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Q.4 The Trial Balance of Green and co. as on 30th june, 2017 shows a difference of ` 8,323, the debit side being in excess of the Credit side. This difference was place in ‘Suspense’ Account while closing the books. The following errors were subsequently noticed: (a) Return outward book was undercast by ` 909 on 28th June, 2017?
Most Upvoted Answer
Q.4 The Trial Balance of Green and co. as on 30th june, 2017 shows a d...
Explanation of the error:
The error is related to the Return Outward Book being undercast by ` 909 on 28th June, 2017. This means that the amount of returns that were recorded in the book was less than the actual amount of returns. This error resulted in the debit side being in excess of the credit side by ` 8,323, which was placed in the Suspense account while closing the books.
Impact of the error:
As a result of this error, the Trial Balance did not tally, and the difference of ` 8,323 was placed in the Suspense Account. This meant that the exact financial position of the company was not reflected in the books of accounts. It is important to rectify this error to ensure that the financial statements are accurate.
Rectification of the error:
To rectify the error, the Return Outward Book should be updated with the correct amount of returns. The correct amount of returns should be added to the credit side of the Return Outward Book. This will ensure that the debit and credit sides of the Trial Balance will match, and the difference of ` 8,323 in the Suspense Account can be cleared.
Journal entry:
The journal entry to rectify this error is as follows:
Date | Particulars | Debit | Credit
---- | -----------|-------|-------
28-June-2017 | Suspense Account | 909 |
| Return Outward Account | | 909
The above entry will debit the Suspense Account and credit the Return Outward Account with the correct amount of returns. This will reduce the difference in the Trial Balance by ` 909.
Impact on financial statements:
The rectification of this error will ensure that the financial statements are accurate and reflect the true financial position of the company. The corrected Return Outward Book will be used to prepare the Trading Account, Profit and Loss Account, and Balance Sheet. The correct amount of returns will be reflected in the financial statements, which will ensure that the profitability and financial position of the company are accurately represented.
The error is related to the Return Outward Book being undercast by ` 909 on 28th June, 2017. This means that the amount of returns that were recorded in the book was less than the actual amount of returns. This error resulted in the debit side being in excess of the credit side by ` 8,323, which was placed in the Suspense account while closing the books.
Impact of the error:
As a result of this error, the Trial Balance did not tally, and the difference of ` 8,323 was placed in the Suspense Account. This meant that the exact financial position of the company was not reflected in the books of accounts. It is important to rectify this error to ensure that the financial statements are accurate.
Rectification of the error:
To rectify the error, the Return Outward Book should be updated with the correct amount of returns. The correct amount of returns should be added to the credit side of the Return Outward Book. This will ensure that the debit and credit sides of the Trial Balance will match, and the difference of ` 8,323 in the Suspense Account can be cleared.
Journal entry:
The journal entry to rectify this error is as follows:
Date | Particulars | Debit | Credit
---- | -----------|-------|-------
28-June-2017 | Suspense Account | 909 |
| Return Outward Account | | 909
The above entry will debit the Suspense Account and credit the Return Outward Account with the correct amount of returns. This will reduce the difference in the Trial Balance by ` 909.
Impact on financial statements:
The rectification of this error will ensure that the financial statements are accurate and reflect the true financial position of the company. The corrected Return Outward Book will be used to prepare the Trading Account, Profit and Loss Account, and Balance Sheet. The correct amount of returns will be reflected in the financial statements, which will ensure that the profitability and financial position of the company are accurately represented.
Community Answer
Q.4 The Trial Balance of Green and co. as on 30th june, 2017 shows a d...
Suspense a/c Dr
To return outward a/c
Return outward ( purchase returns ) which show's cr balance but he omitted to post this a/c so we rectified by posting it in cr side
Hope it is useful
To return outward a/c
Return outward ( purchase returns ) which show's cr balance but he omitted to post this a/c so we rectified by posting it in cr side
Hope it is useful
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Q.4 The Trial Balance of Green and co. as on 30th june, 2017 shows a difference of ` 8,323, the debit side being in excess of the Credit side. This difference was place in ‘Suspense’ Account while closing the books. The following errors were subsequently noticed: (a) Return outward book was undercast by ` 909 on 28th June, 2017?
