not recorded in the books. (iii) Discount received from Rohan Rs. on paying Rs. , to him was not posted at all.
(iv) Rs. received from Khalil, a debtor, whose account had earlier been written-off as bad, were credited to his personal account. (v) Cash received from Govil, a debtor, Rs. , was posted to his account as Rs.
. (vi) Goods returned to Mahesh Rs. were posted to his account as Rs. .
(vii) Bill receivable from Narayan Rs. , was dishonoured and wrongly debited to allowances account as Rs. , . Give journal entries to rectify the above errors and prepare suspense account to ascertain the amount of difference in trial balance.
Solution. Drawings A/c To Purchases A/c (Goods withdrawn by proprietor for personal use not recorded, now rectified). Discount allowed A/c To Ramesh’s A/c (Discount allowed to Ramesh not recorded, now rectified) (iii) Rohan’s A/c To Discount received A/c (Discount received from Rohan not posted , now corrected) (iv) Khalil’s A/c To Bad debts recovered A/c (Bad debts recovered wrongly credited to debtor’s personal account, now corrected) (v) Suspense A/c , To Govil’s A/c , (Cash received from Govil Rs. , wrongly posted to his account as Rs.
) (vi) Mahesh’s A/c To Suspense A/c (Goods returned to Mahesh Rs. wrongly posted to his account as Rs. , now corrected) (vii) Narayan’s A/c Suspense A/c , To Allowances A/c (Bill receivables from Narayan Rs. , wrongly debited to allowances account as Rs.
, ). Suspense Account Date Particulars J.F. Amount Date Particulars J.F. Amount Govil , Mahesh Allowances , Difference as per , trial balance , , Test Your Understanding - IV Tick the Correct Answer ( ) Agreement of trial balance is affected by: (a) One sided errors only.
Two sided errors only. Both a and b. ( d ) None of the above. ( ) Which of the following is not an error of principle: (a) Purchase of furniture debited to purchases account.
( b ) Repairs on the overhauling of second hand