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23. A Trader putting the difference in the Trial Balance in a Suspense Account, prepare Final Account. On subsequent scruting the following errors were detected. Rectify them.
(a) Retum Inward Book was overcast by 300.
(b) 200 being the total of the discount column on the debit side of the Cash Book was not posted in General Ledger.
(c) 8,000 being the cost of Office Equipment was entered in the Purchase Account.
(d) A credit purchase of 870 was wrongly posted as 780 to the Supplier's Account in the Bought Ledger.
(e) Closing Stock was understated by ₹ 3,500 being casting errors in the schedule of inventory.?
(a) Retum Inward Book was overcast by 300.
(b) 200 being the total of the discount column on the debit side of the Cash Book was not posted in General Ledger.
(c) 8,000 being the cost of Office Equipment was entered in the Purchase Account.
(d) A credit purchase of 870 was wrongly posted as 780 to the Supplier's Account in the Bought Ledger.
(e) Closing Stock was understated by ₹ 3,500 being casting errors in the schedule of inventory.?
Most Upvoted Answer
23. A Trader putting the difference in the Trial Balance in a Suspense...
Rectification of Errors in Final Accounts:
Rectification of errors:
- The Return Inward Book was overcast by ₹300.
- 200 from the discount column on the debit side of the Cash Book was not posted in the General Ledger.
- The cost of Office Equipment (₹8,000) was incorrectly entered in the Purchase Account.
- A credit purchase of ₹870 was posted as ₹780 to the Supplier's Account in the Bought Ledger.
- Closing Stock was understated by ₹3,500 due to casting errors in the inventory schedule.
Rectification steps:
Return Inward Book error:
To rectify this error, the Return Inward Book should be adjusted by deducting the excess amount of ₹300 from the total.
Discount column error:
The missing amount of ₹200 from the discount column should be posted to the General Ledger in the appropriate account.
Office Equipment error:
The amount of ₹8,000 incorrectly entered in the Purchase Account should be transferred to the correct Office Equipment Account.
Credit purchase error:
The Supplier's Account in the Bought Ledger should be corrected by adjusting the entry from ₹780 to the correct amount of ₹870.
Closing Stock error:
The Closing Stock should be adjusted by adding the understated amount of ₹3,500 to reflect the accurate value in the inventory schedule.
By rectifying these errors in the Final Accounts, the financial statements will present a true and accurate picture of the company's financial position and performance.
Rectification of errors:
- The Return Inward Book was overcast by ₹300.
- 200 from the discount column on the debit side of the Cash Book was not posted in the General Ledger.
- The cost of Office Equipment (₹8,000) was incorrectly entered in the Purchase Account.
- A credit purchase of ₹870 was posted as ₹780 to the Supplier's Account in the Bought Ledger.
- Closing Stock was understated by ₹3,500 due to casting errors in the inventory schedule.
Rectification steps:
Return Inward Book error:
To rectify this error, the Return Inward Book should be adjusted by deducting the excess amount of ₹300 from the total.
Discount column error:
The missing amount of ₹200 from the discount column should be posted to the General Ledger in the appropriate account.
Office Equipment error:
The amount of ₹8,000 incorrectly entered in the Purchase Account should be transferred to the correct Office Equipment Account.
Credit purchase error:
The Supplier's Account in the Bought Ledger should be corrected by adjusting the entry from ₹780 to the correct amount of ₹870.
Closing Stock error:
The Closing Stock should be adjusted by adding the understated amount of ₹3,500 to reflect the accurate value in the inventory schedule.
By rectifying these errors in the Final Accounts, the financial statements will present a true and accurate picture of the company's financial position and performance.
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23. A Trader putting the difference in the Trial Balance in a Suspense Account, prepare Final Account. On subsequent scruting the following errors were detected. Rectify them.(a) Retum Inward Book was overcast by 300.(b) 200 being the total of the discount column on the debit side of the Cash Book was not posted in General Ledger.(c) 8,000 being the cost of Office Equipment was entered in the Purchase Account.(d) A credit purchase of 870 was wrongly posted as 780 to the Supplier's Account in the Bought Ledger.(e) Closing Stock was understated by ₹ 3,500 being casting errors in the schedule of inventory.?
Question Description
23. A Trader putting the difference in the Trial Balance in a Suspense Account, prepare Final Account. On subsequent scruting the following errors were detected. Rectify them.(a) Retum Inward Book was overcast by 300.(b) 200 being the total of the discount column on the debit side of the Cash Book was not posted in General Ledger.(c) 8,000 being the cost of Office Equipment was entered in the Purchase Account.(d) A credit purchase of 870 was wrongly posted as 780 to the Supplier's Account in the Bought Ledger.(e) Closing Stock was understated by ₹ 3,500 being casting errors in the schedule of inventory.? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about 23. A Trader putting the difference in the Trial Balance in a Suspense Account, prepare Final Account. On subsequent scruting the following errors were detected. Rectify them.(a) Retum Inward Book was overcast by 300.(b) 200 being the total of the discount column on the debit side of the Cash Book was not posted in General Ledger.(c) 8,000 being the cost of Office Equipment was entered in the Purchase Account.(d) A credit purchase of 870 was wrongly posted as 780 to the Supplier's Account in the Bought Ledger.(e) Closing Stock was understated by ₹ 3,500 being casting errors in the schedule of inventory.? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 23. A Trader putting the difference in the Trial Balance in a Suspense Account, prepare Final Account. On subsequent scruting the following errors were detected. Rectify them.(a) Retum Inward Book was overcast by 300.(b) 200 being the total of the discount column on the debit side of the Cash Book was not posted in General Ledger.(c) 8,000 being the cost of Office Equipment was entered in the Purchase Account.(d) A credit purchase of 870 was wrongly posted as 780 to the Supplier's Account in the Bought Ledger.(e) Closing Stock was understated by ₹ 3,500 being casting errors in the schedule of inventory.?.
