,100
To Ravinder
16,200
Being the bill receivable entered in Bills Payable Book, now rectified)
Purchases Ac ..Dr. 6,300
To Cash A/c
6,300
e cash purchase of 8,100 recorded as 1,800, now rectified)
 Double Entry Book Keetin
17.14

Note: For rectifying entry, following procedure

may be followed:
Keeping-CBSE
.No. Wrong Entry (Step 1)
Reverse of Wrong Entry (Step 2) Correct Enty Slep
Sales A/c ..Dr. 7,100 Ram
() Ram .Dr. 7,100
7,100 To Sales Ac
. Dr. 1700
7,100 To Ram
To Sales Ac
Sales Alc .Dr 1,700 Mohan
(i) Krishan .Dr. 1,700 .Or. 1,700
To Krishan 1,700 To Sales Ac
To Sales Ac 1,700
Sales Alc ..Dr. 7,100 Asha
Anshul ..Dr. 7,100 ..Dr. 1700
To Anshul 7,100 To Sales Ac
To Sales A/c ,100
..Dr. 1,700 Mohan
(v) Purchases Alc ..Dr. 1,700 Mohan ..Dr. 1,700
1,700 To Purchases Alc 1,700 To Sales Ac
To Mohan

...Dr. 7,100 Sales Ac ..Dr. 7,100 Sohan .Dr. 1,700

(Sohan
To Sohan 7,100 To Machineny A/c
To Sales ANc 7,100
(vi) Cash Alc ..Dr. 7,100 Sales Alc ..Dr. 7,100 Cash A/c .Dr. 1,700
To Sales Ac 7,100 To Cash Alc ,100 To Sales A/c
17A So.
(vi) Ravinder .Dr. 8,100 Bills Payable Alc..Dr. 8,100 Bills Receivable Ac ..Dr. 8,100 Date

To Bills Payable Alc 8,100 To Ravinder 8,100 To Ravinder

8:100
(vii) Purchases Alc..Dr. 1,800 Cash A/c ...Dr. 1,800 Purchases Alc .Dr. 8,100
To Cash Alc 1,800 To Purchases Ac 1,800 To Cash Alc

Rectifying Entry (Step 4). Net effect of Step 2 and Step 3 will be passed as giveni
the solution.
(6) Error of Posting to Wrong Account:This error is committed when the transactia
is posted to the wrong account. The errors committed may be of the
followingtpes iv)
1. The transaction is posted to the wrong account but in the correct sideandme
correct amount.
2. The transaction is posted to the wrong account in the correct side but witht
Wrong amount. (v)
3. The transaction is posted to the wrong account in the wrong side sowit
anu a
wrong amount.
4. The transaction is posted to the wrong account in the wrong
Correct amount.
siu

If Error is committed in posting, assume that recording in the Subsidiary Book

Illustration 4 (Rectification of Two-sided Errors
of Posting).
Pass necessary Journal entries to
rectify the following errors:
i) A credit sale of R
1,700 to Krishan was posted to
Kishan's Accoun
Kii) A cash sale of ? 1,700 to Meena was posted to the credit vi)
of Meena
(iit) A credit sale of old furniture to Prem for T a l e sA c r o u

1,700 was credited to the >

(iv) A credit sale of old furniture to Rohan 77,100.
for 7 1,700 was
posted as
rneaotERNDEs niTruacm
 e

H C a t i o no fE T o r s

17.15
ffar
or 7 640 received from Guru
A
c h e q u e

Return Account.
was dishonoured and was posted to tne
n) of Sales
i ) An amount unt of 2,860 due from
Prasad, written
bad in previous year, was off as
,

and credited to his account. personal

overed
discounted bill of exchange receivable for 7 8,000 returned
Ad by the firm's bank
had bee redited to the Bank Account and debited to Bills Receivable Account.
10,000 paid for the electricity bill of the proprietor's residence was debited to
Flectricity Expenses Account.
malunt of T 7,500 withdrawn from bank by the proprietor for his personal use
cdebited to Purchases Account.
n amount of
amountof F;
? 15,000 withdrawn from bank by the proprietor for office use was
An
debited to Drawings Account.
8.000 salary paid to Varun, an employee, debited to his personal account.