Question Description
Q.4 The Trial Balance of Green and co. as on 30th june, 2017 shows a difference of ` 8,323, the debit side being in excess of the Credit side. This difference was place in ‘Suspense’ Account while closing the books. The following errors were subsequently noticed: (a) Return outward book was undercast by ` 909 on 28th June, 2017? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Q.4 The Trial Balance of Green and co. as on 30th june, 2017 shows a difference of ` 8,323, the debit side being in excess of the Credit side. This difference was place in ‘Suspense’ Account while closing the books. The following errors were subsequently noticed: (a) Return outward book was undercast by ` 909 on 28th June, 2017? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Q.4 The Trial Balance of Green and co. as on 30th june, 2017 shows a difference of ` 8,323, the debit side being in excess of the Credit side. This difference was place in ‘Suspense’ Account while closing the books. The following errors were subsequently noticed: (a) Return outward book was undercast by ` 909 on 28th June, 2017?.
Q.4 The Trial Balance of Green and co. as on 30th june, 2017 shows a difference of ` 8,323, the debit side being in excess of the Credit side. This difference was place in ‘Suspense’ Account while closing the books. The following errors were subsequently noticed: (a) Return outward book was undercast by ` 909 on 28th June, 2017? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Q.4 The Trial Balance of Green and co. as on 30th june, 2017 shows a difference of ` 8,323, the debit side being in excess of the Credit side. This difference was place in ‘Suspense’ Account while closing the books. The following errors were subsequently noticed: (a) Return outward book was undercast by ` 909 on 28th June, 2017? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Q.4 The Trial Balance of Green and co. as on 30th june, 2017 shows a difference of ` 8,323, the debit side being in excess of the Credit side. This difference was place in ‘Suspense’ Account while closing the books. The following errors were subsequently noticed: (a) Return outward book was undercast by ` 909 on 28th June, 2017?.
Solutions for Q.4 The Trial Balance of Green and co. as on 30th june, 2017 shows a difference of ` 8,323, the debit side being in excess of the Credit side. This difference was place in ‘Suspense’ Account while closing the books. The following errors were subsequently noticed: (a) Return outward book was undercast by ` 909 on 28th June, 2017? in English & in Hindi are available as part of our courses for CA Foundation.
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Here you can find the meaning of Q.4 The Trial Balance of Green and co. as on 30th june, 2017 shows a difference of ` 8,323, the debit side being in excess of the Credit side. This difference was place in ‘Suspense’ Account while closing the books. The following errors were subsequently noticed: (a) Return outward book was undercast by ` 909 on 28th June, 2017? defined & explained in the simplest way possible. Besides giving the explanation of
Q.4 The Trial Balance of Green and co. as on 30th june, 2017 shows a difference of ` 8,323, the debit side being in excess of the Credit side. This difference was place in ‘Suspense’ Account while closing the books. The following errors were subsequently noticed: (a) Return outward book was undercast by ` 909 on 28th June, 2017?, a detailed solution for Q.4 The Trial Balance of Green and co. as on 30th june, 2017 shows a difference of ` 8,323, the debit side being in excess of the Credit side. This difference was place in ‘Suspense’ Account while closing the books. The following errors were subsequently noticed: (a) Return outward book was undercast by ` 909 on 28th June, 2017? has been provided alongside types of Q.4 The Trial Balance of Green and co. as on 30th june, 2017 shows a difference of ` 8,323, the debit side being in excess of the Credit side. This difference was place in ‘Suspense’ Account while closing the books. The following errors were subsequently noticed: (a) Return outward book was undercast by ` 909 on 28th June, 2017? theory, EduRev gives you an
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