Q1 On 15 April 2018, Amar sold goods of list price of ₹ 50,000 to Akbar subjected to IGST
of 6%. Akbar paid ₹ 13,000 by cheque and accepted two bills of equal amount for the
balance due. Immediately after Akbar’s acceptance, the first bill having a term of two
months is endorsed by Amar to Anthony whom he owed same amount. After one month,
the second bill having a term of three months is discounted by Amar from the bank @
12 % p.a. Both the bills are dishonoured on due date. Akbar has paid ₹ 80 and bank has
paid ₹ 70 as noting charges. Pass necessary journal entries in the books of drawer.
Q2 A book-keeper finds that the debit side of the trial balance is short of ₹ 308 and so for the
time being, he balances the side by putting the difference to suspense account.
Subsequently, the following errors were disclosed:
(a) An entry for sale of goods for ₹ 102 to Madhav is wrongly credited to his account as ₹
120.
(b) ₹ 100 being the carriage paid to bring the raw material into factory is posted to
carriage outward a/c.
(c) ₹ 160 paid by Monty is credited twice to his account.
(d) ₹ 26 appearing in the cash book for the purchase of stationery for office use has not
been posted to stationary account.
(e) Purchases Book is found over-casted by ₹ 100.
You are required to pass the journal entries and paid prepare suspense account.
Answers
Answer:
Q1 On 15 April 2018, Amar sold goods of list price of ₹ 50,000 to Akbar subjected to IGST
of 6%. Akbar paid ₹ 13,000 by cheque and accepted two bills of equal amount for the
balance due. Immediately after Akbar’s acceptance, the first bill having a term of two
months is endorsed by Amar to Anthony whom he owed same amount. After one month,
the second bill having a term of three months is discounted by Amar from the bank @
12 % p.a. Both the bills are dishonoured on due date. Akbar has paid ₹ 80 and bank has
paid ₹ 70 as noting charges. Pass necessary journal entries in the books of drawer.
Q2 A book-keeper finds that the debit side of the trial balance is short of ₹ 308 and so for the
time being, he balances the side by putting the difference to suspense account.
Subsequently, the following errors were disclosed:
(a) An entry for sale of goods for ₹ 102 to Madhav is wrongly credited to his account as ₹
120.
(b) ₹ 100 being the carriage paid to bring the raw material into factory is posted to
carriage outward a/c.
(c) ₹ 160 paid by Monty is credited twice to his account.
(d) ₹ 26 appearing in the cash book for the purchase of stationery for office use has not
been posted to stationary account.
(e) Purchases Book is found over-casted by ₹ 100.
You are required to pass the journal entries and paid prepare suspense account.