Solution: RECTIFYING JOURNAL ENTRIES

Particulars
LF. Dr. )Cr.)
Krishan ..Dr. 1,700
To Kishan 1,700
(Being credit sale to Krishan was posted to Kishan's Account, now rectified)
Meena ...Dr. 1,700
To Sales A/c ,700
(Being cash sale posted to credit of Meena's Account, now rectified)
Sales Alc ..Dr. 1,700
To Furniture AAc 1,,700
(Being credit sale of old furniture credited to Sales Account, now rectified)
Furniture A/c .Dr. 5,400
To Rohan 5,400
eng credit sale of old furniture to Rohan for 1,700 posted as R7,100,
now rectified)
Guru ..Dr. 640
To Sales Return A/c 640
EIng the dishonour of Guru's cheque debited to Sales Retum Account,
now rectified)
Prasad ...Dr 2,860
o Bad Debts 2,860
Recovered Alc
Being the bad debts recovered credited to personal account of
Prasad, now rectified)
Debtor's Ac ...Dr. 8,000
To Bilis 8,000
Receivable ANc Account,
bill dishonourdebited to Bills Receivable
OsCounted
now rectified)
Dravings Alc .Dr
10,000
o
Being thElectricity
e pay Expenses A/c
electricity bill of proprietor's
residence wrongly
10,000

to Electricity Expenses ccount, now rectified)

 17.16 Double Entry Book
Drawings ANc
To Purchases A/c
..Dr. Keeping-CB
7 500
(Being 7,500 withdrawn from bank for personal use wrongly charged
to Purchases Account, now rectified)
Cash A/c .Dr
To Drawings Alc 15.000
(Being the cash withdrawn from bank for office use debited to
Drawings Account, now rectfied)
(xi) Salary A/c ..Dr.
To Varun 8.000
(Being the salary paid to Varun debited to his account, now rectified)

Note: For rectifying entry, following procedure will be followed:

S. No Wrong Entry (Step 1) Reverse of Wrong Entry (Step 2)

Correct Entry (Step 3
(i) Kishan ..Dr. 1,700 Sales A/c ..Dr. ,700 Krishan ...Dr
To Sales A/c 1,700 To Kishan 1,700 To Sales Alc 1,700
(i) Cash Ac ..Dr. 1,700 Meena ..Dr. 1,700 Cash A/c ..Dr.
To Meena 1,700 To Cash A/c ,700 To Sales Alc 1,700
)Prem .Dr. 1,700 Sales Ac ..Dr. 1,700 Prem ..Dr.
To Sales A/c 1,700 To Prem 1,700 To Furniture Alc
1,700
(iv) Rohan .Dr. 7,100 Furniture Alc ..Dr. 7,100 Rohan
To Furniture A/c
.Dr. 1,700
7,100 To Rohan 7,100 To Furniture Alc
(v) Sales Retum Alc..Dr. 640 Bank Alc ..Dr. 640 Guru .Dr. 640
To Bank Ac 640 To Sales Return A/c 640 To Bank AlNc
(vi) Bank Alc .Dr. 2,860 Prasad .Dr. 2,860 Bank Alc ..Dr. 2.860
To Prasad 2,860 To Bank Alc 2,860 To Bad Debts Recv. Ac
(vii) Bills Recv. A/c ...Dr. 8,000 Bank A/c .Dr.
To Bank Alc
8,000 Debtor's Ac ..Dr. 8,000
8,000 To Bills Recv. A/c
8,000 To Bank A/Nc
(Vii) Elect. Exp. Alc.Dr. 10,000 Cash Alc .Dr. 10,000
To Cash Alc Drawings Ac.Dr. 10.000
10,000 To Electricity Exp. A/c
10,000 To Cash Ac
(ix) Purchases Alc.Dr. 7,500 Bank Alc .Dr 7,500 Drawings Ac ..Dr. 7500
To Bank Alc 7,500 To Purchases A/c
7,500 To Bank Ac
Drawings Ac .Dr. 15.000
Bank A/c ..Dr. 15,0 Cash A/c ..Dr. 15,000
To Bank Alc
15,000 To Drawings Alc
15,000 To Bank AAc
(Xi) Varun .Dr. 8,000 Cash Alc 8.000
..Dr. 8,000 Salary Ac ..Dr
To Cash A/Nc
8,000 To Varun To Cash Ac
8,000
Rectifying Entry (Step
the solution.
4). Net effect of Step 2 and Step 3 will be
sed as gie
passeu
(c) Error of
Principle: Error of principle means wrong classification
fication of expendl"
receipt as
Capital and Revenue. The correct allocation o a dRere
is necessarybecause incorrect allocation between Capitaels
the Financial Statements. will give incorrect results a
For the
rectification of these errors, mind
in
When asset is following points should KeP be
purchased-debit Asset Account and not Purchase Account.
 hicationo f E r o r s
17.17

