Rectify the following errors assuming: that no suspense account has been opened with difference in the trial balance.
Rectify the following errors assuming:-
(A) that no suspense account has been opened with difference in the trial balance.
(B) that such a suspense account has been opened.
(1) Goods costing ₹ 800 purchased from Sachin on credit were omitted to be credited to his account.
(2) Goods costing ₹ 800 purchased from Sachin on credit were credited to his account as ₹ 80.
(3) Goods costing ₹ 800 purchased from Sachin on credit were credited to his account as ₹ 880.
(4) Goods costing ₹ 800 purchased from Sachin on credit were posted to the debit of his account.
(5) Goods costing ₹ 800 purchased from Sachin on credit were posted to the debit of his account as ₹ 80.
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Solution (A):-
(A) In all the above cases, rectification will be made by writing:
(1) On the credit side of Sachin’s A/c:
“By Omission of posting————-₹ 800.”
(2) On the credit side of Sachin’s A/c:
“By lesser amount posted to the Cr. side——— ₹ 720”
(3) On the debit side of Sachin’s A/c:
“To excess amount posted on the Cr. side——- ₹ 80.”
(4) On the credit side of Sachin’s A/c:
“By error in posting to wrong side——– ₹ 1,600.”
(5) On the credit side of Sachin’s A/c:
“By error in posting to wrong side with wrong amount——– ₹ 880.”
Solution (B):-
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