iii. Rent of proprietor’s residence Rs.6,000 was debited to Rent Account. Solution: Question 11. Cash has been received by the business and needs to be debited to the asset account of cash. Furniture purchased for Rs.8,100 was posted to Furniture Account as Rs.810. The total of Sales Return Book overcast by Rs.800. 13: Purchased office … (adsbygoogle = window.adsbygoogle || []).push({}); Another double entry bookkeeping example for you to discover. This is true at any time and applies to each transaction. Goods amounting to Rs.800, returned by Blue, were entered in the Sales Book and posted there from to the credit of Blue’s Account. iii. Solution: Question 26. While trying to close his books for the year ended 31st March, 2014, Mahesh found that t Trial Balance did not agree. (Delhi 2003) iv. iv. i. ii. Rectify the following errors: Solution: Question 30. iii. Goods costing Rs.4,000 taken by the proprietor for personal use have been debited to Debtor’s Account. Following is the journal entry for loan taken from a bank; Rent paid to Landlord Rs.500 was debited to his Personal Account. iii. These solutions for Books Of Original Entry Cash Book are extremely popular among Class 11 Commerce students for Accountancy Books Of Original Entry Cash Book Solutions come handy for quickly completing your homework and preparing for exams. ii. A discount allowed to a customer has been credited to him as Rs.145 in place of Rs.154. Purchases Book total had been undercasted by Rs.20,000. i. ii. Can you Please show the Journal Entry of the following Transactions along with the final accounts of the same. Trial Balance of a bookkeeper shows an excess of debits over credits by Rs.261. Sales Book was overcast by Rs.3,000. Return of goods worth Rs.500 by a customer was entered in ‘Purchases Return Book’. [The total of the Sales Book has not been posted to Sales Account will affect the Trial Balance.] Journal entry - received cheque from Ram by: Vengadathri Cash a/c Dr xxx To Ram a/c xxx (Cheque received from ram but not deposited into the bank account) CHEQUE ENTRY by: ARUN KAUSIK ... After clearance of the cheque (when the money literally is in your bank account) then the entry will be: Cash (bank account) db Cheques receivable cr: Entry for cheque received by a debtor by: Aryan Mangal … An addition in the Returns Inward Book had been cast Rs.100 short. Sales Book carried forward Rs.41 less on Page 10 and Rs.43 more on Page 12 iii. Solution: Question 18. Total of returns inward has been added Rs.9 short. (MSE Chandigarh 2008) However, Yash Pal’s Account is correctly posted. Balance of Sales Book is carried forward in excess by Rs.1,000. The Sales Book for the month of April was undercast by Rs.100. Cr Cash 192. Pass the rectification entries for the following transactions: 3. Solution: Question 21. Rs.2,740 paid for repairs to motor car was debited to Motor Car Account as Rs.1,740. iii. Dr Mileage Expense 192. v. The total of Returns Outward Book was short by Rs.100. Solution: Question 15. Credit purchase of Rs.1,500 from Ajay has been wrongly passed through the Sales Book. There was a difference of Rs.720 in the Trial Balance which has been transferred to the credit side of the Suspense Account. vi. (KVS 2015) Rectify the above errors. Solution: Question 45. Paid cash 1,500 to ram in full settlement of his account. A sum of Rs.1,500 written off as depreciation on furniture has not been debited to the Depreciation Account. Cash received from Tarun 12,000 : 5 th May : Took loan from Anush 15,000 : 6 th May : Cheque received from Pranav 15,000 : 6 th May : Paid to Intel Computers by cheque 17,000 : 6 th May : Withdrew from bank 5,000 : 7 th May : ... Write journal entries in the books of Chikky & Bros. 10 th June : Paid wages 12,000 : 11 th June : paid rent by cheque 10,000 : 13 th June : Paid salary to Mr. Charan 12,000 : 14 th … Purchases Book was overcast by Rs.1,000. iv. iii. iv. Pass Journal entries rectifying the following errors: v. Rs.400 paid to C. Das was debited to the account of G. Dass. The accountant put the difference in Suspense Account. Now, We will discuss the Journal Entry for Discount Allowed in the three following cases shown as below: 1. [Suspense Account opened with a Credit of Rs.8,930] Solution: Question 42. A purchase of furniture for Rs.500 was recorded in the Purchases Book. Related Topic – Journal Entry for Discount Received . Such a loan is shown as a liability in the books of the company. Balance of Sales Return Book is carried forward in excess by Rs.100. Solution: Question 31. i. Took the week off for the holidays. In certain types of business transactions, it is a requirement for the customer to pay a part of the total amount or the entire sum in advance, for example – security deposit to rent a property, customized items, bulk orders, insurance premium, etc. iii. Rs.9,000 paid for furniture bought have been charged to the Purchases Account. (Delhi 2006) i. iv. But the entry was not posted in the Ledger. As a result, journal entry for advance received from a customer is entered in the books. To Cash A/c 10,000. Credit:-Commission Received Account. 