1.

12. The trial balance of Saya Ltd. shows a difference of Rs. 680, being excess credit. Toprepare the final accounts, this difference is placed in a suspense account. Afterwards following errors were disclosed. Pass necessary entries to rectify them and prepare the suspense account. [6](i) The total of purchases book has been undercast by Rs. 350.(ii) A cheque of Rs. 70 received from Gopal, had been debited in the cash book but not posted in Gopal’s personal account.(iii) Sales book has been overcast by Rs. 120.(iv) Goods returned by Kamal Rs. 140, have been entered in the returned outward book. However, Kamal’s account is correctly posted.​

Answer»

Answer:

(i) The total of purchases BOOK has been undercast by RS. 350.

(ii) A cheque of Rs. 70 RECEIVED from Gopal, had been debited in the cash book but

not posted in Gopal’s personal account.

(iii) Sales book has been overcast by Rs. 120.

(iv) GOODS returned by Kamal Rs. 140, have been entered in the returned OUTWARD

book. However, Kamal’s account is correctly posted.



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