23. A Trader putting the difference in the Trial Balance in a Suspense Account, prepare Final Account. On subsequent scruting the following errors were detected. Rectify them.(a) Retum Inward Book was overcast by 300.(b) 200 being the total of the discount column on the debit side of the Cash Book was not posted in General Ledger.(c) 8,000 being the cost of Office Equipment was entered in the Purchase Account.(d) A credit purchase of 870 was wrongly posted as 780 to the Supplier's Account in the Bought Ledger.(e) Closing Stock was understated by ₹ 3,500 being casting errors in the schedule of inventory.? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about 23. A Trader putting the difference in the Trial Balance in a Suspense Account, prepare Final Account. On subsequent scruting the following errors were detected. Rectify them.(a) Retum Inward Book was overcast by 300.(b) 200 being the total of the discount column on the debit side of the Cash Book was not posted in General Ledger.(c) 8,000 being the cost of Office Equipment was entered in the Purchase Account.(d) A credit purchase of 870 was wrongly posted as 780 to the Supplier's Account in the Bought Ledger.(e) Closing Stock was understated by ₹ 3,500 being casting errors in the schedule of inventory.? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 23. A Trader putting the difference in the Trial Balance in a Suspense Account, prepare Final Account. On subsequent scruting the following errors were detected. Rectify them.(a) Retum Inward Book was overcast by 300.(b) 200 being the total of the discount column on the debit side of the Cash Book was not posted in General Ledger.(c) 8,000 being the cost of Office Equipment was entered in the Purchase Account.(d) A credit purchase of 870 was wrongly posted as 780 to the Supplier's Account in the Bought Ledger.(e) Closing Stock was understated by ₹ 3,500 being casting errors in the schedule of inventory.?.
Solutions for 23. A Trader putting the difference in the Trial Balance in a Suspense Account, prepare Final Account. On subsequent scruting the following errors were detected. Rectify them.(a) Retum Inward Book was overcast by 300.(b) 200 being the total of the discount column on the debit side of the Cash Book was not posted in General Ledger.(c) 8,000 being the cost of Office Equipment was entered in the Purchase Account.(d) A credit purchase of 870 was wrongly posted as 780 to the Supplier's Account in the Bought Ledger.(e) Closing Stock was understated by ₹ 3,500 being casting errors in the schedule of inventory.? in English & in Hindi are available as part of our courses for UPSC.
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Here you can find the meaning of 23. A Trader putting the difference in the Trial Balance in a Suspense Account, prepare Final Account. On subsequent scruting the following errors were detected. Rectify them.(a) Retum Inward Book was overcast by 300.(b) 200 being the total of the discount column on the debit side of the Cash Book was not posted in General Ledger.(c) 8,000 being the cost of Office Equipment was entered in the Purchase Account.(d) A credit purchase of 870 was wrongly posted as 780 to the Supplier's Account in the Bought Ledger.(e) Closing Stock was understated by ₹ 3,500 being casting errors in the schedule of inventory.? defined & explained in the simplest way possible. Besides giving the explanation of
23. A Trader putting the difference in the Trial Balance in a Suspense Account, prepare Final Account. On subsequent scruting the following errors were detected. Rectify them.(a) Retum Inward Book was overcast by 300.(b) 200 being the total of the discount column on the debit side of the Cash Book was not posted in General Ledger.(c) 8,000 being the cost of Office Equipment was entered in the Purchase Account.(d) A credit purchase of 870 was wrongly posted as 780 to the Supplier's Account in the Bought Ledger.(e) Closing Stock was understated by ₹ 3,500 being casting errors in the schedule of inventory.?, a detailed solution for 23. A Trader putting the difference in the Trial Balance in a Suspense Account, prepare Final Account. On subsequent scruting the following errors were detected. Rectify them.(a) Retum Inward Book was overcast by 300.(b) 200 being the total of the discount column on the debit side of the Cash Book was not posted in General Ledger.(c) 8,000 being the cost of Office Equipment was entered in the Purchase Account.(d) A credit purchase of 870 was wrongly posted as 780 to the Supplier's Account in the Bought Ledger.(e) Closing Stock was understated by ₹ 3,500 being casting errors in the schedule of inventory.? has been provided alongside types of 23. A Trader putting the difference in the Trial Balance in a Suspense Account, prepare Final Account. On subsequent scruting the following errors were detected. Rectify them.(a) Retum Inward Book was overcast by 300.(b) 200 being the total of the discount column on the debit side of the Cash Book was not posted in General Ledger.(c) 8,000 being the cost of Office Equipment was entered in the Purchase Account.(d) A credit purchase of 870 was wrongly posted as 780 to the Supplier's Account in the Bought Ledger.(e) Closing Stock was understated by ₹ 3,500 being casting errors in the schedule of inventory.? theory, EduRev gives you an
ample number of questions to practice 23. A Trader putting the difference in the Trial Balance in a Suspense Account, prepare Final Account. On subsequent scruting the following errors were detected. Rectify them.(a) Retum Inward Book was overcast by 300.(b) 200 being the total of the discount column on the debit side of the Cash Book was not posted in General Ledger.(c) 8,000 being the cost of Office Equipment was entered in the Purchase Account.(d) A credit purchase of 870 was wrongly posted as 780 to the Supplier's Account in the Bought Ledger.(e) Closing Stock was understated by ₹ 3,500 being casting errors in the schedule of inventory.? tests, examples and also practice UPSC tests.
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