set
a
is
ge paid
paid fo
purchased and
any expense is incurred in purchasing that
for the purchase of building, freight paid on purchase
,Whe b r o k e r a g e

charges paid for machinery, etc.), debit Account

(
.
rniture, installa

allation
Account. If by mistake,
the Asset
correct
urn
n o tt h e

pense
E x p e n s e .
Expense Account is debited, an
othe ing tha
crediting that Expense Account and debiting the Asset Account.
h
by e n a s
second-hand asset is purchased and is repaired before bringing it in use,
e c o n d ,

charges are debited to Asset Account and not to Repair Account. If by

ther e p a i r

an Expense Accournt is debited, then correct it by crediting that Expense

mista
the Asset Account.
and debiting
ount
credit Asset Account and not Sales Account. Ifby Sales
When asset is. sSet is sold, mistake
been credited, correct it by debiting Sales Account and crediting the
Account has bee
has
Asset Account.

penses incurredfor sale of an asset are debited to Asset Account, i.e., Expense
is not debited.
Account
Errors of Principle do not affect the Trial Balance.

Mastration 5 (Rectification of Errors of Principle).

0
errors:
folowing
Rectify the
0 Wages paid for of office debited to Wages Account 20,000.
the construction
to Cartage Account.
Cartage paid for the newly purchased furniture 500, posted
to Wages Account.
n)5.000 paid for the installation of machinery debited
) Machinery purchased for 50,000 was passed through the Purchases Book.

) Old furniture Sold for F 5,000 was passed through the Sales Book.
Solution: RECTIFYING JOURNAL ENTRIES

Dete Particulars L.F Dr.() Cr. R)

0
Building A/c (Note) ...Dr. 20.000
20.000
To Wages A/c
00 (Being wages paid for construction of office wrongly debited to
Wages A/c, now rectified)
Furniture A/Nc ...Dr. 500
00
To Cartage Alc 500
to
Eeing cartage paid for newly purchased furniture wrongly posted
Cartage A/c, now rectified)
Machinery Alc .Dr. 5,000
300 To Wages A/c 5,000
debited to
in ng amount paid for installation of machinery wrongly
Wages A/c, now rectified)
...Dr. 50,000
or
Machinery Nc
To Purchases Ac 50,000
ue Purchases
ng purchase of machinery wrongly passed through
Book, now rectified)
by
Sales A/c ..Dr. 5,000
To Furniture Alc 5,000

de: Wages paid

Being sale of old fumiture wrongly passed through
the Sales Book, now rectified)

rd 10r the construction of office should be debited to Building Account because it is a capital expenditure
17.18 Double Entry Book
Keeping-
(d) Errors of Complete Omission: These errors are rectifiedd by
by recor
transaction. These errors do not affect the Trial Balance.recording
ngthe,
CRSE
the omy t

Illustration 6 (Rectification of Errors of Omission).

