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Numerical Questions · Q16

Q.Rectify the following errors :

(a) Depreciation provided on machinery ₹ 4,000 was not posted.
(b) Bad debts written off ₹ 5,000 were not posted.
(c) Discount allowed to a debtor ₹ 100 on receiving cash from him was not posted.
(d) Discount allowed to a debtor ₹ 100 on receiving cash from him was not posted to discount account.
(e) Bill receivable for ₹ 2,000 received from a debtor was not posted.
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Each item is a partial (one-sided) omission — only one of the two postings was left out — so the trial balance does not agree and the missing side is supplied against the Suspense Account. The account whose posting was omitted is simply debited or credited with the missing amount, the other leg being Suspense.

Treatment. In a one-sided error we do NOT reverse anything; we only complete the entry. If a debit posting was omitted, we debit that account and credit Suspense; if a credit posting was omitted, we credit that account and debit Suspense. Items (c) and (d) describe the same transaction (discount ₹100 allowed) but with different missing legs: (d) says the discount account posting was omitted (debit missing) while (c) — stated generally alongside (d) — is read as the debtor's posting omitted (credit missing).

Analysis

RefPosting omittedRectification
(a)Debit to Depreciation A/cDepreciation A/c Dr; Suspense Cr
(b)Debit to Bad Debts A/cBad Debts A/c Dr; Suspense Cr
(c)Credit to Debtor's A/cSuspense Dr; Debtor's A/c Cr
(d)Debit to Discount Allowed A/cDiscount Allowed A/c Dr; Suspense Cr
(e)Debit to Bills Receivable A/cBills Receivable A/c Dr; Suspense Cr

Rectifying Journal Entries

DateParticularsL.F.Debit (₹)Credit (₹)
(a)Depreciation A/c ..............................Dr4,000
  To Suspense A/c4,000
(Depreciation on machinery not posted to Depreciation A/c)
(b)Bad Debts A/c ..............................Dr5,000
  To Suspense A/c5,000
(Bad debts written off not posted to Bad Debts A/c)
(c)Suspense A/c ..............................Dr100
  To Sundry Debtors A/c100
(Discount allowed not posted to the debtor's account)
(d)Discount Allowed A/c ..............................Dr100
  To Suspense A/c100
(Discount allowed not posted to Discount Allowed A/c)

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