Question
Rectify the following errors which were detected before preparing the Trial Balance:
  1. The total of Sales Book carried forward ₹ 5,000 less.
  2. A credit sale to Sita ₹ 6,300 posted as ₹ 3,600.
  3. A credit sale to Radha ₹ 2,400 posted as ₹ 4,200.
  4. A credit sale to Parbati ₹ 3,000 credited to her account.
  5. A credit sale to Laxmi ₹ 5,600 credited as ₹ 6,500.

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On Jan. 1, 2017 Neha sold goods for ₹ 20,000 to Muskan and drew upon her a bill of exchange payable after two months. One month before the maturity of the bill Muskan approached Neha to accept the payment against the bill at a rebate @12% p.a. Neha agreed to the request of Muskan and Muskan retired the bill under the agreed rate of rebate.
Journalise the above transactions in the books of Neha and Muskan.
Journalise the following transactions in the Journal of M/s. Gupta Brothers (Prop. Shri R. K. Gupta), Delhi and post them to the Ledger:
2019
 
March 1
Started business with cash
2,00,000
March 2
Opened bank account with SBI
80,000
March 4
Goods purchased from Raj, Jaipur (Rajasthan)
22,000
March 5
Goods purchased for cash
30,000
March 8
Goods sold to Naman, Delhi
12,000
March 10
Cash paid to Raj
22,000
March 15
Cash received from Naman
11,700
Discount allowed
300
March 16
Paid wages
200
March 18
Furniture purchased for office use
5,000
March 20
Withdrawn from bank for personal use
4,000
March 22
Issued cheque for rent
3,000
March 23
Goods taken for household purpose. These goods were purchased from Raj
2,000
March 24
Drawn cash from bank for office use
6,000
March 26
Commission received
1,000
March 27
Bank charges
300
March 28
Cheque issued for life insurance premium of Proprietor
3,000
March 29
Paid salary
10,000
March 30
Cash sales
20,000
On 1st April 2012, Banglore Silk Ltd. purchased a machinery for ₹ 20,00,000. It provides depreciation at 10% p.a. on the Written Down Value Method and closes its books on 31st March every year. On 1st July 2014, a part of the machinery purchased on 1st April 2012 for ₹ 4,00,000 was sold for ₹ 3,20,000. On 1st November 2014, a new machinery was purchased for ₹ 4,80,000. You are required to prepare Machinery Account, Depreciation Account and Provision for Depreciation Account for three years ending 31st March 2015.
Prove that the Accounting Equation is satisfied in all the following transactions of Suresh. Also prepare a Balance Sheet.
  1. Commenced business with cash ₹ 60,000.
  2. Paid rent in advance ₹ 500.
  3. Purchased goods for cash ₹ 30,000 and credit ₹ 20,000.
  4. Sold goods for cash ₹ 30,000 costing ₹ 20,000.
  5. Paid salary ₹ 500 and salary outstanding being ₹ 100.
  6. Bought motorcycle for personal use ₹ 5,000
Prepare a Petty Cash Book on the Imprest System from the following:
2017
 
