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Trial Balance and Rectification of Errors — Account STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceAccountTrial Balance and Rectification of Errors6 Marks
Question
Rectify the following errors which were detected before preparing the Trial Balance:
  1. Purchase book has been overcast by ₹ 1,000.
  2. Purchase from Ram ₹ 20,000 has been omitted to be posted to his account.
  3. Purchase from Shyam ₹ 15,000 has been posted to the debit side of his account.
  4. Purchase from Ghanshyam ₹ 10,000 has been posted to his account as ₹ 1,000.
  5. Purchase from Sita Ram ₹ 5,000 has been posted to his account as ₹ 50,000.
✓

Answer

  1. Purchases Book has been overcasted by ₹ 1,000. Since it is an error of casting that means individual creditors accounts have been posted correctly and only the total of purchases book has been posted incorrectly to the debit side of Purchases Account. Thus, Purchases Account will be rectified by recording ₹ 1,000 on the credit side of Purchases Account.
  1. Purchases from Ram ₹ 20,000 has been omitted to be posted to his account. This mistake is happened only in Ram’s Account which means that the total of Purchases Book is correct. Thus, in order to rectify this error ₹ 20,000 should be posted on the credit side of Ram’s Account.
  1. Purchase from Shyam ₹ 15,000 has been posted to the debit side of his account. It implies that there is no mistake in Purchases account, however, Shyam’s account has been wrongly debited with ₹ 15,000 instead of crediting. Thus, rectification will be done by posting the double amount (₹ 30,000) on the credit side of Shyam’s Account.
  1. Purchases made from Ghanshayam ₹ 10,000 have been posted to his account as ₹ 1,000. It is a mistake at the time of posting in the ledger account which implies that there is no mistake in the Purchases Account. In this case, Ghanshyam’s Account was credited with lesser amount. So, ₹ 9,000 more will be credited to his account for rectification of this error.
  1. Purchases made from Sitaram ₹ 5,000 have been posted to his account as ₹ 50,000. It implies that his account is credited with an excess amount of ₹ 45,000 (50,000 - 5,000). Thus, in order to rectify this error ₹ 45,000 is debited to Sitaram’s Account.

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