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Question
The bookkeeper of a firm found that the trial balance was out by ₹ 922 (excess credit).
He placed the amount in the suspense account and subsequently found the following errors:
- The total discount column on the credit side of the cash book ₹ 78 was not posted in the ledger.
- The total of purchases book was short by ₹ 1,000.
- A credit sale of goods to Natarajan for ₹ 375 was entered in the sales book as ₹ 735.
- A credit sale of goods to Mekala for ₹ 700 was entered in the purchases book. You are required to give rectification entries and prepare a suspense account.
Solution
| S.No. | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
| (a) | Suspense A/c Dr. To Discount received A/c (Omitted entry recorded now) |
78 |
78 |
|
| (b) |
Purchases A/c Dr. |
1,000 |
1,000 |
|
| (c) | Sales A/c Dr. To Natarajan A/c (Excess sales rectified) |
365 |
365 |
|
| (d) | Mekala A/c Dr. To purchases A/c To Sales A/c (Wrong entry corrected now) |
1,400 |
700 700 |
Suspense Account
| Dr. | Cr. | ||||||
| Date | Particulars | L.F. | ₹ | Date | Particulars | L.F. | ₹ |
| To Balance b/d | 922 | By Purchases A/c | 1,000 | ||||
| To Discount received A/c | 78 | ||||||
| 1,000 | 1,000 | ||||||
APPEARS IN
RELATED QUESTIONS
Rectify the following error assuming that the trial balance is yet to be prepared:
Purchases book was undercast by ₹ 600
Rectify the following journal entry.
| Particulars | L.F. | Dr. (₹) | Cr. (₹) |
| Cash A/c Dr. To Kumararaja A/c (Goods sold to Kumararaja for cash) |
10,000 |
10,000 |
Rectify the following errors:
(i) Credit sales to Mohan ₹ 7,000 were not recorded.
(ii) Credit purchases from Rohan 9,000 were not recorded.
(iii) Goods returned to Rakesh ₹ 4,000 were not recorded.
(iv) Goods returned from Mahesh ₹ 1,000 were not recorded.
Rectify the following errors:
- Sales book overcast by ₹ 700.
- Purchases book overcast by ₹ 500.
- Sales return book overcast by ₹ 300.
- Purchase returns book overcast by ₹ 200.
Rectify the following errors:
(a) Credit sales to Mohan ₹ 7,000 were posted to Karan.
(b) Credit purchases from Rohan ₹ 9,000 were posted to Gobind
(c) Goods returned to Rakesh ₹ 4,000 were posted to Naresh.
(d) Goods returned from Mahesh ₹ 1,000 were posted to Manish.
(e) Cash sales ₹ 2,000 were posted to commission account.
Rectify the following errors assuming that suspense account was opened. Ascertain the difference in trial balance.
(a) Credit sales to Mohan ₹ 7,000 were recorded in Purchase Book. However, Mohan’s account was correctly debited.
(b) Credit purchases from Rohan ₹ 9,000 were recorded in sales book. However, Rohan’s account was correctly credited.
(c) Goods returned to Rakesh ₹ 4,000 were recorded in sales return book. However, Rakesh’s account was correctly debited.
(d) Goods returned from Mahesh ₹ 1,000 were recorded through purchases return book. However, Mahesh’s account was correctly credited.
(e) Goods returned to Naresh ₹ 2,000 were recorded through purchases book. However, Naresh’s account was correctly debited.
Rectify the following errors:
(a) Depreciation provided on machinery ₹ 4,000 was not posted.
(b) Bad debts written off ₹ 5,000 were not posted.
(c) Discount allowed to a debtor ₹ 100 on receiving cash from him was not posted.
(d) Discount allowed to a debtor ₹ 100 on receiving cash from him was not posted to discount account.
(e) Bill receivable for ₹ 2,000 received from a debtor was not posted.
Rectify the following errors assuming that suspense account was opened. Ascertain the difference in trial balance.
(a) Depreciation provided on machinery ₹ 4,000 was not posted to Depreciation account.
(b) Bad debts written-off ₹ 5,000 were not posted to Debtors account.
(c) Discount allowed to a debtor ₹ 100 on receiving cash from him was not posted to discount allowed account.
(d) Goods withdrawn by proprietor for personal use ₹ 800 were not posted to Drawings account.
(e) Bill receivable for ₹ 2,000 received from a debtor was not posted to Bills receivable account.
Rectify the following errors:
- Credit sales to Mohan ₹ 7,000 were recorded as ₹ 700.
- Credit purchases from Rohan ₹ 9,000 were recorded as ₹ 900.
- Goods returned to Rakesh ₹ 4,000 were recorded as ₹ 400.
- Goods returned from Mahesh ₹ 1,000 were recorded as ₹ 100.
Rectify the following errors:
- Credit sales to Mohan ₹ 7,000 were recorded as ₹ 700.
- Credit purchases from Rohan ₹ 9,000 were recorded as ₹ 900.
- Goods returned to Rakesh ₹ 4,000 were recorded as ₹ 400.
- Goods returned from Mahesh ₹ 1,000 were recorded as ₹ 100.
