QUESTIONS (RECTIFICATION OF ERROR)

ASSIGNMENT-8
Assignment Marks :30
NOTE: Read instructions carefully…
Question:1 A trader by preparing his Trial balance found $780 excess debit and transferred it
to the suspense account. Later he found the following errors.
a- Commission account balance (Dr.) $2430 was not transferred to the trial balance.
b- The total of the sales book $3480 had not been posted to the sales A/C.
c- Sale of old furniture for $2400 was entered in the sales book.
d- Purchase made from Raja Stores for $2250 had been forgotten to enter in the books.
e- Cash paid to Rehman $3520 was posted to his account as $3250.
f- Goods sold to A for Rs 1250 posted in B’s Account.
Required: Prepare suspense account and Pass the rectifying entries.
Question:2 The Trial balance of Rehman & Co. did not agree. The credit side was exceeding
that of debit side by $10,000 and the difference was placed in suspense account. The following
errors were discovered later on.
a- Purchase book was overcast by $1,800.
b- An amount of $2,600 receivables from Salman & Co. were not included in Debtor’s schedule.
c- Received $5,800 from Khawaja & Co. but this was credited to their account as $5,000.
d- Goods sold to Ahsan for $7,000 on credit were not posted to his account.
e- Rafiq Bros. returned goods worth $3,000. This was credited to their account but not entered in the
sales returns book.
Question:3 The accountant found a difference of $721.50 in the trial balance and transferred it
to the debit of suspense account. The following errors were discovered later on.
a- The total of sales return book $330.75 posted to the credit side of purchases account.
b- The credit side of Salman’s Account was overcast by $180.
c- A bad debt of $75 in Raza’s account was not found on the debit side of bad debts account.
d- An amount of $1462.11 received from Kashif though correctly recorded in the Cash book, was
posted to his account as $1312.11.
e- Sales book was under cast by $45.
Question:4 The Trial balance of Mr. Nasim did not agree and the difference in books was
carried to a suspense account. Correct the following errors which accounted for the difference.
Also prepare the suspense account.

a- A cash sale of $3750 to Rahat, correctly entered in the Cash Book, was also posted to the credit of
his personal account.
b- Goods returned by Moeen, $300 have been entered in the Returns Outwards book. However,
Moeen’s account has been correctly posted.
c- The Purchase book has been under-added by $900, $600 and $1,500 respectively on consecutive
three pages.
d- Purchase of furniture on credit from Lahore furniture’s for $7,500 was entered in the purchase
book.
e- The account of a debtor for $12,000 had been written off as bad, but the entry had been made only
in the personal account.
f- The sales book was under cast by $50, $175 and $75 respectively on consecutive three pages.
Question:5 You are presented with a Trial balance of Steven as on 30-6-19, showing the credit
is in excess by $415, which has been carried to Suspense Account. On Close security of the
books, the following errors revealed.

a- A cheque of $3,456 received from Saim, after allowing him a discount of $46 was endorsed to
Sarah in full settlement for $3,500. The cheque was finally dishonoured but no entries were passed in
the books.
b- Goods valued $230 returned by Robert were entered in the purchase book and posted therefrom to
Simon’s Account for $320.
c- Bad debts amounting to $505 written-off during the year in the sales ledger but were not recorded
in the General Ledger.
d- Bill for $750 received from Simon for repairing to machinery was entered in the inward invoice
Book as $650.
e- Goods worth $1,234 purchased from Ashwin on 29-6-19 had been entered in the purchase day
book and credited to him but were not delivered till 5th July 2019, stock being taken on 30-6-19. The
title of the goods was, however, passed on 29-6-19.
f- $79 paid for freight on machinery was debited to freight account was $97.
You are required to pass the necessary journal entries for correcting the above errors.
• Please narration should be mention in each entry.
• RANDOM VIVA (relating to chapter) will decide absolutes marks.
• Assignment should be submitted before assign time.
• To avoid hassle please submit it before time.
• Assignment submission date & time: 29-05-21 (Saturday) 23:00