Question

Question 7.
Rectify the following errors assuming that there is no Suspense Account:
(i) The Returns Inward Book has been overcast by ₹ 200.
(ii) Purchases Book carried forward ₹ 75 less.
(iii) Sales Book carried forward ₹ 41 less on Page 10 and ₹ 43 more on Page 12.
(iv) Goods sold to Gautam were posted as ₹ 215 instead of ₹ 251.

Answer 1

Answer:

a) Suspense A/C Dr. 200

To Returns Inward A/C 200

b) Purchase A/C Dr. 75

To Suspense A/C 75

c) Sales A/C Dr. 2

To Suspense A/C 2

d) Gautam Dr. 36

To Sales A/C 36

Answer 2

The answer is explained below and the solution is given in the question only.

Explanation:

It is given in the question that there is no suspense account.

All the errors given in the question is one side error. Rectification of error at this stage does not require rectification entries. Only the amount is written on the debit or credit side of the account which is affected by the error.

For example, the total of the purchase book is undercast by 1000 rs. To rectify the error the amount of 1000 will be put on the debit side of the purchase account by writing the words " To undercasting of purchase book.

Now let us understand as per our question.

(i) The return inward book has been overcast - In this case we have to put rs 200 to the credit side of the return inward book to rectify the error.

(ii) In this case we need to put rs 75 to the debit side of the Purchase book to rectify this error as the purchase book is undercast.

(iii)In this case rs 41 is carried less while 43 is carried more to the sales book so we need to debit the sales book with rs 2 to rectify the error.

(iv) The error only relates to Gautam account so we need to debit with rs 36 as it was posted with 215 instead of 251.