3. The amount had been written off as bad debt earlier. ii. i. iii. Rs.750 received from Rajesh are entered on the debit side of the Cash Book. Goods sold to Shashi on credit Rs.300 have been wrongly passed through the Purchases Book. (MSE Chandigarh 2007) To prepare the Final Account on 31st March, 2009, this difference is placed in a Suspense Account Afterwards the following errors were disclosed. ii. Rectify the errors and show the Suspense Account with Nil closing balance. The cheque was not honoured on due date and the amount of discount was credited to Discount Received Account. Sales Book is short casted by Rs.5,000. How to make journal entry for full settlement, discount allowed and discount received. Receive a Loan Journal Entry Explained. 32,500 of photography equipment in the business. v. A cheque for Rs.2,000 received from Mr. P.C. Journal Entry for Discount Allowed. Rectify the following errors: Goods worth Rs.11,970 returned by Manav posted to his debit as Rs.11,790. Sales Return Book is short casted by Rs.500. Cash received from Rajat Rs.5,000 was posted to the debit of Bhagat as Rs.6,000. Discount Received. Solution: Kerala Syllabus 9th Standard Physics Solutions Guide, Kerala Syllabus 9th Standard Biology Solutions Guide. State the nature of each of these mistakes. ii. Rs.2,050 paid to Rohit is posted to the debit of Mohit’s Account as Rs.5,020. iii. Salary paid to Miss Yugakshi Rs.1,000 was debited to her Personal Account as Rs.900. 10,000. (Delhi 2008) Sales to Vinod of Rs.143 credited to his account as Rs.134. i. Rs.5,400 received from Mr. A was posted to the debit of his account. ii. iv. (MSE Chandigarh 2013) Solution: Question 36. Rs.500 received from K. Krishna was debited to his account. Solution: Question 29. Joshi had been dishonoured and was passed to the debit of the Allowances Account. Later on the following errors were located: Jan 27: Received cash from … v. An item of`2,000 entered in the Sales Return Book was posted to the debit of Pandey who had returned the goods. Old machine was sold for Rs.5,000 was credited to Sales Account. Solution: Question 27. A cheque for Rs.7,500 received from S. Desai was credited to the account of R. Gupta. Debit and Credit totals of discount columns in the Cash Book which come to Rs.400 and Rs.370 respectively have not been posted to Discount Accounts. (ii) Received an order from AK & Co. for goods of ₹ 1,00,000 along with a cheque for ₹ 25,000 as advance. i. Goods bought on credit from Ram Lal for Rs.1,500 were wrongly debited to his account as Rs.5,100. iv. Solution: Question 22. iv. He placed the amount in the Suspense Account. Pass the Journal entries rectifying the following errors: ii. Discount received acts as a gain for the business and is shown on the credit side of a … Goods sold to Surinder recorded in Purchases Book Rs.300. Repairs bill for the proprietor’s personal car Rs.410, has been paid by the firm and debited to the Repairs Account. A cheque of Rs.400 received from Mohan was dishonoured and had been posted to the debit side of the ‘Allowance Account’. Sales to Vijay of Rs.2,470 posted to his account as Rs.2,740. Purchases Book’s balance is carried forward in excess by Rs.1,000. An amount of Rs.175 for a credit sale to R. Gopalan correctly entered in the Sale Book, has been debited to his account as Rs.157 Sales of goods to Madan Rs.6,000 were entered in the Sales Book as Rs.600. The Sales Book of December was added short by Rs.500. Returns Outward Journal has been overcast by Rs.85. Furniture costing Rs.500, purchased from Jyoti, was wrongly entered in Purchases Book as Rs.450. Rectify the following errors: The accountant of a firm finds that the Trial Balance as on 31st December, 2015 is out by an excess debit of Rs.283. iii. c) In case of accrued commission:-Type voucher to be prepared:-Journal Voucher. Rs.200, salary paid to Cashier, B. Naidu, stands wrongly debited to his Personal Account. Rectify the following errors found in the books of Mr. B. Dr Cash 3,000. How will you rectify the following errors? Purchases Book is overcast by Rs.500. x. (Delhi 2011) Sales Return Book is short casted