Question

A book-keeper finds that the debit side of the trial balance is short of ₹ 308 and so for the time being, he balances the side by putting the difference to suspense account. Subsequently, the following errors were disclosed:
(a) An entry for sale of goods for ₹ 102 to Madhav was posted to his account as ₹ 120.
(b) ₹ 100 being the discount allowed to customers were credited to discount received account in the ledger.
(c) ₹ 275 paid by Madhav were credited to Jadav's account.
(d) ₹ 26 appearing in the cash book as paid for the purchase of stationery for office use have not been posted to ledger.
(e) The debit side of purchases account was under-cast by ₹ 100.
You are required to make the necessary journal entries and the suspense account.

Answer 1

One Sided Errors

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
a)	Suspense A/c	Dr.		18
	To Madhav’s A/c				18
	(Entry for goods for Rs 102, posted to his account as Rs 120)
b)	Discount Allowed A/c	Dr.		200
	To Suspense A/c				200
	(Total of discount allowed was credited to the account)
c)	Jadav’s A/c	Dr.		275
	To Madhav’s A/c				275
	(Amount paid by Madhav credited to Jadav)
d)	Stationery A/c	Dr.		26
	To Suspense A/c				26
	(Amount paid for stationery omitted to be posted)
e)	Purchases A/c	Dr.		100
	To Suspense A/c				100
	(Debit side of Purchases Account undercasted)

Suspense Account
Dr.					Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Difference in Trial Balance		308	Discount Allowed A/c	200
Madhav’s A/c		18	Stationery A/c	26
			Purchases A/c	100
		326		326