Question

A Book-keeper finds the difference in the Trial Balance amounting to ₹ 210 and puts it in the suspense account. Later on he detects the following errors. Rectify these and prepare the Suspense Account:-
1. Goods purchased from Ram ₹ 700 was passed through sales book.
2. Returned goods to Shyam ₹ 1,500 was passed through returns inward book.
3. An Item of ₹ 450 relating to prepaid rent account was omitted to be brought forward.
4. An Item of ₹ 120 in respect of purchase returns, instead of being recorded in Returns outward book has been wrongly entered in the purchase book and posted therefrom to the debit of Personal A/c.
5. Amount payable to Subhash for repairs done to radio ₹ 180 and a new radio supplied for ₹ 1,920, were entered in the Purchase book as ₹ 2,000.
Give full narrations for rectifying journal entries. Which of the above errors affected the agreement of Trial Balance?

Answer 1

One Sided Errors

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
1)	Purchases A/c	Dr.		700
	Sales A/c	Dr.		700
	To Ram’s A/c				1,400
	(Goods purchased from Ram passed through Sales Book)
2)	Shyam’s A/c	Dr.		3,000
	To Purchases Return A/c				1,500
	To Sales Return A/c				1,500
	(Goods returned to Shyam passed through Returns Inward Book)
3)	Prepaid Rent A/c	Dr.		450
	To Suspense A/c				450
	(Prepaid rent omitted to be brought forward)
4)	Suspense A/c	Dr.		240
	To Purchases Return A/c				120
	To Purchases A/c				120
	(Purchases return recorded in Purchases Book)
5)	Repairs A/c	Dr.		180
	Radio A/c	Dr.		1,920
	To Purchases A/c				2,000
	To Subhash’s A/c				100
	(Amount paid for purchase of radio and repairs on radio entered in Purchases Book)

Suspense Account
Dr.				Cr.
Particulars		Amount (Rs)	Particulars		Amount (Rs)
Difference in Trial Balance (Balancing Figure)		210	Prepaid Rent A/c		450
Purchase Return A/c		120
Purchase A/c		120
		450			450

Note: Item number 3 & 4 affected the agreement of Trial Balance.