Question

Give journal entries to rectify the following errors assuming that suspense account had been opened.
(i) Goods distributed as free sample Rs. 5,000 were not recorded in the books.
(ii) Goods withdrawn for personal use by the proprietor Rs. 2,000 were not recorded in the books.
(iii) Bills receivable received from a debtor Rs. 6,000 was not posted to his account.
(iv) Total of return inwards book Rs. 1,200 was posted to return outwards account.
(v) Discount allowed to Reema Rs. 700 on receiving cash from her was recorded in the books as Rs. 70.

Answer 1

Recification Entries in Journal
$$\begin{array}{ccccc}\text{Date}& \text{Particular}& \text{LF}& \text{Amt. (Dr)}& \text{Amt.(Cr)}\\ \left(i\right)& \text{Advertisement A/c}\text{Dr}& & 5,000& \\ & \text{To Purchases A/c}& & & 5,000\\ & \text{(Goods distributed as free samples )}& & & \\ & \underset{–}{}& & & \\ \left(ii\right)& \text{Drawings A/c}\text{Dr}& & 2,000& \\ & \text{To Purchases A/c}& & & 2,000\\ & \text{(Goods withdrawn for personal use )}& & & \\ & \underset{–}{}& & & \\ \left(iii\right)& \text{Suspense A/c}\text{Dr}& & 6,000& \\ & \text{To Debtor's A/c}& & & 6,000\\ & \text{(Bills receivable received from debtors)}& & & \\ & \underset{–}{}& & & \\ \left(iv\right)& \text{Return Inwards A/c}\text{Dr}& & 1,200& \\ & \text{Return Ourwards A/c}\text{Dr}& & 1,200& \\ & \text{To Suspense A/c}& & & 2,400\\ & \text{(Total to return inward book,)}& & & \\ & \underset{–}{}& & & \\ \left(v\right)& \text{Discount Allowed A/c}\text{Dr}& & 630& \\ & \text{To Reema's A/c}& & & 630\\ & \text{(Discount allowed to Reema Rs. 700.)}& & & \end{array}$$
Dr Suspense Account Cr
$$\begin{array}{cccccccc}\text{Date}& \text{Particular}& \text{LF}& \text{Amt. Rs.}& \text{Date}& \text{Particular}& \text{JF}& \text{Amt. (Rs.)}\\ & \text{Debtor's A/c}& & 6,000& & \text{Return Inward A/c}& & 1,200\\ & & & & & \text{Return Outwards A/c}& & 1,200\\ & & & & & \text{Balanced B/d}& & 3,600\\ & & & \underset{–}{}& & & & \underset{–}{}\\ & & & 6,000& & & & 6,000\\ & & & \underset{–}{}& & & & \underset{–}{}\end{array}$$