Question 40 Chapter 10 – Unimax Publications of Class 11

Question 40 Chapter 10 – Unimax Publications of Class 11

40 Trial balance of Madan did not agee and he put the difference to suspense account. He discovered the following errors:
(a) Sales return book overcast by ₹ 800.
(b) Purchases return to Sahu ₹ 2,000 were not posted.
(c) Goods purchases on credit from Narula ₹ 4,000 through taken into stock, but no entry was passed in the books.
(d) Installation charges on new machinery purchased ₹ 500 were debited to sundry expense account as ₹ 50.
(e) Rent paid for residential accommodation of Madah (the proprietor) ₹ 1,400 was debited to rent account as ₹ 1,000.
(f) Rectify the errors and prepare suspense account to ascertain the difference in trial balance.

The solution of Question 40 Chapter 10 – Unimax Publications of Class 11

Journal
Date	Particulars		L.F.	Debit	Credit

a.	Suspense A/c	Dr		800
	To Sales returns A/c				800
	(Being sales returns book overcasted, now rectified)
b.	Sahu’s A/c	Dr		2,000
	To Suspense A/c				2,000
	(Being purchases return to Sahu not posted, now rectified)
c.	Purchases A/c	Dr		4,000
	To Narula A/c				4,000
	(Being goods purchases on credit from Narula not recorded in books, now rectified)
d.	Machinery A/c	Dr		500
	To Sundry expense A/c				50
	To Suspense A/c				450
	(Being installation expenses of machinery debited wrongly to sundry expenses a/c, now rectified)
e.	Drawing A/c	Dr		1,400
	To Rent A/c				1,000
	To Suspense A/c				400
	(Being cash withdrawn for paying rent of residence)

				8,700	8,700

Dr.	Suspense A/c						Cr.
Date	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
	To Different in trial balance		2,050		By Sahu’s A/c		2,000
	To Sales returns A/c		800		By Machinery A/c		450
					By Drawing A/c		400

			2,850				2,850

The solution of Question 40 Chapter 10 – Unimax Publications of Class 11

Leave a Reply Cancel reply