Ganesh drew a trial balance of his operations for the year ended 31st

1.	Ganesh drew a trial balance of his operations for the year ended 31st March 2011, there was a difference in the trial balance, which he closed with a Suspense A/c. On scrutiny by the auditors, the following errors were found: (a) Purchase day book for the month of April 2010, was undercast by = 1,000. (b) Sales day book of October 2010, was overcast by = 10,000. (c) A furniture purchased for = 8,100 was entered in the furniture account of 810. (d) A bill for = 10,000 drawn by Ganesh was not entered in the bills receivable book. (e) A machinery purchased for = 10,000 was entered in the purchase day book. Pass necessary journal entries to rectify the same and ascertain the difference in the trial balance that was shown under the Suspense A/c in respect of the above items.
Answer» Ganesh drew a trial balance of his operations for the year ended 31st March 2011, there was a difference in the trial balance, which he closed with a Suspense A/c. On scrutiny by the auditors, the following errors were found: (a) Purchase day book for the month of April 2010, was undercast by = 1,000. (b) Sales day book of October 2010, was overcast by = 10,000. (c) A furniture purchased for = 8,100 was entered in the furniture account of 810. (d) A bill for = 10,000 drawn by Ganesh was not entered in the bills receivable book. (e) A machinery purchased for = 10,000 was entered in the purchase day book. Pass necessary journal entries to rectify the same and ascertain the difference in the trial balance that was shown under the Suspense A/c in respect of the above items.

Ganesh drew a trial balance of his operations for the year ended 31st March 2011, there was a difference in the trial balance, which he closed with a Suspense A/c. On scrutiny by the auditors, the following errors were found: (a) Purchase day book for the month of April 2010, was undercast by = 1,000. (b) Sales day book of October 2010, was overcast by = 10,000. (c) A furniture purchased for = 8,100 was entered in the furniture account of 810. (d) A bill for = 10,000 drawn by Ganesh was not entered in the bills receivable book. (e) A machinery purchased for = 10,000 was entered in the purchase day book. Pass necessary journal entries to rectify the same and ascertain the difference in the trial balance that was shown under the Suspense A/c in respect of the above items.

Answer»

Ganesh drew a trial balance of his operations for the year ended 31st March 2011, there was a difference in the trial balance, which he closed with a Suspense A/c. On scrutiny by the auditors, the following errors were found:

(a) Purchase day book for the month of April 2010, was undercast by = 1,000.

(b) Sales day book of October 2010, was overcast by = 10,000.

(d) A bill for = 10,000 drawn by Ganesh was not entered in the bills receivable book.

(e) A machinery purchased for = 10,000 was entered in the purchase day book.

Pass necessary journal entries to rectify the same and ascertain the difference in the trial balance that was shown under the Suspense A/c in respect of the above items.

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