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Model Paper 1 — Account STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceAccountModel Paper 16 Marks
Question
Correct the following errors: (1) without Suspense Account and (2) with Suspense Account:
i. Sales Book has been totalled ₹ 8,000 short.
ii. Goods of ₹ 1,500 returned by Shivam & Co., have not been recorded.
iii. Goods purchased of ₹ 2,500 was posted to debit of the supplier, Ram.
iv. Furniture purchased from Pink & Co., of ₹ 10,000 has been entered in Purchases Book.
v. Cash received from Aniket ₹ 3,500 has not been posted in his account. Also prepare Suspense Account.
✓

Answer

I. Without Suspense Account:
i. Since Sales Book has been casted (totalled) short by ₹ 8,000 , Sales Account has been credited short by ₹ 8,000 . The correcting entry is to credit the Sales Account by ₹ 8,000 as "By wrong totalling of the Sales Book ... ₹ 8,000 "
ii. To rectify the omission, Returns Inward Account has to be debited and the account of Shivam \& Co. credited. The entry:

Returns Inward A/c

..Dr.

₹ 1500

 

To Shivam & Co.

 

 

₹ 1500

(goods returned by the firm, previously omitted from the Returns Inward Book)

 

 

 


iii. Ram has been debited ₹ 2,500 instead of being credited. His account should now be credited by ₹ 5,000 to remove the wrong debit and to give the correct credit. The entry will be on the credit side "By error in posting ... ₹ 5,000 ".
iv. By this error, Purchases Account has been debited by ₹ 10,000 whereas the debit should have been to the Furniture Account. The rectifying entry will be:

Furniture A/c

Dr.

₹ 10,000

 

To Purchases A/c

 

 

₹ 10,000

(correction of the mistake by which Purchases Account was debited instead of the Furniture Account)

 

 

 


v. Cash received from Aniket of ₹ 3,500 has not been credited to his account. For the rectification of this error, Aniket's Account should be credited as follows:

Aniket's ACCOUNT

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

₹

Date

Particulars

J.F.

₹

 

 

 

 

 

By Omission of Posting

 

3,500

  
II. With Suspense Account:

Date

Particulars

 

L.F

Dr. (₹)

Cr. (₹)

(i)

Suspense A/c

...Dr.

 

8,000

 

 

To Sales A/c
(correction arising from undercasting of Sales Book)

 

 

 

8,000

(ii)

Returns Inward A/c

...Dr.

 

1,500

 

 

To Shivam & Co.
(recording of goods returned by Shivam & Co., a customer)

 

 

 

1,500

(iii)

Suspense A/c

...Dr.

 

5,000

 

 

To Ram
(correction of the error by which Ram were debited instead of being credited by ₹2,500)

 

 

 

5,000

(iv)

Furniture A/c

...Dr.

 

10,000

 

 

To Purchases A/c
(correction of recording purchase of furniture as ordinary purchases)

 

 

 

10,000

(v)

Suspense A/c

...Dr.

 

3,500

 

 

To Aniket
(cash received from Aniket, now posted to his account)

 

 

 

3,500

(ii)

SUSPENSE ACCOUNT

Dr.

 

Cr.

Date

Particulars

J.F.

₹

Date

Particulars

J.F.

₹

 

To Sales A/c

 

8,000

 

By Difference in

 

16,500

 

To Ram

 

5,000

 

Trial Balance

 

 

 

To Aniket

 

3,500

 

(Balancing Figure)

 

 

 

 

 

16,500

 

 

 

16,500

Notes:
i. One should note that the opening balance in the Suspense Account will be equal to the difference in the Trial Balance.
ii. If the question is silent as to whether a Suspense Account has been opened or not, the student should make his assumption, state it and then proceed.

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