Question

A vehicle originally brought for 7000 Rupees four years ago and depreciated to 1200 rupees and sold for 1500 rupees in the beginning of the year but no entries other than in bank accounts had been passed through the books​

Answer 1

Answer:

    [Suspense A/c   Dr.        1500

             To Vehicle A/c            -                   1200

             To Profit on Sale of Vehicle A/c     300]

Being Entry not passed on sale of vehicle @ 1500 Rs. which is actually depreciated to 1200 Rs. i.e 1500-1200=300(Profit)

Explanation:

Here no entry in the books of account is passed so it is an error of omission and if in question it is mentioned that errors found were after preparation of Trail balance but before Final accounts, Rectified entry will be as above