From the following Ledger Balances draw up the Trial Balance:

Following Trial Balance has been prepared wrongly. You are required to prepare a correct Trial Balance:

Trial Balance of Anurag did not agree. It showed an excess credit Rs 10,000. Anurag put the difference to suspense account. He located the following errors:
(i) Sales Returns book overcast by Rs 1,000.
(ii) Purchases book was undercast by Rs 600.
(iii) In the sales book, total of page No.4 was carried forward to page No.5 as Rs 1,000 instead of Rs 1,200 and total of page No.8 was carried forward to page No.9 as Rs 5,600 instead of Rs 5,000.
(iv) Goods returned to Ram Rs 1,000 were recorded through Sales Book.
(v) Credit purchases from M & Co. Rs 8,000 were recorded through Sales Book.
(vi) Credit purchases from S & Co. Rs 5,000 were recorded through sales Book. However, S & Co. were correctly credited.
(vii) Salary paid Rs 2,000 was debited to Employee's Personal Account. Rectify the above errors and prepare suspense Nc.

Describe the purpose for the preparation of Trial Balance.

Explain Errors of Principle and give two examples with measures to rectify them.

Pass the necessary journal entries to rectify the following errors:
(i) An amount of Rs 1,000 received from Aakash were recorded as Rs 100 and Rs 100 received from Garima were recorded as Rs 1,000.
(ii) Rs 600 paid to Pooja were recorded as Rs 60 and Rs 60 paid to Pankaj were recorded as Rs 600.
(iii) Mohan's Alc was debited with Rs 100 instead of Rs 1,000 while Sohan's A/c was debited with Rs 1,000 instead of Rs 100.

(Rectification of one sided errors before the preparation of mal balance) Rectify the following errors which were detected before making the Trial Balance:
(i) Purchases Books has been overcast by Rs 650.
(ii) A discount of Rs 100 allowed to Charu has not been posted to his account.
(iii) Returns Inward Book of Rs 2,500 has not been posted to Returns Inward Nc.
(iv) A payment of Rs 500 as repairs has been debited to Repairs Nc twice.
(v) Goods purchased from Rakesh for Rs 4,600 on credit has been correctly entered in the Purchases Book but it has been debited to his account as Rs 460.
(vi) Returns Outward Book of Rs 3,560 has been posted to Returns Outward Account as Rs 560.

Following mistakes were located in the books of Garima after her books were dosed:
(i) Sales day book was overcast by Rs 700.
(ii) Returns Outward book was undercast by Rs 200.
(iii) Rs 7,800 paid to Rakesh was debited to Ramesh A/c.
(iv) Rs 9,500 paid to Keshav was posted to credit of his account.
(v) Goods costing Rs 2,750 returned to Ganesh were posted to the credit of Sales A/c.
(vi) Discount of Rs 300 received was posted to the debit of Discount A/c.
(vii) A bill receivable for Rs 5,500 received from Rohit was passed through Bills Payable Book. You are required to pass the rectifying entries.

What are the different types of errors that are usually committed in recording business transaction?

Trial balance of Mahender did not agree. It showed an excess debit of Rs 5,000. He put the difference to Suspense Account. He located the following errors:
(i) Sales Returns Book overcast by Rs 7,500.
(ii) Goods returned to Harpreet rs 4,000 were recorded through Sales Book.
(iii) Furniture purchased for Rs 22,000 was posted to Purchases account as Rs 20,000.
(iv) Goods withdrawn by Mahender for personal use Rs 1,000 were not recorded in the books.
(v) Salary paid Rs 5,000 was debited to Employee's Personal A/c.
(vi) Purchases Book was undercast by Rs 500.
(vii) Discount received from Vikas Rs 100 on paying Rs 1,250 to him was not recorded. Give Journal entries to rectify the errors and prepare Suspense Account.