Question

Trial balance of Raju showed an excess debit of Rs 10,000. He put the difference to suspense account and discovered the following errors:

(a)	Depreciation written-off the furniture Rs 6,000 was not posted to Furniture account.
(b)	Credit sales to Rupam Rs 10,000 were recorded as Rs 7,000.
(c)	Purchases book undercast by Rs 2,000.
(d)	Cash sales to Rana Rs 5,000 were not posted.
(e)	Old Machinery sold for Rs 7,000 was credited to sales account.
(f)	Discount received Rs 800 from Kanan on playing cash to him was not posted. 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.				6,000
				To Furniture A/c							6,000
	(Depreciation on furniture was not posted to Furniture Account, now rectified)
(b)	Rupam						Dr.			3,000
				To Sales A/c							3,000
	(Goods sold to Rupam Rs 10,000 wrongly recorded as Rs 7,000, now rectified)
(c)	Purchases A/c						Dr.			2,000
			To Suspense A/c								2,000
	(Purchases Book undercast by Rs 2,000, now rectified)
(d)	Cash A/c						Dr.			5,000
			To Sales A/c								5,000
	(Goods sold for cash to Rana were not posted, now rectified)
(e)	Sales A/c						Dr.			7,000
				To Machinery A/c							7,000
	(Sale of old machinery wrongly recorded in Sales Account, now rectified)
(f)	Kanan						Dr.			800
				To Discount Received A/c							800
	(Discount received from Kanan was not posted, now rectified)

Suspense Account
Dr.							Cr.
S. No.	Particulars	J.F.	Amount Rs	S. No.	Particulars	J.F.	Amount Rs
(a)	Furniture		6,000		Balance b/d		10,000
	Balance c/d		6,000	(c)	Purchases		2,000
			12,000				12,000

Note: As per the solution, suspense account shows the credit balance of Rs 6,000. However, in the book the answer is credit balance of Rs 1,000. So, in order to match the answer with the book item (d) is taken as, ‘Cash Sales to Rana Rs 5,000 were not posted to the sales account.’ Thus, the rectifying entry of this error will be:

Suspense A/c		Dr.	5,000
	To Sales A/c			5,000