Rectification of Errors

 

PROBLEM

Rectify the following errors
(A) Without opening a Suspense A/c
(B) By passing Journal entries through Suspense A/c.

(1) Rs. 400 Paid to X were entered in the Cash Book but omitted to be posted to the Ledger.
(2) Rs. 400 Paid to X were debited to his A/c as Rs. 40
(3) Rs. 400 paid to X were debited to his A/c as Rs. 4000 (for Thousand) (4) Rs.400 Paid To X were Credited to his A/c
(5) Rs.400 Paid To X were Credited to his A/c as Rs. 40 (6) Sales Book was overcast by Rs. 200.
(7) Sales Return Book undercast by Rs. 400
(8) Purchase Return Book undercast by Rs. 500.

Solution :

(A) Without opening a Suspense A/c As explained earlies, if the errors (single side) are detected before preparing Trial Balance then these are rectified by directly the amount in the concerned Ledger Accounts.

1. X’s A/c will be debited by Rs. 400 as it is a case of partial ommission.

2. X’s A/c was debited show by Rs. 360 (400-40) there for the rectification will be done by debiting X’s A/c by Rs. 360.

3. X’s A/c was debited in excess by Rs. 3600 (4000-400) therefore rectifica- tion will be done by Crediting the X’s A/c by Rs. 3,600.

4. X’s A/c was Credited by Rs. 400 instead of debiting by Rs. 400, therefore rectification will be done by debiting the X’s A/c by Rs. 400+400 ie. Rs. 800 (Rs. 400 to cancel the effect of wrong credit and Rs. 400 for actually debiting the A/c).

5. X’s is wrongly Credited by Rs. 40 instead of Debiting it by Rs. 400. Hence rectification will be done by Debiting the x’s A/c by Rs. 440.

6. Sales Book overcast means Sales A/c is Credited is excess by Rs. 200 where as customer’s have been debited by the correct amount.
   Hence rectificaion will be done by debiting - Sales A/c by Rs. 200.

7. Sales Return Book total Undrcast by Rs. 400 means Sales Return A/c is debited short by Rs. 400. Hence Rectification will be done by debiting the Sales Return A/c by Rs. 400.

8. Purchase Return Book undercast by Rs.’ 500 means Purchase Return A/c is credited short by Rs. 500.
   Hence rectification will be done by Crediting the Purchase Return A/c by Rs. 500.

Exact Solution :

In this example the rectification in X’s A/c from Error No. 1 to 4 will be shown as follows :

X's Account

Error/ Date	Particular	L.F	(Rs)	Date	Particular	L.F	(Rs)
(1)   (2)   (4)	To ommission of posting of Cash Paid To Error in Posting with the Wrong Amount To Error in Posting to the Wrong side		400   360     800	(3)	By Error in Posting With the wrong Amount		3,600

(B) By opening Suspense A/c
only Rectifying Journal Entries are done.

Date/ Error	Particulars	L.F	Debit Amount (Rs)	Credit Amount (Rs)
(1)   (2)   (3)	X                                 Dr To Suspense A/c (Cash paid to X omitted to be posted to X’s A/c)		400       360       3,600	400       360       3,600
	X                                 Dr To Suspense A/c (Cash paid to X was debited to his A/c with the lesser amount)
	Suspense A/c               Dr To X (X’s A/c was debitecd with excess amount)

(4)   (5)   (6)	X                                 Dr To Suspense A/c (For posting to X account was done on the wrong side (Cr) by Rs. 400)		800     440       200     400     500	800     440       200     400     500
	X                                Dr To Suspense A/c (For posting made wtih the wrong amount on the wrong side, now corrected)
	Sales A/c                     Dr To Suspense A/c (Overcast of Sales Book rectified)
	Sales Return A/c          Dr To Suspencs A/c (For the undercast of sales return book, rectified)
	Suspense A/c               Dr To Purchase Return A/c (For the rectification of undercast of purchase peturn book)

 

CBSE Accountancy Class XI ( By Mr. Aniruddh Maheshwari ) 
Email Id : [email protected]