Question

In taking out a Trial Balance, an Accountant finds an excess debit of ₹ 1,098. Being desirous of closing his books, he places the difference to Suspense A/c. Later on he detects the following errors:-
1. Goods purchased from Surinder for ₹ 350 has been credited to his account as ₹ 530.
2. Goods sold to Dinesh for ₹ 800 have been debited to his account as ₹ 880.
3. A cheque of ₹ 1,250 received from a debtor had been correctly entered in the cash book but posted to his Personal A/c as ₹ 1,200.
4. ₹ 780, paid for freight on machinery purchased was debited to Freight Account as ₹ 708.
5. Goods to the value of ₹ 130 returned by a customer Navin Kumar had been posted to the debit of his account.
6. ₹ 1,440 paid for repairs to Motor Car were debited to Motor Car A/c as ₹ 1,400.
7. Total of purchase return book ₹ 500 was posted to the debit of Purchase A/c.
Give necessary rectifying entries and prepare suspense account.

Answer 1

One Sided Errors

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
1)	Surinder’s A/c	Dr.		180
	To Suspense A/c				180
	(Goods purchased from Surinder for Rs 350 credited as Rs 530)
2)	Suspense A/c	Dr.		80
	To Dinesh’s A/c				80
	(Goods sold of Rs 800 debited as Rs 880 )
3)	Suspense A/c	Dr.		50
	To Debtor’s A/c				50
	(Cheque received from debtor posted as Rs 1,200 instead of Rs 1,250)
4)	Machinery A/c	Dr.		780
	To Suspense A/c				72
	To Freight A/c				708
	(Freight paid on machinery debited to Freight Account)
5)	Suspense A/c	Dr.		260
	To Navin Kumar’s A/c				260
	(Goods returned by a customer debited to his account)
6)	Repairs A/c	Dr.		1,440
	To Motor Car A/c				1,400
	To Suspense A/c				40
	(Repairs paid for motor car debited to Motor Car Account)
7)	Suspense A/c	Dr.		1,000
	To Purchases A/c				500
	To Purchases Return A/c				500
	(Purchases return posted to debit of Purchases Account)

Suspense Account
Dr.					Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Dinesh’s A/c		80	Difference as per Trial Balance	1,098
Debtor’s A/c		50	Surinder’s A/c	180
Navin Kumar’s A/c		260	Machinery A/c	72
Purchases A/c		500	Repairs A/c	40
Purchases Return A/c		500
		1,390		1,390