Question

Rectify the following errors. Calculate the difference in the Trial Balance. Prepare Suspense
account and find out the effect of these errors on net Profit.
a) An item of Rs.300 relating to prepaid rent account was omitted to be brought forward.
b) Purchased good from Narayan Rs.600, passed through sales book.
c) Received a Bill of exchange from Anand for Rs.1,000 and passed it through sales book.
d) Rs.1,000 paid to Mala against our acceptance wad debited to Malar account.
e) Bills received from Jolly for repairs done to T.V. Rs.300 and T.V. supplied for Rs.1,900 was
entered in the purchases book as Rs.2,000.
f) Received final dividend of Rs.400 from Ajay whose account had already been written off as
bad debt, was credited to his newly opened account and was included in the list of creditors.

Answer 1

Answer:

narayan A/c Dr. 300

To Sales A/c

300

(Credit sales to narayan were omitted to be recorded)

ii) Purchases A/c Dr. 600

To anand A/c

600

(Credit purchases from anand were omitted to be recorded)

iii) mala’s A/c Dr. 1000

To Purchases Return A/c

1000

(Goods returned to mala were omitted to be recorded)

iv) Sales Return A/c Dr. 19,000

To jolly A/c

300

(Goods returned from jolly were omitted