Question

A suspense account of a business shows a debit balance of Rs 1075. Rectify the following errors and bring the suspense account to zero balance.

1) Machinery account has been under balanced by Rs 950.
2) Our debtor Hari’s account has been balanced by excess amount Rs 75.
3) The total of purchase book is over cast by Rs 125.
4) The total of sales return book is under cast by Rs 205.
5) Cash column of the cash book has been balanced short by Rs 120.

Answer 1

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
1	Machinery A/c	Dr.		950
	To Suspense A/c				950
	(Machinery Account undercasted, now rectified)
2	Suspense A/c	Dr.		75
	To Hari				75
	(Debtor’s account overbalanced, now rectified)
3	Suspense A/c	Dr.		125
	To Purchases A/c				125
	(Total of purchases book overcasted by Rs 125, now rectified)
4	Sales Return A/c	Dr.		205
	To Suspense A/c				205
	(Total of sales return book undercasted by Rs 205, now rectified)
5	Cash A/c	Dr.		120
	To Suspense A/c				120
	(Cash column of the cash book undercasted by Rs 120, now rectified)

Suspense Account
Dr.	Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
	Balance b/d		1,075		Machinery A/c		950
	Hari		75		Sales Return A/c		205
	Purchases A/c		125		Cash A/c		120
			1,275				1,275