Question

A Trial Balance disclosed a difference of ₹ 417 placed on the credit side of the Suspense Account. Later on the following errors were located:
(i) Goods worth ₹ 200 purchased from Sohan had been posted to his account as ₹ 250.
(ii) A purchase of furniture for ₹ 500 was recorded in the Purchases Book.
(iii) Instead of crediting Gian’s Account with ₹ 512, it was debited with ₹ 215.
(iv) Goods worth ₹ 130 returned by Gian were entered in the Sales Book and posted therefrom to the credit of Gian’s Personal Account.
Pass the rectifying entries and prepare a Suspense Account.

Answer 1

Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
(i)	Sohan	Dr.		50
	To Suspense A/c				50
	(Goods Purchased from Sohan Rs 200 was posted to his account as Rs 250, now rectified)
(ii)	Furniture A/c	Dr.		500
	To Purchases A/c				500
	(Purchase of Furniture was entered in Purchases Book, now rectified)
(iii)	Suspense A/c	Dr.		727
	To Gian				727
	(Gian’s Account was debited by Rs 215 Instead of Crediting Rs 512, now rectified)
(iv)	Sales Return A/c	Dr.		130
	Sales A/c	Dr.		130
	To Suspense				260
	(Sale returned by Gian was wrongly entered in the Sales Book, now rectified)

Suspense Account
Dr.	Cr.
Date	Particulars	Amount Rs	Date	Particulars	Amount Rs
				Balance b/d	417
(iii)	Gain	727	(i)	Sohan	50
			(iv)	Sales Return	130
				Sales	130
		727			727