Pass necessary Journal entries to rectify the following errors:
() A credit sale of * 5,000 to Ram omitted to be recorded in the bool.
i) Goods (Cost 2,000, Sale Price 2,400) taken by the proprietor
books.
tor wer
were not
anywhere.
(iii) Goods sold for 7 350 to Hari on credit were omitted from the aceo
cash received subsequently from him stands posted to his credit.
althoe
(iv) A credit sale of old furniture to Mahesh for 500 omitted to be
ted
() On 31st March, 2019 goods of the value of7 3,000 were returned h
were taken into stock on the same date, but no entry was passed Han as
Solution: RECTIFYING JOURNAL ENTRIES
Date Particulars
Ram
LFDr. O
Dr.
To Sales Ac
5,000
(Being a credit sale omitted to be recorded, now recorded)
Drawings A/c ...Dr. 2.000
To Purchases Alc
(Being goods taken away by the proprietor omited to be recorded,
now recorded)
Hari ..Dr.
To Sales Ac
350
(Being the rectification of goods sold to Hari not recorded in the books)
(iv) No Journal entry is to be passed as it has
already been correctly passed in
the Journal, merely posting in both the accounts in the
Ledger is required.
( Returns Inward A/c
.Dr. 3,000
To Hari
(Being the entry of goods returned by Hari and taken into stock
ornitted frorm records, now recorded)

Illustration 7.
Following errors were identified in the books of Prasad. Pass necessary tries
rectify them: e
i)5,000 paid for furniture purchased has been
Account. charged to the ordinary Purcha
(ii) Repairs made debited to the Building Account for 7 500.
were
(iii) An amount of R 1,000 withdrawn by the proprietor for his personal se sbee
debited to the Trade Expenses Account.
(iv)71,000 paid for rent debited to the Landlord's
Account.
(v) Salary of T 1,250 paid to a clerk, has been debited ount.
to his Personal Acou
(ui) 1,000 received from Shah & Co. has been
wrongly entered as fro Shaw& s Account

(vii) 77,000 paid in cash for a printer was

charged to the Office Expe
 K a t i o no f E r o r s 17.19

RECTIFYING JOURNAL ENTRIES

lutron:
Particulars
LF Or () Cr
Funiture Alc
Dr 5.000
To Purchases Alc 5.000
the correction of wrong debit to Purchases A/c for
Being
funiture purchased)

Repairs A c Dr 500
To Building A/c 500
the
correction of wrong debit to Building Alc for repairs made)
Bein
Drawings ANc
.Dr. 1,000
Trade Expenses
A/c 1.000
To
Beingthe corection of wrong debit to Trade Expenses Ac
for
cash withdrawn by the proprie for his personal use)

Rent Ac ..Dr. 1,000

To Landlord's (Personal) Alc 1,000
Being the correction of wrong ebit to Landlord's Alc for rent paid)

Salanies A/c .Dr. 1.250

To Clerk's (Personal) Ac 1,250
/Being the correction of wrong debit to Clerk's Personal A/c
for salaries paid)
Shaw& Co. ..Dr. 1,000
To Shah & Co. 1,000
Being the correction of wrong credit to Shaw & Co. for the amount
received from Shah & Co.)
Printer A/c ..Dr. 7,000
To Office Expenses A/c 7.000
Being the correction of wrong debit to Office Expenses A/c
for purchase of printer)

