The undermentioned errors are located in the books of Premier Company after the
preparation of trial balance.
(a) Purchase Book was underast by 6,100.
(b) Returns inward book was overcast by 4,000.
(c) Goods sold to Mohinder for 200 not posted to his account.
(d) Discount received 20 from Jaggi was not posted to his account.
(e) Total of debit side of furniture was undercast by 1,400.
Income tax 7,000 paid by the sole proprietor was correctly recorded in cash book bu
not posted accordingly.
Pass rectification entries for the above errors (with Suspense Account)
which are discovered at post Trial Bala
Answers
Date Particular Debit Credit
a) Purchase A/c ......Dr 6,100
To Suspense A/c 6,100
( Being purchases book was undercast)
b) Suspense A/c .......Dr 4,000
To Sales Return A/c 4,000
( Being returns inwards book overcasted)
c) Mohinder A/c .......Dr 200
To Suspense A/c 200
( Being goods sold to mohinder not recorded)
d) Suspense A/c ......Dr 20
To Discount Received A/c 20
( Being discount received not recorded)
e) Furniture A/c ........Dr 1,400
To Suspense A/c 1,400
( Being debit side of furniture undercasted)
f) Income Tax A/c .......Dr 7,000
To Suspense A/c 7,000
( Being income tax paid not posted correctly)
Dr Suspense A/c Cr
Particular Amt Particular Amt
To Sales Return 4,000 By Purchase 6,100
To Discount Received 20 By Mohinder 200
To Balance c/d 10,680 By Furniture 1,400
By Income Tax 7,000
14,700 14,700