Question

Question 47.
While trying to close his books for the year ended 31st March, 2014, Mahesh found that the Trial Balance did not agree. He traced the following errors:
(i) In the Sales Book for the month of January total of Page No. 2 was carried forward to Page No. 3 as ₹ 1,000 instead of ₹ 1,200 and total of Page No. 6 was carried forward to Page No. 7 as ₹ 5,600 instead of ₹ 5,000.
(ii) Goods returned to Ram ₹ 1,000 were recorded in the Sales Book.
(iii) Bills Receivable for ₹ 1,600 from Noor was dishonoured and posted to debit of Allowances Account.
Rectify the above errors.

Answer 1

(i) Sales A/C Dr. 400

To Suspense A/C 400

(ii) Sales A/C Dr. 1000

To P.R. A/C 1000

(iii) Suspense A/C Dr. 3200

To B/R A/C 3200

Answer 2

The correct journal entries are -

(i) Sales A/c Dr. 400

To Suspense A/c 400

( Being sales book undercast by 200, overcast by 400, now rectified)

(ii) Sales A/c Dr. 1000

To Purchase Return A/c 1000

( Being goods returned to Ram recorded in Sales Book, now rectified)

(iii) Suspense A/c Dr. 1600

To Bills Receivable A/c 1600

( Being bills receivable from Noor dishonoured, now rectified)