lustration 8.
Pass Journal entries to rectify the following errors:
i) A purchase of goods from Ram amounting to 1,500 has been wrongly passed
through the Sales Book.
Acredit sale ofgoods of 7 1,200 to Ramesh has been wrongly passed through the
Purchases Book.
An amount of T 2,000 due from Mahesh, which had been written off as Bad Debt
n previous year, was unexpectedly recovered and has been posted to the personal
account of Mahesh.
A cheque for 7 1,000 received from Manmohan was dishonoured and had been
pOSted to the debit of the Sales Return Account.
. 0 0 paid on account of salary to the cashier Dhawan stands debited to his
Personal Account.
Solution: RECTIFYING JOURNAL ENTRIES
Date
Pariculars L.F. Dr. () Cr. )
Purchases Alc .Dr 1,500
Sales Alc Dr.
To Ram 1,500
(Being purchases wrongly passed through Sales Book, now rectified) 3,000
17.20 Double Entry Book
(i) Ramesh
To Purchases A/
Dr Keepi2A0ng-CBs
To Sales Alc
(Being credit sales wrongly passed through Purchases Book, now rectified)
) Mahesh Dr
To Bad Debts Recovered Alc 2000
(Being the correction of wrong credit to Personal Account
in respect of recovery of previously written off bad debts)
(V) Manmohan ..Dr.
To Sales Return Alc 1000
(Being the correction of wrong debit to Sales Return A/c for
dishonour of cheque received from Manmohan)
() Salaries A/c .Dr.
To Dhawan 5,000
(Being the salaries paid debited to the Personal Account of Dhawan, now rectified)
Illustration 9.
Rectify the following errors:
() Wages paid to the firm's workmen for making certain additions
to madh
amounting to ? 5,500 were posted to Wages Account. machinen
(i) Credit purchase of goods of * 1,500 from Mohan & Co. was not
books although the goods were taken into stock. recorded ininthe
(ii) Goods returned of T 500 by Mohan was entered in the Purchases
(iv) Return of goods of 800 to Sohan was passed through the Sales Return Be
Return Bt
(u) Credit Sale of goods to Sunil amounting to R 5,000 was
of Surmail.
posted to the aco
Solution: RECTIFYING JOURNAL ENTRIES
Date Particulars
LF Dr.) C
Plant and Machinery A/c
..Dr. 5,500
To Wages Alc
550
(Being the wages paid for making certain additions to machinery
wrongly debited to Wages Account, now rectified)
(i) Purchases Alc
To Mohan &Co. .Dr 1,500
(Being the purchase of goods from Mohan &Co.
omitted from books, now recorded)
Purchases Return A/c 500
Dr.
Sales Return Alc
..Dr 500
To Mohan
(Being the rectification of returns from Mohan passed through
Purchases Return Book)
(iV) Sohan 1,600
To Sales Return A/c ...Dr
To Purchases Return ANc
(Being the rectification of Purchases Return to Sohan
Sales Retun Book) passed through
(V Sunil 5,000
To Surmail ..Dr
(Being the sale made on credit to Sunil posted wrongly to the debit
of Surmail, now rectified)
 17.21
f E r o r s

t h a N o no

before
Errors after Preparation of the Trial
tion of Errors
ot Balance but
the Final Accounts
p r e p a r a t i o no f , ied
rectifie
after the Trial Balance has been preparer they are
detected
ected after
MhOn
e r r o r sa r
llowing manner:
Errors:
theollowing Two-Sided
Errors not Affecting the Trial Balance or
the
involving
n case
-sided Errors a r e Journal entry without
ctified by passing a

Aecount. It has already been discussed earlier in the chapter.

Ace Errors: "The
Suspense the Trial Balance o r One-Sided
Errors Affecting under the head
y i lI n c a s e f Trial Balance is placed in the Trial Balance
the
diflerence i n 1in a
will be rectified by passing
Thereatter, one-sided error
iflero Account.
Suspense A c
either debiting or crediting the Suspense Account.
entry
Jouri
al
in trial
the difference
S u s p e n s eA c c o u n t

to which the amount being

is the account
se Accoun is
Suspense
Account will
If the total of debit side is short,
emporarily placed.
Sioygyense show will
the total of credit side is short, Suspense Account
nd if,
ebit balance. And final accounts
so that
u l a n e e

