Question

During the course of an accounting year, an Accountant found a difference in the tiral balance. He puts this difference in a newly opened suspense account. Subsequently, he located the following errors in his books of account:
(i) Goods purchased from Shiv for ₹ 10,000, but entered in sales book.
(ii) Received a bill receivable for ₹ 18,000 from Ganesh, but recorded in bills payable book.
(iii) An item of ₹ 4,000 in respect of purchases returns, wrongly debited to purchases account.
(iv) An item of ₹ 2,000 relating to pre-paid salary account omitted to be brought forward.
(v) Paid ₹ 1,000 on account of repair of furniture, but wrongly debited to furniture account.
Pass journal entries to rectify the above mentioned errors and prepare suspense account assuming that no error remained undetected.

Answer 1

One Sided Errors

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
i)	Purchases A/c	Dr.		10,000
	Sales A/c	Dr.		10,000
	To Shiv’s A/c				20,000
	(Purchases from Shiv entered in Sales Book)
ii)	Bills Receivable A/c	Dr.		18,000
	Bills Payable A/c	Dr.		18,000
	To Ganesh’s A/c				36,000
	(Bills receivable recorded as bills payable)
iii)	Suspense A/c	Dr.		8,000
	To Purchases A/c				4,000
	To Purchases Returns A/c				4,000
	(Purchases return wrongly debited to Purchases Account)
iv)	Prepaid Salaries A/c	Dr.		2,000
	To Suspense A/c				2,000
	(Prepaid salary omitted to be brought forward)
v)	Repairs A/c	Dr.		1,000
	To Furniture A/c				1,000
	(Repair of furniture debited to Furniture Account)

Suspense Account
Dr.					Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Purchases A/c		4,000	Difference as per Trial Balance (Balancing Figure)	6,000
Purchases Return A/c		4,000	Prepaid Salaries A/c	2,000
		8,000		8,000