Question

Rectify the following errors assuming that suspense account was opened.

Ascertain the difference in trial balance.

(a)	Credit sales to Mohan Rs 7,000 were recorded in Purchase Book. However, Mohan’s account was correctly debited.
(b)	Credit purchases from Rohan Rs 9,000 were recorded in sales book. However, Rohan’s account was correctly credited.
(c)	Goods returned to Rakesh Rs 4,000 were recorded in sales return book. However, Rakesh’s account was correctly debited.
(d)	Goods returned from Mahesh Rs 1,000 were recorded through purchases return book. However, Mahesh’s account was correctly credited.
(e)	Goods returned to Naresh Rs 2,000 were recorded through purchases book. However, Naresh’s account was correctly debited.

Answer 1

Journal
S. No.	Particulars					L.F.	Debit Amount Rs	Credit Amount Rs
(a)	Suspense A/c				Dr.		14,000
			To Sales A/c					7,000
			To Purchases A/c					7,000
	(Goods sold to Mohan wrongly recorded in Purchases Book; however, Mohan's Account was correctly debited, now rectified)
(b)	Purchases A/c			Dr.			9,000
	Sales A/c			Dr.			9,000
			To Suspense A/c					18,000
	(Purchased goods from Rohan wrongly recorded in Sales Book. However, Rohan's Account was correctly credited, now rectified)
(c)	Suspense A/c			Dr.			8,000
			To Purchases Return A/c					4,000
			To Sales Return A/c					4,000
	(Goods returned to Rakesh Rs 4,000 wrongly entered in Sales Return Book; however, Rakesh's Account was correctly debited, now rectified)
(d)	Sales Return A/c			Dr.			1,000
	Purchases Return A/c			Dr.			1,000
			To Suspense A/c					2,000
	(Goods Returned from Mahesh wrongly entered in Purchases Return Book; however, Mahesh's Account was correctly credited, now rectified)
(e)	Suspense A/c			Dr.			4,000
			To Purchases Return A/c					2,000
			To Purchases A/c					2,000
	(Goods returned to Naresh wrongly entered in Purchases Book; however, correctly debited to Naresh's Account, now rectified)

Suspense Account
Dr.							Cr.
S. No.	Particulars	J.F.	Amount Rs	S. No.	Particulars	J.F.	Amount Rs
(a)	Sales		7,000	(b)	Purchases		9,000
	Purchases		7,000		Sales		9,000
(c)	Purchases Return		4,000	(d)	Sales Return		1,000
	Sales Return		4,000		Purchases Return		1,000
(e)	Purchases Return		2,000
	Purchases		2,000		Balance c/d		6,000
			26,000				26,000