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(b) Goods were withdrawn for personal use by the proprietor Rs. 2,000 were not recorded in the books.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 return inwards book Rs. 1,200 was posted to return outwards account.

(e) Discount allowed to Reema Rs. 700 on receiving cash from her was recorded in the books as Rs. 70.

Answer 1

$\begin{array}{cccccc}\text{Date}& \text{Particulars}& & \text{LF}& \text{Amt. (Dr)}& \text{Amt. (Cr)}\\ \text{(a)}& \text{Advertisement A/c}& \text{Dr}& & 5,000& \\ & \text{To Purchase A/c}& & & & 5,000\\ & \text{(Goods distributed as free sample Rs. 5,000}& & & & \\ & \text{were not recorded in the books, now rectified}& & & & \\ & \underset{–}{}& & & & \\ \text{(b)}& \text{Drawings A/c}& \text{Dr}& & 2,000& \\ & \text{To Purchase A/c}& & & & 2,000\\ & \text{(Goods withdrawn for personal use were not}& & & & \\ & \text{recorded Rs. 2,000, now rectified}& & & & \\ & \underset{–}{}& & & & \\ \text{(c)}& \text{Suspense A/c}& \text{Dr}& & 6,000& \\ & \text{To Debtor’s A/c}& & & & 6,000\\ & \text{(Bills receivable received from debtors}& & & & \\ & \text{Rs. 6,000 was not posted to his account, now}& & & & \\ & \text{rectified)}& & & & \\ & \underset{–}{}& & & & \\ \text{(d)}& \text{Return Inwards A/c}& \text{Dr}& & 1,200& \\ & \text{Return Outwards A/c}& \text{Dr}& & 1,200& \\ & \text{To Suspense A/c}& & & & 2,400\\ & \text{(Total of return inward book, posted to return}& & & & \\ & \text{outward book, now rectified}& & & & \\ & \underset{–}{}& & & & \\ \text{(e)}& \text{Discount Allowed A/c}& \text{Dr}& & 630& \\ & \text{To Reema's A/c}& & & & 630\\ & \text{(Discount allowed to Reema Rs. 700, wrongly}& & & & \\ & \text{recorded as Rs. 70 only, now rectified)}& & & & \end{array}$
$\begin{array}{cccccccc}\text{Dr}& & & & \text{Suspense Account}& & & \text{Cr}\end{array}$

$\begin{array}{cccccccc}\text{Date}& \text{Particulars}& \text{JF}& \text{Amt. Rs}& \text{Date}& \text{Particulars}& \text{JF}& \text{Amt. Rs}\\ \text{(c)}& \text{Debtor's A/c}& & 6,000& \text{(d)}& \text{Return Inwards A/c}& & 1,200\\ & & & & & \text{Return Outwards A/c}& & 1,200\\ & & & \underset{–}{}& & \text{Balance c/d}& & \underset{–}{3,600}\\ & & & \underset{–}{6,000}& & & & \underset{–}{6,000}\end{array}$