CBSE Class 11 Accountancy Revision Worksheet Set 03 Solved

1. What is the meaning of ‘dishonour of a bill’?

2. Explain the following:

(i) Compensating Error

(ii) Errors of Omission

(iii) Errors of Principle

3. The Trial Balance was out by Rs 14,930 being excess credit. The difference has been posted to the Suspense Account:

(i) Goods worth Rs 1,500 bought by the proprietor for his personal use without any payment being made as yet, was wrongly entered in the Purchase Book.

(ii) Total of Returns Inward Book for November had been cast by Rs 1,000 short.

(iii) A purchase of Rs 470 had been posted to the Creditor’s Account as Rs 400.

(iv) A cheque of Rs 500 received from Anees was dishonoured and has been posted to the debit of Sales Return Account.

(v) A purchase of goods from Raunak amounting to Rs 1,500 has been wrongly passed through the Sales Book.

(vi) A amount of Rs 10,000 owed by David was omitted from Sundry Debtors.

(vii) Disha paid Rs 4,700 but her account was wrongly credited with Rs 8,700. Pass the necessary Journal Entries for correcting the above and prepare a Suspense Account.

4. On 15th January, 2015 Manav sold goods for Rs 70,000 to Sharma and drew upon latter a bill for the same amount payable after 3 months. The bill was accepted by Sharma. The bill was discounted by Manav from his bank for Rs 68,300 on 31st January, 2015. On maturity the bill was dishonoured. He further agreed to pay Rs 31,200 in cash including Rs 1,200 interest and accept a new bill for two months for the remaining Rs 40,000. The new bill was endorsed by Manav in favour of his creditor Karan for debt of Rs 40,000. The new bill was duly met by Sharma on maturity. Give the Journal Entries in the books of Manav.

→ VALUE POINTS 

1. Dishonour means that the bill is not paid by the drawee on its due date. 

2. (i) Compensating Error – Those errors the effect of which is nullified byn another error of equal amount.

(ii) Errors of Omission - When a transaction is completely or partially omitted from being recorded in the books of account.

(iii) Errors of Principle - When a transaction is recorded in contravention of accounting principle.

3. Rectifying Journal Entries

4. In the Books of Manav

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