Question

Ganesh drew a trial balance of his operations for the year ended 31st March 2011, there was a difference in the trial balance, which he closed with a Suspense A/c. On scrutiny by the auditors, the following errors were found:

(a) Purchase day book for the month of April 2010, was undercast by = 1,000.

(b) Sales day book of October 2010, was overcast by = 10,000.

(c) A furniture purchased for = 8,100 was entered in the furniture account of 810.

(d) A bill for = 10,000 drawn by Ganesh was not entered in the bills receivable book.

(e) A machinery purchased for = 10,000 was entered in the purchase day book.

Pass necessary journal entries to rectify the same and ascertain the difference in the trial balance that was shown under the Suspense A/c in respect of the above items.

Answer 1

Rectification Journal Entries

$\begin{array}{ccccc}\text{Date}& \text{Particulars}& \text{L.F.}& \text{Amount Dr.(Rs)}& \text{Amount Cr.(Rs)}\\ \left(a\right)& \text{Purchases A/c}\text{Dr.}& & 1,000& \\ & \text{To Suspense A/c}& & & 1,000\\ & \underset{–}{\text{(Being total of sales book rectified)}}& & & \\ \left(b\right)& \text{Slaes A/c}\text{Dr.}& & 10,000& \\ & \text{To Suspense A/c}& & & 10,000\\ & \underset{–}{\text{(Being total of sales book rectified)}}& & & \\ \left(c\right)& \text{Furniture A/c}\text{Dr.}& & 7,290& \\ & \text{To Suspense A/c}& & & 7,290\\ & \underset{–}{\text{(Being wrong postig in furniture A/c rectified)}}& & & \\ \left(d\right)& \text{Bills Receivable A/c}\text{Dr.}& & 10,000& \\ & \text{To Ganesh}& & & 10,000\\ & \underset{–}{\text{(Being bill from Ganesh not entered, rectified)}}& & & \\ \left(e\right)& \text{Machinery A/c}\text{Dr.}& & 10,000& \\ & \text{To Purchases A/c}& & & 10,000\\ & \underset{–}{\text{(Being machinery purchased wrongly recorded,}}& & & \\ & \text{now rectified}& & & \end{array}$

$\begin{array}{cccccccc}\text{Date}& \text{Particulars}& \text{L.F.}& \text{Amount(Rs)}& \text{Date}& \text{Particulars}& \text{L.F.}& \text{Amount (Rs)}\\ & \text{To Difference in}& & & & \text{By Purchases A/c}& & 1,000\\ & \text{trial balance}& & 18,290& & \text{By Sales A/c}& & 10,000\\ & & & & & \text{By furniture A/c}& & 7,290\\ & & & \underset{–}{\overline{18,290}}& & & & \underset{–}{\overline{18,290}}\end{array}$