Practice Questions on Trial Balance and Error Rectification

1. Indicate against each amount whether it is a debit or a credit balance, and prepare a trial balance as at March 31, 2009 based on the following balances: Capital 1,00,000 Drawings 16,000 Machinery 20,000 Sales 2,00,000 Purchases 2,10,000 Sales return 20,000 Purchases return 30,000 Wages 40,000 Goodwill 60,000 Interest received 15,000 Discount allowed 6,000 Bank overdraft 22,000 Bank loan 90,000 Debtors : Nathu 55,000 Roopa 20,000 Creditors : Reena 35,000 Ganesh 25,000 Cash 54,000 ,Stock on April 01, 2008 16,000.

2. Rectify the following errors:    

a. Credit sales to Mridula ₹ 5,000 were not recorded.

b. Credit purchases from Nayna ₹ 8,000 were not recorded.

c. Goods returned to Priya ₹ 12,000 were not recorded.

d. Goods returned from Rashi ₹ 10,000 were not recorded. 

2. Rectify the following errors:

a. Credit sales to Mridula ₹ 5,000 were recorded as ₹ 500.

b. Credit purchases from Nayna ₹ 8,000 were recorded as ₹ 800.

c. Goods returned to Priya ₹ 12,000 were recorded as ₹ 1,200.

d. Goods returned from Rashi ₹ 10,000 were recorded as ₹ 1,000.

3. Rectify the following errors:

a. Credit sales to Mridula ₹ 5,000 were recorded as ₹ 5,400.

b. Credit purchases from Nayna ₹ 8,000 were recorded as ₹ 8,800.

c. Goods returned to Priya ₹ 12,000 were recorded as ₹ 12,200.

d. Goods returned from Rashi ₹ 10,000 were recorded as ₹ 11,000.

4. Give rectifying entries for the following:

a. A credit sales of goods to Ram ₹ 2,500 has been wrongly passed through the 'Purchases Book'.

b. A credit purchase of goods from Shyam amounting to ₹ 1,000 has been wrongly passed through the 'Sales Book'.

c. A return of goods worth ₹ 1,100 to Mohan was passed through the 'Sales Return Book'.

d. A return of goods worth ₹ 500 by Ganesh were entered in 'Purchases Return Book'.

5. Rectify the following errors:-

a. Goods for ₹ 5,500 were purchased from Modern Traders on credit, but no entry has yet been passed.

b. Purchase Return for ₹ 1,500 not recorded in the books.

c. Goods for ₹ 2,000 sold to 'Geeta Traders' on Credit were entered in the sales book as ₹ 200 only.

d. Goods of the value of ₹ 1,800 returned by Sunil & Co. were included in stock, but no entry was passed in the books.

e. Goods purchased for ₹ 900, entered in the purchases book as ₹ 9,000.

f. An invoice for goods sold to X was overcast by ₹ 100.

6. Give Journal Entries to rectify the following errors:-

a. Goods purchased from Ajay for ₹ 2,600 were recorded in Sales Book by mistake.

b. Goods for ₹ 4,400 sold to Surendra was passed through Purchase Book.

c. A customer returned goods worth ₹ 1,000. It was recorded in 'Purchase Return Book'.

d. A credit sale of ₹ 126 to Rajesh was entered in the books as ₹ 162.

e. Sale of old chairs and Table for ₹ 700 was treated as sale of goods.

f. Rent of proprietor's residence, ₹ 800, debited to Rent A/c.

g. Salary of ₹ 800 paid to Hari Babu was wrongly debited to his personal account.

h. Furniture purchased on credit from Mohan Singh for ₹ 1,000 was entered in the Purchases Book.

i. ₹ 5,000 spent on the extension of buildings was debited to Buildings Repairs Account.

7. Rectify the following errors:

a.Rs. 4,500 paid for furniture purchased has been debited to Purchases account.

b. Sales of Rs. 200 to Manoj were recorded as Rs. 2,000 in the Sales Book.

c.Credit purchases from Ram Rs. 15,000 were recorded in Sales Book.

d. Payment of Rs. 500 to Mohan and Rs. 600 to Sohan was made but Mohan was debited with Rs. 600 and Sohan with Rs. 500.

8. Rectify the following errors assuming that such a suspense account has been opened.

a. Goods costing ₹ 800 purchased from Sachin on credit were omitted to be credited to his account.

b. Goods costing ₹ 800 purchased from Sachin on credit were credited to his account as ₹ 80.

c. Goods costing ₹ 800 purchased from Sachin on credit were credited to his account as ₹ 880.

d. Goods costing ₹ 800 purchased from Sachin on credit were posted to the debit of his account.

e. Goods costing ₹ 800 purchased from Sachin on credit were posted to the debit of his account as ₹ 80.

9. Rectify the following errors assuming that Suspense Account was opened. Ascertain the difference in Trial Balance.

a. Credit sales to Mohan ₹ 7,000 were recorded in Purchase Book. However, Mohan's Account was correctly debited.

b. Credit purchases from Rohan ₹ 9,000 were recorded in Sales Book. However, Rohan's Account was correctly credited.

c. Goods returned to Rakesh ₹ 4,000 were recorded in Sale Returns Book. However, Rakesh's Account was correctly debited.

d. Goods returned from Mahesh ₹ 1,000 were recorded through Purchase Returns Book. However, Mahesh's Account was correctly credited.

e. Goods returned to Naresh ₹ 2,000 were recorded through Purchases Book. However, Naresh's Account was correctly debited.

10. There was a difference of ₹ 430 in a Trial Balance. It was placed on the Debit side of a Suspense A/c. Later on the following errors were discovered. Pass rectifying entries and prepare Suspense A/c.

a. Purchases book was overcast by ₹ 100.

Sales book was overcast by ₹ 1,000.

b. Goods for ₹ 800 purchased from Umakant, though entered in the purchase book, has not been posted to his account.

c. An amount of ₹ 500 has been posted to the credit side of commission account instead of ₹ 570.

d. Goods sold to Bharti for ₹ 4,400 has been posted to her account as ₹ 4,000.

e. Goods sold to X for ₹ 750 were recorded in purchase book.