Account
difference is placed in the Suspense agree.
ance. The will appear to
As a result of this, Trial Balance
red without delay. a r e identified
and rectified.
Trial Balance which
still remain in the Account
the errors all One-Sided Errors:
Suspense
is used for rectifying
S e Account the errors, which affect the Trial Balance. Account.
ed for rectifying affect the Trial
Balance a r e not
rectified by Suspense
that affect
Lenrs that do not mind that the
errors

should be kept in
A c c o u n t : It words,
Suspense Account. In other
Disposal of one-sided e r r o r s a r e placed in Suspense
balance, i.e.,
the trial net effect of
one-sided e r r o r s .
credit is
Account is the correct account,
Suspense
the a m o u n t to the debit of the
is credited, in
case,
rectified by placing correct account
Errors are
Account. Similarly,
when
rectified, Suspense
placed in the Suspense Account. And, if all one-sided e r r o r s a r e
stand closed. But
debit is placed in
the Suspense this a c c o u n t should
balance, i.e., Sheet o n the
Aovount should not
be left with any it is taken to the Balance
balance in balance.
Account is not closed, there is a credit
n case, Suspense
the liabilities side if
or
debit balance,
Ssets side if there is a
IMPORTANT NOTE
rectified after transferring
errors a r e
that the
it is presumed Account but before
the preparation
Uness otherwise stated, Balance to the Suspense
eof liference in the Trial
the Final Accounts.
Account:
lustration 10. (2) with Suspense
Account and
Suspense
omec
the following errors: (1) without
short.
been totalled 1,000 not been
recorded anywhere.
alesBook has by Green & Co.,
have
) R 1,500 returned
the supplier,
Ravi.
orth to debit of
2.500 w a s posted
of 7 has been entered in
Ods purchased & Co., of R 10,000
Furr from Gulabpurchased
niture
Purchases Book. not been posted
in his account.

u C received from Ankit 7 2,500 has

h
prepare Suspense Account.

4
17.22 Double Entry Book
Keepino
ing
Solution: CRS
(/) Without Suspense Account:
(i) Since Sales Book has been casted (totalled) short by ? 1,000 s
been credited short by ? 1,000. The correcting entry is to credit Aales Neent h
by 1.000 as "By wrong totalling of the Sales Book...1,000"
the Sales N
(ii) To rectify the omission, Returns Inward Account has to be debitod
ed and the acsm
of Green & Co. credited. The entry:
Returns Inward Alc ...Dr.
1,500
To Green & Co.
(Being the goods retuned by the tirm, previously omitted from the Returns Inward Book)

ii) Ravi has been debited 2,500 instead of being credited. His accounto
be credited by 5,000 to remove the wrong debit and to give the.
The entry will be on the credit side "By error in posting... T 5,000 Creda
(iv) By this error, Purchases Account has been debited by 10,000 wherea
s the da
should have been to the Furniture Account. The rectifying entry
.Dr.
will be:
Furniture Alc 10,000
To Purchases Alc
(Being the correction of the mistake by which Purchases Account
was debited instead of the Furniture Account)
(v) Cash received from Ankit of R 2,500 has not been credited to his account. Ear
rectification of this error, Ankit's Account should be credited as follows:
Dr. ANKIT'S ACcOUNT
Dal
Date Particulars J.F Date Particulars U.F
By Omission of Posting 2
(2) With Suspense Account:
Date Particulars LF.Dr() C
Suspense Alc ..Dr. 1,000
To Sales Alc 100
Being the correction arising from undercasting of Sales Book)
(i) Returns Inward A/c ..Dr. 1,500
1.3
To Green& Co.
(Being the recording of goods returned by Green &Co., a customer)
Suspense Ac .Dr. 5,000
To Ravi Ill
Being the correction of the error by which Ravi were
Pas
debited instead of being credited by 2,500)
Furniture Ac 10,000
(ivV) ..Dr.
To Purchases A/c
(Being the correction of recording purchase of furniture as ordinary purchases)
Suspense Alc 2.500
( Dr 280
To Ankit
(Being the cash received from Ankit, now posted to his account)
 17.23
K a t i o no rE T o r s

