Question

Give journal entries to rectify the following errors assuming that suspense account had been opened.

(a)	Goods distributed as free sample Rs 5,000 were not recorded in the books.
(b)	Goods withdrawn for personal use by the proprietor Rs 2,000 were not recorded in the books.
(c)	Bill receivable received from a debtor Rs 6,000 was not posted to his account.
(d)	Total of Returns inwards book Rs 1,200 was posted to Returns outwards account.
(e)	Discount allowed to Reema Rs 700 on receiving cash from her was recorded in the books as Rs 70.

Answer 1

Journal
S. No.	Particulars					L.F.	Debit Amount Rs	Credit Amount Rs
(a)	Advertisement A/c			Dr.			5,000
		To Purchases A/c						5,000
	(Goods distributed as free sample Rs 5,000 were not recorded, now rectified)
(b)	Drawings A/c		Dr.				2,000
		To Purchases A/c						2,000
	(Goods withdrawn by proprietor for personal use were not recorded, now rectified)
(c)	Suspense A/c		Dr.				6,000
		To Debtors A/c						6,000
	(B/R received from debtors was not posted to his account, now rectified)
(d)	Return Inward A/c			Dr.			1,200
	Return Outward A/c			Dr.			1,200
		To Suspense A/c						2,400
	(Total Return Inwards Book Rs 1,200 wrongly posted to Returns Outwards Account, now rectified)
(e)	Discount Allowed A/c			Dr.			630
		To Reema		Dr.				630
	(Discount allowed to Reema Rs 700 wrongly recorded as Rs 70, now rectified)

Suspense Account
Dr.							Cr.
S. No.	Particulars	J.F.	Amount Rs	S. No.	Particulars	J.F.	Amount Rs
(c)	Debtors		6,000	(d)	Return Inward		1,200
					Return Outward		1,200
					Balance c/d		3,600
			6,000				6,000