Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

rectification of error (suspense accounts Example Following trial balance is extracted from the books of Mr. Asif for year ended in 20, 2011 Trial Balance

rectification of error (suspense accounts
image text in transcribed
Example Following trial balance is extracted from the books of Mr. Asif for year ended in 20, 2011 Trial Balance M on June 10, 2011 Rapers Dr. CH 100,000 Plant- 120.000 Stock in trade 25.000 Debtor 15.000 Bank Creditors 17000 Mr. Anil's Capital Account 194.000 Administration Expres 5000 Sale 216.000 Purchaus Retur 10957 Parchases 1000 Sales Return 25.000 132.00 137957 A credit purchase of Rs. 10,000 has correctly been posted to purchase these been posted to the credit of creditor count (0) Sale account has been under casted by Rs. 3,000 (iii) Purchase day book has been under cated by Rs. 4.500 (I) Building conteld of Rs. 14,000 has not been put in trial Sale retorn day book total of page 6 of Rs. 12 has been of to set page as Rs. 15. (vi) Total of 1 page of purchase turn day book is not posted to legering to Rs.40. Required: Prepere joumal entries to rectify the mor. Also prepare suspense Eumple- Following trial balance is extracted from the books of Me. Asif for you eated June 2011. What will be corrected profit, it profit before the correction of the following en Ra. 600,00 Pass the rectifying entries Credit sales of Rs. 1.000 have not been recorded in debtor scoot # Goods sold or credit amounting to Rs. 12300 have been recorded in debtor account Rs. 13.200. in Purchases of Rs 300 were recorded in creditor account as Rs 250 IV) Pane and machinery purchased for Rs 3,000 is not debited to pless and machinery account 1) Purchase of plant and machinery Rs. 3.200 is wrongly debited to repair sont vi) Credit purchase of Rs. 2,000 is posted to debit of credite com Rs 1.300 vii) Credit sales amounting to Rs 10.000 were being confid in debtors viit) The total of purchase return day boot among to Rs. 16,150 had not been posted to be ledger Ix) A credit sale of Rs. 12.000 is correctly entered in day book but from there has wrowy been credited in debitor account x) A purchase of goods from Mon credit amounting to R$ 15,000 was wrongly passed through the salos book. xi) One of the stock sheet had been overcast by Rs.1,000 xi) Rute of depreciation for plant and machinery is 10% under straight line method xi) Rate of provision for doubtful debt is 5% Examek Following errors were identified by the auditors for the year eaded December 31, 2010 (0) Advance paid Rs. 50,000 on 1.08.2010 for purchase of machinery to be delivered in 2011 is debited te machinery . (1) Repair costing Rs.10,000 on 1.4.2010 have been debited to machinery at Rate of Depreciation is 10% straight line Required. Prepare the journal entries to correct the above stron Examples Following errors were identified by the audition for the year ended December 31, 2010 Advance paid for purchase of machinery to be delivered on 31.3.2011 Gobie to achie account on 1.11.2010. Amount is Rs 100 (1) Installation cost paid for machine weber 1, 2010 anoding R 50.000 is debited to repair account Rate of Depreciation is 10% WDV. Required: Prepare the journal entries to contact the above mens

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Tony Davies, Ian Crawford

1st Edition

0273723073, 9780273723073

More Books

Students also viewed these Accounting questions

Question

How is communication defi ned?

Answered: 1 week ago

Question

What are the benefi ts of studying communication?

Answered: 1 week ago