SECTION “A”
Q1 “Trial
Balance is a conclusive proof of checking the arithmetical accuracy of the
accounting records.” Explain the above statement.
Q2 Briefly
explain the objectives of preparing trial balance.
Q3 What is
the classification of errors?
Q4 What is
meant by errors of Principle?
Q5 What is
meant by errors of omission?
Q6 What is
meant by error of commission?
Q7 Give two examples of types of errors that remain undetected even
after preparation of trial balance.
Q8 What is Suspense Account?
Q9 In case of errors of partial omission,
will the trial balance agree? Why?
SECTION
“B”
Q1 Rectify the
following errors:
(i) Paid
wages for the construction of office debited to Wages Account Rs. 20,000.
(ii) Paid
cartage for the newly purchased furniture Rs. 500, posted to Cartage Account.
(iii) Paid Rs.
50,000 for the installation of machinery debited to Wages Account.
(iv) Rs. 5,000 paid for furniture purchased has
been charged to the ordinary
Purchases
Account.
(v) Repairs made were debited to the Building
Account for 500.
(vi) An amount of Rs. 1,000 withdrawn by the
proprietor for his personal use has been debited to the Trade Expenses Account.
(vii)
Rs. 1,000 paid for rent debited to the Landlord’s
Account.
(viii)
Salary of Rs. 1,250 paid to a clerk, due to him,
has been debited to his Personal account.
(ix) Rs. 1,000 received from Shah & Co. has
been wrongly entered as from Shaw & Co.
(x) Rs. 7,000 paid in cash for a typewriter was
charged to the Office Expenses account.
(xi) A purchase of goods from Ram amounting to Rs.
1,500 has been wrongly passed through the Sales Book
(xii)
A credit
sale of goods of Rs. 1,200 to Ramesh has been wrongly passed through the
Purchases Book.
(xiii)
An amount of Rs. 2,000 due form M.C which had been
written off as a Bad Debt in a previous year was unexpectedly recovered and has
been posted to the personal account of M.C.
(xiv)
A cheque for
Rs. 1,000 received from M.N was dishonored and had been posted to the debit of
the Sales Returns Account.
(xv)A credit
sale of Rs. 5,000 to Ram omitted to be recorded in the books.
(xvi)
Goods (Cost Rs. 2,000, Sale Price Rs. 2,400) taken
by the proprietor were not recorded anywhere.
(xvii)
Goods worth Rs. 350 sold to Hari on credit were
omitted from the accounts.
(xviii)
A credit sale of old furniture to Mahesh for Rs.
500 omitted to be posted.
(xix)
On 31st March, 2007 goods of the value
of Rs. 3,000 were returned by Hari and
were taken into stock on the same
date, but no entry was passed in the books.
(xx)A return
of goods worth Rs. 500 by a customer was taken into stock but no entry was
passed in the books.
(xxi)
A credit purchased of goods worth Rs. 1,500 from
Mohan & Co. was not passed in the books although the goods were taken into
stock.
(xxii)
A return of goods worth Rs. 500 by Mohan was
entered in the Purchases Returns Book.
(xxiii)
A return of goods worth Rs. 800 to Sohan was passed
through the Sales Returns Books.
(xxiv)
A Bills Receivable of Rs. 200 received from Ram was
passed through the Bills Payable Book.
(xxv)
Acquisition charges on the purchase of a new
building amounting to Rs. 5,000 were debited to the Sundry Expenses Account.
(xxvi)
Outstanding telephone charges of Rs. 2,000, had
been completely omitted.
(xxvii)
Material from store of Rs. 2,000 and wages Rs. 500
(out of the total wages bill of factory) had been used in making tools and
equipments for use in own factory, but no adjustments were made in the books.
(xxviii)
A credit purchase of Rs. 1,040 from Ramesh was
passed in the books as Rs. 1,400.
(xxix)
Goods (Cost Rs. 5,000, Sales Price Rs. 6,000)
distributed as free samples among prospective customers were not recorded
anywhere.
(xxx) Wages
paid to the firm’s Workmen for making additions to machinery amounting to Rs.
350 were debited to the Wages Account.
Q2 Correct the following errors in M’s Book:
(i)
A sum of Rs. 1,500 written off as depreciation on
furniture has not been debited to the Depreciation Account.
(ii)
The returns Outward Journal has been overcast by
Rs. 85.
(iii)
B returned goods worth Rs. 500; his account was
debited by this amount.
