UPSC Exam > UPSC Questions > 23. A Trader putting the difference in the Tr...
Start Learning for Free
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
show the journal entry?
(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
show the journal entry?
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:
- Return Inward Book was overcast by 300.
- 200 discount not posted in General Ledger.
- Cost of Office Equipment entered in the Purchase Account.
- Credit purchase of 870 wrongly posted as 780.
- Closing Stock understated by ₹3,500.
Journal Entry for Rectification:
Date | Particulars | Debit (₹) | Credit (₹)
---- | ----------- | --------- | ----------
1. | Return Inward Book A/c | 300 | To Suspense A/c | 300
2. | Suspense A/c | 200 | To Discount A/c | 200
3. | Purchase A/c | 8,000 | To Office Equipment A/c | 8,000
4. | Supplier's A/c | 90 | To Suspense A/c | 90
5. | Suspense A/c | 3,500 | To Closing Stock A/c | 3,500
Explanation:
- The error of overcasting in the Return Inward Book is rectified by debiting Return Inward Book and crediting Suspense Account.
- The discount not posted in General Ledger is rectified by debiting Suspense Account and crediting Discount Account.
- The entry of the cost of Office Equipment in the Purchase Account is rectified by debiting Purchase Account and crediting Office Equipment Account.
- The wrongly posted credit purchase amount is rectified by debiting Supplier's Account and crediting Suspense Account.
- The understatement of Closing Stock is rectified by debiting Suspense Account and crediting Closing Stock Account.
Rectification of Errors:
- Return Inward Book was overcast by 300.
- 200 discount not posted in General Ledger.
- Cost of Office Equipment entered in the Purchase Account.
- Credit purchase of 870 wrongly posted as 780.
- Closing Stock understated by ₹3,500.
Journal Entry for Rectification:
Date | Particulars | Debit (₹) | Credit (₹)
---- | ----------- | --------- | ----------
1. | Return Inward Book A/c | 300 | To Suspense A/c | 300
2. | Suspense A/c | 200 | To Discount A/c | 200
3. | Purchase A/c | 8,000 | To Office Equipment A/c | 8,000
4. | Supplier's A/c | 90 | To Suspense A/c | 90
5. | Suspense A/c | 3,500 | To Closing Stock A/c | 3,500
Explanation:
- The error of overcasting in the Return Inward Book is rectified by debiting Return Inward Book and crediting Suspense Account.
- The discount not posted in General Ledger is rectified by debiting Suspense Account and crediting Discount Account.
- The entry of the cost of Office Equipment in the Purchase Account is rectified by debiting Purchase Account and crediting Office Equipment Account.
- The wrongly posted credit purchase amount is rectified by debiting Supplier's Account and crediting Suspense Account.
- The understatement of Closing Stock is rectified by debiting Suspense Account and crediting Closing Stock Account.
Attention UPSC Students!
To make sure you are not studying endlessly, EduRev has designed UPSC study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in UPSC.
|
Explore Courses for UPSC exam
|
|
Top Courses for UPSCView all
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 inventoryshow the journal entry?
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 inventoryshow the journal entry? 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 inventoryshow the journal entry? 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 inventoryshow the journal entry?.
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 inventoryshow the journal entry? 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 inventoryshow the journal entry? 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 inventoryshow the journal entry?.
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 inventoryshow the journal entry? in English & in Hindi are available as part of our courses for UPSC.
Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.
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 inventoryshow the journal entry? 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 inventoryshow the journal entry?, 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 inventoryshow the journal entry? 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 inventoryshow the journal entry? 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 inventoryshow the journal entry? tests, examples and also practice UPSC tests.
|
|
Explore Courses for UPSC exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup