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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.

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Solution

Rectification Journal Entries

DateParticularsL.F.Amount Dr.(Rs)Amount Cr.(Rs)(a)Purchases A/c Dr.1,000 To Suspense A/c1,000(Being total of sales book rectified) ––––––––––––––––––––––––––––––––––––––––––––––(b)Slaes A/c Dr.10,000 To Suspense A/c10,000(Being total of sales book rectified) ––––––––––––––––––––––––––––––––––––––––––––––(c)Furniture A/c Dr.7,290 To Suspense A/c7,290(Being wrong postig in furniture A/c rectified)––––––––––––––––––––––––––––––––––––––––––––––––(d)Bills Receivable A/c Dr.10,000 To Ganesh10,000(Being bill from Ganesh not entered, rectified)––––––––––––––––––––––––––––––––––––––––––––––––(e)Machinery A/c Dr.10,000 To Purchases A/c10,000(Being machinery purchased wrongly recorded,–––––––––––––––––––––––––––––––––––––––––––––––––now rectified

DateParticularsL.F.Amount(Rs)DateParticularsL.F.Amount (Rs)To Difference inBy Purchases A/c1,000trial balance18,290By Sales A/c10,000By furniture A/c7,290¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯18,290––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯18,290––––––


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