April 1
Received ₹ 10,000 for Petty Cash
April 3
Paid Cartage ₹ 800
April 4
Paid Bus Fare ₹ 400; Speed Post ₹ 200
April 6
Paid for Stationery ₹ 700
April 7
Paid for Courier Services ₹ 300
April 9
Paid for Taxi fare ₹ 800; Wages ₹ 300
April 10
Paid for Wages ₹ 400; Charity ₹ 500
April 11
Paid for Newspaper bill ₹ 600
April 12
Paid for soap ₹ 320; Speed post charges ₹ 300
April 13
Paid for Postage ₹ 780
April 14
Paid for Repairs of Chairs ₹ 500
April 15
Paid for Refreshment to customers ₹ 900
A purchased goods for ₹ 15,000 from B on March 01, 2017 and accepted a bill of exchange drawn by B for the same amount. The bill was payable after 60 days. On April 28, B sent the bill to his bank for collection. The bill was duly presented by the bank. Adishonoured the bill and the bank paid ₹ 150 as noting charges.
Record the necessary journal entries for the above transactions in the books of A and B.
On 1st January, 2019, Ram of Kolkata commenced business with a capital of ₹ 50,000 and entered into following transactions:
Pass the following transactions through proper books to the Ledger. Take out a Trial Balance as on 31st January, 2019. The Cash Book must be balanced.
2019  
Jan. 1 Opened a Bank Account and Deposited ........ 12,500
  Purchased Goods against Cash Payment* ........ 20,000
  Purchased furniture for Shop* ........ 5,000
  Sold goods to R. Raman, Kolkata* ........ 5,000
Jan. 2 Bought goods from Man Mohan, Delhi** ........ 10,000
Jan. 3 Bought stationery and paid by cash ........ 1,000
Jan. 5 Received cash from R. Raman ........ 5,300
  Discount allowed to him ........ 300
Jan. 6 Sold goods to Bimal, Kolkata* ........ 7,500
Jan. 8 Bimal returned part of the goods supplied on the 6th instant ........ 1,500
Jan. 10 Paid cash into bank ........ 1,000
Jan. 12 Paid wages ........ 1,500
Jan. 13 Bought on credit from the Union Furniture Co., Kolkata office desk* ........ 1,500
Jan. 19 Paid wages ........ 1,500
Jan. 21 Paid to Man Mohan by cheque ........ 10,700
  Discount received ........ 500
Jan. 21 Sold goods to Ramesh, Guwahati including IGST** ........ 6,720
Jan. 22 Received cheque from Bimal ........ 6,000
Jan. 23 Bought goods from Man Mohan, Delhi** ........ 7,000
Jan. 24 Drew by cheque for personal use ........ 2,000
Jan. 27 Paid wages ........ 1,500
Jan. 31 Rent due to landlord* ........ 1,000
Transactions marked with (*) are intra-state transactions subject to CGST and SGST @ 6% each.
Transactions marked with (**) are inter-state transactions subject to IGST @ 12%.
On Nov. 01, 2016 Sonia drawn a bill on sunny for ₹ 15,000 for 3 months for mutual accommodation. Sunny accepts the bill and return it to sonia. Sonia discounted the same with his bankers @ 6% p.a. The proceeds are shared between sonia and sunny in proportion of 2/3rd, 1/3rd respectively. On the due date sonia remits his proportion to sunny who fails to met the bill and as a result sonia has to meet it. Sunny Give a fresh acceptance for the amount due to sonia plus interest of ₹ 100 sunny meet his second acceptance on due date. Record the necessary journal entries in the books of sonia and sunny.
Record the following transactions in the Journal of Ashoka Furniture Traders, Ludhiana (Punjab):
2019
 
Jan.1
Started business with cash
50,000
Jan.2
Opened a Current Account by personal cheque
3,50,000
Jan.10
Purchased machinery against cheque
1,00,000
Jan.15
Paid wages for installation of machinery
2,000
Jan.20
Purchased timber from Singh & Co., Ludhiana (Punjab) of the list price of ₹ 20,000 at 10% trade discount
 
Jan.25
Out of the above, timber used for furnishing the office
5,000
Jan.31
Sold timber to Rakesh of the list price of ₹ 10,000 and allowed him 10% trade discount
 
Feb.10
Issued to Singh & Co. a cheque in full settlement
20,000
Feb.15
Received from Rakesh in full and final settlement
10,000
Feb.20
Paid Wages
15,000
Feb.28 Issued a cheque for ₹ 5,000 in favour of the landlord for rent of February  
CGST and SGST is levied @ 6% each on intra-state sale and purchase. IGST is levied @ 12% on inter-state sale and purchase.
From the following balances, taken from the books of M/s Dwarka Parshad & Sons as at 31st March 2017, prepare a Trial Balance in proper form:−