Question

Rectify the following errors assuming that suspense account was opened.

Ascertain the difference in trial balance.

(a)	Depreciation provided on machinery Rs 4,000 was not posted to Depreciation account.
(b)	Bad debts written-off Rs 5,000 were not posted to Debtors account.
(c)	Discount allowed to a debtor Rs 100 on receiving cash from him was not posted to discount allowed account.
(d)	Goods withdrawn by proprietor for personal use Rs 800 were not posted to Drawings account.
(e)	Bill receivable for Rs 2,000 received from a debtor was not posted to Bills receivable account.

Answer 1

Journal
S. No.	Particulars				L.F.	Debit Amount Rs	Credit Amount Rs
(a)	Depreciation A/c			Dr.		4,000
			To Suspense A/c				4,000
	(Depreciation on machinery was not posted to Depreciation Account, now rectified)
(b)	Suspense A/c			Dr.		5,000
			To Debtors A/c				5,000
	(Bad debts written off were not posted to Debtors Account, now rectified)
(c)	Discount Allowed A/c			Dr.		100
			To Suspense A/c				100
	(Discount allowed to customers was not posted to Discount Allowed Account, now rectified)
(d)	Drawings A/c			Dr.		800
			To Suspense A/c				800
	(Goods withdrawn by proprietors were not posted to Drawings Account, now rectified)
(e)	Bills Receivable A/c			Dr.		2,000
			To Suspense A/c				2,000
	(Bill Receivable received from debtors were not posted to Bills Receivable Account, now rectified)

Suspense Account
Dr.							Cr.
S. No.	Particulars	J.F.	Amount Rs	S. No.	Particulars	J.F.	Amount Rs
(b)	Debtors		5,000	(a)	Depreciation		4,000
				(e)	Discount Allowed		100
				(d)	Drawing		800
	To Balance c/d		1,900	(e)	Bills Receivable		2,000
			6,900				6,900