Question

During the course of an accounting year, the accountant prepared a trial balance which did not tally. He put the difference in a suspense account. Subsequently, he located the following errors in his books of account:
(i) The total of the returns outwards book, ₹ 21,500 has not been posted.
(ii) A sale of ₹ 4,300 to Ramesh has been credited to him as ₹ 3,400.
(iii) A sale of ₹ 2,960 to Shyam has been recorded in sales book as ₹ 2,690.
(iv) Old furniture sold for cash worth ₹ 5,400 has been posted in sales account as ₹ 4,500. There was no profit or loss on sale.
(v) Goods taken by proprietor worth ₹ 1,000 have not been recorded in the books of account at all.
Pass journal entries of rectify the above mentioned errors and prepare suspense account assuming no error has remained undetected.

Answer 1

One Sided Errors

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
i)	Suspense A/c	Dr.		21,500
	To Purchases Returns A/c				21,500
	(Total of Return Outwards Book omitted to be posted)
ii)	Ramesh’s A/c	Dr.		7,700
	To Suspense A/c				7,700
	(Sale of Rs 4,300 to Ramesh credited to him as Rs 3,400)
iii)	Shyam’s A/c	Dr.		270
	To Sales A/c				270
	(Sales of Rs 2,960 recorded as Rs 2,690 in Sales Book)
iv)	Sales A/c	Dr.		4,500
	Suspense A/c	Dr.		900
	To Furniture A/c				5,400
	(Sale of furniture recorded in Sales Account)
v)	Drawings A/c	Dr.		1,000
	To Purchases A/c				1,000
	(Goods taken by the proprietor omitted to be recorded)

Suspense Account
Dr.					Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Purchases Return A/c		21,500	Difference as per Trial Balance (Balancing Figure)	14,700
Furniture A/c		900	Ramesh’s A/c	7,700
		22,400		22,400