Q-3

Rectification of Error

Stock a/c 3,700

v
Purchases a/c 3,700

Suspense a/c 1114

Sundry Creditors
a/c 1114

ii

Acc. Depreciation a/c 4,500

Loss a/c
1,100
Store Equipment a/c
5,600

Suspense a/c 650

Purchases
Returns a/c 650

iii Sundry Debtors a/c 1,850

Bank a/c

vi

vii Suspense a/c 4,500

(b)
Furniture a/c 4500

1,850

iv

Office Equipment a/c 1520

Purchases a/c
15,200

iv Depreciation a/c 1520

(b
Office Equipment
)
a/c 15,200

vii
(b
)

Furniture a/c

4,50

Depreciation a/c 450

vii Sales a/c

730
i
Loss on off-setting 150
Purchases a/c
880

Suspense Account
Dat
e

Particulars

Rs-

Sundry Creditors
a/c

1114

Purchases
Returns a/c

650

Furniture a/c

4,50
0

Total

6264

Date Particulars

Rs-

Balance b/f

6,264

Total

6264

EFFECTS ON
PROFIT
(Re-calculation of
Profit)

Effects on Profit
Sr.N
o

Corrections affecting profit

Purchases a/c (decrease)

iii

Depreciation a/c (increase)

Loss on disposal (increase)

4,500
1,100

Depreciation a/c (increase)

Purchases a/c (reduce)

1520

Vi

Purchases Returns a/c (increase)

vii

Depreciation a/c (reduce)

viii

Loss on off-setting
Total
Net increase in profit

Decrease
in
Profit
-----

Increase
in
Profit
3,700
-------

15,200
---------

650

----------

450

150
7270

20,000
12,730

Q-6 : Rectification
Suspense Account

Q-6 : Rectification
Suspense Account

Q-4
Rectification of Error

Q-5
Rectification of Errors