(iv)
A purchase from
K of Rs. 2,250 has been debited to his account.
Q3 Pass
rectifying Journal entries for the following errors;
(i)
Sales return book is undercast by Rs.
2,000.
(ii)
Goods worth Rs. 2,400 purchased on
credit from V were entered in the Sales Book. However,
V's account had been correctly credited.
(iii)
An old machine sold for Rs. 4,200 was
entered in the Sales Book.
(iv)
Repair of building for Rs. 2,900 was debited
to the Building Account.
(v)
Rs. 2,050 paid to R, a creditor is
posted to the debit of M, another creditor as Rs. 5,020.
Q4 Pass rectifying entries for the following:
(i)
Sales of goods Rs. 6,000 to M were
recorded as Rs. 600 in the Sales Book.
(ii)
A credit purchase of goods from H
amounting to Rs. 2,000 has been wrongly passed through the Sales Book.
(iii)
A return of goods worth Rs. 500 by a
customer was entered in 'Purchases Return Book'.
(iv)
A cheque of Rs. 400 received from R was dishonored and
debited to the 'Discount Account'.
(v)
A bill for Rs. 820 received from J for
repair of machinery was entered in the Purchase Book as Rs. 720.
Q5 The
following mistakes were located in the books of a concern after its books were
closed and a Suspense Account was opened in order to achieve a Trial Balance
agreement:
(i)
The Sales Day Book was overcast by Rs.
100.
(ii)
A sale of Rs. 50 to X was wrongly
debited to the account of Y.
(iii)
General Expenses of Rs. 18 were posted
in the General Ledger as Rs. 180.
(iv)
A Bill Receivable for Rs. 155 was
passed through Bills Payable Day Book. This bill was given by P.
(v)
Legal Expenses of Rs. 119 paid to Mr. D
was debited to his Personal Account.
Find out the nature and amount of the
‘Suspense Account’ and pas entries for the rectification of the above errors in
the subsequent years’ books.
Q6 The-Trial
Balance of S did not agree and the difference in books was carried through
Suspense Account. Pass the entries required to rectify the following errors
which accounted for the difference. Also prepare
the Suspense Account:
a)
A Sales Invoice for Rs. 1,000 for goods
sold on credit to B was entered in the Purchases Book; but in the Ledger, the
amount was correctly debited to the account of B.
b)
Goods bought on credit from R for Rs.
1,500 were wrongly debited to his account as Rs. 5,100.
c)
An amount of Rs. 275 was posted as Rs.
325 to the debit side of the Commission Account.
d)
The Sales Book for the month of April
was undercast by Rs. 100.
e)
Rs. 460 paid for building repairs was
debited to the Building Account as Rs. 640.
Q8 The Trial Balance of M/s Gupta and Sons shows a difference of Rs.
52,200. To prepare the final A/c on 31st March 2005, this difference is placed
in a suspense A/c. Afterward the following errors were disclosed. Pass
necessary entries to rectify them and show the suspense A/c.
(i)
The total of Purchase Book had been
undercast by Rs. 20,000.
(ii)
A cheque received from V for Rs. 7,800
had been debited in the Cash Book but not posted in V's personal A/c.
(iii)
The return outward book had been
overcasted by Rs. 10,000.
(iv)
Goods returned by Y worth Rs. 15,000
have been entered in return outward book. However, Y's A/c
is correctly posted.
Q9 A trial balance disclosed a difference of Rs. 417, placed on
credit side of suspense account. Later on following errors were located. Pass
rectifying entries and prepare suspense
account.
(a) Goods worth Rs. 200 purchased from S has been posted to his
account as Rs. 250.
(b) A purchase of furniture for Rs. 500 was recorded in Purchases
Book.
(c) Instead of crediting G A/c with Rs. 512, it was debited with Rs.
215.
(d) Goods worth Rs. 130 returned by H were entered in Sales Book and
posted there from to credit of H's personal A/c.
Q10 Give rectifying entries for the following:
(i)
Sale of goods Rs. 6,000 to M was
recorded as Rs. 600 in the Sales Book.
(ii)
A credit purchase of goods from D
amounting to Rs. 1,500 has been wrongly passed through the Sales
Book.
(iii)
Rs. 200 salary paid to cashier B,
stands wrongly debited to his Personal Account.
(iv)
A cheque of Rs.800 received from R was
dishonored and debited to discount A/c.
(v)
Bill for Rs. 800 received from M for
repairs of Machinery was entered in the Purchase Book as Rs. 700.
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