Accounting Process-Books of Accounts - Fundamental Errors (CA Foundation Principles of Accounting): Questions 9 - 12 of 12

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Question number: 9

» Accounting Process » Books of Accounts - Fundamental Errors

Essay Question▾

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  • Mr. Tendulkar’s trial balance showed a suspense A/C of Rs. 32600 on the debit side. On rechecking the books, the following errors were discovered:

  • An amount of Rs. 10000 received from Mr. Ganguly was posted to the debit side of Mr. Ashwin as Rs. 12000.

  • Salary paid to driver Rs. 4000 was debited to his personal A/C as Rs. 2400

  • Drawings of Rs. 2000 was credited to sales A/C as Rs. 3200

  • An amount of Rs. 6000 accounting for depreciation on car was posted as Rs. 600

  • Sale of an old bat Rs. 20000 was credited to sales A/C as Rs. 12000.

Assuming that the Mr. Tendulkar has made all the rectification required in his books with respect to the above errors identified. Will the trial balance of Mr. Tendulkar tally? Justify your answer

Explanation

  • No, Mr. Tendulkar’s trial balance does not tally even after the rectification of the discovered errors. After the preparation of suspense account Mr. Tendulkar realizes that there still exists a debit balance in the suspense A/C of Rs. 20400. This may be due to the reason that there may be… (82 more words) …

Question number: 10

» Accounting Process » Books of Accounts - Fundamental Errors

Short Answer Question▾

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Identify the errors and show the rectification affect made

  1. Purchase book overcast by 500
  2. Purchase return book overcast by Rs. 50

  3. Sales book under cast by Rs. 250

  4. Sales return book under cast by Rs. 100

Question number: 11

» Accounting Process » Books of Accounts - Fundamental Errors

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What is the purpose of rectification of errors?

Question number: 12

» Accounting Process » Books of Accounts - Fundamental Errors

Short Answer Question▾

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How do we rectify the errors?

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