SUSPENSE ACCOUNT
J.F
C
Particulars Date Particulars J.F
To SalesA c 1,000
By Difference in
& Co 5,000
To
Gupta Trial Balance 8,500
2,500
To Ankit
(Balancing Figure)
8,500 8,500
note that the opening balance
1. One should
in the to the
in the Irial Balance. Suspense count will be equal
difference
question is silent as to whether a Suspense Account has been pened or not, the student
Ifthe
make his assumptior state it and then
should
proceed.
M]ustration 11.

nce of
of aa firm.
firm did mot match and difference was placed in Suspense Account.
Balance
| followin errors were subsequently identified:
h
Sales Book was overcasted by 7 200.
)
Goods sold to M Manohar for 550 was posted as 5,500.
il
Purchases Book was overcasted by R 800.
Purchases Return Book was carried forward as 1,220 instead of 7 1,120.
cu are required to pass the Journal entries for rectification of the above errors.

Solution: RECTIFYING JOURNAL ENTRIES

Particulars LF. Dr. () Cr.)
Sales Ac ..Dr 200
To Suspense A/c 200
(Being the error in Sales Book totalling, now rectified)
Suspense A/c ...Dr. 4,950
To Manohar 4,950
(Being the sales of goods wrongly over-debited to customer, now rectified)

Suspense A/c ...Dr. 800

To Purchases A/c 800
Being the overcasting of Purchases Book, now rectified)

Purchases Return A/c ...Dr. 100

To Suspense A/c 100
eing the error in carrying forward of total of Purchases Return
Book, now rectified)

lustration 12.
th
ournal entries to rectify the following errors, using Suspense Account:
s ofthe value of 2,000 returned by Verma were entered in the Sales Book
Posted therefrom to the credit of his account.
dmount of 3,000 entered in the Sales Return Book has been posted to the
Dlebit of Sharma, who returned the goods.
ofR 2,000 made to Mohan was correctly entered in the Sales Book but
vrongly posted to the debit of Sohan as 200.
 Double Entry Book
17.24 Keeping
RECTIFYING JOURNAL ENTRIES
-CBSE
Solution:
Date Particulars L.F. Dr.
..Dr.
(0) Sales Ac
..Dr. 2.000
Sales Retum Alc 2,00
To Suspense Alc
(Being the value of goods
returned by Verma wrongly posted to Sales Account A
now rectified)
and omission of debit to Sales Return Account,
.Dr.
Suspense Ac 6,000
(i)
To Sharma
retumed by
(Being the wrongly debited to Sharma tor goods
him, now rectified)
..Dr. 2,000
() Mohan
To Sohan
To Suspense Ac
(Being the omission of debit to Mohan and wrongly credited
to Sohan for sale of 200, now rectified)

Illustration 13.
Pass the Journal entries to rectify the following errors detected during preparation
the Trial Balance:
() Purchases Book is undercast by 1,000.
(ii) Wages paid for construction of office debited to Wages Account 7 20,000.
(ii) A credit sale of goods 1.200 to Ramesh has been wrongly passed throught
Purchases Book.
(iv) Goods purchased for 7 5,000 were posted as T 500 to the Purchases Account
(u) An amount of 7 2.000 due from Mahesh Chand which had been
written of
a bad debt in previous year was unexpectedly recovered has been postedto
personal of Mahesh Chand.
account
in the books as .
(vi) A credit purchase of F 1,040 from Ramesh was passed
(vi) Goods (Cost 5,000; Sales Price 6,000) distributed as free samples an
prospective customers were not recorded anywhere. here
(viii) Goods worth 7 1,500 returned by Green & Co. have not been recorded anyw
(Delhi2

Solution: RECTIFYING JOURNAL ENTRIES

LF.Dr 0
Date Particulars
1,000
Purchases Ac ...Dr.
To Suspense AVc
(Being the Purchases Book undercast, now rectified)
20.000

(i) Building A/c ...Dr.

To Wages Ac
(Being the wages for construction of building wrongly debited to
Wages Account, now rectified)
2.400
Ramesh ..Dr ,
To Sales Ac
To Purchases A/c
(Being the wrong recording of sales in Purchases Book, now rectiied)