Question

Trial balance of Anuj did not agree. It showed an excess credit of Rs 6,000.

He put the difference to suspense account. He discovered the following erro Rs

(a)	Cash received from Ravish Rs 8,000 posted to his account as Rs 6,000.
(b)	Returns inwards book overcast by Rs 1,000.
(c)	Total of sales book Rs 10,000 was not posted to Sales account.
(d)	Credit purchases from Nanak Rs 7,000 were recorded in sales Book. However, Nanak’s account was correctly credited.
(e)	Machinery purchased for Rs 10,000 was posted to purchases account as Rs 5,000. Rectify the errors and prepare suspense account.

Answer 1

Journal
S. No.	Particulars			L.F.	Debit Amount Rs	Credit Amount Rs
(a)	Suspense A/c		Dr.		2,000
		To Ravish				2,000
	(Cash received from Ravish Rs 8,000 wrongly posted to his account as Rs 6,000, now rectified)
(b)	Suspense A/c		Dr.		1,000
		To Return Inwards A/c				1,000
	(Return Inwards Book overcast by Rs 1,000, now rectified)
(c)	Suspense A/c		Dr.		10,000
		To Sales A/c				10,000
	(Total of Sales Book was not posted to Sales Account, now rectified)
(d)	Purchases A/c		Dr.		7,000
	Sales A/c				7,000
		To Suspense A/c				14,000
	(Goods purchased from Nanak wrongly posted to Sales Book; however, Nanak's Account was correctly credited, now rectified)
(e)	Machinery A/c		Dr.		10,000
		To Purchases A/c				5,000
		To Suspense A/c				5,000
	(Machinery purchased Rs 10,000 wrongly posted to Purchases Account Rs 5,000, now rectified)

Suspense Account
Dr.							Cr.
S. No.	Particulars	J.F.	Amount Rs	S. No.	Particulars	J.F.	Amount Rs
	Balance b/d		6,000	(d)	Purchases		7,000
(a)	Ravish		2,000		Sales		7,000
(b)	Return Inwards		1,000	(e)	Machinery		5,000
(c)	Sales		10,000
			19,000				19,000