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1.	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 sales return book. However, Rakesh’s account was correctly debited. (d) Goods returned from Mahesh 1,000 were recorded through purchases return 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.
Answer» Difference in trial balance 6,000 excess debit

2.	Which of the following is not an error of commissionA. Overcasting of sales book.B. Credit sales to Ramesh  5,000 credited to his account.C. Wrong balancing of machinery account.D. Cash sales not recorded in cash book.
Answer» Correct Answer - (d)

3.	Trial balance of Anuj did not agree. It showed an excess credit of 6,000. He put the difference to suspense account. He discovered the following errors (a) Cash received from Ravish 8,000 posted to his account as 6,000. (b) Returns inwards book overcast by 1,000. (c) Total of sales book 10,000 was not posted to Sales account. (d) Credit purchases from Nanak 7,000 were recorded in sales Book. However, Nanak’s account was correctly credited. (e) Machinery purchased for  10,000 was posted to purchases account as 5,000. Rectify the errors and prepare suspense account.
Answer» Total of suspense account 19,000.

4.	Which of following errors will be rectified through suspense account:A. Sales return book undercast by  1,000.B. Sales return by Madhu  1,000 not recorded.C. Sales return by Madhu Rs 1,000. recorded as  100.D. Sales return by Madhu  1,000 recorded through purchases returns book
Answer» Correct Answer - (a)

5.	Give journal entries to rectify the following errors assuming that suspense account had been opened. (a) Goods distributed as free sample 5,000 were not recorded in the books. (b) Goods withdrawn for personal use by the proprietor 2,000 were not recorded in the books. (c) Bill receivable received from a debtor 6,000 was not posted to his account. (d) Total of Returns inwards book 1,200 was posted to Returns outwards account. (e) Discount allowed to Reema 700 on receiving cash from her was recorded in the books as 70.
Answer» Difference in trial balance 3,600 excess debit

6.	Which of the following is not an error of principle:A. Purchase of furniture debited to purchases account.B. Repairs on the overhauling of second hand machinery purchased debited to repairs account.C. Cash received from Manoj posted to Saroj.D. Sale of old car credited to sales account.
Answer» Correct Answer - (c)

7.	There is no error in the books.A. There is no error in the books.B. There may be two sided errors in the book.C. There may be one sided error in the books.D. There may be both two sided and one sided errors in the books.
Answer» Correct Answer - (b)

8.	Trail balance is preparedA. After preparation financial statement.B. After recording transactions in subsidiary booksC. After posting to ledger is complete.D. After posting to ledger is complete and accounts have been balanced,
Answer» Correct Answer - (d)

9.	Trial balance is:A. An accounB. A statement.C. A subsidiary book.D. A principal book.
Answer» Correct Answer - (b)

10.	Agreement of trial balance is affected by:A. One sided errors only.B. Two sided errors only.C. Both (a) and (b)D. None of the above.
Answer» Correct Answer - (c )

11.	If suspense account does not balance off even after rectification of errors it implies thatA. There are some one sided errors only in the books yet to be located.B. There are no more errors yet to be located.C. There are some two sided errors only yet to be located.D. There may be both one sided errors and two sided errors yet to be located.
Answer» Correct Answer - (a

12.	Trial balance of Raju showed an excess debit of 10,000. He put the difference to suspense account and discovered the following errors : (a) Depreciation written-off the furniture 6,000 was not posted to Furniture account. (b) Credit sales to Rupam 10,000 were recorded as 7,000. (c) Purchases book undercast by 2,000. (d) Cash sales to Rana 5,000 were not posted. (e) Old Machinery sold for 7,000 was credited to sales account. (f) Discount received 800 from kanan on playing cash to him was not posted. Rectify the errors and prepare suspense account.
Answer» Balance carried forward in suspense account 1,000 (cr.)

13.	Trial balance of Kohli did not agree and showed an excess debit of 16,300. He put the difference to a suspense account and discovered the following errors: (a) Cash received from Rajat 5,000 was posted to the debit of Kamal as 6,0000. (b) Salaries paid to an employee 2,000 were debited to his personal account as 1200. (c) Goods withdrawn by proprietor for personal use 1,000 were credited to sales account as 1,600. (d) Depreciation provided on machinery 3,000 was posted to Machinery account as 300. (e) Sale of old car for 10,000 was credited to sales account as 6,000. Rectify the errors and prepare suspense account.
Answer» total of suspense account : 17,700)

14.	Indicate against each amount wheather it is a debit or a credit balance, and prepare a trial balance as at March 31, 2014 based on the following balances
Answer» Trail balance total 5,17,000