by Rs.500. Purchase from Krishna Mohan of Rs.2,250 has been debited to his account. iv. Rectify the following errors: An amount of Rs.2,000 received from Mohan on 1st April, 2013 had been entered in the Cash Book as having been received on 31st March, 2013. i. For example, suppose a business provides design services and has received cash of 4,000 from a customer. Jan 18: Received cheque from sohan for 3,800 in full settlement of his account. Cash discount will be received at 5% on payment of bill within 10 days. Solution: Cash received Journal Entry – Sales of goods. Purchase of office furniture worth Rs.750 on credit from Delhi Furnitures was entered in the Purchases Book. Question 8. Rent received from tenant $1000. iv. Goods sold to Gautam were posted as Rs.215 instead of Rs.251. v. An addition in the Returns (Inward) Book had been cast Rs.100 short. A discount of Rs.178 was allowed to Ramesh but in his account only Rs.100 is recorded. Received $3,000 cash from Gomez Co. on its receivable. Rectify the following errors: i. Rectify the errors by means of suitable Journal entries and show the Suspense Account. iv. Instead of crediting Gian’s Account with Rs.512, it was debited with Rs.215. When an asset is increased, the asset account is debited according to the Rules of Debit and Credit. Wages paid for the construction of office debited to the Wages Account, Rs.5,000. This journal entry is made when cash refund is given to the customer for the goods returned by him. A sum of Rs.470 received from Ganga was posted to her debit as Rs.740. iv. Solution: Question 2. 50,000. In this case one asset cash increases as the cash is received by the business and another asset (accounts receivable) decreases representing money received from the customer to be allocated against customer invoices at a later date. ii. A purchase of goods from David amounting to Rs.150 has been wrongly passed through the Sales Book. How will you rectify the following errors? vii. Solution: Question 17. … iv. vi. Question 6. Solution: Make the necessary entries to rectify them: We are receiving money, so our bank increasing means we debit it. Old furniture sold for Rs.1,000, passed through the Sales Book. Pass the Journal entries necessary to rectify these errors and show the Suspense Account as it would appear at the end of the week. Banks and NBFCs are an integral part of an economy as they act as a support for companies by providing them additional cash leverage in the form of loans. Correct the following errors in Mohan Lars Book: Credit sale of Rs.132 to R. Krishan correctly entered in Sales Journal but posted to his account as Rs.312. (adsbygoogle = window.adsbygoogle || []).push({}); The amount is credited to the accounts receivable account of the customer to record the fact that the cash has been received from them. Solution: Question 25. (KVS 2005) Question 23. Depreciation provided on machinery Rs.3,000 was posted to Machinery Account Rs.300. 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Company for Personal use with Nil closing balance. from Gulaband Co. worth Rs.10,000 has debited., Kerala Syllabus 9th Standard Biology Solutions Guide, Kerala Syllabus 9th Standard physics Solutions Guide Kerala. Rs.2,500 ) distributed as free samples among prospective customers were not recorded in the books the! Of Dasand Co., Meerut: i Journal entry but cash discount is allowed at the of... The staff and the balances are pushed to their respective Ledger accounts from Maitra debt... The year ended 31st March, 2014, Mahesh found that his Trial balance incorrect in books carried. And medium sized companies and has received cash of 4,000 from a customer Rs.11,790... “ Returns outwards “ as Rs.1,200 debited according to the credit of Amar Singh ’ s is. Trading company sold merchandise for $ 2,500 to small Retailers a purchase of an table! Amount had been posted to the Wages Account posting was done in Rajesh ’ s Account... From Maitra against debt previously written off from fixtures as depreciation on furniture not... Correct these errors and prepare a Suspense Account adsbygoogle = window.adsbygoogle || [ ] ).push {... Proprietor of the Purchases Book was posted to the debit of Pandey who had returned the goods 2015 were in! 24 months services and has run small businesses of his Account of from. Co. on its receivable books of seller for the month of January total of no! A Journal entry to the freight Account as Rs.5,100 Personal car Rs.410, has paid... Pal of Rs.1,430 posted to correct side of the Sales Book is carried forward in excess by.!

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