Question

A Book-keeper failed to balance his trial balance, the credit side exceeding the debit side by ₹ 175. This amount was entered in a Suspense Account. Later on the under mentioned errors were discovered:-
1. Goods amounting to ₹ 620 sold to D & Co. were correctly entered in the Sales book, but posted to the Company's A/c as ₹ 260.
2. A credit balance of ₹ 755 of Rent Received account was shown as ₹ 570.
3. The total of Returns Outwards Book amounting to ₹ 200 was not posted to the Ledger.
4. Goods worth ₹ 100 were purchased from Prakash but the amount was entered in the Sales Book. The account of Prakash was correctly credited.
5. Sales Book was undercast by ₹ 100.
6. The total of the credit side of Sohan's account was overcast by ₹ 100.
Give journal entries to rectify these errors and prepare the Suspense Account.

Answer 1

One Sided Errors

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
1)	D & Co. A/c	Dr.		360
	To Suspense A/c				360
	(Goods sold to D & Co. for Rs 620 posted to company’s account as Rs 260)
2)	Suspense A/c	Dr.		185
	To Rent A/c				185
	(Credit balance of Rs 755 of rent received shown as Rs 570)
3)	Suspense A/c	Dr.		200
	To Purchases Return A/c				200
	(Total of return outwards book was not posted)
4)	Purchases A/c	Dr.		100
	Sales A/c	Dr.		100
	To Suspense A/c				200
	(Goods purchased from Prakash entered in Sales Book)
5)	Suspense A/c	Dr.		100
	To Sales A/c				100
	(Undercasting of Sales Book)
6)	Sohan’s A/c	Dr.		100
	To Suspense A/c				100
	(Total of credit side of Sohan’s Account was overcasted)

Suspense Account
Dr.					Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Difference in Trial Balance		175	D & Co.	360
Rent A/c		185	Purchases A/c	100
Purchases Return A/c		200	Sales A/c	100
Sales A/c		100	Sohan’s A/c	100
		660		660