[ISC] Q 38 Rectification of Errors Solution TS Grewal Class 11 (2023-24)

Solution of solution of Question number 38 of Rectification of Errors TS Grewal class 11 ISC 2023-24?

A merchant while balancing his books finds that he is out with excess credit of ₹ 280. Being required to prepare the final accounts, he places the difference to a newly opened Suspense Account which he carries forward to the next year. In the next year, following mistakes were discovered.

(i) Goods bought from Mr. Ghosh amounting to ₹ 50 had been posted to the credit of his account as ₹ 550.

(ii) A dishonoured bill of exchange receivable for ₹ 2,000 returned by the bank had been credited to the Bank Account and debited to Bills Receivable Account.

(iii) An item of ₹ 100 entered in the Sales Return Book had been posted to the debit of the Customer who returned the goods.

(iv) Sundry items of furniture sold amounting to ₹ 2,600 had been entered in the Sales Book.

(v) Discount amounting to ₹ 20 from a creditor had been duly entered in his account but not posted to Discount Received Account.

Solution:-

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