MBA /PGDBA/MBABF Semester 1
MB0041/MBABF –Financial and Management Accounting-
Q1. An accountant finds that the trial balance of his client did not tally and it showed an excess credit of Rs. 69.74. He transferred it to a suspense account and later discovered the following errors.
a) Rs. 44.37 paid to Anand has been credited to his account as Rs. 34.37. b) A purchase of Rs. 145.50 has been posted as Rs. 154.50 to the purchases account.
c) An expenditure of Rs. 158 on repairs has been debited to the buildings account. d) Rs. 80 was allowed by B as discount which has not been entered in the books. e) A sum of Rs. 125.05 realised on the sale of old furniture has been posted to the sales account.
Give journal entries to rectify the errors and show the suspense account as it would appear after adjustments Hint: Total of suspense a/c = 78.74 |Date |Particulars |LF |Debit (Rs) |Credit (Rs) | |08/05/2013 |Anand’s account Dr | | | | | |To suspense account | |78.74 |78.74 | | |(Being wrong amount, wrong | | | | | |ly credited to Anand’s a/c rectified) | | | | |08/05/2013 | | |9.00 |9.00 | | |Suspense account Dr | | | | | |To Purchases account | | | | | |(Being over debit of | | | | |08/05/2013 |purchase account rectified) | | | | | | | | | | | |Repairs account Dr | |158.00 |158.00 | | |To Buildings account | | | | |08/05/2013 |(Being wrong debit given to | | | | | |building account rectified) | | | | | | | | | | | |B’s account Dr | | | | |08/05/2013 |To Discount received a/c | |80.00 |80.00 | | |(Being discount received | | | | | |from B, omitted earlier, | | | | | |brought to account) | | | | | |...
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