Question
Rectify the following errors assuming:-
That such a suspense account has been opened.
  1. Goods costing ₹ 800 purchased from Sachin on credit were omitted to be credited to his account.
  2. Goods costing ₹ 800 purchased from Sachin on credit were credited to his account as ₹ 80.
  3. Goods costing ₹ 800 purchased from Sachin on credit were credited to his account as ₹ 880.
  4. Goods costing ₹ 800 purchased from Sachin on credit were posted to the debit of his account.
  5. Goods costing ₹ 800 purchased from Sachin on credit were posted to the debit of his account as ₹ 80.

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Rectify the following errors:-
  1. ₹ 4,500 spent on the extension of Buildings were debited to Repairs A/c.
  2. Wages paid to the firm's own workmen ₹ 3,600 for the installation of a new machinery were posted to Wages Account.
  3. Contractor's bill for the construction of a godown at a cost of ₹ 10,000 has been charged to 'Repairs' A/c.
  4. ₹ 1,500 paid as Wages to a worker 'Bahadur Singh', has been debited to his personal account.
  5. Old furniture sold for ₹ 500 has been credited to Sales Account.
  6. A cheque of ₹ 620 received from Ram, has been wrongly credited to Shyam.
From the following particulars, find out corrected bank balance as per Cash Book and thereafter prepare a Bank Reconciliation Statement as on 31st March, 2019 of a sole proprietor:
 
 
(i)
Bank overdraft as per the Cash Book.
80,000
(ii)
Cheques deposited as per the bank statement but not entered in the Cash Book.
3,000
(iii)
Cheques recorded for collection but not sent to the bank.
10,000
(iv)
Credit side of bank column casted short.
1,000
(v)
Bank charges recorded twice in the Cash Book.
100
(vi)
Customer's cheque returned as per the Bank Statement.
4,000
(vii)
Cheques issued but dishonoured on technical grounds.
3,000
(viii)
Bills collected by bank directly.
20,000
(ix)
Cheque received entered twice in the Cash Book.
5,000
From the following information supplied by Sanjay, prepare his Bank Reconciliation Statement as on 31st March, 2019:
   
(i) Bank overdraft as per Pass Book. 16,500
(ii) Cheques issued but not presented for payment. 8,750
(iii) Cheques deposited with the Bank but not collected. 10,500
(iv) Cheques recorded in the Cash Book but not sent to the bank for collection. 2,000
(v) Payments received from customers directly by the bank. 3,500
(vi) Bank charges debited in the Pass Book. 200
(vii) Premium on life policy of Sanjay paid by the bank on standing advice. 1,980
(viii) A bill for ₹ 3,000 (discounted with the bank in February) dishonoured on 31st March, 2019 and noting charges paid by the bank. 100
Following balances appear in the books of Rama Bros:
 
 
1st April, 2016
Machinery A/c
80,000
 
Provision for Depreciation A/c
36,000
On 1st April, 2016, they decided to sell a machine for ₹ 8,700. This machine was purchased for ₹ 16,000 in April, 2012. Prepare the Provision for Depreciation Account and Machinery Account on 31st March, 2017, assuming the firm has been charging Depreciation at 10% p.a. on Straight Line Method.
Prepare Accounting Equation from the following and also prepare a Balance Sheet:
  1. Raghu started business with Cash ₹ 1,50,000.
  2. Bought goods for cash ₹ 80,000 and on credit for ₹ 40,000.
  3. Goods costing ₹ 75,000 sold at a profit of $33\frac{1}{3}\%.$ Half the payment received in cash.
  4. Goods costing ₹ 10,000 sold for ₹ 12,000 on credit.
  5. Paid for Rent ₹ 2,000 and for salaries ₹ 4,000.
  6. Goods costing ₹ 20,000 sold for ₹ 18,500 for Cash.
On 10th April, 2018, Ravi purchased from Mohan goods for ₹ 30,000 plus CGST and SGST @ 9% each. Ravi paid ₹ 15,400 in cash and accepted a bill for two months for the balance amount drawn on him by Mohan. Mohan endorsed the bill to Rakesh. The bill was dishonoured on the due date. Rakesh had to spend ₹ 100 as noting charges.
Immediately after the dishonour, Mohan accepted a new bill drawn by Rakesh, in which ₹ 200 for interest were also included. After 20 days of the dishonour of the bill, Ravi paid full amount of Mohan including ₹ 50 as interest. Show Journal entries in the books of Ravi, Mohan and Rakesh.
Prepare Accounting Equation from the following:
  1. Started business with cash ₹ 75,000 and goods ₹ 25,000.
  2. Paid for Rent ₹ 2,000.
  3. Bought goods for cash ₹ 30,000 and on credit for ₹ 44,000.
  4. Goods costing ₹ 50,000 sold at a profit of 25%, out of which ₹ 27,500 received in Cash.
  5. Purchased a Motor-cycle for personal use ₹ 20,000.
On 1st July 2015, ABC Ltd. purchase 4 machines for ₹ 80,000 each. The accounting year of the company ends on 31st March every year. Depreciation is provided at the rate of 15% p.a. on original cost.
On 1st April, 2017 one machine was sold for ₹ 50,000 and on 1st January, 2019 a second machine was sold for ₹ 40,000. Another machine with a higher capacity which cost ₹ 2,00,000 was purchased on 1st January, 2019.
You are required to show: (i) Machinery Account, (ii) Depreciation Account, and (iii) Provision for Depreciation Account for four years ending 31st March, 2019.
Give the Journal entries for the following:
  1. B's acceptance to us for ₹ 1,000 due this day, renewed at his request for 3 months with interest @ 6% p.a.
  2. Our bill to Chandra for ₹ 5,000 renewed for 2 months with interest @ 6% p.a.
  3. B's acceptance of ₹ 3,000 is discharged on his paying us cash ₹ 1,000 and accepting a fresh bill for the balance with interest ₹ 100.
On Jan 01, 2017 Vibha sold goods worth ₹ 18,000 to Sudha and drew upon the latter a bill of exchange for the same amount payable after two months. Sudha accepted Vibha’s draft and returned the same to Vibha after acceptance. Vibha endorsed the bill immediately in favour of her creditor Geeta. Five days before the maturity of the bill Sudha requested Vibha to cancel the bill since she was short of funds. She further requested to draw a new bill upon her including interest of ₹ 200. Vibha accepted Sudha’s request. Vibha took the bill from Geeta by making the payment to her in cash and cancelled the same. Then she drew a new bill upon Sudha as agreed. The new bill was payable after one month. The new bill was duly met by Sudha on maturity. Record the necessary journal entries in the books of Vibha.